ADM New Zealand
Each of these case studies was written shortly following completion of the relevant development or other significant lease-related event. While accurate at that time, in some cases, circumstances have changed, including PFI’s ownership of the property, the identity of the tenant, property specific metrics (including rent) and/or use of the property.
Overview
There are more dairy cows in New Zealand than people – more than five million now – producing over 21 billion litres of milk annually. No wonder, then, that ADM’s New Zealand business grew by 70% last year.
With headquarters in Chicago, ADM is one of the world’s largest agricultural processors and food ingredient providers. In business for over a hundred years, they employ more than 32,000 people, serving customers in over 160 countries. Global sales exceed US$80 billion.
In New Zealand, ADM’s main market is stock food for the dairy industry, in particular palm kernel extract, a by-product of the palm oil industry in South East Asia. Dairy farmers feed it to their cows as a supplement to increase production and when pasture growth is slow.
“The growing global demand for protein bodes well for the New Zealand dairy industry, and accordingly we’re confident in the future for supplementary feed,” says ADM New Zealand General Manager Ross Bowmar. “Our biggest challenge is managing the supply chain so that farmers can rely on us to provide quality product, when they need it, at a competitive price. This new bulk store is a critical link in that chain. It’s a fit-for-purpose facility in an ideal location. Tauranga is the ideal point of entry for us – because Tauranga accounts for almost half the New Zealand stock feed industry imports. Having the store right on the port really streamlines our logistics. It takes an industrial property specialist like PFI to understand what we need and to make it possible”.
