Brand new Canadian dairy farm for sale for € 7.7 million

In Canada’s second smallest province – Nova Scotia – a modern, decent-sized dairy farm is up for sale. The company with 115 hectares of ownership (of which 80 hectares can be cultivated) and 47 hectares on lease has a bid price of € 7.7 million. It seems very high, but that price includes a milk quota of 1.46 million kilos. The livestock – 112 dairy cows, 25 dry cows, 95 young cattle -, feed stores and a large machine park are also included in the price. According to the broker, a buyer must be able to finance approximately 40% of the offer price.

Nova Scotia is a peninsula and is slightly larger than the Netherlands. There are significantly fewer people living there; just under 1 million Nova Scotia is largely surrounded by water, but has a terrestrial rather than a maritime climate. Temperatures can reach 35 degrees in summer, while the average temperature in winter is -5 to -10 degrees. The company is located in the heart of Nova Scotia’s dairy area, which has around 200 dairies.

Read more under the pictures.

Overview of the courtyard with the spacious and renovated house on the left.  There is also another smaller house available.
Overview of the courtyard with the spacious and renovated house on the left. There is also another smaller house available.
The free barn was built in 2015 and is spacious.  There is room for 112 dairy cows and 95 young animals.
The free barn was built in 2015 and is spacious. There is room for 112 dairy cows and 95 young animals.

Basic facilities close by

Dalhousie Agriculture Campus is also close to the dairy farm. There are also three construction companies in the immediate vicinity. Seller now uses two of them to fertilize his land and for sowing and harvesting corn. The company is located not far from the village of Truro, which has 12,000 inhabitants. Here are all the basic amenities. Schools are located within a radius of 5 kilometers from the company. The nearest town is Halifax with 400,000 inhabitants, just a 45 minute drive away.

Naturally, there are not too many restrictions. For example, farmers have to cut down trees themselves. It is important to be careful when using plant protection products. Canadian rules are strict regarding waterways and rivers. As a farmer, you have to stay far enough away from that.

Young stable, new milking robots

This company’s business card is the large free barn that was built in 2015. The barn still looks very nice and has a clear layout. The dairy cows are on one side of the feeding aisle, and the young cattle are in five different groups on the other side. The cows are milked in two Boumatic MRS 2 robots from 2020.

The milk is sourced from two milk producers: Agrupor and Saputo. Within the Canadian quota system, milk prices are high, determined by Dutch standards. The average conversion rate for this company is 0.58 € per. kg with 4.45% fat and 3.16% protein, according to the broker. It should be noted that it is difficult to expand in Canada.

The old milking parlor is located right next to the free barn. The dry cows and the youngest calves are housed there. Other farm buildings include a machine shed and a granary. There are also several silos. A total of 4,700 cubic meters of manure can be stored. The current owner can dispose of this manure on their own land.

The beautiful house in the courtyard is very spacious and has been completely renovated. The house contains seven bedrooms and three full and two half bathrooms. There is also another home across the access road to the courtyard. There are three bedrooms and two bathrooms.

Overview in the barn, where the dairy cows and young animals are separated by the feeding aisle.  The young population is in five different groups.
Overview in the barn, where the dairy cows and young animals are separated by the feeding aisle. The young population is in five different groups.

Agriculture on clay / clay soil

The area around the dairy farm consists of good, fertile soil. This is both clay and topsoil. The current owner has in recent years grown corn, soybeans, barley and winter wheat. Of the 162 hectares of land in use, the majority are close to the farm. Around the farm are plots of a total of 89 hectares. The other 73 acres are a little further away, but still some distance away.

Most of the land is owned. It is also easy to rent additional land in Nova Scotia, usually also to purchase additional land. This depends to a large extent on supply and demand in the market. In that case, the prices are between € 2,250 and € 4,500 per.

The cows are milked in two Boumatic MRS 2 robots.  The milk price is high, averaging 0.58 € per.  kilo.
The cows are milked in two Boumatic MRS 2 robots. The milk price is high, averaging 0.58 € per. kilo.

Constant fiddling with protected market

Canada has a quota system for milk production.
This system protects its own market, and milk prices are also (significantly) higher than in the Netherlands. However, there are drawbacks. Within the quota system, growth is difficult and entrepreneurship is therefore less stimulated.

In addition, both milk consumption and the number of milk producers in Canada have been declining for decades. Combined with the foreign dairy products that are increasingly entering the Canadian market due to various trade agreements, it puts tensions in the milk production sector in the North American country.

Research from Dalhousie and Guelph Universities shows that 8% of the protected Canadian dairy market now consists of foreign dairy. The biggest ‘culprits’ are the trade agreements CETA (with Europe), USMCA (with the USA) and CPTPP (with countries in the Trans-Pacific).

As a result of these treaties, Canadian milk producers are losing part of their sales market. The treaty with the United States has particularly affected Canadian milk producers. Foreign dairy is leaking so slowly but steadily into the Canadian sector.

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