Dairy Farming: A resilient investment amid economic shifts
Investor Daily, by Rhea Nath
"With the benefit of stable income alongside capital growth, dairy farming remains a "solid" investment to feed a growing Australian population, according to Prime Value Asset Management."
Interest in the role alternatives play in a portfolio has mounted in recent years as investors witnessed traditional assets put to the test against geopolitical risks, rising inflation, and the end of the zero-interest-rate policy era.
In its 2024 Long-Term Capital Market Assumptions, JP Morgan Asset Management (JPMAM) said alternatives continue to offer “powerful tools” supporting portfolio diversification, inflation hedging, and resilient performance.
One such alternative offering plenty of opportunity for diversification, according to Prime Value Asset Management, is Australia’s dairy industry, with the value of milk production predicted to hit $5.5 billion in 2024–25 as per recent figures from the Department of Agriculture, Fisheries and Forestry.
“Milk is a nutritional product that everybody consumes,” Kirsti Keightley, general manager, dairy investments at Prime Value Asset Management, said.
“Unless you’re lactose-intolerant, it’s an item you might use every day – it’s a staple in households.”
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