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Dairy farms

Selling a dairy farm to the government

Dairy farms in uMgungundlovu, Harry Gwala, uThukela, and Amajuba are acquired by the state as going concerns for PLAS emerging farmer leases because the parlour, irrigation, and milk contract let a new operator start producing immediately. The state values land, improvements, and irrigation; the herd and movable equipment are negotiated separately. Landmatters has completed Midlands dairy sales for two decades.

Dairy sales differ from other types in the weight the parlour, cold chain, and pasture irrigation carry in the valuation. We compile the milk buyer contract, three years of production records, the irrigation water use registration, and an equipment inventory that separates fixed from movable items. Effluent management and municipal compliance certificates are increasingly requested by district offices. Where a farm supplies a co-operative or processor, we confirm the buyer's position on a change of operator before submission.

How well it fits the state's programmes

High. Going-concern dairies with irrigation and a milk contract are among the most sought-after PLAS acquisitions.

Documents specific to dairy farms

  • Milk supply contract
  • Three years of production records
  • Irrigation water use registration
  • Fixed and movable equipment inventory
  • Effluent and environmental compliance records

Plus the standard file: title deed, SG diagram, ID and proof of address per signatory, rates and tax clearances, and the FICA pack.

Where we sell dairy farms

Questions about selling dairy farms

Is the herd included?

Not in the land sale. A separate going-concern agreement can include the herd and equipment if both sides want it.

Does the state value the parlour?

Yes, as a fixed improvement, at depreciated replacement cost.

How long do dairy sales take?

Our completed dairy files ran 14 to 24 months from mandate to registration.

Next step

Selling a dairy farm? Start with a call.

Twenty minutes on the phone. We tell you honestly whether a state sale is the right route for your farm, what it would take, and how long it usually runs. No cost, and no obligation to give us a mandate afterwards.

Thinking about selling to the state?Book a call

Ask Msizi

Selling a dairy farm to the government in KwaZulu-Natal