Buyers tipped to go nuts for Victorian pistachio farm

There aren’t too many industries where you can make one small purchase and instantly own 10% of the Australian market.

But whoever buys a Victorian pistachio farm will immediately be a major player among Australian nut growers, with the property representing a significant chunk of the local industry.

And with pistachio prices peaking at record levels last year, agents are expecting strong interest from both local and overseas investors.

Agriculture boom: Goulburn Valley dairy farm to test market

‘The Pistachio Farm’, in Telopea Downs in the Wimmera region, about 350km south-east of Adelaide and 440km north-west of Melbourne, features 103ha of pistachio orchards spread over a 312ha property, with a large area of plantable land with irrigation mains and sub-mains in place, as well as operational buildings and other irrigation infrastructure.

Receivers Matthew Caddy and Keith Crawford of McGrathNicol have appointed Colliers International’s Jesse Manuel and Tim Altschwager to sell the property, which was purchased by the current owners C.E. Lee Pty Ltd in 2008.

Manuel says the farm should draw interest from local growers seeking to increase their stake in an industry that set a record yield of 2000 tonnes last year.

The farm’s 102ha of trees are spread across the 312ha property in Victoria’s Wimmera region.

There are currently less than 50 pistachio growers across Australia, with a total of around 950ha of trees planted. ‘The Pistachio Farm’ is the fourth largest operation in the country, accounting for more than 10% of total plantings.

“This sale presents an excellent opportunity for existing pistachio producers to add to their current holdings, or for other nut or horticultural producers to add product and market diversity to their business,” Manuel says.

The farm gate value of Australian pistachios is currently $9 million and this is expected to rise to $30 million by 2025

“We also expect interest from investors seeking exposure to the agribusiness sector in an industry which is currently experiencing strong prices for its product.”

Manuel says pistachio prices have more than doubled in the past five years, though Australia’s growers still account for only 40% of local sales, with much of the world’s pistachio supply originating in California and Iran.

“In regard to returns from pistachios, the PGA (Pistachio Growers Association) reports that price levels hovered around the $5 to $6 per kilogram for many years up to 2011 before beginning to rise every year up until 2015 when the price reached $13 per kilogram,” he says.

‘The Pistachio Farm’ has improved irrigation facilities.

“This trend almost mirrors the recent price lift and value levels that almond producers have experienced over the same period, noting however that pistachio price levels have remained slightly higher overall than almonds.”

“The farm gate value of Australian pistachios is currently $9 million and this is expected to rise to $30 million by 2025.”

Altschwager says ‘The Pistachio Farm’s’ owners have developed the property over the past seven years, increasing its viability.

“They have made considerable improvements to the irrigation infrastructure and systems, increasing water output capacity throughout the orchard and improving the growth and health of the trees, which has led to greater crop yields,” he says.