Quota triggers bidding war
Published 23/08/2011 | 05:00
A premium of more than €190,000 was paid for a dairy farm in north Meath last week when two southern milk suppliers battled it out for the property.
Given that the lands were sold with a 363,000l (80,000ga) quota, the value of the milk pool equated to almost 53c/l.
A huge crowd turned up at the Headfort Arms, Kells, Co Meath, for the auction of the 109ac dairy farm.
When the gavel came down, a 79ac lot along with the milk quota was sold for €745,000, while a 30ac parcel was withdrawn at €200,000.
Despite the failure to sell the second lot, Ronan McKenna of selling agents, Raymond Potterton Auctioneers, said the vendors and the agents were happy with the sale of lot one, which was bought on behalf of a southern dairy farmer.
Mr McKenna said an examination of the figures showed that the quota made a real difference to the sale price.
"We went into the auction with a guide price of €7,000/ac but the 79ac section made more than €9,430/ac, which means the quota added €2,430/ac or €192,000 to the selling price," he said.
The farm is in the townland of Colnahinch, Moynalty, Co Meath. It is three miles from Moynalty village and eight miles from Kells. Prior to the auction, the interest shown by prospective customers from the dairy sector indicated the milk quota would add considerable value to this farm, which in itself is a fine property.