BACKGROUND
The Brombal family chose an idyllic setting for their highly profitable hydroponic lettuce farm. Located almost on the banks of the Richmond River, it is in the famous Northern Rivers district of New South Wales.
Ballina, with a population of 10,000 is the regional centre. In addition to the sugar cane industry, the region is important for its beef and crop production, including avocados and macadamias. Ballina has daily air links to Sydney.
With its 30 kilometres of white sandy surf beaches, and beautiful estuaries, combined with what is widely acclaimed as Australia’s best climate, the Ballina Shire enjoys a thriving tourism industry.
The region is strategically located on the Pacific Highway, which links Sydney and Brisbane. It is 9.5 hours from Sydney, and 2.5 hours from Brisbane.
Production services the Queensland market. The population of Queensland is 4,400,000, of a total Australian population of 20.5 million. About 1.3 million Queenslanders live in Brisbane, the State Capital.
Coles Supermarkets purchase the entire production.
HISTORY
The Brombal family purchased the 60 acre (25.54 ha) property in 1979, and grew tomatoes in the ground and sugar cane for 3 years. They established the first hydroponic lettuce tables in 1983, and expanded substantially in 1985.They built their first 6 ‘igloos’ (greenhouses) in 1997, adding two more in each of 2001 and 2006, on land formerly dedicated to sugar cane production. The family still uses the balance of their property (about 50 acres) for sugar cane, in conjunction with a sharefarmer. They completed the first stage of the packing shed and coldstores in 1985. There have been substantial extensions and renovations in the ensuing 23 years.
PROCESSING / COLDSTORE
The picking and bagging of the lettuces, and subsequent packing into boxes occurs manually, in the igloos. The boxes are placed on palettes, and moved to the coolroom.
The packing shed covers approximately 800 sq m, and there is currently sufficient cold storage on the site to hold 240 boxes of lettuce.
All buildings are steel frame, clad with Galvanised Iron, excellent or very good condition.
There is an amenities block at the rear of the site.
Additionally, there are two five bedroom, air conditioned family residences which are spacious and well maintained.
TITLE DETAILS
Lot 7 on DP 857885
Folio : 7 / 857885
LOCATION
4 km from Wardell, on the southern side of the Richmond River.
Wardell is 17km south of Ballina, on the Pacific Highway. Wardell has a population of about 500 people.
It is about 5 kilometres from the Pacific Highway, with excellent bitumen side road access, and good road transport unsealed hardstand. The layout is conducive to easy access by rigid tray top trucks and single trailer semi – trailers. The family owns a prime mover and refridgerated trailer, which delivers daily to the Rocklea markets for distribution. The rig is in excellent condition.
WATER
The property has a 50 megalitre water licence. Brombals estimate that they currently use 20 megs, as all the water is recirculated through the nutrient tanks, and re used.
A copy of the water licence is attached.
PRODUCTION
Wardell Hydroponic Lettuces produces 170,000 cases of lettuces per year, with the ability to expand significantly.
Current varieties are:
Red Oak
Green Oak
Green Coral
Butter Crunch
Twin Pack Baby Butter
Coles have asked the Brombals to expand into Asian Greens – Pak Choy and Bok Choy.
The lettuces are all grown within the 10 ‘igloos’ on 478 growing tables. The entire process, from relocating the seedlings from the nursery to picking, takes between 21 – 42 days, depending on the time of year. (Atmospheric temperature).
PLANT & EQUIPMENT
All necessary plant & equipment is included in the sale, including trucks, tractors, forklifts, etc. A full inventory, and depreciation schedule, is available on request.
STAFF
In addition to the 6 family members (3 brothers, and their wives) employed in the business, there are 8 – 10 ‘permanent casuals’.
MAJOR CUSTOMERS
Coles Supermarkets take all of Wardell Hydroponic Lettuces’ production.
FINANCIAL
Earnings before interest , tax and depreciation last year exceeded $1,000,000.
Full financial information will be made available during due diligence.
PRICE
The property will be sold by public auction on March 20th, 2009, unless sold prior.
TERMS
Standard Auction terms : Settlement 30 days from the fall of the hammer. Unconditional contract.
TRANSITION
Should a purchaser require the services of one or more of the Brombel family members for a period of 12 – 18 months, then this may be negotiated.
FUTURE POTENTIAL / EXPANSION
As previously mentioned, Coles are looking for increased supplies of Asian greens, predominantly Bok Choy and Pak Choy. This property has the land and water to meet this demand, simply by constructing further igloos and tables, and extending the water and nutrient lines.
The current coolrooms can be extended to store 20 additional palettes for about $40,000 (owners estimate), so coping with additional throughput is not an issue.
The vendors believe that these and other further Economies of Scale are achievable and realistic.
SUMMARY
Wardell Hydroponic Lettuces is a well established, successful supplier to one of the Nation’s major supermarket chains.
This represents an excellent opportunity to acquire a well managed, profitable, agricultural enterprise in a highly desirable location with reliable rainfall and secure water supply.
Its strategic location on the Pacific Highway adds to its appeal
To arrange an inspection, please contact:
RAY WHITE RURAL BRISBANE
Andrew Mogridge 0408 703 522
Peter Douglas 0407 172 101