Adelaide, 29 January, 2018 - A former broiler farm which had its chicken growing contract terminated due to Baiada's exit from the Australian state of Victoria in 2017 has been sold to a local egg producer for around $3.5 million.

The deal, negotiated by Colliers International's intensive livestock property expert Jesse Manuel, marks one of the first out-of-contract broiler farms which will be converted to an alternate use, since the shut down of Baiada's plant in Victoria.

"There are a range of potential, alternate uses for out of contract broiler farms evidenced by enquiry received from a diverse range of agricultural industry participants," said Jesse Manuel, Associate Director, Colliers International.

Mr Manuel said the farm sold at around a 40 percent discount to its previous value as a commercial broiler farm.

"Every asset has to be assessed on a case by case basis as there are so many variables that impact on a vacant poultry farm's value, such as proximity to other assets in the supply chain, access to markets and labour and, especially, condition of facilities and their adaptability to alternative uses.

"The Meredith farm comprised modern buildings and infrastructure and terrific access via the Midland Highway. It was an ideal fit for the purchaser's operations."

Mr Manuel said his team had a range of contracted and vacant poultry farms on the market throughout Australia, with the Goulburn Valley Intensive Farms at Nagambie in Central Victoria being another group of assets available for an alternate use.

The Nagambie farms comprise 14 production facilities across two farms with extensive staff accommodation, with an asking price of $12 million.

"We've received enquiry from mushroom producers, a range of poultry and pig industry participants together with machinery and self-storage operators," said Mr Manuel.