Lower land prices in Australia could see more New Zealand farmers head over the ditch.
More than 40 have made the shift in the past 18 months, attracted by land prices less than a half the prices in New Zealand and, in the case of dairy farmers, there is no requirement to own shares in a dairy company.
Max Lyver, who manages PGG Wrightson's international portfolio, said there were opportunities in Australia for lamb and bull beef finishers.
"The average New Zealander can get across to Australia and get into larger farms or larger herds for less money,'' he said.
Because entry costs were lower, Mr Lyver said the return on capital was higher than could be achieved in New Zealand.
He was relaxed about the number of farmers heading to Australia, saying it was not large. "It's not a drain, it's a trickle".
Sheep farmers disenchanted with the state of the New Zealand meat industry and with limited options were also starting to look at dairy or other farming opportunities across the Tasman.
Bull beef finishing was not as common in Australia as it was in New Zealand, he said, and that provided an opportunity for those wanting to move to Australia.
Supplying Fonterra could mean a farmer had more than $1 million in shares. Mr Lyver called that a flow in equity from land to shares.
That money could be freed up if a farmer moved to Australia, and invested in the business, he said.
Australian dairy farmers supplied milk under contract and Mr Lyver said he had heard of farmers switching allegiance overnight, lured by higher prices.
While conditions could get dry, Australian dairy farmers were more accustomed than New Zealanders to using supplements such as grain to get through dry periods.
Milk companies could also pay premiums to encourage continued supply.