Fonterra completes sale of China JV farms
- COOP News
- 19 July 2021
Dairy giant Fonterra has sold two joint venture farms in China to Singapore-based AustAsia Investment Holdings for US$115.5m.
Dairy giant Fonterra has sold two joint venture farms in China to Singapore-based AustAsia Investment Holdings for US$115.5m.
Fonterra has completed the sale of its two wholly owned farming hubs in China where it will now focus on creating value from its New Zealand farmers’ milk
China Youran Dairy Group will purchase two Fonterra farming-hubs located in Ying and Yutian for NZ$513 million, while Beijing Sanyuan Venture Capital is set to acquire an 85% stake in the Hangu farm.
Fonterra's owners are worried about the cooperative's $800m investment in establishing dairy farms in China, which yielded only $1m in earnings last year, despite a $38m subsidy of their operations by Fonterra's China ingredients division.
Fonterra has increased its investment in Lithuania's biggest dairy producer, AB Rokiskio Suris, to support its New Zealand milk pool and further grow its export markets such as the Middle East.
Fonterra boss Theo Spierings is "not worried” about sales of NZ productive land to foreigners so long as we are “working together” with foreign owners.
New Zealand should consider adopting policies similar to China's where strategic assets like farmland cannot be sold to foreign investors, only leased, a senior academic said Tuesday.
New Zealand-based Fonterra, the world's biggest dairy exporter, said that it and Abbott would invest a combined $300m in setting up a so-called "farm hub" in China, to produce "high quality dairy".
It has been reported that the state-owned China Investment Corporation and New Zealand dairy giant Fonterra are negotiating to buy Tasmanian dairy farm Van Diemen's Land under a proposed $200 million deal.
China's sovereign-wealth fund is one of three large funds vying to take a stake in Australian dairy company Van Diemen's Land Co.
The New Zealand government will set up a NZ$6 million model dairy farm in Burma/Myanmar, Prime Minister John Key says.
The Chinese conglomerate that bought the Crafar Farms this year is not ruling out the possibility of buying more New Zealand dairy land to fuel its exports to China.
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