New Zealand-based dairy processing and marketing behemoth, Fonterra has confirmed sale plans are proceeding for its two wholly-owned dairy farm hubs in China for about $500 million.
The buyer, to the Inner Mongolia Natural Dairy company,is a subsidiary of the livestock company China Youran Dairy Group and has been granted anti-trust approvals to take over the model farm developments established about five years ago as part of Fonterra’s market development efforts in China.
The sale is expected to be wrapped up by June.
In October Fonterra also announced it was selling its 85 per cent stake in its Hangu farm to Beijing Sanyuan Venture Capital Company for almost $40m as part of a debt reduction push and a realigned focus on NZ milk production sector priorities.
Source: farmweekly.com.au
