Wednesday, 14 April 2021 11:55

China farms finally sold

Written by  Staff Reporters
Fonterra chief executive Miles Hurrell says the company is pleased to hand over ownership of its two wholly owned farms in China to Mongolia Youran Dairy Co. Fonterra chief executive Miles Hurrell says the company is pleased to hand over ownership of its two wholly owned farms in China to Mongolia Youran Dairy Co.

After years of losses, Fonterra's two wholly owned China farming hubs in Ying and Yutian have been sold.

The $552 million deal is an important milestone for Fonterra following its strategic refresh.

The co-operative announced in October 2020 the sale of the farms to Inner Mongolia Youran Dairy Co, subject to anti-trust clearance and other regulatory approvals in China.

Fonterra says those approvals have now been received. The co-op poured around a billion dollars into the farms. However, the farms failed to provide a return to farmer shareholders.

Fonterra chief executive Miles Hurrell says the co-op has contributed to the development of the Chinese dairy industry by establishing these farms.

"We're pleased to now hand ownership over to Youran for the next phase of development.

"The China market is fast moving and inspires us to keep innovating. Our China team will continue with their focus on creating value from our New Zealand farmers' milk through new products, applications and close partnerships with our customers.

"As we've seen from our recent FY21 interim financial results, our China business is performing very well, underpinned by strong demand for New Zealand dairy driven by our team on the ground.

"With these foundations, we are well placed to continue to grow our Greater China Food service, Consumer and Ingredients businesses," says Hurrell.

The completion of the sale of Fonterra's 85% interest in its Hangu farm to minority shareholder Beijing Sanyuan Venture Capital Co is progressing and is expected to be completed this financial year.

More like this

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Featured

$2b boost in NZ exports to EU

New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.

US tariffs hit European ag machinery markets

The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.

Tributes paid to Jim Bolger

Dignitaries from  all walks of life – the governor general,  politicians past and present, Maoridom- including the Maori Queen, church leaders, the primary sector and family and  friends packed Our Lady of Kapiti’s Catholic church in Paraparaumu on Thursday October 23 to pay tribute to former prime Minister, Jim Bolger who died last week.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Follow the police beat

OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter