Wrecked farms get a $23 million makeover
When state farmer Landcorp took over the dilapidated ex-Crafar farms in the North Island four years ago, it had little idea of the challenges lying ahead.
Milk NZ Holdings is owned by Shanghai Pengxin. The company was the supreme winner at the business awards and also won the DLA Piper Award for Inward or Outward Investment in China.
“Their category win and overall supreme win in these important awards are important to New Zealand, and also significant to Chinese who see recognition like this as noteworthy. It could help attract further interest from investors,” says Martin Thomson, chair of the NZCTA and a partner in global law firm DLA Piper NZ.
The company bought the Crafar farms and has since renovated and rehabilitated them under a management contract with Landcorp. It also bought Synlait Farms’ interests in 13 NZ farms. The company has committed to a partnership with Maori-owned Miraka, which manufactures UHT milk for export, and it has other NZ investments.
“New Zealand needs foreign investment like this,” says Thomson.
“According to government figures, the amount of foreign direct investment in New Zealand per capita is much lower than the average for ‘small nations’ in the OECD. Put simply, foreign direct investment brings jobs, skills, more trade, international linkages and cultural exchange. You can see that in the quality of the improvements Milk New Zealand has made to farmland and their overall record here.
“Foreign direct investment is important in New Zealand because we lack the capital in the country to bring about large change and major steps forward in our industry, including in dairy. Milk New Zealand Holding Ltd has helped pave the way.”
