News Milk
Fonterra sells dairy farms in China again
Fonterra has again sold dairy farms in China. The New Zealand dairy giant sells its stake in 2 companies in Shandong province.
Fonterra announced last Monday (June 28) that it is selling 2 dairy farms in the Chinese province of Shandong. It is being acquired by Singapore-based AustAsia Investment Holdings for a total of US$115,5 million. The buyer, an investment company, also owns 75% of the Indonesian concern Japfa, which is active in both food (food) and feed (animal feed).
Fonterra owns 51% of the 2 companies and therefore receives $62 million in the bank account. The other part of the amount will go to co-owner Abbot, an American food company. According to Fonterra, the sale of the joint venture farms does not require further regulatory approval. The transaction is expected to close on June 30.
Don't turn your back on China
It is not the first time this year that the dairy company has sold dairy farms in China. Earlier this year there were already Chinese dairy farms sold. Fonterra says the sale is in line with the plan to focus on processing New Zealand milk. But the cooperative indicates that it is not turning its back on China. The Chinese dairy market continues to develop.
Fonterra declares that it wants to innovate by focusing on creating new products from the New Zealand milk flow. “We remain committed to increasing the value of our business in China, which we do by bringing the quality of New Zealand milk to Chinese customers in innovative ways, partnering with local Chinese companies,” said CEO Miles Hurrell.
Chanti Oussoren
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