Fonterra has agreed sell its two joint venture farms in China for US$115.5 million. It has a 51 per cent stake in the JV and will receive NZ$88 million from the sale.
Fonterra is selling the farms in Shandong province to Singapore-based AustAsia Investment Holdings. it is expected to be completed today, 30 June.
Fonterra CEO Miles Hurrell says the sale was part of the strategy for the co-operative to prioritise New Zealand milk.
It follows the sale of its wholly owned farming hubs in Shanxi and Hebei provinces to Inner Mongolia Youran Dairy in April for NZ$552 million.
“Greater China continues to be one of our most important strategic markets. We remain committed to our China business, bringing the goodness of New Zealand milk to Chinese customers in innovative ways and partnering with local Chinese companies to do so. We are well placed to continue to grow our business in Greater China,” says Mr Hurrell.
