Fonterra has given the go-ahead to sell its farms in China for a total of US$555 million.
Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited (Youran), has agreed to purchase Fonterra’s 2 farming-hubs in Ying and Yutian for $513 million. In addition, Fonterra has agreed Venture Capital Co. Ltd.,to sell its 85% interest in its Hangu farm to Beijing Sanyuan Sanyuan), for $42 million. Hurrell (CEO-Fonterra) says the sale of the farms will allow the Co-op to prioritize the areas of it business where it has competitive advantage. We will do this by bringing the goodness of New Zealand milk to Chinese customers in innovative ways and continuing to partner with local Chinese companies to do so. Our investment in R&D and application centres in China will support this direction,” says Hurrell.