Dairy giant Fonterra has sold two joint venture farms in China to Singapore-based AustAsia Investment Holdings for US$115.5m.
Fonterra owned the farms with a joint venture partner, and had a 51% stake in the business. As such, it has received NZ$88m in total asset sale proceeds.
Fonterra CEO Miles Hurrell said the sale allowed Fonterra to focus more on its farmer owners’ milk. The New Zealand co-op sold two other wholly owned China farming hubs earlier this year.
“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,” said Mr Hurrell. “We are well placed to continue to grow our business in Greater China.”
The co-op, which is owned by 10,000 New Zealand farmers, is responsible for approximately 30% of the world’s dairy exports.