The company made the offer in January after the Overseas Investment Office knocked back Hong Kong firm Natural Dairy’s application. Pengxin, which also needs OIO approval, would buy 16 of the Crafar family’s farms, along with related assets and livestock, and upgrade the farms over the next two years.
It plans to lift milk production by 10% after three years, according to a statement from its local subsidiary.
Pengxin wants to continue supplying raw milk to exporter Fonterra Co-operative Group, and also enter into partnerships with North Island processing plants to produce high quality dairy products, such as baby formula, ice cream and cheese, targeting Chinese consumers.
“New Zealand can benefit from supplying the Asian market with new added-value products,” spokesman Cedric Allen said in a statement.
The failed bid by Natural Dairy to buy 20 farms, including the 16 Crafar farms, forced the government to tighten restrictions on the sale of rural land to offshore investors, amid a wave of opposition from groups as diverse as the Green Party and Federated Farmers.
Still, that hasn’t deterred Pengxin, which Allen said may be interested in other local investments or facilitating exports into Asia.
Pengxin was established in 1997. Its website lists bio-energy businesses in Cambodia, Bolivia and Argentina growing soybean, corn and palm covering some 125,000 hectares.
The farms will be run by local subsidiary Milk New Zealand Holding.
Source: www.nznewsuk.co.uk
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