Dairy co-operative, Fonterra, is selling two joint venture farms in China.
The farms in Shandong province will be sold to Singapore-based AustAsia Investment Holdings for $115.5 million USD (approx. €96.9 million).
The transaction is expected to close on 30 June 2021.
Fonterra CEO, Miles Hurrell, said the sale is another important milestone for the business and aligns to its strategy of prioritising New Zealand milk.
“The sale of the JV farms allows us to focus even more on our farmer owners’ milk and follows the sale of our two 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. We are well placed to continue to grow our business in Greater China.”
Fonterra sold its two wholly owned China farming hubs in Shanxi and Hebei provinces to Inner Mongolia Youran Dairy in April for NZD $552 million NZD (approx. €327.3 million).