Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fonterra won’t buy Tasmanian farms as focus stays on plants

Fonterra won’t bid for Tasmanian farms as focus stays on factories

By Paul McBeth

Sept. 26 (BusinessDesk) - New Plymouth-owned Tasman Farms, Van Diemen's Land Co's parent, wants to raise up to A$180 million, with at least A$100 million in fresh equity, and has attracted potential suitor from China, but won't see Fonterra Cooperative Group at the negotiating table.

The New Zealand dairy exporter, which reports its annual results today, won't invest in the Tasmanian farm upgrade, which has reportedly attracted interest from China Investment Corp, the US$200 billion sovereign wealth fund.

"Fonterra has a very strong relationship with VDL as their processing partner but our investment interests in Tasmania are focused on our factories at Spreyton and Wynyard, rather than farms," a Fonterra spokeswoman said in an emailed statement. "We are supportive of any suppliers who are looking to grow and develop their operations."

The investment in VDL's Woolnorth farm will be timely for the state after forestry group Gunns went into voluntary administration, putting some 600 jobs at risk. Tasmanian Premier Lara Giddings this week returned from a trade mission that included pitching agriculture and mining investment opportunities to China Investment Corp.

Tasman Farms wants to grow its milk production capability to as much as 15 million to 18 million kilograms of milk solids from 5.76 million kg in the 2012 season. It is already Australia’s biggest dairy farmer and Fonterra's largest supplier on the other side of the Tasman.

This week VDL chief executive Michael Guerin said in a statement he was confident the expansion plans would raise enough funds with “a number of investors interested in the project.”

Two China Investment Corp executives spent two days visiting Van Diemen’s Woolnorth farm, Australia’s biggest dairy farm, having already inspected the rival Little Lion dairy operation in Tasmania, Fairfax Media reported. The sovereign wealth fund has approached the Foreign Investment Review Board for preliminary consultations, reports said.

Foreign ownership of land, particularly involving Chinese buyers, has been a thorny issue on both sides of the Tasman with Shanghai Pengxin’s purchase of the Crafar family farms in New Zealand set to face a challenge in the Supreme Court, while Australian approval for Shandong Ruyi to buy Queensland cotton farm Cubbie Station attracted heavy criticism from Opposition politicians.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news