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

 


Fonterra to build third Chinese farm hub

Fonterra to build third Chinese farm hub with NYSE-listed Abbott

By Paul McBeth

July 11 (BusinessDesk) - Fonterra Cooperative Group, the world's biggest dairy exporter, plans to build a third farm hub in China in a US$300 million joint venture with New York Stock Exchange-listed Abbott Laboratories, in its latest attempt to latch on to growth in the world's second biggest economy.

The companies signed an agreement to develop a dairy farm hub, consisting of up to five farms and more than 16,000 cattle, producing up to 160 million litres of milk a year, they said in a statement. The deal is subject to approval from Chinese regulators, and the initial farm is expected to start producing in the first half of 2017, with full production the following year.

"This would be Fonterra's third farm hub in China and will complement our existing farming operations in Shanxi and Hebei Provinces that have been very successful," Fonterra chief executive Theo Spierings said. "Farming hubs are a key part of our strategy to be a more integrated dairy business in Greater China, contribute to the growth and development of the local Chinese dairy industry and help meet local consumers' needs for safe, nutritious dairy products."

Last year Auckland-based Fonterra announced plans for its second farming hub in Ying County, Shanxi Province to double its Chinese milk production to 300 million litres a year. Fonterra has been looking for partners in the development, in the second step towards producing an annual 1 billion litres of milk in China by the end of the decade.

The deal is the latest Chinese venture for Illinois-based Abbott in a string of investments worth more than US$400 million this year, it said in a separate statement. Last month Abbott opened a nutritional manufacturing facility in Jiaxing, and it opened two research and development centres in Shanghai earlier this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news