Crafar farms base for growth by Chinese richlister 27 Jan 2012
- Forecasts for grain exchange 'no unrealistic': Paviour-Smith Business
- $1 million for ASB Theatre in Blenheim News
- Kiwifruit NZ ordered to reconsider marketing proposals Business
- Air NZ sale of Virgin stake could be delayed by election Business
- NZ wool prices advance at auction as supplies dwindle Business
- Paviour-Smith rejects claim Business
- Fonterra forecasts 63% surge in 2017 organic milk payout Business
- UPDATE: SLI revenue growth to stall on customer losses Business
- Reserve Bank bans MediaWorks from media conferences Business
- New Palmerston North cycleway will enhance city connections News
The purchase of 16 farms in New Zealand is a base for expansion in dairying by Jiang Zhaobai, one of China’s wealthiest men, according to the Overseas Investment Office (OIO) decision.
The OIO recommended the sale of the so-called Crafar farms to Shanghai Pengxin Group (SPGL) and associated companies and Associate Finance Minister Jonathan Coleman and Land Information Minister Maurice Williamson have approved it.
The sale by receivers KordaMentha has stoked anti-foreign investment sentiment and a rival consortium led by New Zealand businessman Michael Fay is promising a legal challenge.
The OIO decision does not reveal the sale price but says the buyer wants to invest more in New Zealand and will spend more than $NZ100 million in the next five years to promote New Zealand diary products in China.
SPGL has extensive business interests and is owned by Nangtong Yingxin Investments, a Chinese company owned 99 percent by Zhaobai Jiang and his brother Jiang Lei owns 1 percent.
Jiang Zhaobai is a Chinese and Hong Kong citizen. The professional engineer founded a real estate construction company in 1988 and is listed on the 2010 Forbes List as the wealthiest person in China.
The OIO decision says he intends to identify dairying and processing operations in New Zealand which may be appropriate for partnerships.
He does not want to build or own milk processing plans but may invest with joint venture partners in expanding capacity if it is required.
He intends to increase production at the Crafar farms, which have suffered from under investment and poor pasture quality, by investing $NZ15.75 million in the first two years. A breakdown with spending blanked out includes investment in effluent systems. The production goals in a business plan are also blanked out in the decision.
The new owner intends to sell its milk to dairy co-operative Fonterra. The size of the shareholding acquired in Fonterra via farm ownership is blanked out.
“The applicant would be interested in offering expertise from China to collaborate to develop new dairy products for the Asian, and particularly the Chinese, market such as baby formula.”
This decision suggests processing would be in New Zealand.
Jiang Zhaobai is also investing in a farm school on one of the acquired farms to be operated by New Zealand’s state-owned Landcorp, which will manage the farms purchased.
Landcorp will also help develop the applicant’s sheep business in China.
The applicant submitted that a refusal of his application may adversely affect New Zealand’s trade relations in China. The countries have a free-trade agreement.
“SPGL is a credible and well respected business in China with strong business acumen and ability,” the OIO said.
The new owner has to provide public walking access to some areas.
A joint venture owned 50 percent by Landcorp and 50 percent by the Chinese acquirer will develop and manage the farms. Landcorp is a provider of farm management services.
Forbes has Jiang Zhaobai as the 284th richest person in China.
28 Apr 2016 News
New Zealand Government Hon Amy AdamsMinister for Communications 28 April 2016 More than 200 top business people will join... more
28 Apr 2016 Business News
Article - BusinessDesk Landmark EQC settlement agrees it must repair homes to 'when new' state By Sophie Boot April 28 ... more
6 May 2016 Food & Wine
Oz Clarke, the man who helped put New Zealand Wine on the map, will be inducted into the New Zealand Wine Hall of Fame on... more
4 May 2016 Entertainment
Fresh from their sold-out touring season with the NZ Festival in March 2016, the award-winning Modern Maori Quartet has booked a four... more
28 Apr 2016 Property
New Zealand Government Hon Dr Nick Smith Minister for Building and Housing 28 April 2016 Changes to KiwiSaver withdrawal rules... more
27 Apr 2016 Property
Article - BusinessDesk House-sharing offer aims to get Aucklanders on property ladder By Fiona Rotherham April 27 (BusinessDesk) -... more
30 Mar 2016 Migration
British High Commissioner Jonathan Sinclair is defending changes to skilled migrant rules for Britain but suggests they won't affect... more
11 Mar 2016 Travel & Tourism
Article - BusinessDesk Air New Zealand to revenue share with United in NZ-US routes By Paul McBeth March 11 (BusinessDesk) -... more
28 Apr 2016 Rugby League
New Zealand Rugby League Thursday, April 28, 2016Sleepless Nights for Ferns Selectors Akarana second row Annetta Nuuausala is ... more
28 Apr 2016 Sailing
Yachting New Nealand NZL takes early lead in three events at Sailing World Cup Hyeres The NZL Sailing Team has made a strong start... more
28 Apr 2016 Opinion
Gordon Campbell on Trump and the Madman Theory Years ago, Richard Nixon explained to his chief adviser Bob Haldeman what has since... more
27 Apr 2016 Opinion
Gordon Campbell on Kiwirail’s latest stint in the dogbox The denigration of Kiwirail continues. The latest review (based on a ... more
28 Apr 2016 Appointments
University of Otago University of Otago appoints next Dean of Pharmacy A leading researcher from Canada has been appointed as the... more
10 Mar 2016 Recruitment
New Zealand Government Hon Michael Woodhouse Minister for Workplace Relations and Safety 10 March 2016 Zero-hour contracts gone, PPL... more