Crafar farms base for growth by Chinese richlister 27 Jan 2012
- Greens back call for environmental rights News
- Developing leadership across the public service News
- Govt invests further $31 million in Hobsonville News
- Constitutional Review Panel report released News
- Delegat’s sees 10% lift in 2014 profit Business
- Infratil on-market buyback completed at $2.38 a share Business
- Forest owners easier target on safety lapses in new regime Business
- SkyCity earnings to get kicker from Adelaide in 2007: Craigs Business
- Over a million community work hours from offenders News
- SFO passes on bulk of complaints, not worried about budget Business
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.
4 Dec 2013 News
New Zealand has been named the second most giving country in the world, largely thanks to more Kiwis giving up their time to help... more
4 Dec 2013 Environment
Campaigners convinced New Zealand's set-net fishing restrictions are a death sentence for the Maui's dolphins have laid cardboard... more
4 Dec 2013 Business News
Article - BusinessDesk Kiwibank board back in compliance after Gribben exit Dec. 4 (BusinessDesk) - State-owned lender ... more
4 Dec 2013 Business News
Article - BusinessDesk Tenon shares surge as it seeks US equities market exposure, flags cash returns By Pattrick ... more
4 Dec 2013 Entertainment
Veteran actor Sir Ian McKellen offered to walk away from his role in the Hobbit movies on the first day of shooting. The British star... more
4 Dec 2013 Property
Auckland house prices rose at the rate of $677 a day in November, based on the average price increase from October to... more
4 Dec 2013 Property
New Zealand Government Hon Dr Nick SmithMinister of Housing 3 December 2013 Bill to rein in housing development charges passes first... more
4 Dec 2013 Migration
The typical Kiwi on Census day 2013 was aged 38, earned $28,500 a year, worked in a service job and owned his or her own... more
4 Dec 2013 Travel & Tourism
Afghanistan, North Korea and Somalia are seen as the world's most corrupt countries while Denmark and New Zealand are nearly ... more
4 Dec 2013 Rugby
New Zealand rugby is today celebrating the All Blacks' clean sweep of the IRB's 2013 Rugby Awards for the second year running. World ... more
4 Dec 2013 Cricket
By Lynn McConnell New Zealand bowler Neil Wagner believes there is still assistance in... more
4 Dec 2013 Column
Column - Gordon Campbell Gordon Campbell on New Zealand’s PISA education rankings by Gordon Campbell Perhaps a bit more... more
3 Dec 2013 Column
Part One: Take the pressure off! The festive season is meant to be well, festive and even a little bit fun! But for many the idea of... more
2 Dec 2013 People
Universal College Of Learning Media Release Monday 2 December 2013 UCOL salutes its Top Scholars UCOL Bachelor of Nursing... more
29 Nov 2013 Recruitment
Article - BusinessDesk Unemployment to hit 4% by 2021, says MBIE Nov. 29 (BusinessDesk) – Job growth and higher... more