Fonterra sells its China dairy farms worth $368M to focus on the domestic market

05.10.2020 - Korneychuk Evgeniya
Fonterra sells its China dairy farms worth $368M to focus on the domestic market

On Monday, Fonterra (FCG.NZFSF.NZ) reported that it finally agreed to sell its dairy farms located in China for a total of 555 Million NZD ($367.97 Million). It added that it would continue to focus on its domestic market and reduce debt.

“For the last eighteen months, we have been reviewing every part of the business to ensure our assets and investments meet the needs of the Co-op today,” Fonterra’s Chief Executive Officer Miles Hurrell stated.

“Selling the farms is in line with our decision to focus on our New Zealand farmers’ milk,” he added.

China Youran Dairy Group announced that it would purchase Fonterra’s two farming hubs in Ying and Yutian for 513 Million NZD. Beijing Sanyuan Venture Capital said that it would also acquire an 85% stake in Fonterra’s farm located in Hangu.

In 2019, the New Zealand-based multinational dairy company announced it plans to halt all of its overseas expansion.

Fonterra was criticized by the more than 10,000 farmers who make up its cooperative due to its strange businesses in other countries like China and value-added consumer products that were weighing on the company’s revenue.

 

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or Market Solutions limited." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?