Trans-Tasman dairy giant Fonterra has sold its Chinese dairy farms for a total ofg $555 million after developing them with local partners.
The group, which produces brands such as Western Star in Australia, sold its Ying and Yutian farming hubs to Inner Mongolia Natural Dairy and its Hangu farm to Beijing Sanyuan Venture Capital.
Fonterra CEO Miles Hurrell said in developing the farms the company has demonstrated its commitment to developing China’;s dairy industries.
He said: “We have worked closely with local players, sharing our expertise in farming techniques and animal husbandry, and contributed to the growth of the industry.
“We don’t shy away from the fact that establishing farms from scratch in China has been challenging.
“But our team has successfully developed productive model farms, supplying high quality fresh milk to the local consumer market.”
The funds will be used to pay down debt and to further focus Fonterra on New Zealand farmers’ milk.
In China, which takes a quarter of Fonterra’s production, the company will strengthen its food service, consumer brands and ingredients businesses.
Subscribe to our free @AuManufacturing newsletter here.