Natural Dairy (NZ) Holdings Limited (Natural Dairy), erstwhile China Jin Hui Mining Corporation has struck a deal with four New Zealand farms to buy their assets and is also in talks to buy more farms.
In a filing to the Hong Kong Stock Exchange on Wednesday, Natural Dairy said that it plans to buy farms, livestock and milk powder plants in New Zealand, valued up to $1.1 billion.
It is believed that Natural Dairy is holding negotiations with Crafar farms, the country's biggest privately owned dairy business, for buying their 24 farms. The farms came under receivership last year following issues related to animal health in the farms.
Hong Kong-based Natural Dairy is an investment holding company. The company's activities include providing engineering systems contracting services and selling of related consumable and spare parts, installation and maintenance services a well as invest holding.
"The news really shows the New Zealand-China Free Trade agreement flows both ways, given New Zealand companies have invested in China. Now we have the Chinese reportedly looking to directly invest in New Zealand,'' said Lachlan McKenzie, chairperson of Federated Farmers.
Federated Farmers is New Zealand's leading independent rural advocacy organisation with its activities aimed at adding values to the farming business for its members including meat, dairy, grain and seed, bees, etc.