OIO Application lodged to purchase Crafar farms

OIO Application lodged to purchase Crafar portfolio of farms

Natural Dairy can confirm it has now lodged an application with the Overseas Investment Office to acquire the Crafar portfolio of dairy farms.

This investment by Natural Dairy will have a considerable flow on effect to rural industries and commerce. The Natural Dairy plan will, in addition to its current 32 local New Zealand employees, contribute an additional 92 new jobs for New Zealanders experienced in farming, As well as its local staff of managers and consultants, it will give job security to the existing 14 sharemilkers on the farms and it has pledged to make available a fund for sharemilkers at discounted rates which will create additional sharemilking opportunities. The amount involved in that sharemilking scheme will begin at NZ$1 million and is planned to increase over the following years to $5 million p.a.

Natural Dairy’s plans for a vertically integrated “added value” dairy product operation means an annual boost of at least $100 million in increased export receipts as well as, apart from the purchase price of the farms, an initial capital expenditure in excess of $30 million.

As proof of its commitment, prior to assuming ownership of these farms, the company has already negotiated a contract to produce and export 150 million packs of UHT milk, using Fonterra supplied milk and a local New Zealand processing operation.

The company trusts the Overseas Investment Office will now follow a fair and due process given the substantial benefits to all New Zealand from this transaction.

In reaction to news that Landcorp has decided to lodge a bid for the farms, UBNZ/Natural Dairy is confident is offers the best return to creditors of the Crafar farms and it already has a signed sale and purchase agreement for the properties, conditional on gaining OIO approval, which it expects to receive within the next few months.

ENDS

© Scoop Media