May 30, 2011

 

New Zealand to transfer dairy skills to China

 

 

A group of Taranaki farmers is intending to transfer its farming abilities and knowledge to China.

 

The announcement comes just days after Fonterra revealed its record payout from its export success by supplying China.

 

The group intends to replicate Fonterra's global expansion plan, starting in China's Guangxi province.

 

It has launched a Limited Statement describing its intended prospectus to raise funds to own and operate a New Zealand-style dairy farm in Guangxi.

 

An accountant said the group, in conjunction with an agriculture research company in China and an investment company in Hong Kong, planned to establish the farm to supply fresh milk to the local market.

 

"The increasing and under-supplied demand by China's consumers for fresh milk has been the reason for Fonterra to establish dairy farms in China," the accountant said.

 

The statement said the farm would have a herd of about 1800 cows, which would be imported from New Zealand and would be managed by a New Zealand farming team supported by a leading Kiwi farm consultancy.

 

"The farm will be operated on a highly-productive New Zealand pasture-based system using New Zealand standard plant and equipment," the accountant added said.

 

China's authorities and consumers recognised the milk produced from New Zealand dairy farming and production processes as safe and high quality.

 

A spokesman for the group said they had already had requests from young Taranaki farmers wanting to be part of the experience.

 

The prospectus for the intended share issue of NZD5 million (US$4.09 million) is expected to be registered in June. It would be directed at dairy farmers with a minimum subscription of NZD10,000 (US$8182).

 

Once the farm has become established in about two years, it will be the model for an expansion programme of 20 similar farms in the same region.