October 16, 2014

Chinese firm in buying spree to form Australia's biggest dairy farm

A Chinese firm has entered into deals with 50 dairy farmers in western Victoria to buy their farms collectively worth US$400 million to form Australia's largest dairy farming company that is five times bigger than the giant Van Diemen's Land Company (VDL) in northwest Tasmania.

The 19,000-hectare VDL comprises 25 farms and 18,000 milking dairy cows.

According to a report posted online from Australia, Tasmania-based property developer Troy Harper was brokering the deals. Harper would not name the Chinese dairy conglomerate yet, only saying that it was a "major dominant state-owned Beijing-based player" in the food industry.

The report said there was speculation the buyer is the COFCO Group, China's largest food processor and manufacturer, or its listed subsidiary China Food.

Harper also did not identify the Chinese company's Australian partners, who will own 49% of the dairy behemoth that will be formed.

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The report said the 50 farms altogether have 90,000 cows that can produce 500 million litres of milk a year, or about one-twelve of Victoria's total milk supply.

Several other dairy farm deals in Australia involving Chinese buyers were also reportedly in the works.