Fonterra agrees sale of China JV farms

28 June 2021

Fonterra agrees sale of China JV farms

Fonterra has agreed the sale of its two joint venture farms in China, with the sale expected to be
completed on 30 June.
The farms in Shandong province will be sold to Singapore-based AustAsia Investment Holdings for USD
115.5 million.
Fonterra, which owns the farms with a joint venture partner, has a 51% stake in the business and will
receive NZD 88 million* in total asset sale proceeds, which includes cash on completion.
The sale of the JV farms is unconditional and requires no further regulatory approvals.
Fonterra CEO Miles Hurrell says the sale is another important milestone for the Co-operative and aligns to
its strategy of prioritising New Zealand milk.
“The sale of the JV farms allows us to focus even more on our farmer owners’ milk and follows the sale of
our two wholly owned China farming hubs earlier this year.
“Greater China continues to be one of our most important strategic markets. We remain committed to our
China business, bringing the goodness of New Zealand milk to Chinese customers in innovative ways and
partnering with local Chinese companies to do so. We are well placed to continue to grow our business in
Greater China,” says Mr Hurrell.
Fonterra sold its two wholly owned China farming hubs in Shanxi and Hebei provinces to Inner Mongolia
Youran Dairy in April for NZD 552 million.
* Based on an USD to NZD conversion rate of 0.714

ENDS

For further information contact:

Philippa Norman
Fonterra Communications
Phone: +64 27 582 0492