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Crafar Farms sale to Chinese buyers approved

Government ministers have signed-off the controversial deal to allow Chinese company Shanghai Pengxin to buy the Crafar Farms.

Today's decision has sparked a fresh round of heated comments about the sale.

Save the Farms spokesman Tony Bouchier is disappointed but not surprised, while BusinessNZ chief executive Phil O'Reilly says the decision shows the world New Zealand is "open for business".

Jonathan Watts, an executive member of the NZ-China Trade Association, says the sale will result in added investment in the farms which has been lacking for some time.

Spokesman for Shanghai Pengxin, Cedric Allan, says that after a very long process, it is nice to finally have it as a done deal.

He says they are talking to the receiver and arranging to settle a transaction.

"Then we will move on to the farms, work out how we're going to work with the people who are there already, and start supplying milk to Fonterra," he told

Mr Allan says they're committed to spend about $1 million upgrading each farm over the next three years.

"At the same time, we'll be looking for processing arrangements to manufacture high-value dairy products for us to sell in China.

"We've got a brand name, which is NaturePure, and we hope to be on supermarket shelves in China fairly promptly."

Mr Allan says they will spend at least $100m on marketing the company's products.

He hopes this will open the door for other New Zealand dairy companies to do the same.

"I know Fonterra also wants to develop high-value branded products to sell in China, and I think much more co-operation and competition between New Zealand and China in that market will benefit everybody."

The prime minister believes the best bidder won.

"There were 27 criteria they needed to meet. The bid from Shanghai Pengxin met all those tests."

He says criticisms of the sale are unfounded.

"If you put in perspective the amount of farm land that's being sold, it's fairly small in the overall nature of farm land in New Zealand.

"This is ultimately going to create more jobs and more opportunities for New Zealanders.

"Fonterra themselves have announced they're investing $100 million in farmland in China, so investment goes both ways and it's important for an open economy like New Zealand."


Meets criteria
Land Information Minister Maurice Williamson and Associate Finance Minister Jonathan Coleman said this morning they approved a new Overseas Investment Office recommendation, after they were ordered by the High Court to review an earlier decision.

Mr Williamson says the government sought to apply the law in accordance with the Overseas Investment Act and the "guidance" of the High Court.

“We are satisfied that on even the most conservative approach this application meets the criteria set out in the Act and is consistent with the High Court’s judgment.”

Dr Coleman said the consent comes with 27 "stringent" conditions which require Milk New Zealand to invest $16 million into the farms and protect and enhance heritage sites.

“The combined effect of the benefits being delivered to New Zealand as a result of this transaction is substantial.”

The decision comes on the heels of a visit to New Zealand by China's fourth-ranked leader Jia Qinglin, who was in the country on Tuesday.

The government said the Crafar Farms sale was not discussed during the diplomatic visit.

Fay group: bad deal
Spokesman for the Sir Michael Fay-led consortium Crafar Farms Purchase Group, Alan McDonald, says it's a bad deal.

"For the central North Island economy, that's $20 million of Fonterra payouts every year going out the door.

"The iwi guys are really quite angry, because they see a lost opportunity to get back land they've had claims on since the 1800s."

Live appeal
Mr McDonald says the fight is not yet over for the group - it still has a live appeal with the Court of Appeal, which argues Shanghai Pengxin doesn't have the business acumen and experience relevant to the investment.

"They aren't dairy farmers, that's why they had Landcorp negotiate a deal for them."

He says the appeal was lodged six weeks ago, and they're still waiting for a date for it to be heard.

Executive member of the NZ-China Trade Association Jonathan Watts says the sale will result in added investment in the farms which has been lacking for some time.

"I'm sure there's going to be jobs for New Zealanders in this," he says.

The sale could lead to further deals from other foreign investors.

NZ dependent on foreign investment - BusinessNZ
BusinessNZ chief executive Phil O'Reilly said New Zealand's economic growth has always been dependent on foreign investment, because of the country's size and distance from markets and lack of scale.

The debate about foreign investment demonstrates a fundamental misunderstanding about the basis of New Zealand's success, he says.

"They seem to think we can do it all ourselves and we can't.

"We simply don't have the capital in New Zealand, and never will by the way, in order to do all of these things, so we do need these types of partnerships."

If the decision stands, it clarifies the rules governing foreign investment, he says.

He hopes it will end legal action in the case and the country could have mature debate about some of the challenges of direct foreign investment.

"Every time there is legal action that just creates yet a further difficulty with confidence in our international investment regime, not just from the Chinese but from every other foreign country as well."

Disappointed - Save the Farms
Save the Farms spokesman Tony Bouchier says he is disappointed, but not surprised, by the government's decision to approve the bid.

"This government has a track record of not listening to its constituents. This decision was made in the face of overwhelming opposition."

He says this opens the door for “an avalanche of sales” to overseas investors and sovereign funds with "deep pockets", which will make horticultural land unaffordable to young New Zealanders.

At a general media briefing earlier in the day, a senior political counsellor at the Chinese Embassy in Wellington, Cheng Lei, declined to comment directly on the potential for the Crafar purchase to go through, but stressed New Zealand companies were welcome to invest in China.

“If you are ambitious enough, you can conquer the Chinese market,” he said, citing Fonterra’s plans to create as many as 33 dairy farms in China and the “amazing speed” of its ambitions.

“We encourage New Zealand businesses to go to China, and we also encourage good, qualified New Zealand businesses to see opportunities in your country.”

Asked whether he thought New Zealanders were xenophobic about Chinese investment in this country, Mr Lei said “no” and that New Zealanders were “open-minded” and “friendly”, and that the country was of interest to many foreign investors, including from Australia and the US.

The newly inked target of an increase in two-way trade to $20 billion by 2015 could potentially be reached early because of the growth in the trade relationship between the two countries, he said.

Foreign investment needed - Fed Farmers
Earlier, Federated Farmers President Bruce Wills told NBR ONLINE It straddles the fence.

On the one side, the organisation would have liked to have liked to have seen the 16 farms sold separately – an option that would have made the sale process more accessible to local buyers.

“But we’re also sensitive to the fact New Zealand needs foreign investment,” Mr Wills said.

“Sadly, we’re a nation of spenders, not savers.”

Urban and rural areas are both in debt – most of it owed to foreign banks.

Farm debt alone is $47 billion, Mr Wills said.

Today's announcement mirrors one in January, when Messrs Williamson and Coleman accepted the original OIO recommendation they grant consent to Milk New Zealand Holding, a Shanghai Pengxin subsidiary, to acquire the 16 farms and have them managed by NZ government-owned Landcorp.

However, lawyers for a rival, the Sir Michael Fay-led consortium, successfully pursued an injunction to stop the sale and the high court ordered the government to reconsider its decision, over whether the purchase would bring economic benefit to the country. 

More by David Williams, Caleb Allison and Conor O'Brien

Comments and questions

the doors of all the hot bread shops in nz are now opened.
special deal. buy 2 pay for three
signed hop sing
chef extrodinaire to Ben,Adam,Hoss and Little Joe.
p.s. hoss liked my cooking.

Simon Powers and the Westpac Bank get what's best for their pockets.

They could have been sold off as separate farms to kiwi lads, as easily as they were agglomerated by the Westpac Bank away from kiwi lads.

kiwi lads cannot afford the farms without the help of overseas owned banks.

Guess who got the proceeds from the sale of the farms to the Crafars in the first place?

Yes, morons, New Zealand farmers!

So $220m were paid to kiwis in the first place. Fact that money came from the banks to the kiwi farmers is a technical detail.

Im a big fan of John Key but this decision is wrong. Change the law NOW to stop this happening. This may well cost John Key the next election.

I am no longer a big fan of John Key due to his statement that no discussions regarding the sale of the Crafar farms were held with the Chinese government leader who recently visited NZ. This is because Key had already confirmed the sale of the farm to the Chinese government prior to the visit. Does he think that we are naive?

Of course John Key thinks you are naive.

Who else would borrow money by the tens of billions under the previous Labor government to put into coastal properties, second holiday homes, Fijian resorts, Gold Coast apartments and finance companies?

And oh, want to buy more TVs, cars and overseas holidays. Lots more borrowings, and lots more farms to be sold, suckers!

To a diehard daylight dreamer like you, nothing will ever be right.
Too bad, as your nightmare has become a reality.

Can someone remind me again who owns Westpac? Were the farms already in foreign ownership?

Exactly !! And as long as are banks are such(in foreign ownership) so will NZ be !

Sensible decision....and any comment, smarty pants?

Two cows are talking in the milking shed.

First cow: "Have you heard about that Mad Cow disease that's going around?"

Second cow: "Yeah, makes you glad you're a Pengxin, doesn't it?"

Turning over in my grave.

This is my THINK BIG projects and the THINK BIG debts that was piled up by Bill Birch, the National Party and me coming home to roost.

Now NZ has to sell our farms to pay for the groceries.

I should never have been a racist and supported the South African racist government.

Sorry, NZ.

Chop Suey time for you kiwis.


BTW, you dumbos were naive enough top vote in Helen Clark 3 times!


I totali agree. HC is a bank sucking moron.

Isn't this fair? Fonterra is buying farms in China.

Fonterra is not buying the land in China.

John Key re Sky City - "They can run around as much as they like looking for conspiracies but they're never going to find one," he said.
John Key re Crafar Farms - "............"
Still waiting!

"Join the real world. NZ's future is in Asia, not Europe."

Suggest you look in the real world & follow the cons!

John Key will one day be cherished in NZ as the only PM in NZ with real business sense and a can-do attitude to make NZ more prosperous.

He is risking popularity to do the right thing.

Contrast that with the mess left behind by previous governments.

The problem with NZ milk production being owned by Chinese interests is that once the milk gets into China, the Chinese have complete control over its distribution. You might expect all kinds of dodgy practices to "improve" NZ milk, outside of NZ law and standard, and/or overstate NZ milk benefits, outside of NZ law and standard, to occur once it is in the safe grasp of Chinese within their non rule of law social-political environment. Ultimately, the Chinese will try to milk (excuse the pun) the New Zealand brand for as much as it is worth to their own citizens but they will end up damaging it. You can ask any Chinese on the street in New Zealand or anywhere around the world and also back in China and they will agree with me. Even those in power will agree. The Chinese know what the Chinese in power do to them and those in power know what they do to the people and to themselves. They are locked however in political inertia, the pain to change is great.

China and its people have an almost purely short-term speculative mindset due to its political-institutional arrangements that do not provide the confidence that Chinese people need to sink their roots in for the long-term and believe that the system will always protect them with equality and transparency.

I can see the birth of products that don't just provide the country of origin on their label but, recognizing a global world, where definitions of country of origin and what that really means are very hazy, provide detail as to the entire production and distribution cycle, including the ownership of the business assets. Perhaps there will be an entire new centralized website database where such information can be accessed by any member of the public with an interest and is dynamically updated from public institutional data sources from around the world. Therefore only a link to the website would be required on the label and each and every product in the world would have a unique identifier such as a number and letter sequence (things need to go beyond ISO standards as even these are just pre-printed fakes on most Chinese products in China...they rely on Chinese people not following up with a search and hiding behind the cost of the pursuit of legal justice).

This sale and the subsequent decline of the NZ brand...which is already occuring in China...particularly as evidenced by Manuka honey indiscriminate practices, won't just highlight why NZ "shouldn't have" sold its milk production assets. The NZ legal system MUST do things according to established law. Where that law leads to ruptures that highlight other shortcomings in wider global law, we must pursue the resolution of those with courage and determination and be prepared to sacrifice ourselves and our food brand image, for it. No politician even in our current system could provide this kind of leadership because it provides short-term (perhaps decades) hits to current consumption and would knock them out of office. Even our political system must pass to something else. Ultimately, the integration of global institutions will be beneficial though, for centuries and millennia.So what is a few decades? The sale of NZ milk assets will eventually highlight the inadequacies of the international system and why current moral thinking and ethos regarding national sovereignty must pass.

Hmm, beautiful moo juice.

Eh, have you bothered to read the OIO recommendation and the conditions imposed?

Clearly you have not so you have just wasted your time writing your rubbish.

I have read the summary here:

I don't think it is perfectly necessary to read the full 97 page document, at least for the time being.

It isn't clear from your post what you consider as rubbish. You may or may not have noticed that I acknowledged the transaction must go through according to established legal norms. In this sense, I am supportive of it. However, I am also acknowledging the probability-weighted (which I regard as quite high) forecast of what this could mean for the actual physical milk but perhaps more so its brand, particularly within China, now that more of the distribution is controlled by interests originating from that non-essentially-rule-of-law socio-political environment. This is derived from a lot of personal exposure and as I said Chinese people will all agree. I am not saying that Chinese are bad at all, in fact I actually think the exact opposite - they have many far more advanced civilization techniques and social arrangements. However, their institutional arrangements are still maturing and the Chinese acknowledge this themselves. This maturing means that the current institutions still don't support the best favourable outcomes particularly well. There can be growth in the short-term but it can be unsustainable. By engaging in these commercial ways with the representatives of this nation we are taking risks with our brand/heritage. I have tried to point out that I am actually supportive of this risk-taking because it may be the only way to illuminate other system inadequacies that we can work to provide solutions for. Therefore we should continue the pursuit with courage and determination.

There is no real way around the problem. I am saying these things but not saying we should stop.

Thanks for your clarification.

What seem to have not been taken into consideration in all the gush of xenophobic outpourings are the conditions imposed on Pengxin - they are onerous and simply will not be tolerated by local buyers.

In particular, note that the milk from the farms have to be processed in NZ (impossible to do otherwise) and Pengxin cannot ever own more than 50% of any milk processing facilities or companies in NZ.

Plus, we have posters here arguing that the Chinese have bought the farms to destroy NZ's brand in the future! That's great economics - which actually tells more about the posters' short term mindset than that of the Chinese!

A question - who exported kiwifruit vine overseas? And why?

Kiwis are such hypocrites. It seems that it is fine when Kiwis go abroad and buy farms in Uruguay or elsewhere, but heaven forbid a foreigner should come to NZ and buy a farm. This is such BS. Grow up NZ and become a player on the world stage. Don't just say you are.

To Everyone:
No more racist or obscene comments.
Jock Anderson, Chief Reporter, NBR ONLINE

Any out of character comment should be scrutinised by your that your job, eh?

If people want to blame anyone for the Crafar Farm sale, how about start with the Crafar family. They over borrowed and went bust. How on earth can you not make a dairy farm make money in NZ. This is a receivership sale, plain and simple, people should get over it. Chinese cannot take land with them. Common sense should prefail here.

while i slave away in my hot bread shop tomorrow for 14 hours you kiwis will be watching rugby or out parting.
don't complain when you can't afford to buy kiwi farms.have a good look at your priorities.
head down ass up

Correct decision. Well done. Right Im off for some Yum Char.

Well done, matey!

And to Winston Peters (of Owen Glenn fame) and his mate, Michael Fay (of TranzRail fame) - crawl back into your slimy holes.

What makes my stomach churn is Michael Fay's holier-than-thou bleating in the media. The same guy who has raped and pillaged NZ business for his own personal benefit for years. And let's not forget two of the companies his "interests" were involved in (BNZ and Tranzrail) wound up being bailed out by the GOVERNMENT - don't worry though, he'd made his fortune from them well before then. The Chinese were offering more, had he been prepared to match them he may have won the tender. But at the end of the day, if I had to make a choice between the Chinese and that dodgy car salesman, I would've made the same decision the Government has made. NZ companies invest overseas, other countries are investing here, but because they're Chinese it's all of a sudden a massive conspiracy. Grow up.

labour should just nationalize the dairy industry as the argeez are doing to that oil co.
cannot wait until nz becomes part of north korea

Hey: A kiwi owned these farms and ran them into the ground, sick and dying animals and the country was appalled. The business went bust and the whole show ended up back in the hands of the Banks - overseas Banks actually. Fonterra didn't buy them. Federated Farmers didn't do anything. So we got what we deserved. A punch in the face for farmers and good on the Government for steering this mess to a conclusion. Welcome in to the new owners!.

Remember Kerry Hoggard? Fernz Chairman who was fired from Fletcher for insider trading?

He fronted the "Save the farms" campaign so he must have had a beer with his fellow insider-trader to have the cheek to even crawl out of his hole!

Kerry Hoggard + Michael Fay + Winston Peters = the New Zealanders who know how to screw other New Zealanders.

Short-term thinking New Zealand politicians sell productive assets outright to long-term thinking Chinese. What a surprise.

Meanwhile, NZers are not allowed to buy land outright in China.

Simon Carruthers is correct in that this has great potential to undermine Fonterra and the NZ dairy business, simply through devaluing our brand.

You just contradicted your fellow racist, Simon, who stated that the Chinese only think short term.

That is what happens when xenophobic racists talk to one another?

It is normal beer talk...cheers!

"You just contradicted your fellow racist, Simon, who stated that the Chinese only think short term. That is what happens when xenophobic racists talk to one another?"

That's just silly. Why would you suggest that because I agree with one point he made, I agree with all points he made?

That's nonsensical.

>"You just contradicted your fellow racist,"

Further, how am I racist when I have favourably compared the Chinese to less-wise NZers?

Come on - surely you can back up your point?

In a typical Kiwi way over a few beers last evening talking to a 2 dairy farmers and 1 retired farmer, a farm equipment retailer, all thought the farms should be sold to the highest bidder. As one famer said the might “sell” the land, but whatever the new owners do, they land will still be there. If they don’t run the business well then the lad is still there for someone else to come along and buy it. Another farmer pointed out, that Landcorp have a great reputation for looking after land and getting the best out of it. This is the correct decision. Winston et-al are only going on about it as its gets their face in the news.

By god NZers are RACIST!

Comrade John Key Red Star and Bar will go down at the next election

Lets look at the future (not the past). what needs to change is the criteria for overseas interests to buy freehold farms. I belive lease or leasehold is the only good option for this.

Well, Im all for it. I think we should ditch the learning of Maori language in schools and make chinese complusory. I wish don brash was back in govt!!

I'd rather be seen with caked white spittle on the corners of my mouth than utter one maori word.

Sell them the cows and take them to china, we have too many stupid cows farting and shitting everywhere. Pollute somewhere else. Charge the industry for the damage it does to the environment and bill the new Chinese owners.

oh good one. our major source of revenue for the country...yeah good one moron, get rid of auckland and the people in it and we'd be better off.

Pay for your waste like everyone else you self centered git


Just my two cents but, I'm struggling to see the issue. Chinese want the milk, they don't actually want your land. If there was a lease option that secured supply (something that Fonterra is doing in China), that would have been better than having to go through OIO to make a small $200m purchase of "sensitive" farmland.

I love how Fonterra's planning to spend $1b in China, no problems. We give you tax breaks and a favourable investment environment there. But when Chinese want to invest here, there's an uproar from an entire nation. Its hard to know who needs who more, but can New Zealand afford to be without China? I'm certain you can't.

For the record, I love New Zealand and have lived here most of my life, have a great job and kiwi friends but every time I see this type of bs in the media, I feel my tax contributions may be more valued elsewhere.

This is what a Chinese woman told me about 8 years ago and went along the line of. "Chinese people think Kiwi is the right name for yourpeople, a bit slow and dumb like the bird". I am not convinced Kiwis are slow and dumb but I got the message.
But really this is all part of globalising trade and business. However there is no overseas ownership of Chinese land I am aware of; they do lease it though as was the case of Hong Kong only to claim it back later.
The Crafer family are definitely losers in every sense and I have met some of them, not modest people at all.
I disagree with banks aiming for bigger and bigger farming enterprises, however it is within their rights to do/allow this. I prefer slow controled growth, rather than the boom/bust cycles which is currently part of the capitalist societies. G.

A question is and this is not racist but rather a cultural issue I think, Would we sell NZ land to North Korea?
It is not a fair question but a lot of people still see China as a Communist run country and a lot of Western people have fought and died against such regimes. I still see China as a Communist run country so for that reason as well as some others I don't think we should sell NZ land to them. We and the rest of the Western world do however do business with them so this whole issue is a 'grey area' that deserves more discussion.
It does seem as though the Communist China of today is much different than 'our' image of what a communist country was say 67 years ago during WW2. Time to move on for some but not too late to ask more questions for those still with doubts.

Landcorp, govt. dept. of NZ running the Communist Chinese owned farms is NOT a good idea, however you look at it. It isn't xenophobic to not want the regime that brought us Tiananmen square working hand in glove with our govt.

What is wrong with protesting against that? Ask the diggers, don't listen to these slimy little buggers running around in suits selling their souls for a quick buck.

The sale of the Crafar Farms to the Chinese is quite simply a mistake of ignorance by the NZ Government and the OIO.

In simple terms, is it the true value to Shanghai Pengxin ownership of the actual assets or is it surety of product supply that these assets produce?

As anyone knows, he who controls the assets controls the management of those assets and cash-flow/production the assets produce.

It doesn’t make sense that Shanghai Pengxin would want to own the farms simply as assets if they are not producing.

The underlying reason is that they want what those assets produce. In fact their PR representative Cedric Allan highlights this in his following two statements:

• “they're (Shanghai Pengxin) committed to spend about $1 million upgrading each farm over the next three years. At the same time, we'll be looking for processing arrangements to manufacture high-value dairy products for us to sell in China”.

• "We've got a brand name, which is NaturePure, and we hope to be on supermarket shelves in China fairly promptly." Mr Allan says they will spend at least $100m on marketing the company's products.

OK so if Cedric Allen is to be believed then we can assume it’s what the farms can produce that is of interest to Shanghai Pengxin.

So why then do we need to sell the assets to Shanghai Pengxin when a guaranteed supply agreement would give them the outcome they are looking for?

All bleater will never learn...try looking on the bright side for a change...or miss out all together.

I'm a kiwi and I'm investing in Farmland in other countries, its how the world works. Foreign investors originally came to NZ in canoes, then sail boats, steamships and aeroplanes. Now its possible for foreign owners to live away from the country and operate a business from there. I think its called progress.

Good comment, Kiwi...

Good bye National

Good bye, NZ.

Time to stop borrowing from foreigners to prop up your lifestyles, losers.

Can you lot do it?

Cut back the holidays, the second holiday homes, the cars, TVs, computers and iPhones?

Thought so.

So it's chop suey time, suckers.

Sure we can learn to cut back and then you guys dont have to sleep under your factory benches ever night making iphones and ipads in the hope of a better life. Instead, you can go back to trying to catch the rats running through the village to feed yourselves when the factories close due to lack of imperialistic western demand for your products.

You kiwis account for nothing.

Whether you are around or not means nothing to the rest of the world.

In fact, you account for less than nothing.

But oh, you so desperately need the rest of the world and you do love borrowing, don't you?

And you do not like to repay, do you?

Well, chop suey time, sucker.

You ain't got no choice.

See you have just shown the Chinese view we all know. We all know the only interests China has are its own so dont get pissed off cause some of us know your game and have sprung you.

Remember the western world has borrowed off you to buy your own products. If we default on repayment, how you going to collect?? Maybe you should have thought it through before you so readily lent money to your insolvent customers.

That's why we now own you.

Chop suey time, sucker.

Mainland China should never been allowed to buy those farms. Stop criticizing Michael Fay - he is a New Zealander, much better option than the chinese.

Why is any NZer always think before commenting, or end up pretty silly.

As I have mentioned before, there is Nothing Wrong at all with Foreign Investments IF it is done in the spirit of “Mutual Benefits”. That is while utilising the cheap resources, or the huge market potentials, or the buying power of the host country, at the same time also bringing in Capital, Technology, Know-How and creating Employment for the locals. That is why all countries in the world are trying hard to lure more foreign investors who can positively contribute towards the economic development of their nations.

In fact, what made China an economic powerhouse today is almost entirely due to the influx of the Foreign Direct Investments for the past 3 decades. Had it not been because of the FDI, and of course the very cheap and abundant overworked and underpaid labour force (dubbed as “labour exploitation” in the West), it would have taken China perhaps a 100 years by herself to be what it is today.

This FDI in China was of course undertaken by several different means/strategies and a clever model. The core of this “Model/System” included: Technology Transfer, Management Know-How Transfer, Creation of Local Employment, and Capital Gain for the host country (China).

Of course the purpose of this model/system was to “Ensure” that the FDI could bring about Addition Economic Benefits to China Over and Above those That Could Be Provided Locally and Provide the Locals with Enough Expertise and Technology that they could take further developmental steps by themselves (in a number of cases through reverse-engineering). They were and still are very strict about this system.
That is why we can now clearly see the result of those far-fetching strategies of “Wise and Responsible Chinese Government Leaders” in today’s China—a prosperous and super-fast developing nation that only in 33 years reached from rags to the riches and became the 2nd largest economy in the world. That is Excellent and that is what the outcome of FDI Must Be. Good on them for a job very well done.

But as regards to the sale of Crafar farms to Shanghai Pengxin, sadly NONE of the above Factors/Criteria/System for a FDI are Existing!

There is NO Technology Transfer and NO Dairy Farm Management Know-How Transfer, as the Buyers Do NOT Have Any Clue Whatsoever About Dairying. Astonishingly, they want to Use “Our Own Knowledge and Technology”!!! So, where is the “Knowledge and Technology TRANSFER” Component of this Sale in order to make Our Dairy Industry Better and More Productive Than What It Is Now??? Where is the “Added Value for New Zealand”, John Key and colleagues?

As for the Creation of Local Employment; well, there may be some especially at the beginning. But under the FTA, soon cheap Chinese farm workers will swarm in as it has happened in Tourism industry. So the employment side may be either very little or negligible. And the Capital Gain? Well, it will be there for the buyers of course!

So, what we get?
Almost Nothing At All.
And what we lose?
Another precious part of New Zealand. As simple as that!

And forget the promise of access to HUGE Chinese market for the New Zealand Milk (of course only for those who can afford it).
Let’s simply put it in this way:
With the numerous and continuous Chinese Dairy Scandals even as recent as late last year, that segment of Chinese population who can afford to buy imported products will love to have the real New Zealand milk on their tables and feed their children with it. That segment of population even travel from Mainland China to Hong Kong just to buy foreign baby formula milk powder for their infants or simply ordering New Zealand baby formula on line, paying top price for them. Hence, the Market Is Already There and We CAN surely Do It Ourselves Without Anyone’s Help. We too, can flood Chinese supermarket shelves with real New Zealand milk and dairy products. No Sweat! Above all, what is the FTA for?

So, the sale of Crafar farms “Under These Conditions” did NOT add any VALUE Whatsoever to New Zealand. Full stop! Apparently, great majority of New Zealanders raised their concerns about the sale of these particular farms and said NO to it and yet this Government of ours played DEAF, DUMB and STUPID! They just IGNORED the Voices of the New Zealand Public and simply somehow Betrayed them.

To Be Fair and Objective, as I mentioned in different occasions before, we should NOT blame Shanghai Pengxin for buying the farms. Purchaser could have been any group from anywhere in the world. We should not blame the Receivers too, as they wanted to maximise gains on the sale of these properties. And of course, we should NOT also at all blame the Chinese government for putting their weight behind and pushing for the deal, as any wise and responsible government will try to use its political influence for national gains and interest. As simple as that.

The only ones who have really to be blamed are our “Inept Government” and the 2 “Sneaky Ministers” who without a second thought about OUR Nation Interest made their decisions long ago. What a Shame that we have a Government which is composed of a bunch of inept and myopic cowards who budged to the Pressures from a Foreign Government, which of course they naturally deny. Murray McCully, our government’s emissary was all smiles during his last week’s trip to China as the last nail on the Crafar farms’ coffin had already been droved prior to that trip. Perhaps he was there just to celebrate the 40th anniversary of the 2 countries relationship only!

Having said that, I for one was not at all surprised that the sale was pushed through, simply because we had been pressured for that for quite a while, as Chinese government had put their support behind Shaghai Pengxin. Last year their Embassy in Wellington had a press conference to defend and justify the sale of those farms to Chinese interests. Their “FACE”, was very much involved in this deal and “Loosing Face”, especially in public, is one of the most shameful things that can happen in Chinese societies. Hence, it was expected that every effort would be done to prevent this “Losing Face” factor particularly for the big guys, even at our expense! Had we not done that, we would have been at least snubbed by Chinese and perhaps there would not have been McCully’s trip to China and at the same time Jia Qing’s (4th highest ranking Chinese government’s official) trip to New Zealand last week, even for the 40th anniversary of the 2 countries’ relationship.

So, given these circumstances, it was very much expected that our inept government to Yield to the Outside Pressures and try any-which-way to somehow find legal loopholes, etc to “Please and Satisfy” their Chinese counterparts and “Save their Face”. Simply because we NEED their money to support our social welfare programmes, we NEED their support so that they can recognise us as part of Asia (which we are not, as we are part of the Oceania), we NEED their markets to justify the so-called FTA and be the only developed country in the world to accept them as a “Market Economy” which they are Not (although they call themselves “Socialist Market Economy”, which is like trying to mix water and oil), and of course our Government NEEDS the Vote of Chinese constituencies for the elections. Seems complex? Not really! Anyways, New Zealand is a downhill Banana Republic where all these things can easily happen and our governments both Labour and National can take us for a ride at a great expense!

Unfortunately, our Governments could not wake up and realise that their ALLEGIANCE MUST Indeed Be to New Zealand and New Zealand Public Only, Regardless What. That is what every mature and responsible government will do for its country.

Now that the Pandora ’s Box has been opened we have to expect more deals of this nature start to come yet. May GOD BLESS and PROTECT NEW ZEALAND.

zzzzzzZZzzz...perhaps FARR should work for NBR.

I am a Chinese ,i was really disappointed with Goverment stupid desicion, Pure New Zealand? From now on, will become South Pacific China.

I am Chinese ,i love my Own country and New zealand,but i do not like the way "the rich Chinese Company" Do, they are not present the Common Chinese people,they are SUCKERS,the only purpose for purchase this farm is to make both Chinese people and Newzelanders sicker,especially those Children, all they care about is $$$.

Goverment, pls wake up ,learn from Aus,the local Chinese immigrants love this pure New zealand,we hope this is the last pure land in the not destroy it.

John Key? you have no idea what the horrible things you bring to Newzealand, not only sold a farm, the whole soicety structure will change, this is a Disaster.

the next thing will happen is Housing Market, another disaster.

i really can not imagine what will be happened next?Have a look the Housing Market in China Now.


New zealand need foreign investment to encourage more business activies ,but developed countries, definatly not China.

You are a disgrace, Julian who ignores your Chinese ROOT, and wake up to the new CHINA, before it is too late!