Farmers say Chinese Crafar bid 'acid test' of new-look OIO
The bid by a Shanghai property tycoon for the 16 farms owned by four financially-troubled Crafar family companies will be an "acid test" for the government's revised Overseas Investment Office (OIO) rules on sensitive land deals, farmers say.
Finance Minister Bill English last year sent a new ministerial directive to the OIO to provide extra clarity about the government's general approach to foreign investment in sensitive assets.
It included two new measures under the benefit test used to assess investments in sensitive land, and a new "economic interests" factor allowing ministers to consider whether New Zealand's economic interests were adequately safeguarded and promoted.
Federated Farmers' dairy section chairman Lachlan McKenzie claimed there was "strong evidence" those revisions had "materially changed" the thrust of the application, which was initially announced about the same time. A formal OIO application was lodged this week
The farming lobby had won the changes it wanted on foreign ownership of farmland "so we now need to let the officials determine the application on the merits of those rules", Mr McKenzie said.
It seemed that the Shanghai Pengxin International Group Ltd's $200 million investment to buy the 16 farms -- about 8000ha -- and upgrade them over two years, could see the farms returned to full production.
Other commentators have said that milkflows on the farms have fallen as management under the receivers has ensured the farms comply with environmental and animal welfare rules.
Mr McKenzie said that the lobby would have preferred to see the 16 farms sold individually when UBNZ, a company buying for another Chinese investor, Natural Dairy, had its bid blocked by cabinet ministers because of concerns over the character of some of the people involved.
If the OIO approved the Pengxin bid -- estimated to cost its Hong Kong subsidiary, Milk New Zealand Holding Ltd $200 million over two years to buy the farms, rehabilitate them and build production -- Federated Farmers wanted see sharemilkers run the properties.
"This provides an opportunity for sharemilkers to build equity in an international environment while speeding these farms to full production," he said.
Pengxin Group had said it would initially continue supplying Fonterra, but the farm lobby hoped there could be a joint venture with Fonterra, Westland or Tatua cooperatives to export.
"Partnering with a local cooperative would help 'Kiwi-ise' Milk New Zealand Holding Ltd, while building a partnership in China with Pengxin Group," Mr McKenzie said.
Milk New Zealand Holding said it wanted to boost milk production from the properties, and export infant formula, cheese and icecream to China: it would upgrade the farms, and employ more New Zealanders, the company said.
"We can be a strong ally for New Zealand dairy industries through our international trade connections, and, in particular, our networks of influence within China and Asia," said the head of Penxin, Jiang Zhaobai, who is reported to worth -- with his brother Jiang Lei -- $US670m.
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Comments and questions21
A chinese saying goes "Give a man a fish, fee him for a day; teach a man to fish, feed him for a lifetime"". A kiwi saying should be "Sell a man a farm; make money for a day; sell a man some milk, make money for a lifetime". BTW: Fly to China with a couple of million dollars and try to buy land. Good luck with that!
Spot on, Martin.
wake up NZ Cockies. Our farms are going away to foreign owners. heres what really is happening. Under the receivers production has dropped. Foreign bank can only get its money back from Chinese bidder masquerading as private enterprise. These entities have access to state funding. So in a year or two when Fonterra is controlled by Foreigners Kiwis will ask how did that happen? It happened because colelctively farmers refuse to see the need for adequate capital raising in NZ thus allowing the banks pressuring for forced sales, to recoup lending which they were happy to make at the time. Crafar got nobled at a per kilo fat solids $4.3 and now its almost twice that. Stiasny has halved production but his sheet looks ok because the price has gone up. So kiwi skilled and motivated management gets locked out and may be reimployed as peasants by foreigners. where's the benefit for NZ in that? As for cedric allan PR for Chinese bidders assurances that the farms enviromental footprint will be improved under their stewardship, PLEASE?
To hekes boy,
Who told you to stand up and shout from the roof tops with rhyme and reason.
You make it very hard to buy New Zealand land and important assets at a discount so I wish you wouldn't write things like this all the time. You will wake up the sleeping dead before we get our hands on your luscious cheap high yielding properties, discounted assets and clean green countryside.
; - )
Signed
Overseas Predator
Hehe! They said that they will look after animal welfare? What a joke. Just make a trip to China, and see how their animals are treated. Our SPCA could close down 100s of those farms daily!
Hmmmm.......
Martin is right. Try as a foreigner to buy a piece of real estate of any sort , especially a productive Farm, in China and you will see what kind of and how many needle holes you have to pass through, provided if you are lucky, let alone their strategic assets. Hence, we have to reciprocate the courtesy by dealing with them the same way that they deal with the foreign buyers.
The problem is NOT with the Chinese. We must NOT blame them, simply because we have put everything on silver platters for the grab by foreigners of different nationalities. The real and the root of the problem is in "US" and "OUR STUPID LAW MAKERS" who can NOT See a couple of metres in front of them.
All that is needed is to make a law that “Strategic Assts and Resources” especially Farmlands and Forestry, should NOT be up for sale to Foreigners and MUST be in New Zealand Hands. But we, except for a few minority, are indeed a Sheepish and Gutless Nation who do not care anything about what is really happening to us as a nation under different guise and pretexts as long as money is coming in. This attitude allows our inept politician close their eyes and turn their head away to the other side when the sale of our assets are at stake.
The way that things are developing, soon Kiwis’ underwear will be up for sale too!!! That is the day that moon is going to be black and all our sighs and regrets will be of no use at all.
To do something to STOP the present state of ROT and this CATASTROPHE from shaping is to ACT NOW, as every moment is timely. OUR FUTURE is Shaping NOW and it all depends on US on how to deal with...... Just think of our "Future Generations" who are Dependant of our Today's Actions and one day curse us, instead of praising us for "Saving Them" and "Their Future"......
Dear Strategist,
Your heart felt post is warming to read but no-one is interested. Let me share something, your post should be in past tense as it is valid but just too late.
Lucky for us from overseas New Zealand has been left wide open for the taking at great discounts and with little competition.
All that is left to debate is the price. So do we pay you for something that is rundown and out-of-date or undeveloped or do you pay us to come and clean up.
: - )
Signed
Overseas Predator
All these outbursts of disapproval will be not amplified in our NZ media, if this potential buyer is from any western nations....is there still any "Fairgo" existing in NZ.
No Time!
True Patriots "Have Time" and they speak out!
Just read many comments when Heartless Hart was going to sell the forests to the Yanks.
No Time!
True Patriots "Have Time" and they speak out!
Just read many comments when Heartless Hart was going to sell the forests to the Yanks.
Dear Overseas Predator!
You may be well right that the guards are now down and all that might be left is "price negotiation" for a piece of this and a piece of that.
Our governments of the past 2 decades have been a Bunch of Inept and Idiots, unaware of the happenings around them, looking after their own welfares rather than a country which was trusted on them, putting their head in sands thinking that "she will be right"!
They were (and still are) too naïve, not knowing that she will NEVER be right and there were "Overseas Predators" around, especially those who pretended to be the so-called “Friends of New Zealand”-- but nothing more than a wolf in the guise of a lamb! I have lived and worked overseas for almost 2 decades and have seen lots of sharks and wolves and even vultures, therefore naturally well aware and acquainted with these kinds of manoeuvring, knowing from the very first sentence what the "Real Intention” is. Somehow I cannot also blame our politicians, because we come from a predominantly “farming and rural communities”, still with clean hearts and spirit, treating everyone like ourselves with clean intentions. Majority of our law-makers didn’t party and dance with the wolves, so not aware of their true nature. Hence we are in the rot that we are now.
Anyways, you must be wise enough to read between the lines and know what I mean. I also invite you to read my other comments about “New Chinese Crafar bidder makes his case” on NBR.
Dear Overseas Predator!
You may be well right that the guards are now down and all that might be left is "price negotiation" for a piece of this and a piece of that.
Our governments of the past 2 decades have been a Bunch of Inept and Idiots, unaware of the happenings around them, looking after their own welfares rather than a country which was trusted on them, putting their head in sands thinking that "she will be right"!
They were (and still are) too naïve, not knowing that she will NEVER be right and there were "Overseas Predators" around, especially those who pretended to be the so-called “Friends of New Zealand”-- but nothing more than a wolf in the guise of a lamb! I have lived and worked overseas for almost 2 decades and have seen lots of sharks and wolves and even vultures, therefore naturally well aware and acquainted with these kinds of manoeuvring, knowing from the very first sentence what the "Real Intention” is. Somehow I cannot also blame our politicians, because we come from a predominantly “farming and rural communities”, still with clean hearts and spirit, treating everyone like ourselves with clean intentions. Majority of our law-makers didn’t party and dance with the wolves, so not aware of their true nature. Hence we are in the rot that we are now.
Anyways, you must be wise enough to read between the lines and know what I mean. I also invite you to read my other comments about “New Chinese Crafar bidder makes his case” on NBR.
You seem to write with a heavy heart and great angst and yet you have operated from outside the borders of New Zealand for the last 20 years?
Maybe you are like me, an overseas predator, but you have not yet realised it.
Come we need to plan the next cheap acquisition. I hear the largest apple producer / exporter in NZ is going at a good discount and they have thrown some tired, rundown old dairy farms that are not performing too well in as a bonus as well.
I did read the responses to the earlier article in the NBR and yes lots of bleating and bleeding from the natives in there as well.
I have to admit I prefer to search the "mortgagee" sales in real estate or find businesses that have been kiwi managed for the last 20 years and are failing due to no succession management and run out of time myself but thats just me. Its great reading really, it might make you feel better.
If you are half as wise as I think you aore and that you are even less of a strategistic I suggest you might like to search and read the errors of the kiwi-way going back to Manapouri / Tiwai Point and see how history is about to repeat itself in 2020.
I smell a bargain oh so large it makes me wanto to cry with excitement.
:-)
Signed
Overseas Predator
...too many red wines.
Errata Notes
1. Title should have read " Dear Strategist"
2. "...I think you AORE are and that you are even less of a STRATEGISTIC strategist..."
3....itself in 2020" should be "...itself in the 2020's."
Even predators make mistakes, these are mine.
Perhaps Strategist should be running NZ, instead of sitting on the sideline with frustration and outbursts......
Is it true that Cedirc Allen used to be the business partner of Murray Muculley our current Minister of Foreign Affairs? What about a reporter looking into the background of this? Cedric does appear very confident in the OIC's approval of this "sale of our assets". How so may I ask? Oh and while I am at it , where are the farmers responses or are they just too busy milking twice as many cows as they used to with consumate increased debt levels for about the same net $ return?
How is it that resident private Kiwis can buy baby formula off supermarket shelves here in NZ and sell it via the internet into China at a rate better than Fonterra??
Lets hear from some cockies first hand. Comon boys and girlsfrom down on the farm SAY SOMETHING>
To Heke,
They cant say anything as they dont have internet on the farm, its a suburban thing and besides too expensive.
Dear Predator!
You don't know me and yet "trying" to judge me and even fish around in muddy waters!. Well, that's all fine with me, as I have been dancing with the wolves and swiming with the sharks without being eaten alive!
So, I don't mind just a "pradator" (if a predator at all, as claimed) to hover around!!! Besides, I belame the "too much red wine" for it..... I am just afraid that the hunter may become hunted.... LOL!
And yes, history always repeats itself, like a vicious circle.....
Dear Realist!
I could have done it, IF I were a Politician, which I am nopt and NEVER be! Simply because, one has to look people in the eye and lie, drop friends alike hot potato when self-interest kicks in, etc.
And yes, in our country as long as welfare system and its abuses are there, which has made some groups care free the same as what the Poms did to Chinese through Opium and during Opium war, there will never be a strong public opinion about national resources. Oposition will not take any positive step too, as they are not any better than the government of the day and they are as guilty as them too.
The people like me who write here and there are few. We do not want to sit on the sideline, but the system and the Big Boys have closed all the loop holes so that they can comfortable do whatever they want to do to this nation. As long as there are not much people like us around to form a force, these governments will keep selling our resources like items in the garage sales. Public opinion is not as strong as it has to be too, as this nation has been too deluted and the "Kiwi Spirit" too hard to find. People are more busy making some bucks than thinking of national interest and security matters until it is too late.....
Actually we can talk and debate about this matter for hours and hours, but I suffice to this..... Hope you and others can join us so that our voice deafen the law makers who are playing with the future of this country, like children who play with match and fire!!!
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booster cable
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trouble light
bar stools
bar chairs
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leather sofa
floor jack
hydraulic jack
jack stands
jack stand
hydraulic jacks
hydraulic bottle jack
Base cap
booster cables
booster cable
battery cable
dress bag
shelf hanging organizer
non-woven fabric
glass bottle
dust mask
dust maskss
Protective mask
Protective masks
Medical mask
power strips
extension cords
power socket
crystal trophy
crystal gifts
crystal laser
crystal products
china crystal
crystal box
beach umbrella
golf umbrella
folding umbrella
children umbrella
lover special umbrella
Umbrella Company
Umbrella manufacturers in China
Outdoor umbrella
Garden umbrella
Fold umbrella
Advertising umbrella
Straight umbrella
Promotion umbrella
Printed umbrella
Ladies umbrella
Mini umbrella
crystal bottle stopper
crystal pyramids
crystal horses
crystal gift baby
crystal gift clock
crystal gift decoration
crystal car model
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Suspended ceiling
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bamboo kitchen
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recliner
sectional sofa
bottle jack
air jack
shop press
bushing
brass bushing
paper napkins
paper tissue
digital thermometer
clinical thermometer
ear thermometer
digital blood pressure monitor
shop crane
Chimney hoods
power strip
Christmas Lamp
glue gun
Well Socket
Battery clip
Booster cables
Car wash brush
Clothes hangers
Electric socket
Power board
Power cable
Power cord
Power socket
Power strips
Ratchet straps
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Solar lighting
Soldering irons
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