Fonterra spends $100m on more China farms
Fonterra will build two more large-scale dairy farms in China's Hebei province for $100 million.
The dairy giant today opened its second farm in the province and construction of a third is under way.
Its first farm, in Tangshan, opened in 2007.
Fonterra told NBR Online that chief executive Theo Spierings and chairman Sir Henry van der Heyden were not available for interviews because of the time difference with China and because they had meetings.
"Our intention is to develop separate farming hubs across China, with the ultimate goal of producing up to one billion litres of high-quality milk every year by 2020," Mr Spierings says in a press statement.
Fonterra announced last month it will focus "more tightly" on emerging markets, as it posted an 18% rise in first-half profit.
Yutian Farm One, Fonterra's second farm in Hebei province, is milking about 2200 cows and producing 11 million litres of milk a year.
That is expected to almost triple.
All up, the five farms in Hubei province will have a herd of 15,000 milking cows producing about 150 million litres a year.
In a separate announcement today, Fonterra announced it had appointed financial advisors Craigs Investment Partners as the registered volume provider for the launch of Trading Among Farmers in November.
Legislation that would enable Fonterra Cooperative Group’s farmers to trade their shares has passed its first reading and gone to select committee.