The Hong-Kong based company bidding to buy 16 dairy farms from receivers has gone on the front foot, buying full-page national newspaper advertisements to set the "record straight."Natural Dairy Holdings Ltd is seeking to buy farms previously ow
The Hong-Kong based company bidding to buy 16 dairy farms from receivers has gone on the front foot, buying full-page national newspaper advertisements to set the "record straight."
Natural Dairy Holdings Ltd is seeking to buy farms previously owned by the Crafar family and reportedly valued around $206 million, which were placed in receivership last year.
The application has been referred to the Overseas Investment Office (OIO), which has yet to make a decision.
In the ads, the company said not all comments about the bid had been accurate.
The total area of the farms in question and the number of cows (25,000) on the farms constituted less than 0.5% of farmland and dairy cows in New Zealand, it said.
Products from the farms such as UHT long life milk and infant formula would be exported to the "fast-growing" Chinese market and would introduce "Brand New Zealand" to at least 120 million new customers.
Natural Dairy said its investment would generate jobs and boost dairy export earnings by more than $120m.
With a $5m a year fund for young people coming into the dairy industry, the company said the bid was a "good deal for New Zealand."
Natural Dairy's bid has spurred debate and increased concern over foreign investment in New Zealand farm land.
Prime Minister John Key has said a review of the overseas investment regime would look at land sales to foreign buyers.
When the Overseas Investment Act review was announced by Finance Minister Bill English more than a year ago, it aimed to make changes so applications to the OIO could be processed quickly and also look at the scope of the overseas investment screening regime.
Mr English has said the foreign investment issue was a "tricky territory" because on one hand things that were important to New Zealanders needed to be protected, while on the other hand foreign investment was needed because there wasn't enough local capital to create jobs.
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