PHOTO: Fonterra chief executive Miles Hurrell. Photo: RNZ / Dan Cook
Fonterra will sell its China farms to a local company for half a billion dollars, as it continues to find ways to pay down debt.
The deal, which was finalised over the weekend, saw the dairy giant’s two farming hubs in Ying and Yutian sold for $513 million, and in a separate deal it agreed to sell its 85 percent stake in a local farm for $42m.
Fonterra chief executive Miles Hurrell said establishing the farms in China was tough.
“It’s fair to say it’s been a tough journey for us along the way, we had to take an impairment to that asset in 2019 and again in 2020 so certainly they haven’t been as operationally effective as we would have liked.
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