Fonterra close to buying Chinese farms

Photo / Brett Phibbs

Fonterra Cooperative Group said it is in the final stages of due diligence on two dairy farms in China.

The world's largest exporter of dairy products said is has signed an agreement with the government of Yutian County, which is near the cooperative's existing Tangshan Fonterra Farm.

"This agreement is a positive step in the negotiation process with Yutian County," said Philip Turner, Fonterra's managing director for China.

"We've always said that we believe the bulk of China's growing demand for dairy will be met by locally produced milk.

"By investing in two further farms, we are building on our commitment to build a safe, secure and sustainable milk supply for our customers in China," he said.