Landcorp wants to squeeze more than 5 million kg of milk solids a year from the Crafar farms, if and when its Chinese partner, Shanghai Pengxin, takes ownership of the land.
Chief executive Chris Kelly told the primary production committee the Crafar farms were producing about 4.3 million kilograms annually.
Landcorp will manage and develop the 16 farms. Kelly said the deal would be similar to a 50/50 sharemilking joint venture through a yet-to-be-formed entity called Milk New Zealand Farming.
