Chinese to buy 24 NZ dairy farms?

Nigerian scams, chain letters, pyramid schemes and anything not auction related.
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Re: Chinese to buy 24 NZ dairy farms?

Post by digidog » Mon Feb 23, 2015 7:56 pm

Australia has tightened the rules on foreign purchases of agricultural land and has reduced the ownership screening threshold to A$15 million from A$252 million, from March 1.
The Australian Government will also establish a foreign ownership register of agricultural land to strengthen reporting requirements and provide a clear picture of foreign investment in the agricultural sector.

From July 1, the Australian Tax Office will start collecting information on all new foreign investment in agricultural land regardless of value.

The office will also start a stocktake of existing agricultural land ownership by foreign interests.

http://www.nzherald.co.nz/business/news ... d=11406683
Meanwhile, moves to introduce a register of foreign land buyers in this country appear to be doomed with suggestions that such a register would involve privacy breaches and Linz warning that solicitors would be unlikely to volunteer information.

http://www.stuff.co.nz/business/industr ... ch-privacy

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Re: Chinese to buy 24 NZ dairy farms?

Post by digidog » Thu Apr 30, 2015 12:54 am

This thread is now five years old so it's time to look at what's changed in the interim.

Agri commentator Keith Woodford reveals that in late 2014, Synlait took a 25% share in a company called "New Hope Nutritional Foods".
New Hope itself is a huge agri-food conglomerate with headquarters in the mega city of Chengdu in China’s Sichuan Province. Its interests include a wide range of commodities and agri-food products.
New Hope will sell their ‘Akarola’ branded New Zealand milk powder direct to Chinese consumers at less than a third of the retail price of most imported brands. That's the equivalent of around $NZ20 per can compared with Fonterra's offering which costs between $60-80.

On Morning report today, Labour primary industries spokesman Damien O'Connor pointed out that the Chinese now effectively own the whole supply chain -- from NZ farms to local processing plants right through to the Chinese consumer. He suggested that we've been pretty naive in allowing this to happen, and while we may still earn a little money from milking cows, all of the high value goes offshore to China.

Bugger!

What was that John Key said about not becoming tenants in our own land?

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Re: Chinese to buy 24 NZ dairy farms?

Post by digidog » Fri Jul 24, 2015 12:49 am

Shanghai Pengxin is restructuring its NZ farm assets. The terms of its agreement with the OIO means they must offer the assets for sale to New Zealanders. So they've listed all 7,885 hectares on TradeMe. The value is not stated but if you sort by highest price, the listing falls between $6m and $11.5m which can't be correct and appears to be yet another case of listing propery at a lower value to manipulate TM's search engine results. In fact the listing is "Price by negotiation" which could mean $1b or any other nominal value to ensure no bids are received.
On Sunday the company - owned by Chinese billionaire Jiang Zhaobai - offered for sale on Trade Me its total farm assets, which include 16 dairy farms in south Waikato for which it paid $200 million in 2012, and a conditional agreement to buy Lochinver.

Because the company wants to restructure, the OIO requires it to offer its assets for sale to New Zealanders.

A Shanghai Pengxin spokeswoman said that, prior to this requirement, it was not the company's intention to sell the farms and that it was farming the properties and complying with the OIO conditions as required.

"The proposed transfer of the shares to Hunan Dakang, however, in the letter of the law constitutes a transfer of an interest in New Zealand farmland and the shares must first be offered for sale to New Zealanders," the spokeswoman said.

"We understood that and consequently the shares were listed for sale on Trade Me for a period of 20 working days. Linked to that sale and also offered is the management agreement over the shares in a company which owns some South Island farms," she said.

A spokesman for the OIO confirmed that Shanghai Pengxin would now have to re-apply for consents for the 16 dairy farms which formerly belonged to the Crafar family.

It is uncertain whether the farms can continue to operate under the existing consents.
I'm guseeing that not everyone will see the humour in the "milk NZ" trading name.

trader: milk_nz
name: Xiaobao
loc'n: Auckland
joined: July 2015
status: Authenticated

http://www.trademe.co.nz/Members/Listin ... er=5547848

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Re: Chinese to buy 24 NZ dairy farms?

Post by digidog » Tue Jul 28, 2015 12:07 am


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Re: Chinese to buy 24 NZ dairy farms?

Post by digidog » Thu Sep 17, 2015 12:34 am

Shanghai Pengxin's bid for Lochinver Station has been rejected by the government on the grounds that it brought no benefit to NZ. I'm sure the huge public outcry over the sale had nothing to do with the decision.

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Re: Chinese to buy 24 NZ dairy farms?

Post by digidog » Fri Nov 06, 2015 11:38 pm

Writing in the Herald, Fran O'Sullivan suggests that the Stevenson Group may have been economical with the truth when they claimed the highest local offer for Lochinvar Station was some $26.4 million less that Pengxin's $88 million offer. They told the Overseas Investment Office they wouldn't put Lochinver back on the market again if the Shanghai Pengxin bid was rejected.
This is something that Stevenson interests repeatedly claimed to the OIO (during the lengthy 14 months the government agency and Cabinet Ministers took to assess the Pengxin bid) would not happen.

Yet within six weeks of the Pengxin deal falling over, it did just that.

In retrospect, the OIO was correct to call Stevenson Group's bluff. It did not buy the claims Stevenson made in support of the Pengxin application for approval to buy the station.
And then there were all those new jobs which would be created from the proceeds of the sale. Or were there?
Franklin has since admitted to Radio NZ that the 8000 jobs the company publicly touted as being created by investing the sale proceeds included existing jobs which would move to a new 360ha industrial park to be developed over the next 20 years.
Regardless of the games and mistruths which surrounded this sale, I guess all's well that ends well. The Spencer family are the new owners.

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Re: Chinese to buy 24 NZ dairy farms?

Post by digidog » Sun May 01, 2016 1:20 am

May Wang, the NZ front for the original 22 Crafar farms bid, has been found guilty of two charges of conspiracy to defraud in a Hong Kong Court. Her husband Jack Chen was also found guilty on the same charges as well as an additional count of dealing with property known to be the proceeds of crime. A third person, Wenjye Yee, was also found guilty of the same charges. They're all due to be sentenced this month.

Offshore "investment" can be a very murky world.

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Re: Chinese to buy 24 NZ dairy farms?

Post by digidog » Mon Jun 06, 2016 11:42 pm

May Wang, now known as May Hao, has been sentenced to eight years and three months in jail for her part in the Crafar farms fraud.

Her husband Jack Chen, now known as Keen Chen, received seven years and nine months.

Stuff story

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