12 May 2012

Landcorp to split profits from Crafar farms

5:34 am on 12 May 2012

State-owned farming enterprise Landcorp says it will split profits with the new Chinese owners of Crafar farms under a share-milking arrangement.

The Government has confirmed the sale of the 16 North Island farms to the Shanghai Pengxin group, although it is still subject to a fresh High Court challenge from the New Zealand group of farming and Maori interests also seeking to buy the farms.

Landcorp will manage the farms for Shanghai Pengxin.

MPs questioned chief executive Chris Kelly about the deal when he appeared before the Primary Production Select Committee on Thursday.

Mr Kelly said he understands Shanghai Pengxin won't be investing in its own plant but would use an existing processor to produce milk products to sell at a premium price in China.