Hong Kong Company Denies Plans To Buy 100 Farms

Natural Dairy Holdings, the Hong Kong-based company looking to invest in New Zealand’s dairy industry, is dismissing claims that its plans to buy as many as 100 farms in Southland and Otago will push land prices skyward.

Natural Dairy hopes to buy farms and open a medium-sized processing plant in Southland, with an eight tonne daily capacity for drying milk powder.

Mr. Knight says the plan is still subject to Overseas Investment  Office approval, but any investment would be gradual, and have little impact on property prices.

Federated Farmers Southland Dairy Chairman Vaughan Templeton says while there are several farms for sale in the region, big business and the foreign investment elements would drive prices up anyway.
Mr Templeton says the recent failed Dubai-backed venture into Southland dairy has made locals suspicious of further foreign investment.

Meantime the Real Estate Institute’s  President Peter McDonald  says a lack of investment capital is locking New Zealanders out of the dairy industry.