Growing demand for dairy fuels interest in Crafar farms

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Thu, 26 Jan 2012 7:00p.m.

China needs more food to feed its growing population

China needs more food to feed its growing population

It's not just New Zealand’s temperate climate and ability to grow lush green grass that has caught the eye of Chinese investors.

Our ability to produce high quality milk cheaply and efficiently is matched only by our ability to do so safely.

As an analyst for NZX, Susan Kilsby has compiled a report on the booming Chinese dairy industry. She says for the Chinese, it's all about food security.

“It's not just setting up the farm, it's also the security of supply chain from the time the milk leaves the cow to the time it reaches the consumer product at the end," she said.

It's not that the Chinese can't produce their own milk. In 1995 Chinese milk production was just over 5 million tonnes. That grew to 17 million tonnes in 2003 before doubling by 2008 to 35 million tonnes.

And China’s government plans to increase production to 48 million tonnes by next year.

The Chinese dairy industry is the fourth largest in the world - it produces twice as much milk as New Zealand. But China is also a country where 16 million babies are born every year, and demand for dairy products is growing exponential.

It's demand that the Chinese dairy industry can't keep up with.

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Comments

27 Jan 2012 07:23p.m.

Alex wrote:

Can we the public help to outbid the chinese offer? What would it take - $20 per household? Could we set that up?

27 Jan 2012 07:22p.m.

Dina wrote:

I think Mr Key put profit on the first priority over nationalism as he was a money trader before. I am afraid that he deliberately kept this deal before election to gain as many as votes.

27 Jan 2012 07:21p.m.

Richard Mabin wrote:

New Zealand citizens cannot buy freehold land in China. How can young people starting out in the dairy industry, compete with a Chinese consortium paying a non-commercial price for the Crafar farms? Richard

27 Jan 2012 07:19p.m.

Teresa wrote:

You're so right Ian. The Mighty Dollar talks. Always been this way. Bloody Prime Minister and his lot need shooting. I wonder who in Parliament voted to sell. They should not be there next term of office hopefully.

27 Jan 2012 07:10p.m.

Stu wrote:

I say to all those who are against this sale to the Chinese , you have had 2 years to put together a bid to buy the land yourselves for the same money, if all of you which are so against this put your own money up then you may be the owners. but no you just stand on the the side making a noise.

27 Jan 2012 06:44p.m.

Chatterbox wrote:

Now the precedent is set we should sell NZ to the Chinese and become a state of China in the South Pacific so that China's growing economic dominance can provide us all with a good lifestyle, we should learn Chinese in schools, the national anthem changed to Chinese, and all labour rates match those of China under the hand of the People's Republic of China. Who would have ever thought NZ would sell land and pay an annual lease of $18m per year to the Chinese to use our own land while it remained a communist administration where the party can at any moment in time close down China and convert all assets to ownership by the Party. Clearly NZ Govt considers it is acceptable to sell land to foreign investors and lease it back as a tenant in NZ. This has nothing to do with discrimination and everything to do with selling NZ to foreign interests and leasing back. That precedent means, now it is accepted, that NZ's success should be converted to and aligned with the development of the Chinese economy - and the fastest way is become a Chinese state. Repeal the Treaty and convert to China. Within 10 years Auckland alone will represent 50% Asian cultures at present rates. Why do it slowly - lets change now.

27 Jan 2012 06:32p.m.

Heike wrote:

Everybody is missing the point about the Crafar Farm sales. It doesn't matter whether people are Chinease or Russian but what does matter is that the prices of the farms are getting out of reach for young New Zealanders because surely the prices are pushed up by foreign purchases. Can't be that hard to see.

27 Jan 2012 12:45p.m.

ian wrote:

Too late now - sale to Chinese approved! I still say "LEASE BUT NEVER SELL."