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Business deals

New Zealand's Fonterra sells money-losing Chinese farms for $370m

Group entered the country in 2008, but cost of purchasing feed was a burden

Cows feed at a farm managed by New Zealand dairy exporter Fonterra near the Chinese city of Tangshan, east of Beijing.   © Reuters

SYDNEY -- New Zealand's top dairy producer, Fonterra Co-operative Group, said Monday it agreed to sell off farms in China for a total of 555 million New Zealand dollars ($368 million).

In two separate deals, Fonterra will transfer seven farms altogether to an affiliate of Inner Mongolia Yili Industrial Group and to Beijing Sanyuan Venture Capital. The transactions are expected to close by the end of July, pending approval by Chinese authorities.

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