Chinese dairy farming company Inner Mongolia Fuyuan Farming Co Ltd (Fuyuan) will take a majority shareholding pending Foreign Investment Review Board (FIRB) approval.
Fuyuan’s largest shareholder is Mengniu, which manufactures and distributes dairy products throughout China.
Burra Foods said the deal will see the local Gippsland dairy processor gain access to the Chinese market in addition to access to capital to fund expansion projects.
Milk supply and jobs secure
Existing shareholders including Burra Foods’ founder Grant Crothers and Japanese dairy distributor ITOCHU Corporation have maintained a combined 21% interest in the company, with Crothers continuing in his role as managing director/CEO.
“We have always been about maximizing value from the milk solids we collect and process and have taken a very cautious approach to China, appreciating the significant risks that come with the increasing opportunities available,” Crothers said.
He added that the deal would ensure a future for milk suppliers and provide continued employment for staff.
Both Burra Foods and Fuyuan will provide directors for a new board once FIRB approval is granted and the sale is completed.