Crafar Farms

The benefits of foreign investment

There were campaigns trying to prevent Shanghai Pengxin from acquiring the Crafar farms. Politiciand from David Shearer and Phil Goff to Winston Peters interfered as well. Then there were the legal battles from people trying to prevent the sale of the decrepit Crafar farms to Chinese company Shanghai Pengxin.

Winston Peters also famously slurred their name in one presumably drunken rant in parliament.

But all the naysayers are being proved wrong as Shanghai Pengxin has literally plowed millions of dollars in to the farms to turn them from dogs to diamonds.

ONE OF the biggest achievements of the Shanghai Pengxin renovation of a former Crafar dairy farm near Hamilton is peace with the neighbours and community.

A while back, Jason?Colebourn who manages the Collins Rd property for Pengxin’s sharemilker Landcorp, says he wondered if the local customary wave was a one-fingered salute, so often did he get one when working on the farm whose environmental calamities helped spur the collapse of the 16-farm Crafar dairying empire six years ago.

Colebourn moved onto the farm one year into the receivership of the Crafar farm estate and for two more years until the sale to the Chinese company was finalised, the Collins Rd property would remain an eyesore.

Pengxin has bankrolled the Collins Rd farm resurrection for $1.72 million and counting.

Colebourn and his five staff have supplied the brains and brawn to turn what was by all accounts a train wreck into an operation which this season will produce 365,000kg milk solids and is? turning a profit for its owner.

Read more »

The Empire Strikes Back: Official resistance to New Zealand investment in China

The Markets and Banking reporter for the NZ?Herald, Christopher Adams has this story

A high-profile Chinese dairy commentator is calling for China’s government to block Fonterra’s investment in Hangzhou-based infant formula maker Beingmate, showing criticism of foreign investment isn’t a purely one-sided affair when it comes to the business relationship between New Zealand and its biggest trading partner.

Foreign investment, particularly from China, has returned to the forefront of public debate in this country since it emerged that Shanghai Pengxin, the owner of the Crafar Farms, wants to purchase the more than 13,000 hectare Lochinver Station in the central North Island.

Opposition parties have opposed the potential sale and NZ First leader Winston Peters has gone as far as vowing to buy back strategic farmland from foreigners.

But it looks like New Zealand is copping a bit of its own medicine in China.

Time for the Labour, Green and NZ First hypocrites to take their medicine. ?They are all very happy about Fonterra sticking it to them foreigners, but lo and behold if we were to let them buy stuff here!

It’s simply dog whistle politics that is fueled by the xenophobia that used to be Winston Peter’s personal brand, but has since been adopted by the Greens and Labour as well. ? Read more »

Colin Craig joins the left by adopting xenophobia

Well. ?Whip me with a bottle cleaner and call me Nancy. ?How did Colin Craig ever expect to work with the National Party when his policies are?all over the show like a mad woman’s poo?

via NZ Herald

via NZ Herald

Isaac Davidson has the perplexing story

Chinese company Shanghai Pengxin has confirmed that it is aiming to buy a $70 million farm in the central North Island, which would be the second-largest foreign purchase of New Zealand land.

The company said this afternoon that its subsidiary Pure 100 Farm Limited had signed a sale and purchase agreement for Lochinver Station, near Taupo.

The sale is now pending approval from the Overseas Investment Office (OIO).

Chinese buyers interested in the Crafar farms, and needing OIO approval. ?Nothing new here. ?Good grief. ? Read more »

Hypocrisy, much?

So, Fairfax, it seems that after all the articles you’ve published against Asset Sales, you’re not above a bit of hypocrisy by selling some of your own?

I look forward to an editorial explaining how Fairfax selling assets to get cash to pay of debt is different to a government selling assets to get cash to pay off debt.

And with the number of NZ registered and active users of TradeMe, I’m also expecting Labour and/or the Greens to publish press releases announcing it will not allow the sale of this strategic national asset and will force nationalisation of TradeMe once they are in government.

I look forward to press releases from those parties announcing how the sale of a company that over 1 million ?New Zealand customers use is ‘business as usual’, while the sale of a few New Zealand farms requires all sorts of legal requirements to be met and exceeded.

And can I also look forward to a public comment from Selwyn Pellett, you know, the guy who sold his own businesses off-shore but surely will be against this one like he was against the sale of F&P?



Opportunists given the arse card

Michael Fay’s opportunist Maori mates have been given the arse card by the courts:

Chinese company Shanghai Pengxin hopes to settle its purchase of the 16 North Island Crafar farms before early December, after the Supreme Court threw out the last obstacle to the deal, an appeal by Maori trusts.

Pengxin, preferred bidder of KordaMentha, receivers for the dairy farming estate, has had to wait through 18 months of legal challenges and protests against the purchase, which ended today when the court refused to allow a further legal appeal by central North Island iwi.

Tiroa E and Te Hape B Trusts, which have been negotiating unsuccessfully to buy two of the Crafar farms at Benneydale, considered ancestral land, had asked the Supreme Court for leave to appeal Pengxin’s purchase consents by the Overseas Investment Office and the Government, upheld by the High Court and Court of Appeal.

Appeal dismissed on Crafar farms

? NZ Herald

Michael Fay cops one in the chook:

The Court of Appeal has dismissed the Sir Michael Fay led group appeal to block the sale of the Crafar farms to China’s Shanghai Pengxin group.

In its judgement issued this morning the court said the ministers were entitled to take the view that State owned Landcorp’s partnership with the Chinese company gave them the necessary business acumen and expertise to run the farms.

The Fay group’s appeal was its second attempt to block the purchase of the farms.

Nelson Muntz has something to say about this:

A good point

? NZ Herald

Fran O’Sullivan makes a good point about the claims of Fay’s legal case and the agitators of Federated F-Wits insistence that people buying farms come here and handle the teats and get their gumboots muddy…as if Michael Fay would ever deign to touch a cow’s udder:

Crown Law (which is arguing on behalf of the Cabinet ministers who approved the deal) maintains that Shanghai Pengxin had the business acumen to acquire the relevant dairy expertise by forming a joint venture with Landcorp and that the Chinese firm’s broader business skills will bring something more to the mix.

Many recently approved foreign investors in New Zealand dairy farms – like film-maker James Cameron – are hardly going to be “putting on their gumboots” to run their farms here. Neither will the directors of the Harvard University funds, which owns a sway of farms here.

Nor the many German and Swiss investors who have shares in various dairy partnerships.

If the court finds in the challengers’ favour this will effectively circumscribe the ability of farm owners to sell farms on the external market. It should be noted farm owners do have to advertise their land within New Zealand first.

James Cameron just bought another farm and there wasn’t a single outraged?email?or press release from Labour, the Greens, Michael Fay, any Maori group or the stupidly named Save our Farms crowd. Perhaps they like the colour of Cameron’s skin and his round eyes? Michael Fay certainly hasn’t initiated any legal action to take James Cameron’s farms off him.

He might be rich but he ain’t a billionaire

? NZ Herald

Michael Fay has a bloody cheek….he is questioning the business acumen of a billionaire….he can’t even get to $1billion in NZ dollars let alone US dollars:

Mr Galbraith told the court the focus of the OIO’s appraisal of Shanghai Pengxin’s relevant experience and acumen should be on the man in ultimate control of the corporation, billionaire Jiang Zhaobai.

Although the Shanghai Pengxin’s application noted the company’s investments in sheep and soybean farms, the OIO’s decision had no analysis of whether that gave Mr Jiang the experience required to invest in the farms.

And what farming acumen has Michael Fay got? Sweet F’all is what.

Will march for land but not for kids

The biggest hikoi we have ever seen?

Maori are promising the “biggest hikoi New Zealand has ever seen” following the Government’s second green light for a sale of the 8000-hectare Crafar dairy farming estate to Chinese company Shanghai Pengxin.

So they will march in the streets for some broken down farms in the Central North Island but won’t lift a finger to stop bashing and killing their kids?

Crafar Farms Sale approved


The government has approved the sale of the Westpac Farms formerly owned by the Crafar Family to Shanghai Pengxin. It looks like Coleman found his testicles after all:

Land Information Minister Maurice Williamson and Associate Finance Minister Jonathan Coleman this morning announced they had approved?the new recommendation of the Overseas Investment Office (OIO)?to grant consent to the Chinese-owned Milk New Zealand Holding Limited to acquire the 16 Crafar farms.

Fay said the decision was “wrong” and not good for the economy.

“It shows the Government has no commitment to the people who live and work in the rural sector. Sixteen dairy farms – an area the size of Hamilton – and a minimum $20 million per year of Fonterra milk payouts are lost to the Central North Island economy for good.

On the flip side, a Chinese official says Kiwis should “be happy” that foreigners want to buy land and invest here.

Good stuff…I imagine Fay will now spit the dummy and try and sue again so he can get a cheap deal.