Maui Milk partners with major Chinese dairy company to expand sheep milk exports
Sheep milk powder and products exporter Maui Milk is partnering with one of China’s biggest dairy players to boost its market presence.
The report, prepared by KPMG with the Overseas Investment Office (OIO), shows that between January 2013 and December 2015 about $3.4 billion was invested in a range of NZ agribusinesses by overseas companies and individuals. This represents 13% of the $26.3b invested in total in NZ in industries including real estate, energy and financials.
While China (28%) was the largest investor in dairying, France (13%) and the US (9%) were also in the mix.
The global head of agri for KPMG, Ian Proudfoot, says while China is a dominant investor in the dairy sector, the US, Canada and Europe also invest heavily in other agri related ventures.
He says though China is now the biggest investor, this may not continue. NZ needs a balanced spread of investors, in particular those who want to create and drive value from their investments here.
Proudfoot acknowledges the concerns NZ has about Chinese investment, notably the influence the state has on investment policy, and the focus of China on food security.
“Part of the concern people have is the businesses the Chinese are buying. Through Yili they have invested in the Oceania Dairy business in the South Island, but that asset would not have been built without Chinese investment. And the Yashili development at Pokeno (south of Auckland) would not have happened without the Chinese investing. They are creating jobs and opportunities for us to produce into higher value product streams.”
Proudfoot says NZ needs partners who are well connected to markets and if a Chinese partner can do this, that is positive.
He also notes Kiwi concern about Chinese owned companies in NZ putting pressure on local ones in the Chinese market.
“I don’t see that as a problem although the nature of the Chinese economy is connection and relationship. Good relationships and strong connections facilitate how you can do business in the Chinese market. So maybe the Chinese-owned companies in NZ have an easier track, but I don’t see them making it difficult for others.”
Proudfoot refers to interesting new statistics about the amount of liquid milk being taken into China. Germany is sending 4L of liquid milk for every 1L NZ sends to China.
“What the Chinese are looking for is high quality dairy products.... They’re going to look to NZ to increase the delivery of this product to them.”
KPMG’s comprehensive report shows that most of the freehold land being bought by overseas investors is in Canterbury, Otago and Southland -- 49% of land sales.
Proudfoot says the positive story from the research is that offshore entities see NZ as a place worth investing in.
