Responding to farmer-shareholder criticism of direct involvement in China, the Fonterra Cooperative Group based in New Zealand has divested a 51 percent shareholding in two dairy farm operations located in Shandong Province.  The acquirer will be AustAsia investment holdings based in Singapore and controlled by Japfa Ltd.  The transaction is valued at $62 million. 

Following acquisition of the Fonterra interest, AustAsia will purchase the remaining shareholding of the joint venture partner to assume total ownership.  This divestment follows the sale of two other dairy operations in China acquired by Fonterra, representing a transfer of $386 million from physical assets in China to cash on the balance sheet of the New Zealand Cooperative.