Chinese investment in Burra Foods approved

BURRA Foods of Korumburra will officially be majority owned by a Chinese company.
On Friday, the Foreign Investment Review Board (FIRB) provided Burra Foods with written notice there were no objections to the proposed change in shareholding under which leading international dairy farming company, Inner Mongolia Fuyuan Farming Co Ltd (Fuyuan), would take a majority shareholding.
Fuyuan is owned by several investors, with the largest shareholder being China Mengniu Dairy Co Ltd (Mengniu), a company listed on the Hong Kong Stock Exchange, which manufactures and distributes dairy products throughout China.
Mengniu is also Fuyuan’s largest customer for the milk production from its 14 dairy farms.
Burra Foods said Fuyuan’s interest would give Burra Foods unparalleled access to the world’s largest and fastest growing dairy market, in addition to improved access to capital to fund expansion projects.
Existing shareholders including Burra Foods’ founder, Grant Crothers and international trader, ITOCHU Corporation have maintained a combined 21 per cent interest in the company, with Mr Crothers continuing in his role as managing director/CEO.
“We are pleased the Foreign Investment Review Board has approved the new shareholder structure of Burra Foods, one that will provide vastly improved access to the world’s fast growing and most dynamic market,” he said.
“We have always focused on higher value milk ingredient products and we see a variety of opportunities for our existing milk powder range in addition to new products.
“International dairy markets are notoriously volatile of which we have seen the worst in recent times and this new structure provides more opportunity for low risk growth up the value chain while gaining access to additional capital.”
Mr Crothers said business would continue as usual.
“The new structure enhances the future for our loyal milk supply partners, provides ongoing employment for our dedicated staff, while ensuring increased and stable supply to our existing customers whether they are located in Australia, Japan, China or other parts of the world,” he said.
He paid tribute to loyal farmers and customers.
“This injection of capital provides us the scope to meet the ongoing market demand for premium dairy based ingredient products, including nutritional milk powders, and move up the value chain while minimising the risks associated with penetrating volatile international markets,” Mr Crothers said.

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Posted by Sarah Vella on Aug 16 2016. Filed under Business, Rural News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry