Shareholders in New Zealand's Westland Milk Products have voted to sell the dairy co-operative to the China-based Inner Mongolia Yili Industrial Group. Shares in the co-operative would be sold to Yili's subsidiary Westland Jingang at NZD3.41 ($2.29) each. The move comes as the co-operative, which processes 3% of New Zealand's milk, has struggled to pay competitive rates to farmers due to mounting debt. Under the proposed agreement, shareholder farmers who are existing suppliers will have guaranteed contracts with Yili for 2018, in line with Fonterra's minimum rate. Westland would no longer be a co-operative.
Shareholders in New Zealand's Westland Milk Products have voted to sell the dairy co-operative to the China-based Inner Mongolia Yili Industrial Group. Shares in the co-operative would be sold to Yili's subsidiary Westland Jingang at NZD3.41 ($2.29) each. The move comes as the co-operative, which processes 3% of New Zealand's milk, has struggled to pay competitive rates to farmers due to mounting debt. Under the proposed agreement, shareholder farmers who are existing suppliers will have guaranteed contracts with Yili for 10 seasons, in line with Fonterra's minimum rate. Westland would no longer be a co-operative.