Fonterra is selling a couple of its last assets in China.
It is to sell two joint venture farms to a business controlled by Singapore-based Japfa for $US115.5 million (NZ$163.4m).
Fonterra chief executive Miles Hurrell Photo:
Fonterra owns 51 percent of the farms with US-based nutrition company Abbott owning the balance. Fonterra will receive NZ$88m from the sale.
Fonterra chief executive Miles Hurrell said the divestment fitted its plan of concentrating on processing New Zealand milk and resulting products, although it was not turning its back on China.
"Greater China continues to be one of our most important strategic markets. We remain committed to our China business, bringing the goodness of New Zealand milk to Chinese customers in innovative ways and partnering with local Chinese companies to do so."
The dairy co-operative has all but quit direct investment in China after the sale of its two wholly owned China farming hubs in Shanxi and Hebei provinces to Inner Mongolia Youran Dairy for $552m.
It has been selling out of the Chinese infant formula company Beingmate, and has one small farm in Hangu still on the market after its minority shareholder decided not to buy it - previously announced in the third quarter update.
At its most recent update for the nine months ended March, sales to China accounted for just under half of Fonterra's normalised pre-tax earnings amid strong prices and demand.
