The Chinese owner of a Circular Head dairy giant says he will be placing his remaining Woolnorth land-holdings on the market, months after Fonterra ended its milk supply agreement with the business.
Van Dairy boss Xianfeng Lu said in February that the deal represented a loss of around 25 million litres of milk per year.
He claimed the discussions with Fonterra were extensive, but ultimately the decision to end the contract stemmed from Fonterra’s desire to decrease their overall milk production.
Reports indicate that at least 700 cows were culled from the herd at the time.
Prime Dairy, a subsidiary of the Australian Prime Value Asset Management fund, acquired 700 hectares of Woolnorth farmland from Lu for $15 million in late March.
Lu says the remaining portion of the once-vast 143,500-hectare property, which is today made up of 9,500ha of farmland and 4,207ha of dairy area, will be offered for sale.
“Since 2016, I have been proud to partner with the local community to build a successful dairy farming operation,” he said on Monday.
“Now, it is time for Woolnorth to begin its next chapter in its history. I thank the local community, our workers and their families for all of their support and wish the next custodians of Woolnorth the same pride that it has brought me.”
“North-west Tasmania will always hold a special place in my heart.”
The successful purchaser will also have the first right to acquire all Van Dairy’s remaining livestock and machinery, the Van Diemen’s Land Company name and archives and grazing leases on two wind farms, the AFR reports.
