Farm-buyers allege reaction 'xenophobic'

Bill Ralston. Photo / Michael Craig

Stung by the "xenophobic" response to its plans for a $1.5 billion business here, Hong Kong-listed Natural Dairy NZ is setting up its own Auckland-based weekly newspaper with a focus on China-New Zealand relations.

Natural Dairy NZ hit the headlines last month when it went public with plans for a pasture-to-supermarket-shelf business producing UHT milk and baby formula in New Zealand for sale in China.

The disclosure of its plans stoked fears of a wider Chinese buy-up of the dairy industry, while some of the company's local representatives, including Auckland woman May Wang, have attracted scrutiny due to their chequered business histories.

Yesterday, the company issued a statement challenging critics of its plans, including some farmers and Fonterra.

"Unfortunately Natural Dairy's interest in the New Zealand dairy industry has met a xenophobic response from some farming interests completely at odds with reality."

It said "a well-orchestrated public relations campaign" was being employed by "vested interests that are trying to stop this investment".

Natural Dairy NZ spokesman Bill Ralston confirmed yesterday that the company and one of its shareholders, Auckland businessman Jack Chen, were the owners of Chinese language newspaper United Chinese Press.

According to its current online advert for a new chief editor, the United Chinese Press "is an innovative new newspaper for the Chinese community, which is expanding to include an English weekly newspaper aimed at the wider community".

"The newspaper will include news and current affairs, business, travel, and entertainment. Its focus will be on China-New Zealand relations, and New Zealand's multicultural society."

Mr Ralston said United Chinese Press was currently renting "heavily mortgaged" office space owned by Mrs Wang, who is in Asia raising further capital for Natural Dairy NZ's venture.

Meanwhile, Natural Dairy NZ's purchase of more than 20 farms from the receivers of the failed Crafar dairy empire - through its 20 per cent-owned New Zealand subsidiary UBNZ Assets Holdings - has hit a speed bump. The Overseas Investment Office says it needs more information on the company's plans before it will consider granting approval.

Mrs Wang, who is facing charges over her failed Dynasty hotel and property company, holds 80 per cent of UBNZ on behalf of other investors who have so far chosen to remain anonymous.

Mr Chen, who has in the past been banned as a company director by Chinese authorities, is founder of the Chinese Business Round Table in New Zealand.

The Herald understands he harbours political ambitions and has considered setting up the "New Citizens' Party" which would field candidates in the next general election.

He is also overseas at present and unavailable for comment.