NZers underestimate value of agricultural sector: Key

Some New Zealanders are underestimating the value and possible growth in the local agriculture sector which is why Chinese investors seem to be at the forefront to purchase Crafar farms, Prime Minister John Key says.

Some 16 North Island farms owned by the Crafar family, and reputed to be worth $100 million, have been in receivership since October.

Real estate firm Bayleys has been appointed by receivers KordaMentha to sell the farms, ranging from 128ha to 1750ha in size.

They have received a lot of interest from Asia, including Chinese investor UBNZ Funds Management.

The Overseas Investment Office was looking into the possible purchase and would advise the Government, Mr Key said.

"At one level sales of land will go offshore, has for a very long time, and will continue to do so.

"But I do think New Zealand wants to own its productive base by and large," he told Newstalk ZB this morning.

Making capital available locally was the answer to avoiding overseas buy-up of New Zealand land and assets, not regulation, he said.

The Government believed in the value of New Zealand's agriculture sector and growth in the associated markets.

However, it was underestimated by "some New Zealanders", he said.

Agriculture Minister David Carter said over the weekend the sale to the Chinese firm was "unlikely to go through".

Mr Carter has said there was a process to go through with the Overseas Investment Office but he believed it was unlikely the farms would be sold to the Chinese bidder.

- NZPA