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Former owner of Australia’s largest dairy farm fails in bid to sue new owner Van Dairy

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The Chinese language-owned Van Dairy Group, Australia’s largest dairy farm operation, doesn’t must pay the earlier proprietor of the farming big hundreds of thousands of {dollars}, a choose has dominated.

In 2016, New Zealand’s Tasmanian Land Firm (TLC) controversially offered the Van Diemen’s Land Firm to the Chinese language-owned Van Dairy Group in 2016 for $280 million.

On the time of the acquisition, the brand new Van Dairy-owned operation milked about 18,000 cows over 7,062 hectares in Tasmania’s north-west and employed 140 folks.

However TLC later claimed that Van Dairy had breached the phrases of the sale settlement by failing to ahead onto it a $2.2 million lump sum paid to Van Dairy by milk processor Fonterra.

As a part of the 2016 sale, Van Dairy and TLC agreed to compensate one another for fluctuations in milk costs that may happen within the 2015-16 monetary 12 months.

New Zealand-owned TLC ended up paying Van Dairy $2.2 million after a dramatic, retrospective slash in milk prices for the 2015-16 financial year.

The historic gate of the Vand Diemen's Land company in Woolnorth.
The Van Diemen’s Land Firm at Woolnorth in Tasmania’s far north-west was offered to a Chinese language firm in 2016.(ABC Rural: Lachlan Bennett)

That worth slash led to take advantage of costs dropping beneath the value of manufacturing and had widespread ramifications, prompting several farmers to exit the industry or take to the streets in protest.

The value lower additionally turned the catalyst for an Australian Competitors and Shopper Fee inquiry into the dairy business.

Nearly a 12 months later, in 2017, milk processor Murray Goulburn reversed the value drop for the 2015-16 12 months. 

Fonterra adopted go well with and launched an “further cost” of 40 cents per kilogram of milk solids for the 2017-18 season, paying the brand new Van Dairy-owned farming operation a $2.26 million lump sum.