Chinese businessman Lu Xianfeng to sell Van Dairy Ltd

After less than a decade of ownership, Chinese businessman Lu Xianfeng is selling the final part of Van Dairy Ltd. See the details.

Dairy cows at Woolnorth. Picture: Phillip Biggs

One of the nation’s biggest dairy operations, Tasmania’s Van Dairy Ltd, has been put on the market in the latest in the saga of Van Dairy Limited, owned by Chinese businessman Lu Xianfeng.

And it comes with an estimated price tag of more than $150 million if land values in the area are applied to the massive offering.

The operation has an estimated 7000 cattle as part of its Woolnorth operations, located 30km west of Smithton in northwest Tasmania.

The listing of the dairy property, which includes 9542ha of land, will not be sold on a walk-in-walk-out basis but buyers will have first option on livestock and machinery as well as more than 21,000 megalitres of water.

The information memorandum for Van Dairy will officially be released on Tuesday, with the operation to be offered as a whole or in a number of parcels.

A statement released by Lu Xianfeng said the listing was made “with disappointment … in anticipation of the expiration of our long-term milk supply agreement”.

“It has been an honour to be the owner and custodian of one of Australia’s most

important historic agricultural properties,” Mr Lu said.

“Since 2016, I have been proud to partner with the local community to build a

successful dairy farming operation.

“We’ve employed hundreds of locals, invested tens of millions of dollars into our farm, and returned huge flow-on benefits to the local economy too.

“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.”

The sale comes after Fonterra dropped its milk supply agreement with the Tasmanian operation in February this year.

The Weekly Times understands land in that area is making between $24,600-$36,900/hectare though there is about 2900ha of bush block with neglible commercial value in the offering.

The listing of the portion of Mr Lu’s landholding represents the final sell off from the portfolio.

In June 2021, Melbourne investment company Prime Value bought 11 of the 25 dairy farms from Van Dairy an estimated $62 million, leaving 14 owned by Mr Lu.

The final stage is still a massive operation which includes eight rotary dairies and a big list of structural improvements.

Inspections will start on May 31 and first stage offers must be made by June 12. It is expected that the next stage of the sale process will then begin in mid July.