New Zealand

Public opinion is clearly against the Crafar farms sale on the basis that NZ is "selling the farm", while selling a controlling stake in a processing plant is seen as another issue altogether. There is a strong argument for conditionality either way, writes Fran O'Sullivan.

Prime Minister John Key yesterday warned of other potential foreign buyers of large tracts of New Zealand farmland lining up behind the Hong Kong company bidding for the Crafar farms as his Government signalled a new focus on overseas investment rules.

The New Zealand Government has signalled it is unlikely to change overseas investment rules to make it easier for land to be sold to foreigners.

New Zealand's Green Party has drafted a bill seeking to stop overseas buyers snapping up large tracts of NZ land. Australian farmers also fear they may have trouble coping with future food and water demands if foreign interests snap up too many of the nation's agricultural resources.

This Bill is designed to retain ownership and control of sensitive land within New Zealand.

If the offer is successful, Singapore's Olam will either hold 100 per cent or between 50.1 per cent and 90 per cent of NZ Farming Systems Uruguay

Maori party maverick MP Hone Harawira wants to ban the sale of New Zealand land to foreigners.

Most other countries have much tighter controls over foreign investment than New Zealand.

At least 24 countries have been given approval to invest in New Zealand's agricultural sector, covering 154,855ha and a wide range of sectors from sheep farming to viticulture

Calls for an overhaul of rules governing foreign ownership of farm land increased in New Zealand yesterday, coinciding with the Chinese-backed company lodging an application to buy 16 North Island dairy farms with the Overseas Investment Office.

Hong Kong-based Natural Dairy says it has relodged its application with the Overseas Investment Office (OIO) to buy the Crafar portfolio of farms, and expects approval in the next few months.

Prime Minister John Key is endorsing Landcorp's bid for the 16 Crafar family farms that are in receivership.