A Chinese company that has a conditional offer on the Crafar family farms plans to increase milk production to supply dairy products for the Chinese market.
Shanghai-based Pengxin International Group outlined its proposals for the 16 central North Island farms in its application to the Overseas Investment Office this week.
Crafar receivers KordaMentha accepted the offer after the Overseas Investment Office and the Government declined an application from Chinese company Natural Dairy.
Pengxin says it will spend at least $200 million buying the farms and dairy herds and upgrading them in the first two years.
Pengxin's New Zealand spokesperson, Cedric Allan, says the aim is to increase milk production by more than 10% by the end of the third year.
It will retain the sharemilkers and staff running the farms and will continue to supply milk to dairy cooperative Fonterra.
The company is not planning to set up its own plants, but will go into partnership with existing processors to make consumer products for export to China, ranging from baby food to cheese and icecream.
