Landcorp Farming says the former Crafar farms are in reasonable shape after three years in receivership.
The state-owned enterprise will manage the farms under a joint venture arrangement with the Shanghai Pengxin group, which took possession of the 16 North Island farms on Friday.
Landcorp chief executive Chris Kelly says it won't be taking full control until the start of the next dairy season in June next year. Managers and sharemilkers placed on the farms by the receivers will continue the day to day management until then.
"The farms are of necessity somewhat capital constrained and are short of fertiliser and a few other things," he says.
But Mr Kelly says the receivers have done quite a good job in upgrading the herds.