The second-largest shareholder in Open Country Dairy has increased its majority stake in New Zealand Farming Systems Uruguay.
Singapore-based Olam International now owns 18.4% of New Zealand Farming Systems Uruguay (NZFSU), increasing that stake from 14.35% following the purchase on Monday of 10 million shares for 41c each from the receivers of Rural Portfolio Investments (RPI).
Olam already owns about 24% of Open Country Dairy and is its second-largest shareholder behind Affco New Zealand.
Announcing the NZFSU stake, Olam group managing director Sunny George Verghese said it was part of a strategy to "enhance its selective participation in dairy farming in low cost-producing countries that will provide a significant cost advantage."
He said NZFSU provided Olam with a platform "to realise the growth potential from dairy farming in Uruguay".
Olam, one of Singapore's 40 largest publicly listed companies, describes itself on its website as a global integrated supply chain manager of agricultural product and food ingredients," sourcing 20 products from 64 countries which it supplies to 10,600 customers.
It has direct sourcing and processing in most countries and deals with cocoa, coffee, cashew, sesame, rice, cotton and wood products.
Open Country Dairy is New Zealand's second-largest dairy company, processing about 800 million litres of milk a year through a Waikato cheese plant and milk powder plants at Awarua, near Invercargill, and Wanganui, which it exports to 45 countries.
Rural Portfolio Investments, the investment arm of Dunedin's McConnon family and Craig Norgate, was placed in receivership earlier this month after it breached its security trust deed.
