Leading Chinese agri-company Dongfang Modern has acquired Rmb400m (US$60.19m) in plantations, including a 400ha tangerine plantation in and a 800ha camellia plantation in China's Xunwu County.
The Australian-listed company said the acquisitions were part of the company’s strategy to aggregate orchards within China’s fragmented agriculture section.
“We remain a key domestic supplier of tangerines, navel oranges, pomelos and camellia fruit products, meeting the growing demand for fruit by consumers in China's tier-one cities,” said Dongfang CEO Charlie So in an announcement released 30 June. 'We will now take over and manage these two plantations, applying modern tree husbandry, fertilisation and harvesting procedures in order to optimise yields ahead of the 2016 harvest season commencing in September.
The acquisitions take Dongfang’s total plantations to more than 9,800ha, with So expecting Dongfang’s output to increase by more than 19,600 tonnes and profit to increase by more than Rmb830m (US$124.89m) in 2016.
The business listed on the Australian stock exchange in October 2015, with its headquarters moved to Brisbane earlier this year.
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