Dairy Company Sells Farms to Chinese Firm
Feihe International Inc., formerly known as American Dairy, plans to sell its two dairy farms in China to a Chinese investment company, according to the Associated Press. The investment firm, Haerbin City Ruixinda Investment Company Ltd., will pay about $18 million in cash for the two farms. It will also supply Feihe with milk for the next year and a half, which Feihe estimates will be worth about $114 million. Haerbin City will also be banned from selling milk to other companies before supplying Feihe''s milk. Feihe International has an office in the Los Angeles area but does business in China through its subsidiary, Feihe Dairy, headquartered in Beijing.