Southern Cross Foods(SC Foods),a wholly owned subsidiary of CJ Patel,has entered into an agreement to acquire Fiji Dairy from the government of Fiji for FJD10m($4.42m).
The company will also be assuming a debt of Fiji Dairy,which stands at FJD17m($7.52m).
Under the agreement,SC Foods will set up chilling centres in Ba and Lautoka within four months of the sale.It will also modernize the Fiji Dairy factory as well as establish a farm in Waidina.
Following the completion of the transaction,SC Foods will own 80%of shares and have dividend rights,while the farmers will continue to own 20%shares.
At least 16 companies had shown their interest to acquire Fiji Dairy.
The government is seeking to increase yield for the farmers,as the country consumes 70 million liters of milk annually,while the local dairy industry produces just 9 to 11 million liters.
