From Grand Ambitions to Disappointment
The remaining 9,500 hectares of the once vast Van Dairy property in Tasmania's remote Woolnorth are up for sale, marking the end of a tumultuous chapter for the former dairy giant.
Billionaire Chinese businessman Xianfeng Lu purchased the 143,500-hectare property in 2016 for $280 million, aiming to fly fresh Tasmanian milk to China. However, his ambitious plans never materialized.
In February 2023, New Zealand dairy giant Fonterra cancelled its 25-million-litres per year milk contract with Van Dairy, leading to the slaughter of thousands of cows. This followed years of controversy surrounding the property, including allegations of animal cruelty, effluent management issues, and the mass resignation of board members.
Lu also faced criticism for failing to meet the conditions imposed by the Foreign Investment Review Board, which included significant investments in infrastructure and environmental projects. His plans to build a milk powder processing plant and dedicate land for Tasmanian devil conservation never came to fruition.
The sale of the remaining land marks the end of an era for Van Dairy, leaving behind a legacy of unfulfilled promises and environmental concerns. The property's future remains uncertain, but it serves as a cautionary tale about the potential pitfalls of large-scale foreign investment in sensitive agricultural sectors.