Dongfang Modern Agriculture has announced the acquisition of a 354ha navel orange plantation in China’s Xingguo County, near the company's existing plantations in Jiangxi province. The deal also includes a 526ha camellia plantation at the same site.
Total consideration was said to be approximately RMB436.5m (US$65.8m). The plantations are located in the Ganzhou City Special Citrus Zone, enabling the Australian-listed company to benefit from long-term government tax-free incentives.
The acquisitions constitute the transfer of 30 years’ operating rights of the plantations and ownership of the trees.
“Both orchards are excellent acquisitions which ensure we are in a strong position to exceed our record 2017 harvest,” explained Dongfang’s chairman Hongwei Cai.
“The trees in our new navel orange plantation are also mature averaging ten years of age. Since acquiring our first navel orange plantation in 2013 we have focused on growing fragrant, sweet oranges with high juice content that attract a premium price.”
