Right on Xmas – Don Brash knows his politics

The Christmas Grinch has struck again with Don Brash depriving the usual suspects of a chance to have a decent whack at the sale of Oceania Dairy to China’s biggest dairy company at a time when they all want to wind down rather than up.

To be fair, Brash is just one of two directors of Oceania Dairy which has been ‘in talks’ with the Chinese player for months. But the timing of this announcement is is in one word – exquisite.

To be sure, the deal still has to go through the Overseas Investment Office’s hoops. Yili has had some colourful characters and moments in its past which will doubt be ramped up by opponents during the approval process.

But the upside is this deal will result in more added value processing in New Zealand and hence more jobs.

Yili noted it made a comprehensive survey of world milk prices before settling on New Zealand as an investment destination  citing its “relatively cheap” raw milk prices and the fact that imported dairy product tariffs would reduce to zero by 2020 under the China-NZ free trade agreement as the major attractions.

The Chinese firm’s strategy begs the question of why Fonterra isn’t processing more refined products here itself for the high-value Chinese market.

But these questions will get lost in the Xmas wash just like all the other key announcements – that much Brash clearly knows.

Postscript: Don Brash says Yili had to announce the deal to the Shanghai stock exchange as soon as the board made its decision.