Moon Lake management exhibited a business-as-usual demeanor the day after a mass resignation by executives over a disagreement about how VDL Farms should operate.
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Deputy chairman Dr David Crean, non-executive directors Keith Sutton, Rob Poole, Bruce Donnison and Simon Lyons and VDL Farms chief executive Evan Rolley resigned on Tuesday.
Despite the differing views on the running of the businesses, Moon Lake owner Xianfeng Lu said he appreciated the “significant contribution made by the current Moon Lake board and CEO of VDL Farms who had provided stability during and post purchase of the farms”.
“However, given the restructure and proposed new governance structure, the non-executive directors and the CEO of VDL Farms have agreed to part ways,” Mr Lu said.
The North-West dairy business has been restructured to become part of a Chinese company Ningbo Xianfeng New Material Co, which trades as APLUS.
Mr Lu is the largest shareholder of APLUS, which manufactures sun-shade materials and products that are sold around the world.
The Foreign Investment Review Board has approved the corporate restructure of Moon Lake.
An Australian holding company will be set up to coordinate VDL Farms within the next three to six months, Moon Lake managing director Sean Shwe said.
“It could be sooner,” Mr Shwe said.
The holding company will incorporate Moon Lake’s farming business, operating as VDL Farms; processing facilities, which will be built or acquired; and sale and export, via sister company Van Dairy.
Moon Lake’s plan is to continue converting its North-West dairies to organic operations, creating a commercial organic farm business of about 1650 cows on almost 790 hectares.
Organic certification is part of Moon Lake’s strategy to create value-added products with high farm returns for clean and safe milk.
“The plan is to continue to invest in our organic journey,” Mr Shwe said.
“Beyond farm gates, we intend to invest in processing facilities in Tasmania subject to the business case stacking up.
“We are open to both buy or build options, and are working with the government to explore some of these options,” he said.
Moon Lake Investments Pty Ltd was set up to acquire the Van Diemen’s Land Company in 2016, with Mr Lu as the sole owner through his private company Hong Kong Siming Investment.
Van Dairy was set up in April 2016 to export dairy products to China and will be exporting organic UHT milk and yoghurt products to China by the middle of the year.
Johanna Baker-Dowdell
Johanna has more than 22 years experience as a journalist for newspapers, magazines and online publications.
Johanna has more than 22 years experience as a journalist for newspapers, magazines and online publications.
