Farm sale won't raise milk price: O'Dwyer

It is false to claim the sale of Van Diemen's Land Company to a Chinese company will lead to a milk shortage, Assistant Treasurer Kelly O'Dwyer says.

Assistant Treasurer Kelly O'Dwyer has denied the sale of Australia's largest dairy farm to a Chinese company will cause a milk shortage and raise the price of infant formula.

Moon Lake Investments has been given the green light to acquire Tasmania's Van Diemen's Land Company from its New Zealand owners.

"There won't be a shortage, it's very, very false for people to claim that because of a commercial agreement ... that this will somehow lead to an increase in price of baby formula," Ms O'Dwyer told the Seven Network on Wednesday.

Independent senator Glenn Lazarus told reporters in Canberra he was concerned the sale of farm properties to Chinese investors could mean Australians won't benefit when the rain and good times return.

Senator Lazarus will introduce a motion to the Senate on Wednesday calling on the government to disclose the extent of public sector services sent overseas.

Tasmanian Independent MP Andrew Wilkie said despite the company having always been foreign-owned, its latest sale was an opportunity to bring "an asset of strategic importance" under Australian control.

"I have no doubt that with such a large asset as VDL being in foreign hands, where there will be uncertainty of supply, there will be upward pressure on prices and one day we will regret ever having made these sort of decisions."


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Source: AAP


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