The Shanghai-based firm Shanghai Pengxin that bought Crafar Farms in New Zealand is in talks with several partners including Fonterra concerning the establishment of a dairy processing plant near its farms in the Bay of Plenty and states that it would want more milk from New Zealand in the future. Through its local subsidiary, Milk New Zealand, Shanghai Pengxin plans to invest $100 million into upgrading its dairy farms and expand into infrastructure, vineyards, forestry and real estate. Fonterra, which operates three farms surrounding Beijing and plans to establish two more farms - expanding to 25,000 cows - is also in talks with Shanghai Pengxin to establish a dairy partnership in Anhui province, China.