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CHINESE investors are looking to buy into the historic Van Diemen's Land Company as it drums up capital to finish a $180 million expansion of its massive Tasmanian dairy operation.

The Australian Greens today raised concerns about the proposed sale of prime Tasmanian dairy land to Chinese investors, but the state's peak farming body says foreign investment is needed if local farms are to grow.

"Foreign investment is seen my many as Australia selling off the farm," Tasmanian Farmers and Graziers president Jan Davis said today.

"The TFGA does not share that view. Expansion requires funds and these investment opportunities are often not being taken up by Australians."

VDL Company chief executive Michael Guerin said the company needed to raise money to finish the expansion of its Woolnorth property in the state's far North-West.

Mr Guerin said a number of international investors were talking to VDL.

An announcement is expected within days.

VDL is Australia's biggest dairy farmer and it currently owns 23 farms, including the historic Woolnorth property.

Tasman Farms Limited, a New Zealand company, is the current majority shareholder of VDL, owning 98.42 per cent of shares on issue.

The Woolnorth expansion is already underway.

A new 1000-cow farm at Cape Barren started milking in March and more beef grazing and uncleared land will be converted to dairy over the summer.

In total, another 29 farms will be built on the 19,000ha property and when expansion is complete the Woolnorth herd will total 40,000.

About half an hour's drive away from Woolnorth, a new $60 million milk powder plant has started production in what was once a Gunns Limited workshed.

Australian Greens leader Christine Milne said she was concerned that Tasmania would lose ownership of land and water when young farmers wanted to get onto the land but were prevented from doing so by poor farm gate prices.

"We want to make sure that vertical integration from the farm, to the processor to the Chinese consumer does not constitute 'out sourcing' and distort markets for land and dairy products," Ms Milne said.

"What is additionally worrying is that the proposed expansion of the VDL company would be dependent on clearing 7000 hectares of native vegetation -- and stands in direct violation of our clearing laws and federal laws on threatened species, the Tasmanian devil in particular."


http://www.themercury.com.au/art ... _tasmania-news.html