August 1/Los Angeles/The Associated Press -- Feihe International Inc., formerly known as American Dairy, announced plans to sell its two dairy farms in China to a Chinese investment company.
The investment firm, Haerbin City Ruixinda Investment Company Ltd., will pay about $18 million in cash for the two farms. It will also supply Feihe with milk for the next year and a half, which Feihe estimates will be worth about $114 million. Haerbin City will also be banned from selling milk to other companies before supplying Feihe's milk.