The Australian government has cleared the way for the sale of the countries largest and oldest dairy farm to a Chinese company for $280m (€180.4m).

Australian treasurer Scott Morrison announced yesterday that an application made by Moon Lake to purchase the property held by the Tasmanian Land Company Ltd had been approved.

The sale is expected to be completed in the next couple of months, but only if Moon Lake meets Australian taxation laws.

The Tasmanian Land Company Ltd, which includes the Van Diemen's Land Company (VDL), is set to be sold following the guarantee by Moon Lake that all current VDL employees would remain in employment.

The Chinese company also vowed to invest in projects which would benefit the Tasmanian economy, for the purpose of creating additional employment in the area.

The sale includes the 17,800 herd of cows which produce 7.66m kg of milk solids each year.

Over the past seven years, VDL has continued to produce record milk amounts going from 3m kg of milk solids a year to 7.66m kg of milk solids

Some 25 farms make up VDL. The Woolnorth farm run 12 rotary dairies and one herringbone dairy. The largest is an 80-bale rotary platform, which can milk up to 1,800 cows.

According to the VDL website, currently five of the dairies are run by variable order share farmers and eight are run as managed farms.

Since 2010 there has been a significant shift in milk supply patterns on Woolnorth with most of the dairy cows are now autumn-calving.

The five Togari farm run herringbone dairies and the website states that three of the Togari farms are variable order share farmed and two are managed. All Togari farms calve in spring.

The seven remaining farms also operate herringbone dairies and two are run by variable order share farmers and five are run as managed farms, VDL states.

All of the dairy farms supply Fonterra.