South Australians are being urged not to boycott Farmers Union Iced Coffee, following news that a Chinese-owned company would be taking over its parent company.

Key points: Farmers Union Iced Coffee is a South Australian brand owned by Japanese company Kirin

Farmers Union Iced Coffee is a South Australian brand owned by Japanese company Kirin China Mengniu Dairy has announced it will take over Lion Dairy & Drinks brands

China Mengniu Dairy has announced it will take over Lion Dairy & Drinks brands The sale has angered many consumers, but the SA Dairyfarmers' Association says it will be good for business

China Mengniu Dairy, the company behind the $1.5 billion takeover of infant formula maker Bellamy's, will pay Japanese beverage giant Kirin $600 million to take over its Lion Dairy & Drinks portfolio.

It includes several iconic brands including Farmers Union Iced Coffee, Pura and Yoplait yogurt.

The announcement was met with anger on social media, with many users vowing they would stop buying the iced coffee drink altogether.

"Farmers Union Iced Coffee is the next dairy company to be sold off to China, lets [sic] make these Chinese companies go broke in Australia," a page named "Make Australia Great Again" posted.

"I will not be buying any Farmers Union or any of [sic] others owned by China," one Facebook user responded to the post.

Another user pointed out that the drink was already foreign-owned.

"Currently owned by a Japanese company … are we upset that it's not owned in Australia (why was it sold to begin with) or that it will be owned by the Chinese?" he wrote.

On the company's official Facebook page many people left comments and questions about the proposed takeover.

"We are currently part of Lion, which is Japanese-owned and they have announced the Dairy & Drinks business is being sold to Mengniu Dairy, pending regulatory approvals," it responded.

"Even with Mengniu Dairy's ownership we will continue making our great tasting products including Farmers Union Iced Coffee at our Australian manufacturing sites — supporting Aussie jobs and continuing to source all our milk from Australian dairy farms/fruit from Australian growers.

"We believe that Mengniu Dairy is the ideal owner to take Dairy & Drinks forward, given its track record of investing in the Australian dairy industry."

There was outrage earlier this year after large Farmers Union Iced Coffee cartons and bottles went missing from supermarket shelves. ( Facebook )

SA Dairyfarmers' Association chief executive officer Andrew Curtis told ABC Radio Adelaide a boycott would only hurt South Australian workers.

"I don't know who it would serve," he said.

"It is South Australian milk from South Australian dairy farmers, it's processed by South Australians who live and work in the north of Adelaide, I'm not sure who [a boycott] would benefit.

"And for a lot of people it would mean going to a lesser, certainly a lesser well-known iced coffee drink."

Mr Curtis said the sale was actually good news for the brand and the production of the milk would remain in South Australia.

"We see this as a good opportunity for the business, which has got a significant position in South Australia to get on and to keep producing," he said.

"It means we have got a good understanding that the plant at Salisbury will continue to work, continue to produce liquid milk that we have on our Weeties but also Farmers Union Iced Coffee, which is a South Australian staple."

Brand has a cult following in SA

Farmers Union Iced Coffee has a cult-like following in South Australia — the brand even has its own merchandise including T-shirts, hats and jumpers.

Earlier this year, the popular milk drink was in short supply.

Lion Dairy & Drinks put it down to the drought.

It is even rumoured to be one of few markets throughout the world to rival Coca-Cola for consumption.

"I can't say it's the only one, but it certainly stands out as a market where there is something that rivals Coke," Mr Curtis said.

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Fleurieu Milk Company, a local dairy company south of Adelaide, has used the sale to promote the fact it is South Australian owned and operated.

On the day the sale was announced, the company posted a picture of two of its iced coffee flavoured milks asking "is your favourite milk South Aussie owned? Choose carefully".

The post had more than 800 reactions and was shared more than 400 times.

The company has since put out a second post promoting it as South Australian owned and operated.

Dairy & Drinks employs around 2,300 people across Australia with others based in Singapore, Malaysia and China, and has 11 manufacturing sites around Australia.

The proposed takeover needs to be approved by the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB) before it can be finalised.

Mengniu said it is expecting to obtain approval from the regulators in the first half of 2020.