Saudi looks to Australia for secure food supply
- The National
- 28 April 2010
Companies from the kingdom are meeting with representatives of the state of Western Australia to discuss buying equity in farms and investing in the wheat supply chain.
Companies from the kingdom are meeting with representatives of the state of Western Australia to discuss buying equity in farms and investing in the wheat supply chain.
The fund aims to deliver long-term returns by investing in agribusiness companies (those involved in the production, processing, distribution and marketing of agricultural products).
China may set up large pork and chicken operations in Australia as it strives to keep up a burgeoning demand for meat among Chinese consumers.
Chinese investment in Australian farms increased 10-fold in the past six months, as buyers see opportunities in agriculture. “Chinese are wealthy and they are looking for a secure investment in beef, cotton and grain properties, ” said John Burke, an agent for Elders Ltd.
But company says it does not want to tarnish Saudi Arabia's image by buying farmlands abroad
Macquarie Agricultural Funds Management has started up the Macquarie Crop Fund to "acquire or lease grain and oilseed properties located in geographically diverse regions of Australia and Brazil".
Investors are growing more bullish on U.S. farmland as softness in some sectors spurs increased competition for buying quality acres. Capital flow is increasing from overseas, in particular from Europe, Asia and the Middle East.
Qatar-based Hassad Food has initiated its investment in Australian agriculture with the purchase of the prized Kaladbro Estate in far western Victoria.
Saudi Arabia, along with Abu Dhabi and Kuwait, want to buy more than $1 billion worth of Aussie farmland in a 21st century land grab.
Human rights workers said risks to the rural poor over such deals are significant because they are regularly evicted to make way for foreign investors.
Swedish Count Carl Gustav Wachmeister bought 3,310 ha in Victoria State, Australia