August 15, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

JLL’s Agribusiness team of Chris Holgar, Geoff Warriner, Clayton Smith, and Jock Grimshaw have been appointed to broker the sale of the entire farming operations of Mackay Farming Group – Australia’s largest banana and tropical fruit enterprise. 

Begun in 1945 by canecutter Stan Mackay, who planted his first banana trees on scrub land that he cleared in his spare time, Mackay Farming Group has grown as a family-owned business over the past 75 years to now account for approximately 13 percent of Australia’s banana production. 

In 1985, in recognition of the great impact he has had on the country’s agricultural landscape, Stan Mackay was awarded the Order of Australia Medal, and today the fourth generation of the Mackay family is carrying his dedication forward.  

“The Mackay Family is synonymous with horticulture in Far North Queensland and has a successful 75-year history of building their banana (and tropical fruit enterprise) from small beginnings to being Australia’s largest banana producer,” said Chris Holgar, senior director, agribusiness, JLL. ”The portfolio supplies approximately 13 percent of Australia’s banana production, with distribution to Australia’s major supermarkets.”

Queensland accounts for 94 percent of Australia’s banana production with the vast majority of that output coming from Northern Queensland – particularly Tully, Innisfail, and Kennedy on the Cassowary Coast, along with the Atherton Tablelands, and Lakeland.

During the 2020/2021 season, Australian growers sold nearly 362,000 tons of fresh bananas valued at AUD597 million, and in 2022, bananas represented the highest percentage of fresh produce dollar sales in the country at 7.7 percent, according to Australian Banana Growers. 

The opportunity represented in this sale is huge. A portfolio of nine premium farming assets across the Tully and Lakeland regions of Northern Queensland totaling 5,861 hectares (14,483 acres), of which 4,453 hectares (11,003 acres) are arable, are being offered for sale. 

A total of 1,167 hectares (2,884 acres) are planted in permanent crops including bananas, avocados, papayas, and lychees, along with another 95 hectares (235 acres) that are planted in irrigated sandalwood that is leased. 

The land is benefited by extensive water licenses totaling 8,830 megaliters and a private water supply agreement for another 2,000 megaliters, and a total of 2,407.9 hectares (5,950 acres) are utilized for irrigated and dryland cropping, presenting a viable option for the further development of permanent plantings. 

The portfolio also includes 1,219 hectares (3,012 acres) of grazing land, adding the benefit of diversification to the production capabilities of the Farming Group. 

Alex Hutton, CEO of Mackay Farming Group, commented, “We are offering a farming and production portfolio which began when Stanley Mackay planted his first crop of bananas in 1945. With the Tully farms underpinning the operation, the Mackay Family made a conscious decision to establish a risk mitigation strategy with the addition and development of Gold Tyne in the Lakeland region. This has provided a unique balance capitalizing on ideal growing conditions across two regions with the security of mitigating biosecurity risks and having a much higher likelihood of production being uninterrupted in the case of extreme weather events to which the traditional coastal production areas are occasionally prone.”

Over twenty years ago the family also launched Mackay Marketing to manage the logistics from the farm gate directly to major retailers including Coles, Woolworths, and most recently, Aldi. It also provides marketing services to other large family-owned producers in the region, in addition to managing the supply chain of Mackay’s farms. However, his portion of the business will not be included in the sale.

Hutton went on to add that thanks to the development of freezing operations in Tully, surplus banana production is not wasted, but is directed toward packaged frozen bananas.

“This integrated operation ships processed goods to a new customer base which has been developed in recent years,” said Hutton.

“We have a strong commitment to sustainable farming practices, working with nature whenever possible to protect the environment, optimizing nutrition, and plant health,” Hutton continued. “The Group farms are currently being audited to ensure carbon sequestration strategies also deliver optimal results.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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