September 10, 2014
Foreign countries, notably countries outside of China, are looking to secure assets in Australia’s agricultural sector as demand for food continues to rise. The wave of interest is further spurring concern over foreign ownership of land within the country. Approximately 87.5% of agricultural land in the country is Australian-owned with less than 1% being owned by China according to KPMG at the University of Sydney’s China Studies Center. John Murray, managing director of Emerald Grain Pty states that “Investment in the grain industry will continue until there aren’t any assets left to buy.” And indeed, most grain industry players believe that without physical assets associated with your trading business, your business will not be sustainable. This year Japan’s Sumitomo Corp. acquired Emerald Grain, Noble Group, Glencore Plc, and Bunge Ltd are all investing in infrastructure and export facilities on the country’s east coast, and Singapore’s Willmar International Ltd, and Mitr Phol Sugar Corp. of Thailand both own Australian sugar assets.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service
Let GAI News inform your engagement in the agriculture sector.
GAI News provides crucial and timely news and insight to help you stay ahead of critical agricultural trends through free delivery of two weekly newsletters, Ag Investing Weekly and AgTech Intel.