Chongqing Hondo Agriculture Group is in the market to acquire $100 million in Australian cattle stations within the next year.
Chongqing president, Qin Ya Liang told the Australian Financial Review at Austrade’s Australian Beef Industry Seminar that the company was looking to invest in large pieces of Australian farmland and abattoirs. “I like Australia because there are big farms and we are wanting to increase our consistency of supply,” he said.
Chongqing is one of China’s leading cattle companies, operating three expansive feedlots in the country, producing 110,000 head of cattle per year. So far the company has not committed to any investments, but Mr. Qin states that the company will likely invest between $50 million and $100 million within the first year.
Sparked by growing marketing opportunities in Asia and the depreciating Australian dollar, Chinese interest in investing in Australian cattle properties and the country’s beef industry is building with as many as 300 Chinese cattle and cattle-connected companies looking to gain a foothold in the country according to Austrade’s trade commissioner in Chengdu, Jeff Turner.
Hailiang Group, one of China’s top 500 companies acquired more than $40 million in cattle and cropping farmland in Queensland in March of this year, and Yiang Xiang Assets acquired the Elizabeth Downs cattle station for more than $11.5 million, while other Chinese groups prefer to maintain a lower profile such as Rifa Australia, run by former Elders head, David Goodfellow, who’s parent company is Zhejiang RIFA Holding Group.
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