China-based real estate developer and manager, Great China International Inc. has invested RMB37.5 million (US$5.8 million) for an 11.12% stake in Sino-Australian Agricultural Technology (SAAT).

Founded in 2014 in Jiangcheng county in the Yunnan Province, China, SAAT is an agricultural developer and vertically integrated nut and health food company who’s core business includes macadamia grafting, planting, managing, processing and sales and marketing.

“This acquisition opens the door for new and exciting partnerships both within China and internationally for unique brands and products with macadamia nuts,” said Frank Jiang, CEO, Great China International in a press statement.

The company has the largest contiguous macadamia nut monomer base in the world with the ability to cultivate more than 2,470 acres of farmland. Last year SAAT sold more than 600,000 grafted macadamia seedlings, with sales totaling US$1.2 million – up 75% year on year from sales of US$733,000 in 2014.

“The investment into SAAT represents yet another important achievement for the company as we continue to strengthen our presence within the healthy and functional foods marketplace through strategic joint ventures and acquisitions,” said Jiang, adding, “We believe it is a great foundation from which to bring long-term value to our shareholders. We are looking forward to building our position in SAAT over the next few years.”

ABC reported in January of this year that macadamia demand in China is soaring, and while the country develops its domestic industry, buyers have been turning to Australia to satisfy the market.

In 2015, Australia’s macadamia nut industry produced 48,300 tons of nuts in-shell – a 10% increase over the year before. Of this output, Australia exports approximately 25% to China.

Currently about 10% of Australia’s macadamia farms are foreign-owned according to Jolyn Burnett, chief executive officer of the Australian Macadamia Society, reports ABC, but interest by foreign investors is tending upward.

“In the macadamia industry we desperately need investment, we need investment in new productive capacity, such as planting new orchards,” said Burnett.

“We also need investment in improving the productive capacity of existing orchards, so investment – whether foreign or domestic – can do that.”

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GAI News staff