The Xinyangfeng Fertilizer Company, one of the three largest fertilizer producers and distributors in China, has made its first overseas purchase, acquiring Kendorwal – a 2,300-hectare mixed agricultural operation that runs sheep and crops wheat, rice and alfalfa in New South Wales, for approximately $5 million, according to Stock & Land.
The Australian reports that Xinyangfeng Fertilizer, which plans to invest US$50 million in the region, announced in a company statement that the group intends to use the Kendorwal property “to conduct fertilizer [sic] research and development, and also step into farming business, including cropping and livestock breeding.” However, the farm will continue to be under Australian management and supervision, according to The Weekly Times.
The deal was negotiated by Melbourne-based agricultural real estate marketing and consultancy, Hellyer Consulting. Sales and marketing director, Jason Hellyer, told Stock & Land, “This purchase may have something to do with having a look at Australian farming practices, to see what works and what doesn’t. They are in the process of setting up a distribution network with an Australian partner, this year; they’ve been working on that for the past 12 months,” referring to Xingangfeng.
Kendorwal is the first move by the company, which industry sources tell The Australian is interested in additional agricultural future acquisitions in Western Australia. And indeed, Xinhangfeng’s general manager, Yang Huafeng, is scheduled to return to Australia in the later part of April to tour and inspect potential assets in northern New South Wales and Queensland.