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Investing in Australian agribusiness

It is no surprise foreign investment in Australian agribusiness has significantly increased over recent years. Australia has large areas of rich and diverse agricultural production land. With a relatively low population, Australia also produces large, high quality food surpluses, much of which are destined for Asia.

A recent study by Citi Investment Research analyst, Tim Mitchell, estimates that more than $12b worth of direct overseas investment had been made in Australian agricultural businesses and land in the last four years. Asia and the Middle East investors have been particularly active, including sovereign wealth funds and state owned enterprises.

Recent acquisitions include, the A$1.74b acquisition of Gadens’ client, Sucrogen Limited by Singapore’s Wilmar Limited, and the acquisition of a 75% stake in Manassen Foods by China’s Bright Food.

This article discusses some of the common issues to consider when investing in the Australian agribusiness sector.

For the full article, click here.