Tag Archives: agribusiness

ILN Today Post

Foreign investment in agribusiness – So what’s in Australia’s national interests?

Senate Inquiry – FIRB’s national interest test

The impending sale of Cubbie Station, Australia’s largest cotton farm comes at a time when the Senate Standing Committees on Rural and Regional Affairs and Transport is due to issue its long awaited report on the “national interest” test applied by the Foreign Investment Review Board (FIRB).

The Inquiry is due to report on 28 November, so we will update you on that when the Inquiry’s report is published.   In the meantime, this article briefly examines our current understanding of the “national interest” test as it is applies to foreign investors, particularly foreign investors seeking to buy agricultural assets or businesses, where the majority of media and political debate has centred in recent times. More…

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ILN Today Post

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.

 

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