Next boom cattle: De Lacy
- NQR
- 08 July 2013
FORMER Macarthur Coal chairman Keith De Lacy is backing the potential $100 million float of a beef cattle company, with expectations that offshore investors will support the company's initial public offer.
FORMER Macarthur Coal chairman Keith De Lacy is backing the potential $100 million float of a beef cattle company, with expectations that offshore investors will support the company's initial public offer.
Steep growth in Chinese olive oil consumption, unlikely to be met soon by a budding domestic supply, is encouraging investors to get hold of olive farms and processing plants in producing countries.
Companies linked to China's biggest agricultural conglomerate are being flooded with offers to buy or lease "hundreds of thousands" of hectares of land in Australia's Wheatbelt in the early stages of their bid to create an independent grain supply chain from the port of Albany.
China is headed to spend a record this year on food assets and farms after a $32.7 billion splurge in the past five years and just $4.2 billion in the prior half-decade, data compiled by Bloomberg show.
Black River Asset Management, a hedge fund run by an arm of the world's largest agriculture company, Cargill, has increased its stake in the unlisted agricultural company BFB Group
There is "a wall of money" looking for a home in agricultural investments worldwide, say managers for BlackRock's London-based World Agriculture Fund.
Capital Alternatives, which offers investments ranging from holdings in African agriculture to pop memorabilia, claims it can generate returns of more than 20% over five years on West Australian wheat farms.
Australia's Trade Minister Craig Emerson says plans to increase scrutiny on farmland investments would ruin any chance at all of a free-trade deal being struck with China.
According to BlackRock world agriculture fund portfolio manager and director Desmond Cheung there is a "wall of money" that is looking to back the world's growing appetite for a stable and growing food supply.
Hassad Australia chief executive Tom McKeon said the company employed people from local communities, supported local businesses and paid tax. The company owns 11 farms over 250,000ha in Australia, including three in WA.
"The UAE is looking not just at land [acquisitions] but developing the whole supply chain," says Nicholas Lodge, managing partner at Clarity, a consultancy that advises on investments in agricultural industries.
Singapore-based Duxton Asset Management said it is in talks over planned investments in four Australian farms despite increasing scrutiny of farm purchases by foreigners.