Australia

A rush of foreign investment interest in Australian farmland is stirring new concerns about just how much overseas ownership of local agricultural resources is too much.

The Chinese Government is buying Australian farms to directly feed its population, a senior Liberal said on the eve of a visit by a top Bejing official.

Questions have been raised at a Senate inquiry in Canberra about whether foreign investment rules go far enough to keep Australian agriculture sustainable.

Hassad Food Company intends to invest $500mn to $700mn this year for projects across the world as part of its mission to ensure food security for Qatar, chairman and managing director Nasser bin Mohamed Mubarak al-Fuhaid al-Hajri has said.

There are growing concerns that a legislative loophole could allow vast tracks of Australia's farmland to be sold to the Chinese Government.

"As more investors look into the opportunities that developed nations present there will be no need to go underground or be ashamed of these deals," said Hakan Agro's Tomar.

Foreign donors are promoting land registration in Papua New Guinea to facilitate a farmland grab, under the guise of agricultural development.

Macquarie Group Ltd. plans to own and run 500,000 acres of soybean and grain farms in Brazil over the next three years

Qatar’s sovereign wealth fund agricultural company launched Hassad Australia last year, aimed at ensuring that livestock and grain needs for Qatar, from Australian farmland, are met.

Companies from the kingdom are meeting with representatives of the state of Western Australia to discuss buying equity in farms and investing in the wheat supply chain.

The fund aims to deliver long-term returns by investing in agribusiness companies (those involved in the production, processing, distribution and marketing of agricultural products).

China may set up large pork and chicken operations in Australia as it strives to keep up a burgeoning demand for meat among Chinese consumers.