The Risk Of Investment Boom In Australian Cattle Ranch Can Not Be Ignored.

P, Australia's local rich, overseas investors and institutional funds have paid close attention to this area. Some Asian investors have even extended their interest to the outskirts of the ranch.

While the value of beef related assets is recognized, the industry has different views on the limitations and future prospects of ranch assets trading.

< /p >

< p > < strong > 1, < a href= "http:// www.91se91.com/news/index_c.asp" > pasture investment > /a > upsurge of "/strong > /p >

< p > it is reported that foreign capital tentacles began to extend to Australian ranch assets in recent years.

The Danish pension Pensionskassernes administration invested 60 million Australian dollars to buy more cattle ranches in Queensland, and the Swiss agricultural investment and development company also invested 10 million Australian dollars in the ranch assets.

Private investors followed closely. According to The Land, two Indonesian businesses spent a total of 50 million Australian dollars to buy multiple ranches in the Northern Territory.

< /p >

< p > in Australia, many famous investors have increased the Australian Agricultural Company (AACo) share of the listed cattle ranch operators. The development opportunities and expansion options of the local cattle breeding industry and the private cattle ranch are also increasing. "Australian"

The prominent figures in the BRW rich list include mining tycoon Gina Rinehart and Fortes Forrest (Andrew Forrest), MacLachlan animal husbandry family and Mitchell of media investors. After sweeping over the assets of cattle ranch worth 100 million Australian dollars in the past year, people began to realize that a new investment boom is taking shape.

< /p >

Besides P, the interest of overseas investors, especially Asian investors, has extended to the outside of ranches, along the value chain to processing assets.

It has been reported that typical cases include China's new hope group's acquisition of 80 million Australian dollars for the Kilcoy slaughterhouse of Queensland, and HY Australia Holding Co., Ltd., acquiring more than 2500 million Australian dollars for Tabro meat company in Gippsland.

The Chinese food importer, Heilongjiang Da manor group, has recently concluded a deal of a total value of 200 million Australian dollars to purchase farms and invest in slaughterhouses.

< /p >

Thomas Danny Thomas, director of agricultural business at P, pointed out that substantial investment in beef related assets indicates that its value has been recognized by CBRE.

Many of the participants are new faces, indicating that they have seen the value that existing investors do not see and hit the value depressions.

< /p >

< p > < strong > two, the focus of attention is: < a href= "http:// www.91se91.com/news/index_c.asp" > asset size < /a > /strong > /p >

< p > at present, the Australian cattle ranch trade presents a prominent feature: investors are more searching for larger assets, and small ranches are more difficult to get investment.

Smith, head of Elders in Western Australia, has to receive at least two investment enquiries every week, looking for cattle ranches with livestock numbers above 20 thousand in number, Greg (Smith).

The main problem facing him now is that the size of the ranch is not big enough. Overseas buyers have telephoned to buy pastures that can raise 80 thousand cows, but Australia does not have such a large asset, he said.

< /p >

Mcconaughey (Rob McConnel), head of DDT's national agricultural industry department, also had the same problem. P

When he talked with people intending to invest in cattle ranch, he felt that asset size was very important.

In Australia, the assets in the agricultural sector are more dispersed, and it is difficult to efficiently invest large amounts of capital. Therefore, the necessity to integrate or accumulate farm assets is highlighted.

In addition, there are many structural challenges facing asset evaluation, infrastructure delivery and operational efficiency.

< /p >

< p > it has been reported that after buying half of the two large ranches of West Kimberley, Reinhard, Wright, managing director of the partnership's Milne company (Graham Laitt), told the relevant media that the future expansion will be considered. The cattle industry has already reached the peak of opportunity. If we want to catch the opportunity, we must expand the scale.

< /p >

Gilbart Tim Jelbart, deputy director of the Rural Ministry of agriculture and Commerce (P), believes that the relationship with the Chinese market is crucial. (Colliers)

Investors like Reinhard and Forrest have a good relationship with the Chinese market, and building trade relations is the most difficult step.

He also believes that investors are mainly focusing on high quality assets, and assets below 5 million Australian dollars are hard to sell.

< /p >

< p > strong > three, vigilance < a href= "http:// www.91se91.com/news/index_c.asp" > investment risk < /a > /strong > /p >

< p > Australia's agricultural household debt level is too high, and this year's drought has reduced the supply of live cattle in the local market.

At the same time, countless family ranches began to be sold, and many cattle ranches including Camms in the Northern Territory and McCamley in Central Queensland were carrying out asset appraisal.

< /p >

< p > there are different views on the potential value of cattle assets.

Courtin Grey Cordingley, head of food and agricultural business research at Rabobank, Holland, said beef cattle prices will rebound, and there are faint indications that the value of cattle ranches will rise.

< /p >

< p > however, Gilbart (Tim Jelbart), deputy director of the Ministry of rural agriculture and Commerce of the Colliers, suspected that the current ranch ranch asset pactions were unpopular. It was also due to the limited liquidity of agricultural enterprises in northern Australia, and sellers were forced to cater to the market.

What's more, a bank has allegedly rejected a refinancing request of a total of 1 billion Australian dollars by its rival bank customers.

If some operators are hard pressed to pay their debts due to tight cash flow and have to sell large quantities of cattle, the assets of the cattle ranch may fall further.

< /p >

< p > in fact, the performance of related enterprises is not optimistic.

North Australian Pastoral Company, whose assets totaled 430 million Australian dollars, once again lost millions of Australian dollars in the current fiscal year. Last year, it expressed its intention to sell most of its shares.

The Macquarie Group, founded in 2006 with a value of 700 million Australian dollars, will have to raise funds again in the next 12 months after a loss of 46 million Australian dollars.

< /p >

< p > although the market prospect is broad and the investment enthusiasm is surging, whether Australian Agricultural Company can break through the encirclement of encirclement and raise profits, whether Australia's agricultural assets can fully release its potential seems to be waiting to be observed.

< /p >