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Chinese investment in agribusiness reached new highs in 2015
03 May 2016
After a number of years with growing interest, Chinese investment in the Australian agribusiness sector totalled A$375 million in 2015 – representing 3% of total Chinese outbound direct investment in Australia (KPMG). There were 12 deals across the dairy, beef and cotton industries.
In a recent report published by KPMG & the University of Sydney (Demystifying Chinese Investment in Australia), ventures in dairy, beef and cotton were among the most highly sought after, with the three largest deals accruing a total value of over A$170 million.
As interest continues to unfold in the agribusiness sector, larger investments in cattle stations across New South Wales & Queensland have been concluded, including Glenrock Station, Holymount Station, and Elizabeth Downs.
Victoria generated the most value in agriculture (A$137 million), followed by investments in New South Wales (A$75 million).
Looking forward, agriculture & food production has been highlighted as a sector with tremendous opportunity for more growth by KPMG. Assisted by the recent signing of the China Australia Free Trade Agreement (CHAFTA), Chinese interest in Australian agribusiness is forecast to continue strengthening – with the agreement expected to provide a great deal of benefit to both economies.
To view the latest Demystifying Chinese Investment in Australia report, click here
