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Feb. 24, 2016 BrownfieldAgNews reports: A global dairy strategist with RaboBank says the acquisition of Australia's largest dairy by a Chinese investment firm is the latest example of the communist nation's continued efforts to grow its global agricultural footprint. Earlier this week the Australian government approved the sale of the Van Dieman Land Company, which operates 25 dairies on the island of Tasmania, to a Chinese billionaire. Kevin Bellamy says China has become the biggest investor in Australia's ag sector. "We've seen them invest not only in Australia, but in other parts of the world. Food and agriculture is an interesting investment for them, given the more strategic interest in food and agriculture as long-term investments." He tells Brownfield the purchase of the 17,000 hectare farm has more to do with China's desire to do business internationally than attempting to bolster food security. "They're looking to become multi-nationals in the same way as American or European companies become multi-national. Mr. Lu has promised that the milk processed off these farms will be consumed locally. He's not looking to short supply locally; he sees this as an investment rather than a securing of supply if you like." Bellamy says that while Australia is a good place to produce milk, capacity is limited and that bodes well for the U.S. dairy industry. "The world is going to need American milk (and) America is really the only place that has the land to have any sizable expansion in the future. So, yeah it's competitive to the United States but I don't think it's troubling long-term for the U.S." The deal, worth a reported $202 million U.S. dollars, is subject to new Australian laws aiming to cut tax minimization by foreign firms. Tweet |
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