Australia blocks farm sale to Chinese over national interest

[webfact]

Australia blocks farm sale to Chinese over national interest
ROD McGUIRK, Associated Press

CANBERRA, Australia (AP) — Citing national interest, the Australian government on Friday blocked a Chinese-led consortium from buying the nation's largest private land holding, a collection of Outback cattle ranches bigger than South Korea.

Treasurer Scott Morrison said he was concerned that the land owned by a pioneering dynasty is more than 1 percent of Australia's total land area and 2 percent of agricultural land. He also worried that the land holding was so big that it was difficult for Australian bidders to compete.

The refusal to sell to the Chinese-based Dakang Australia Holdings and Australian-listed company Australian Rural Capital is only a preliminary decision and Dakang has until Tuesday to respond. The price tag is 371 million Australian dollars ($284 million).

S. Kidman & Co. Ltd. owns 10 cattle ranches, a bull breeding stud and a feed lot covering 101,411 square kilometers (39,155 square miles) in four states. That's an area bigger than South Korea and almost as big as the U.S. state of Virginia.

The government in November blocked the first attempt to sell the Adelaide-based company founded by beef baron Sir Sidney Kidman in 1899, and now owned by his descendants.

The government ruled then that the company could not be sold to foreign investors. Part of the reason was that Kidman owns the world's biggest cattle ranch, Anna Creek Station, which covers 23,677 square kilometers (9,142 square miles) of arid central Australia. Half of that ranch lies inside the 122,188 square kilometer (47,177 square mile) Defense Department-controlled Woomera rocket firing range. There are security concerns around foreigners owning grazing or mining leases within the world's largest rocket range and at least two Chinese miners have been prevented from operating there.

But Anna Creek was excluded from the latest sale bid to remove that security consideration.

"The size and the significance of the portfolio combined with the impact the decision may have on broader Australian support for foreign investment in Australian agriculture must be taken into account in this case," Morrison told reporters.

"There are not too many jurisdictions anywhere in the world where foreign acquisition of land — large holdings of this nature — would be permitted," he said.

Kidman managing director Greg Campbell said negotiations would continue with the government to determine how much of the company's land and assets could be sold to the Chinese.

"We're quite disappointed and somewhat confused, having thought collectively with our preferred bidder that most of the government's concerns had been addressed," Campbell said.

The revised proposal had reduced the area for sale by 25 percent and had increased the share of Australian investor money in the bid to 20 percent.

Foreign ownership of farmland is an increasingly sensitive issue in Australia, where there are fears that Chinese-owned farms could supply Australian-grow produce to Chinese parent companies at discount prices or refuse to sell to Australian buyers.

The Australian beef industry is emerging from years of low profitability due to drought and a strong Australian dollar that had been inflated by a mining boom that has now passed.

Despite the size of Kidman's land holdings, its ranches are largely semi-desert and carry only an average herd of 185,000 cattle, which is a fraction of a percent of the total Australian herd.


-- (c) Associated Press 2016-04-29

[Galactus]

wise thing to do from Australia. to curb Chinese influence.

as you know, they might claim like it is their land 100 years land and claim right in Australian continent.

[shirtless]

Food sorces may well get scarce , Its not wise to sell we may need it for our own citizens. Can Australians buy and own land in China?

[Rancid]

I think Chinese should be able to do a 30 year lease, but not buy. Good decision.

[useronthenet]

Shame the UK didn't do the same, but alas most of the crown jewels are now sold to foreigners.

[Thechook]

There is no such thing as a ranch in Australia. It is a cattle property. A ranch is American and Australia isn't part of the U.S.

[simple1]

wise thing to do from Australia. to curb Chinese influence.

as you know, they might claim like it is their land 100 years land and claim right in Australian continent.

The facts are that the Kidman land holding are on Crown Land and being sold as a 99 year lease, not freehold. What is not generally known is Kidman land assets are already 33% foreign owned. It is speculated the Kidman properties will be repackaged into separate lots, to make them more affordable to Australian investors & others, with some properties still being sold to Chinese investors.

[DrTuner]

wise thing to do from Australia. to curb Chinese influence.

as you know, they might claim like it is their land 100 years land and claim right in Australian continent.

That's the usual MO of China. Russia favors infiltrating people instead of buying land, but same end result. Those two need to be blocked.

[sangfroid]

There is a general election coming up in Oz. This is a decision made with votes in mind.

[Lopchan]

It's a Cattle station, not a ranch..ranches are those tiny hobby-farm sized thingos the Americans have

On the issue though, this is just vote buying from the get go, trying to appear as if the government (and opposition) really give a rats rectum about the country. They want the vote of the growing number of xenophobic right wing / redneck movement.

The government has no problem with the Kidman's dynasty owning it and raping the land for generations or continuing to do so...whilst getting great tax breaks..from successive governments. In recent years with drought and more modern herding techniques they've become outdated. Why not let the Chinese invest more? More infrastructure, employment, and taxable income,export sales /tax etc.

(Kidmans-Ancestors of Nicole...you know..the blood-nut wot shacked up with that drop kick from mission impossible)

[rapom]

It's a Cattle station, not a ranch..ranches are those tiny hobby-farm sized thingos the Americans have

On the issue though, this is just vote buying from the get go, trying to appear as if the government (and opposition) really give a rats rectum about the country. They want the vote of the growing number of xenophobic right wing / redneck movement.

The government has no problem with the Kidman's dynasty owning it and raping the land for generations or continuing to do so...whilst getting great tax breaks..from successive governments. In recent years with drought and more modern herding techniques they've become outdated. Why not let the Chinese invest more? More infrastructure, employment, and taxable income,export sales /tax etc.

(Kidmans-Ancestors of Nicole...you know..the blood-nut wot shacked up with that drop kick from mission impossible)

Those American hobby ranches produce 3.5 times as many cattle as all of Australia's cattle stations. They are able to breed and raise more cattle on 1000 acres than Australia can on square miles at less cost, better selling price and a hell of a lot better tasting beef product.

[wabothai]

very wise decision, wish the world would follow.

[simple1]

Those American hobby ranches produce 3.5 times as many cattle as all of Australia's cattle stations. They are able to breed and raise more cattle on 1000 acres than Australia can on square miles at less cost, better selling price and a hell of a lot better tasting beef product.

Oz exports of beef to the States have increased dramatically in recent years.

Wouldn't boast too much about the US - how much farming assets are owned by the Chinese in the States? the purchase of Smithfields for US$4.7 billion got then 470 farms in one transaction. What about the Brazilian purchase of Swift etc...

[Siamthomas]

The great regime should take note. Oneday they will find there country is half Chinese lol

[halloween]

Those American hobby ranches produce 3.5 times as many cattle as all of Australia's cattle stations. They are able to breed and raise more cattle on 1000 acres than Australia can on square miles at less cost, better selling price and a hell of a lot better tasting beef product.

Bot Oz doesn't need to give them the deeds to our ranch, because we don't owe them trillions of dollars.

[Jonmarleesco]

'"There are not too many jurisdictions anywhere in the world where foreign acquisition of land — large holdings of this nature — would be permitted," he said.' Oh, I'm pretty sure Cameron and Osborne would be weak at the knees at thought of the opportunity - especially where their Chinese friends are concerned.

[wabothai]

very wise decision, wish the world would follow.

Just read that the Chinese want to buy AC Milan.

[up2u2]

Australia is into its 2 month election campaigning (longest election period in the history of Australia). It will be sold to the Chinese after the election. I dare say they have just been told to put the sale on hold for the moment.

[metisdead]

Off topic posts have been removed.

[Ireland32]

Good thing...