RFM portfolio beefs up
Diverse farm sector investor, and fast expanding cattle country owner, Rural Funds Management (RFM), expects to settle the purchase of the Beef City and Riverina Beef feedlots on Queensland’s Darling Downs and at Yanco, in southern NSW, from meat processing giant, JBS Australia, by early 2019.
RFM, which will have 43 properties spanning irrigated crop, poultry and macadamia production, recently raised almost $150 million from shareholders to buy five JBS feedlots, worth $52.7m, with total capacity of 150,000 head.
Soon to become Australia’s largest feedlot owner, RFM is leasing the sites back to JBS which processes more than a million head of cattle annually.
The Mungindi, Caroona and Prime City feedlots in NSW were taken over in October, but the other two sites remain subject to subdivision processes as they adjoin JBS abattoirs.
RFM’s share entitlement offer also funded recent purchases of Central Queensland beef properties “Comanche”, “Cerberus” and “Mayneland” for $15.7m, $10m, and $18m respectively, plus NSW New England tablelands properties “Dyamberin” ($13.4m), and “Woodburn” ($7.1), which is due to settle in January.
The NSW holdings are leased to Stone Axe Pastoral Company, majority owned by private equity group, ROC Capital, which hit the headlines in recent months as it became a part owner of Capilano Honey.
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Lion sale attracts big names
Bega Cheese, Saputo Australia and Freedom Foods are being tipped as likely serious contenders in the chase for the dairy assets of Japanese beverage and brewing giant, Lion.
Lion Dairy and Drinks includes the Dairy Farmers, Dare, Farmers Union, King Island and Big M milk, cheese and yoghurt portfolio, plus Berri and Daily Juice Company fruit juice bands.
The $2 billion Lion business, owned by Asian brewing giant, Kirin, is expected to begin looking at indicative bids after December 14.
Industry speculation suggests Bega has teamed up with another Japanese brewer, Asahi, to formulate its bid, while Freedom could be working with Coca-Cola Amatil.
Chinese interest has apparently been keen, too, notably from Victoria’s Burra Foods’ part owner, Inner Mongolia Fuyuan Farming.
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Agrifutures expert panel
Ten agriculture sector experts have been appointed to the newly established AgriFutures Emerging Industries Program Advisory Panel following a nation-wide search which attracted more than 100 applications.
The panel consists of members with expertise across a range of areas including investment in the agricultural value chain, research management and practical business development.
AgriFutures Australia managing director, John Harvey, said the new advisory panel would identify and support the development of new and emerging rural industries.
“We’ve set an ambitious goal of identifying and supporting the emergence of agricultural industries that can reach or exceed a $10 million a year threshold in the next five years,” he said.
“The panel will be key to guiding our investment decisions and encouraging people developing these industries to ensure their future sustainability and profitability.”
Newly appointed chairman Brian Ruddle, the founder of Impact Innovation Group, said the creative, open minded team would make a valuable contribution supporting emerging industries, from hemp to marron, camel milk and pomegranates.
Other emerging industries advisory panel members are: Susan Wilson (Bounce Partners), Angeline Achariya (Monash Food Innovation Centre), William Taing (Beanstalk AgTech), Christopher McLoghlin (Mycelia Organics), Ian Smith (NSW Regional Economic Development Office), Mila Bristow (Northern Territory Department of Primary Industry and Resources), Ann Ross (Hive Haven), John Lever (Koorana Crocodile Farm), and Duncan Farquhar (AgriFutures Australia)
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Foodland satisfies shoppers best
New customer satisfaction research has South Australian-based supermarket chain, Foodland, pushing German-owned discounter, Aldi, out of the top spot in the six months to October.
Foodland achieved 91 per cent response in the latest Roy Morgan poll of supermarket shoppers, after a three month run ahead of Aldi at 89pc.
Coles, recently de-merged from the Wesfarmers conglomerate, rated at 85pc, just ahead of great rival Woolworths on 84pc and IGA at 80pc.
The overall customer satisfaction across the industry was 85pc – an overall decline of 6pc in customer satisfaction when compared against December 2017.
Foodland’s best scoring satisfaction categories were bread, dairy and delicatessen, while Aldi was the satisfaction leader for fresh fruit and vegetables, meat and general merchandise, and Woolworths led in packaged groceries and seafood.
Roy Morgan’s Retail Satisfaction Report is based on in-depth personal interviews conducted face-to-face with 50,000 Australians annually in their own homes, including more than 11,000 main supermarket shoppers.
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Rural Bank scholarship help
Future agricultural leaders are encouraged to apply for Rural Bank’s 2019 national scholarship program.
The expanded 2019 program of up to 25 scholarships includes 10 additional scholarships to be awarded to students from communities affected by drought.
Up to 15 other scholarships are on offer for regional and rural students across Australia as part of the annual program.
The $5000 scholarship is available for first-time undergraduate students, eager to pursue a career in or supporting Australia’s agriculture sector.
Rural Bank managing director, Alexandra Gartmann, said students from regional areas were increasingly enrolling in undergraduate courses, and Rural Bank wanted to encourage the trend.
Scholarship recipients receive financial support to the value of $5000 in the first year of studies to contribute to accommodation, travel, course materials, study equipment and tutoring costs. Subject to academic performance, the scholarship funding will be extended to support their second year.
“It’s imperative rural and regional students are given the same opportunities as their metropolitan counterparts, especially those who experience challenges such as high relocation costs and out-of-home living expenses, or seasonal conditions hindering the family budget,” she said.
“The drought affecting large parts of rural Australia is profoundly challenging – operationally, financially and emotionally.
“Some families in rural Australia will be struggling because of drought conditions, and this can result in students feeling the need to defer university until conditions and cashflow improve.”
Applications must be received by January 29.
- For further information, visit: www.ruralbank.com.au/about-us/scholarship
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Australian Made Christmas bonus
The Australian Made Campaign has urged Christmas shoppers to support local manufacturers, farmers and retailers by looking for the Australian Made, Australian Grown logo.
Campaign chief executive, Ben Lazzaro, said 99 per cent of consumers instantly recognised the green and gold kangaroo logo, and 86pc trusted it as the easiest way to identify authentic Australian products.
“Shoppers should also consider the multiple levels of industry involved in making Aussie products – from fleece to fashion, paddock to plate and factory to shop floor,” he said.
“It's been a particularly difficult year for farmers which makes Christmas the perfect time to rally behind rural and regional communities that not only make brilliant Aussie gifts but supply components, ingredients and materials for the gifts we buy.”
- Do you have an agribusiness event or newsy developments within your organisation which could feature in Agribusiness Buzz? Contact andrew.marshall@fairfaxmedia.com.au