Invest
Food sector fertile ground for investment
The food sector is continuing to court investment, with recent Chinese acquisitions signalling foreign interest in Australian agribusiness remains strong.
Food sector fertile ground for investment
The food sector is continuing to court investment, with recent Chinese acquisitions signalling foreign interest in Australian agribusiness remains strong.
Having experienced strong growth buoyed by global investment, the Australian sector remains a good opportunity, according to investment manager Terra Capital.
“The food-related sector continues to attract investor intention and for good reason,” portfolio manager Matthew Langsford said.
“World population is growing at 1.2 per cent per annum, with Asia a particular growth hot spot. There are issues around availability of fresh water, pest and disease problems, which add to the existing woes of decreasing arable land availability and bigger issues with declining productivity and salinity problems,” Mr Langsford said.
“There is general agreement that farmland as an asset or companies with an ability to improve the use of arable land are likely to outperform most other assets over time.”
With a key position in the region, Australian agribusiness is well situated to capitalise on the budding Asian market.
China has a growing economy and a rapidly expanding middle class, and Chinese investment continues to flow into the sector. Recently, Chinese company Fuyuan acquired a 79 per cent share in Victorian dairy processor Burra Foods.
Austrade senior investment specialist David Watson said foreign investment in the food sector provides real opportunities for Australian businesses.
“International shareholders bring more than just equity for business expansion. They also bring distribution strength in Japan and China, which will significantly strengthen Burra Foods’ supply chain and growth potential,” Mr Watson said.
Aided by growing regional markets, investment is only expected to grow in well-placed Australian agribusiness, Austrade said in a report.
“Leveraging established connections with Asia, Australia provides investors with unparalleled opportunities to capitalise on the demand from fast-growing consumer markets for healthy, premium and convenient food products,” it said.
RELATED ARTICLES
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
