YUHU AGRICULTURE INVESTMENT PTY LTD … Beijing Australia Agricultural Resource Cooperative Development Fund to focus on dairy investment

Australian farm fresh milk is now available in supermarkets in China

YUHU AGRICULTURE INVESTMENT PTY LTD …

Beijing Australia Agricultural Resource Cooperative Development Fund to focus on dairy investment

“Yuhu Agriculture Investment Pty Ltd is a foreign subsidiary of Yuhu Group which is a large scale investment company based in Shenzhen China.

It is involved in property development and management, hydropower station development and trade logistics.

In the past two years, the Australian arm has gained adequate knowledge on foreign investment, and is now moving to the prosperous agriculture industry with the high demand from Chinese market.”

Beijing Australia Agricultural Resource Cooperative Development Fund to focus on dairy investment

SIMONE SMITH, Weekly Times Now

September 15, 2014 11:02am

 

DAIRY investment in Australia will be the focus of a $3 billion Chinese agricultural fund, announced today.

The Minister for Trade and Investment Andrew Robb told the inaugural Australian Dairy Farm Investment forum about the deal, to be signed today in Melbourne.

Called the Beijing Australia Agricultural Resource Cooperative Development Fund it will be jointly initiated by the Beijing Agricultural Investment Fund and Yuhu Agriculture Investment Pty Ltd.

The new joined fund is aiming to focus on the investment of Australian Dairy, particularly infant formula, beef, lamb, seafood and other agriculture products.

It is planning to invest $3 billion capital in various projects in Australia.

The fund will supply Australian agriculture products and services to the people of China.

It will reinforce foreign investments between the two nations and provide a new stage for its cooperative trade opportunities.

Beijing Agricultural Investment Fund was founded in September 2009 and was the first professional investment fund in the agricultural industry in China.

It was initiated by state-owned Beijing Capital Group.

It owns and manages 25,000 premium cattle in five farms around China and supplies milk to the leading Chinese dairy manufacturing and distribution companies such as listed Yili Group, Mengniu Group, and state owned Sanyuan Group.

Yuhu Agriculture Investment Pty Ltd is a foreign subsidiary of Yuhu Group which is a large scale investment company based in Shenzhen China.

It is involved in property development and management, hydropower station development and trade logistics.

In the past two years, the Australian arm has gained adequate knowledge on foreign investment, and is now moving to the prosperous agriculture industry with the high demand from Chinese market.

 

SOURCE:

www.weeklytimesnow.com.au/agribusiness/dairy/beijing-australia-agricultural-resource-cooperative-development-fund-to-focus-on-dairy-investment/news-story/562eca27df96c0eac91921cff094bc79

FROM “THE AUSTRALIAN”

 

FOREIGN AFFAIRS

Chinese fund to splash $3bn on Australian agriculture

  • The Australian
  • 12:00AM September 16, 2014

CHINESE investment in Aus­tralian agriculture is set to boom, with the Chinese-government owned Beijing Agricultural Investment Fund yesterday committing to spend $3 billion on Australian dairy, beef, lamb and aquaculture assets.

The announcement, witnessed by federal Trade Minister Andrew Robb in Melbourne, ­establishes the Beijing Australia Agricultural Resource Co-operative Development Fund in a joint venture with Yuhu Agriculture Investment.

Mr Robb told the inaugural Dairy Australia Investment forum that the fund was particularly keen to invest in local dairy farms and dairy processing, with a focus on producing and exporting powdered infant milk formula to China.

In a separate move, it was also revealed that a private Chinese company had bought the vast ­Elizabeth Downs cattle station in the Northern Territory from ­National Gallery of Australia president and leading barrister Allan Myers QC.

With the Chinese bidder paying about $12 million for the 205,000ha of land, the deal will not require sign off by the Foreign Investment Review Board, as it falls below the $15m mandatory approval threshold.

The Chinese company also bought the 9000 head of cattle on Elizabeth Downs, located two hours’ drive southwest of Darwin, for an estimated $7m.

It is believed to be the first investment by a Chinese buyer in the northern Australian cattle industry, with Asian demand for beef expected to jump in the near future with the opening this month of a $91m abattoir near Darwin.

However, it is understood the buyer of Elizabeth Downs, who owns golf courses and hotels in Australia, hopes to maximise the property’s investment potential by developing irrigated cropping and tourist facilities alongside the cattle operation.

The moves came as Barnaby Joyce told Chinese producers that Australia’s farmers would pose no threat to their livelihoods if the two countries were, as expected, to sign a free-trade agreement by the end of this year.

Mr Joyce, on his first tour of China as Agriculture Minister, is leading a delegation of almost 40 industry figures who stand to bene­fit if an agreement is signed.

In Harbin, in China’s northeast, yesterday for the start of his tour, Mr Joyce said Australia could never become “Asia’s food bowl” simply because of the size of each nation’s population.

“We are not a threat to China; we will produce premium products to the people of China and they can be reliant on the fact that Australia does not have a hope in Hades of feeding the Chinese population, not even a portion of it,” he said. “If we were to use all of our production, we could not feed just Australia and this province alone, we would run out of food.

“The reality is that Australia feeds about 60 million people at the moment (including exports). Even if we double that to 120 million people, we would not feed even half of the population of our nearest neighbour, Indonesia.

SOURCE:

https://www.theaustralian.com.au/national-affairs/foreign-affairs/chinese-fund-to-splash-3bn-on-australian-agriculture/news-story/8c361a839427a7617fba29a6b340083a

 

Chinese investment fund to tip billions into Australian farm projects

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ABC Rural

 

By Catherine McAloon

Updated 17 September 2014 at 1:35 pm

First posted 16 September 2014 at 1:06 pm

Australian farm fresh milk is now available in supermarkets in China. The Federal Government has promised a competitive free trade deal for Australian dairy farmers.

 

(ABC News)

Two Chinese investment groups have established a $3 billion fund to invest in Australian agriculture, as Australia edges closer to securing a free trade deal with China.

The fund, known as the Beijing Australia Agricultural Resource Cooperative Development Fund, is a joint partnership between state-owned Beijing Agricultural Investment Fund and the Shenzen-based Yuhu group.

 

Chinese investors are buying into Australian farming projects 

( ABC News )

It will focus on supplying produce back to China, especially infant milk formula, beef, lamb and seafood.

Australian Trade Minister Andrew Robb has welcomed the fund, saying it’s a strong signal from the country’s largest export market for agricultural produce.

“It’s a great signal that the Chinese investors are looking, in a fairly significant way, to position themselves in Australia, and they are doing it in a sensible way,” Mr Robb said.

He says negotiations on a free trade agreement with China are progressing and he’s confident a deal can be achieved by the end of the year.

“These things are very complicated. There are, for instance, 11,500 individual tariff lines that have to be negotiated. A lot of that work is done.

“But as always, with any negotiation, the really big important issues invariably end up in the final stages of the negotiations.

“So whilst we’ve been talking about it and have got a sense of where one another hopes to be, in many cases we haven’t finalised the very critical issues.”

Mr Robb has given Australian dairy farmers an assurance that he is aiming to get them an equal footing with their New Zealand competitors, who finalised a free trade agreement with China several years ago.

He acknowledges that the New Zealand dairy industry has had a huge advantage over the Australian industry, by already having a trade deal in place with China.

“We’ve seen a $3.7 billion increase in revenue to the New Zealand dairy industry since their free trade agreement came into force four years ago.

“At the same time, our revenue from China in the dairy space has increased by $173 million. So $3.7 billion versus $173 million, I think, tells the story.”

Dairy investment opportunity

Several Chinese investors attended a dairy investment forum hosted by Dairy Australia in Melbourne this week.

Amy Qiao, of Esson International Investment group, says her company owns farms in China milking 10,000 cows and is keen to expand into Australia.

Ms Qiao says Australia is popular with Chinese agricultural investors for its clean environment, and its reputation for quality produce.

“For the dairy industry back in China, the market likes the product from Australia and it seems it cannot be replaced by other countries’ products.”

She says there is a huge and growing market for dairy products in China.

“Traditionally, my fellow people, we don’t consume a lot of dairy products, but recently we all realise how important dairy is for people’s health.

“In my generation and my parents’ generation they did not like cheese at all, but my children, daily they consume that.”

While Chinese investors, like Ms Qiao, are in Australia looking at farms, an Australian real estate company has headed to China to find buyers for Australian farming properties.

They are hoping to sell properties ranging from a single vineyard in Victoria for just $1 million to a large dairy business in Tasmania for $120 million.

It’s the second time real estate group Landmark Harcourts has showcased rural properties in China. The group’s director of China business development Jason Hellyer says they’ve learnt a lot about what Chinese buyers want.

“Fundamentally, most Chinese investors that we’ve currently met with, this is a bit of a generalisation, don’t really have any intention of flying out here and building a house and living here and running the property themselves.

“What they are after is partnerships with current Australian producers that have the skills and expertise to run an efficient and profitable farm, so that’s where the real opportunity is.”

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SOURCE:

http://www.abc.net.au/news/rural/2014-09-16/nrn-china-investment/5747108

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