AustAsia has built a significant foreign-owned dairying business in China with Indonesian, US and Australian financial backing, and says the Chinese Government could not have been more supportive or encouraging of the investment.
The operation’s seven dairy farms (one is still under construction) are built on land held under 40 year leases.
Chinese Government authorities helped the company to select each site and then constructed new sealed roads, powerlines and water infrastructure to facilitate each farm’s development.
“They are hugely supportive,” Mr Collins explained.
“We deal with four tiers of Government (town, county, city and provincial).
“Generally they are very commercially minded and business minded, they are about trying to improve the economic position of the area they are responsible for.”
Mr Collins said he was very comfortable with being able to invest in 40 year terms in China.
“It is only lease, there is no ownership of land, but it is not indifferent to a pastoral lease, and to me that is quite straight forward,” he said.
“You can’t buy land, but you can build a business here and they will welcome you.
“I think they will welcome you much more than the Australian Government will be and you can get a lot more done in a shorter space of time.”