Chinese Govt commits to $3b spend on Australian ag assets

Beef Central, 16/09/2014

THE Chinese-government owned Beijing Agricultural Investment Fund yesterday committed to spending $3 billion on Australian beef, dairy, lamb and aquaculture assets.

The announcement comes in the wake of yesterday’s news, broken by Beef Central, that Chinese interests have for the first time invested in northern Australia’s extensive cattle industry, via the purchase of Elizabeth Downs Station southwest of Darwin (click here to view original story).

Trade Minister Andrew Robb told the inaugural Dairy Australia 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 joint fund plans to invest $3 billion in various projects in Australia, supplying 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, Mr Robb said.

Beijing Agricultural Investment Fund was founded in 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 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. It is involved in property development and management, hydropower station development and trade logistics.


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