Australian agribusiness mission to Beijing

CBRE and Elders International have led an Australian agribusiness mission to Beijing to encourage more Chinese investment in the sector.

CBRE, Elders, Total Genetics Australia, FG Agri and international trade experts Hunt and Hunt joined representatives from Austrade and the Victorian and Queensland state governments at an Australian agribusiness investment seminar in Beijing on 17 November.

The seminar, coordinated and hosted by Let’s Go, a Chinese marketing firm that specialises in connecting Chinese investors with global agribusiness investment opportunities, forms part of a six-day networking and educational tour in Northeast China.

More than 100 guests from privately owned and state-owned enterprises, mostly from China’s beef and dairy sectors, attended the Australian investment seminar.

Recent Chinese transactions in Australia’s agricultural sector suggests there’s a movement towards the pursuit of joint venture partnerships rather than outright ownership of Australian assets. Joint venture partnerships in Australian agriculture can reduce the Chinese investor’s risk and provide the Australian producer with much-needed capital.

In 2013, Andrew Buttery, CEO of South Australia’s Gemtree Wines, finalised a $30 million joint venture partnership with Song Yuangang, president of Sichuan Taifeng Group from Chengdu.

“Prior to the joint venture Gemtree was only a contract client of another winery, but following Mr Song’s $30 million investment in 2013, Gemtree purchased the winery, went on to build a cellar door, tripled staff numbers and, more importantly, tripled turnover and production,” Buttery said.