Monday, July 11, 2011

Foreign Companies Seen Targeting Australia, Seeking to Secure Food Supply

By Phoebe Sedgman -    Bloomberg

Overseas buyers may boost investment in agriculture assets in Australia, the fourth-biggest shipper of wheat, as they seek to secure supply to meet surging food demand, said Queensland Sugar Ltd. Chairman Alan Winney.

“We now face a realistic prospect that Australian agribusiness may in the near future be run from boardrooms in Singapore, New York and Shanghai,” Winney wrote in a report for the Australian Farm Institute.

Chinas Cofco Ltd. said last week it won control of Tully Sugar Ltd., adding to the company’s supply of the sweetener from Australia, the world’s third-largest shipper. Rising incomes and economic growth in emerging markets including China and India are fueling demand for farm products and helping drive food prices higher. Companies may also look to acquire Australian grain assets to ensure supply, according to the report.

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