Aust Ag Co's political risk

The looming political fight over Graincorp will have serious ramifications for Australian Agricultural Co.

For all the hype of a looming soft commodities boom, our place as one of the world's largest rural product exporters and our potential as the food bowl of Asia, Australia has a poor record when it comes to agribusiness.

Rationalisation and foreign buyouts have swept up most of the nation's grain and sugar businesses in the past five years and the few remaining stockmarket listed entities are struggling, after years of substandard returns to investors.

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