China to lift rural investment
With the federal government forecasting a 45 per cent lift in food-related exports by 2025, mainly into Asian markets, investors from the region are tipped to play a growing role in Australia’s farming sector.
HSBC Australia’s chief executive, Tony Cripps, said China would be an especially important source of funding due to its sheer size, and because it viewed Australia as a safe and reliable food supplier.
‘‘China in particular, but Asia in general, sees Australia as a secure place to get access to food because it’s got a clean reputation, like New Zealand,’’ Mr Cripps said in an interview.
‘‘So in my visits and conversations to Chinese customers in Australia, there is an increasing interest in that sector because of the known growth profile of the demand for food in Asia.’’
The comments come after foreign ownership in farming became a hot-button political issue last year, with Opposition Leader Tony Abbott promising to slash the threshold at which agriculture investments are assessed by the Foreign Investment Review Board.
Latest available figures from 2011 showed 45 million hectares – 11 per cent of Australia’s farming land – was at least partly foreign-owned, and this is tipped to increase as overseas investment expands.
Frequently Asked Questions about this Article…
HSBC Australia’s local head, Tony Cripps, predicted significant growth in Chinese investment in Australian agriculture, saying China — and Asia more broadly — views Australia as a safe and reliable food supplier and is increasingly interested in the sector.
The federal government is forecasting a 45% lift in food-related exports by 2025, with most of that growth expected to flow into Asian markets.
Tony Cripps said China’s sheer size and its view of Australia as a clean, secure source of food make it a particularly important source of funding for Australian agriculture.
The latest available figures cited in the article (from 2011) showed about 45 million hectares — roughly 11% of Australia’s farming land — was at least partly foreign-owned.
The article suggests that as overseas investment expands, foreign ownership is tipped to increase, reflecting growing interest from Asia in Australia’s food and farming sector.
Foreign ownership of farming became a hot-button political issue, with Opposition Leader Tony Abbott promising to slash the threshold at which agricultural investments are assessed by the Foreign Investment Review Board.
Tony Cripps is HSBC Australia’s chief executive. He said his conversations with Chinese customers show increasing interest in Australia’s farming sector because of the strong growth profile for food demand in Asia.
The article notes the FIRB assesses foreign agricultural investments, and that proposed political changes — such as lowering assessment thresholds — have been part of the public debate on foreign ownership of farms.
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