GrainCorp pushes global outlook
Chief executive Alison Watkins said foreign investment was essential because Australia's population was not big enough to provide the capital needed to keep upgrading infrastructure in the grains sector.
The industry also needed access to global markets because Australia produced far more than it could consume.
The government is considering whether to approve a $3.4 billion takeover of GrainCorp by Archer Daniels Midland (ADM) of the US.
Tension is rising within the Coalition over the bid.
The Nationals, like their farmer constituency, fear a foreign takeover of the grain marketer will exacerbate existing concerns about the supply chain and port access. They say Treasurer Joe Hockey should reject ADM's bid.
Speaking at a farming conference, Ms Watkins said the agriculture sector had already undergone enormous change to become more efficient, competitive and innovative, and was on the cusp of its greatest era of opportunity in the face of growing world demand for food and fibre.
"There are some industry observers who yearn for a return to more insulation from global dynamics for us to turn back inward," Ms Watkins said. "But it is pure fantasy to think it would somehow be worthwhile or even possible to pause or turn our backs on the process of globalisation that has delivered us such success."
She said ADM's offer for GrainCorp reflected a large and very meaningful vote of confidence in Australia's agriculture industry. "Here is a company that is so confident about our product, capability and future that wants to invest billions of dollars here," she said.
"It's as good an indicator as any that our industry is globally respected and has huge opportunities open to it around the world."
Ms Watkins said Australian grain growers now had many more options on how they could store or sell their crop, and to whom they could sell it.
In GrainCorp's catchment, up to half the crop bypassed the company's export supply chain.
-The Bega Cheese board met on Thursday but is yet to decide on whether to raise its offer for Warrnambool Cheese & Butter, which is the target of a three-way takeover battle.
Frequently Asked Questions about this Article…
Foreign investment is crucial for Australia's agriculture sector because the country's population is not large enough to provide the necessary capital for infrastructure upgrades. Additionally, access to global markets is essential since Australia produces more than it can consume.
Foreign investment is crucial for Australia's agriculture sector because the country's population is not large enough to provide the necessary capital to upgrade infrastructure. Additionally, access to global markets is essential since Australia produces more than it can consume.
ADM's $3.4 billion bid for GrainCorp is seen as a significant vote of confidence in Australia's agriculture industry. It reflects ADM's belief in the potential and capability of the Australian market, indicating that the industry is globally respected and has vast opportunities.
ADM's offer for GrainCorp is a significant vote of confidence in Australia's agriculture industry. It indicates that ADM is confident in the quality, capability, and future of Australian products, and is willing to invest billions of dollars in the sector.
There are concerns, particularly from the Nationals and their farmer constituency, that a foreign takeover of GrainCorp could exacerbate existing issues related to the supply chain and port access. They argue that the Treasurer should reject ADM's bid to protect local interests.
The Nationals, along with their farmer constituency, are concerned that a foreign takeover of GrainCorp could exacerbate existing issues with the supply chain and port access. They believe that Treasurer Joe Hockey should reject ADM's bid.
The Australian agriculture sector has undergone significant changes to become more efficient, competitive, and innovative. It is now on the brink of a new era of opportunity due to growing global demand for food and fiber.
The Australian agriculture sector has undergone significant changes to become more efficient, competitive, and innovative. It is now on the cusp of a great era of opportunity due to growing global demand for food and fiber.
Australian grain growers now have more options for storing and selling their crops. They can choose different buyers and methods, with up to half of the crop in GrainCorp's catchment bypassing the company's export supply chain.
Australian grain growers now have more options for storing and selling their crops. They can choose different buyers and methods, with up to half of the crop in GrainCorp's catchment bypassing the company's export supply chain.
Globalization has been beneficial for Australia's agriculture industry, providing success through access to global markets and investment. It is considered unrealistic to think that Australia could or should insulate itself from these global dynamics.
It is considered 'fantasy' to insulate Australia from foreign investment because doing so would ignore the benefits of globalization that have already brought success to the industry. Turning inward would not be worthwhile or feasible.
The global market presents significant opportunities for Australia's agriculture sector, as it is highly respected worldwide. The growing demand for food and fiber globally opens up vast potential for expansion and success.
The global respect for Australia's agriculture industry means there are huge opportunities for investors. The industry's capability and future potential make it an attractive area for investment, as evidenced by ADM's interest.
The political climate, particularly within the Coalition, shows tension regarding foreign investment in agriculture. Some factions fear that foreign takeovers could negatively impact local supply chains and advocate for rejecting such bids to protect national interests.
As of the latest update, the Bega Cheese board has met but has not yet decided whether to raise its offer for Warrnambool Cheese & Butter, which is involved in a three-way takeover battle.
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