11 ~pgpgpgpgpgpgpgpg*g p 0754248140 p.1

S U B M I S S I 0 N.

153 Avoca Creek Road, Linvi l le.

Q.4306.

12th Dec l'lmber, . 201.4..

~

i SUBMISSION TO:-

f. A};ricultural Competitiveness Green Paeer . : C ~: Agricultural Competitiveness Taskforce,

Department of Prime M1nister & Cabinet, P'.O.Box 6500, CANBERRA. A.C.T.

GREEN PAPER PAGE. X:V. · "Tb.e Government's Plan in the White Paper will be t~ support the :future o:f agriculture.

SUBMISSION.

PAGE XI ...

PAGE IX.

· It must leave a legacy -frha.t attracts the nezt generatio-n .o:r farmers" •

. ~Ui,'a.rnilar.--f"arms. -are--the best stewards o:f the lari.d because they ca re ··about maintaining it for future generations.••

"Farmers' Share has declined from 80-9~ in 1900 to lo_:{; or less toitayrw.

T-ilhen properties are being resumed by banks due to

drought, when they- are sold up Government should

purchase the property to : cover the Bank•s ~eb1,

leasing them to tpe f'arme:rJ and when' the season

turns cu-ound , put the property o.n -the market at

market price to cover Gov~rnment•s ao~uisition costs.

TREVOR N-. _SP~IS.

, 12 / 12 ' 2014 13:53 FAX 61 2 67613380

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BARNABY JOYCE ~IPTAMWORTH

0754248140

S U B :M: I S S I 0 N.

141001/001

p. 1

153 Avoca Creel:d Road, !,i nvi 11 e.

Q-4306.

12th DecP-mb e r, 201.4 •

. ( su:B·M:rssroN TO:-

~::: Aj.p:ricultlll'al Competitivenesa Green Paper : C "*' Agriculttu:'al Competitive.ness Taskforce,

Depa rtment of Prime M1rister & Cabinet, ?.O.Box 6500; CANBERRA. A.C.T.

GREEN PAPER PAGE. XV. "The Uovernment 's Pla.n in the Whti.te Pa per

SUBMISSION.

PAGE XI ..

PAGE IX.

will l1e i_;~ so.pport the f'uture of agricultttre . It muHt leave a legacy frna.t a t t racts the next generiLt ir:i"n . Of" ·farmers II.

'!:a'am..iJ~iY---"farms . . are.-±; h.e best stewards of the l.a.ri.d because they care ··abou.t maintaining it for :ft:ttu.re generations."

''li'armE1rs • Share has declined f r om 80-90% i n 1900 t o ~o% or less t~ay".

When properties are being resumed b.y banks due i:@

drought, whe·n they are sold up Government s hould

purchase the property to : cover the Bank ' s dSb~,

leasing them to tne farmerJ and when' t~e season

turns around ~ put the property on the market a t

market price to cover Gov~rnment's a~uisition costs .

T!tEVOR N·. _SPEI S.

Foreign buyers 'flood' market idential Property Survey shows. dential real estate.~ NAB chief

N.HA.~I-L\ !:)ITA liberal MP Kel1y O'Dwyer, who is economist Alan Oster suspects NATIONAL CORRESPONDENT chairing a parlianienl2ry inquiry China is responsible for a ~large

into foreign investment in real es- chuok:" of the foreign investment tate, yesterday called on the For uOne of the big driver:; in the for-

,_-FOREIGN buy~ snapped up eign Investment Review Board t eign investment is Chinese look-\ one in every I2 estab!ished bouse; prosecute any foreign buyers wh ing for a bolthole," he said "We

Und one in six new properties sold flout the tight ~on buying es- know there are S~rean in-n the past three months. a new tablished bousmg. vestors onselling to Chma TI1e llfVeyreveals. ~!here is no questron that foreigners are buying apartments

Overseas investment in estab- FIRB processes need to be dra- · e CBD, which are more up­lisbed Australian housing surged matically improved for audit, market than the average." to 82 per cent of sales 1n Sept em- rompl.iance and enforcement, Mr Oster said foreigners were ber- higher than the aYeJClboe ofS e told TheAustrolian ye.terday.~sending their children to study in per cent recorded since2010. ~FJ R.B have not brought a pros- Australia and bu}ing them homes

In Victoria, foreigners now ac- ecution since 2006. It beggars be- b to comply with the FIRB. countforoneinfournewproperty lief that there have been no The Australian re·;ealed this buyers, and one in nine estab- breadles of the foreign invest- week that Chinese buyers almost lishedhomebuyers,tbeNAB Res- ment framework regarding resi- doubled their spending on Bris-

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bane real estate dwi.ng 2013114, to growth in the past year. It fore­a record $185!lL Foreigners can casts that Brisbane will lead the buy new properties off-the-plan, nation's growth in house prices, but may only buy established rising 5.9 Pfl" cent over the next homes if tl1ey plan to demolish year- down slightiy from the 7.9

rebuild within two years.. per cmt recorded in the 12 months Temporary migrants, ind_ud- toSeptember.

ing foreign students, m_ay buy an~ Sydney housing prices -established home so long as they which rose 17.4 percent in tllepast sell it when they leave Australia 12 months - are tipped to grow Foreign companies may also buy ust 45 per cent in the next year. established houses as homes for Melbourne's growth is forecast

~expat exerutives. to slow from ill to jus1 2.8 per The NAB -MYey predicts the cent, withAdelaide'sgrowth slow-

simmering real estate market ¥.-ill ~ from 6 to 3.8 per cent, and cool over the ne:d two years, with Perth's from 5.6 to l7 per cent caprta:l city growth slow~ to a\'- "Wedon'tbelievewebaveahous­erage 3.9 per cent over the next I2 ing bubble, but our outlook is that months, compared to 10.6 per cent increasing house prices will be

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more modest than they have been in recent times because of rising unemployment, sluggish house­hold income growth, affurdability eoncerns, cost-of-living pressures and high levels of how..hold debt,n the Sll!Vey says.

Demand from Aust:ra!ian in­vestors has faJlenin the past three months, from 325 per cent of sales in the three months to June to 27 per cent in the September Quarter. First-homebuycrs bought162 per cent of established homes in the September quarter, down frotn 18.5 per cent in June. Houses and low-rise unit5 dose to the city are lipped tD be most popular 111ith new home buyers in the next year.

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i ,l Primo snagged by JBS PRIMO'S . SMAU -· BEGINNINGS -1985: Paul Lederer a.ld his unde Alxtew start Primo Sroallgoods Y~th 38employ~irt Hamebwh 1991 ~<qJirM Gc.'dCnb Smallgoads a rod expands ilto ~ 1958 Ntw plant in ChiAl<a cpens ard abattoir u J>ort Wakefie'd. South Al£1rali ~ pUrchased t999 Acq.lire; sea>1d beef abatiL'l: in the Hunter ;md ~ Meii>:>Ume cf~tributk:o pk1nt 2003c Pauiinherits his ITT.!e's shae of 1f1e buSir>~ 20n~-Padfk's

Affinity Eqo..ity l?rtrets buys 70 per centst.ake, vaiuingthe~at 5740milnan NoYembetl1. 2014: ~n~JBS

... ii .. . t . f'"l "' . 'W Australia pays$1.45 .. · •··· ' billion far f'r1'm

rn · & ' · · · .. · wmrz -P;wll..eden!f has sold !lis 30 per cent stake in Prlmo Smalgoods in ~ deM worth $U S b.illion to .B{ui\ian-owned JBS .Australia which wonts to expand the business ~

WEI' JEIJIIRR SI:ITWj , . JUf1l !lAG&£ ~-':3~~..::1.~

WESTER;.< Sydney Wand­eren· ~ority o~1ler Palll Lederer has sold Primo Smallgoods in ii deal worth a tobl of:il4Sbillioo.

Mr Lederer beii a 30 :per cent stake i:n the 29·year<11d orocessed meat >nd bacon -ornpany his larnily founded i Hom.:Oush.

The deal Jl'fls another Australiao iood manufacturer in foreigr. hands.. with B=ilian-o><o-TJed 1 BS Australia ~lL'lg up the Sydne)·­beadqua.."leted company.

Mr Lederer's CamUy fornme was estiroated in the lot$ BRW Rich list at $6.35 million In 2011 be sold 70 per cent ol Primo to A.sia­Pacific-ba.«:d pro-ate equity firm Affinity Equity Partners. in a dea: which valued the canpany at S7*0 million.

Mr Lederer did not

'--- -.. --.. •---·

respond io ~<St.s lor mrnrnent yesten:iay.

Primo is the n.ation's large.st ham.. bacon and smallg'llod3 produ<er in Australia and New Zealand, with brands Primo SmaUgco.ds. Hans and Beehive ·

JBS Ausl:l3tia cbid Brml Eastwoo:! Jaid the acquisition providet! a greac opportunity tor JBS to exp:.llld Primo'~ sales iniO offsnore markets. ioclo:ful& China.

"JI>S inteods to posicioo

•

Primo Group' as the platform for e1<J)OctS tn· smallgoods to Asia.· Mr Eastwood said.

"There is a \laSt opportunity for tbe ~rt of AU>1:ralian pork·relaled smallgoods •. that~ thus far gone Jvgely untapped."

Mr Lederer and hi1 uncle Andrew Lederer in 1985 took a HL1Tlgatian Camily tradition of curing and smoking .en eats in the garage and form.d Pr~'llO Sma!tgoods witll 38 employees in Hotnebush. !'ow i l bas 3000 empl~

and ftve processing pl:onts a.cros:s Australia and l'o'ew Zealand.

•El<actiy what I arn dotng today. my family were doin~ year'S ago: Mr leeere7 had sa.v.l in a l0l3 int.e("'1e-.t wilh The D<lily Telegraph.

The deal come5 hot on the heels of a SLJ billion Singaport'an· Hong Koog jci.oc offer for breadmaker Goodman Field•r. a~d bookends a year in wbi:h Canadian dairy grouJl Saputo waged. a fierce oottl!'! br

control o[ WarmambooJ Cheese &. B~tter. t'alling just short of a full l:lkeover in February.

lG m:11kets str.lt~t Evan l..uals said tJ-.e rermt signing of a free·trade a~ent "'ith Otioa. Australia's biggest trading partner, h;;d h~ to put A~stralt.an agribusinesses Front of mind among global in'-esto.s.

lhe~e sort of deals are probah[y going to be a fairly n-6Uiar tbing ovet the oext )'eat and a b1t,' Mr Lucas sald.

E0

IJl~L.lLlAN GIANT IN $1.5BN DEAL

Export blitz as JBSbuys

~ PriJUo UH ll)l;J·;J Ci\f<TriH SMAI, LOOODS

BRAZILIAN me~t processing giant J BS is prtparing to r<Lpidly accelerate exports out of Austra· lin nnd capitalist on the lucrative Asian market after outlaying $1.45 billion fM Ptimo Group-­the company founded by West­em Sydney Wanderers so~e;er club chairman Paul ~derer.

Bas~d in western Sydn~y, Primo i~ the largest hum. bacon and smallgoods produc<:t in Au~­tl'ali:> and N~w Zealand. The sale was fir& t flagged by The Australian on Monday.

Approaches w~re made by the Brazilian giantjust weeks ago.

The deal is further evidence of global food ghml.1 positioning themselves to capitalise on thew­callcd dining boom in Asia.

It also marks the end of an era for Mr Lederer, a Hungarian­born entrepreneur, who will wlllk away from the business he found­ed almost 30 yeuts ago with $435 million of the pl'Oceeds.

" It is a fai r price. We are happy with it. !tis a !lreal company," Mr Lederer told 'fhe Weekct1d Ausrralian.

~oundetl in 191!5 by the Syd­ney entrepreneur, Primo has grown from 31:! employees to be­tome the nation's largest small­goods manufacturer, with mar~ th;~n 3000 staff and brands in­cluding Primo SmallgClods, Hans, Btehive Hunter Valley Quality M~.:atsnnd Primn Quality Meats.

Private equity firm Affinity bought a 70 per cent Interest in Primo in201!, in a deal valuing the

::lKSlDE '' .. · .·· : ...

Australia's role as the quasi-food bowl for Asia is

· set to be propelled further with Brazil-based .I BS taking up the dream inspired by Pnul Lederer. JOHN DUIU E P33

company at $140m and one that saw co-founder John Hunt cash out.c:ompletel:y.

"We believe it is a world-class company- well tmln3gcd. greot people. great potential and a great future," Mr Lederer said.

The acquisition will a!low JBS to add pork products to il~ mix of off~rlngs and will also 3t:Cutc key c:ustomer relationships with m'\ior ~upcrmarkets such ;u Coles, Aldi and Woolworths.

Currently, .JBS is the country's largest fresh meats processor, sp.,c:ialisinB in beef. sheep and lamb.

It ft~t i.Jroke in to the 1\ustr~­liao mlitket seven years ago through its acquisition of Swil\ Foods and has since purchased other bltSilll'SSCS, including the Vktorian-based meat processor The TMman Group ~nd Rock­dalt:Beef.

It now ~ees Australin as one of its cure markets, along with Brazil amHhtUS.

Australian chief ex~cuti'le Brent Eastwood said the deal

Continued on J>ago JS

Primo revenue* Markel shal'e !m 1200

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400

200

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2010 u 12 13 l4 l5

@All~ I"IIAI.IMl cONSUJ.I r;A no 1'000 (H,·•nth: Vrlmu. Han1. 11unt•r V~lley)

. f OOl I INV ESTM!'NTS H\r;uuJ5: IJo(l. k K CtUtl~r1',~11H!. WJI>ORio)

I OTHiiR Sourc:t: IBIS World

NOS3IV.J'i1f' 38N3~frl'v'l 01VEI08EL0 ES :6I t> I 0i:':/i:':T/H

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DITCH TH·E UN REFUGEE CONVENTION The problem is that it legitimises unregulated entry

.~\DRlENNE N11LLBAN.K

ONCE again Australia's offshore (Nauru and Manus Island) and . onshore processing centres are swamped and we are confronted with images of distressed asylum­seekers self-harming, lip-sewing and hunger-striking. Such images are jarring and confusing in a country of migration where new arrivals are supposed to be weJcomed as equals.

Australia's border protection efforts and their appalling effects do not reflect a country that has turned its back on migrants and refugees; they reflect an asylum system that is crumbling under its own outrageous costs and contra­dictions. The problem with· the 1951 UN Convention relating to the Status of Refugees is that it legitimises unregu lated entry . And unregulated inflows of eam­ornic migrants and asylum-seek­ers are anathema lo managed mi­gration and refugee resettlement.

Australia may be approaching a tipping point in its always uneasy relationship with the ~efugee con­vention. The Howaf.d~era border protection policies, reijlstated by

-~+ CM· K

, the Labor government in desper­ation after it had abolished them, are not working. Nor are mea­~~r~omm~dffieyfue~y convened expert panel to which the Prime Minister, in even greater desperation, abrogated responsibility. Indeed, the expan­sion of the humanitarian program to 20,000 places is encouraging more asylum-seekers.

Last year, more t han 17,000 asylum-seekers arrived. More than 30,000 are projected for this year. Our offshore humanitarian migration program has been over­whelmed. This is not good for the 70,000 to 90,000 refugees the UN High Commissioner for Refugees identifies each year as most in need of third-country resettle­ment. As former immigratien minister Chris Bowen pointed out, Australia, the US and Canada are the only significant resettlement countries.Without us, there is no hope. At least 1000 people have drowned at sea.

This is not the legacy Labor in­tended when it came to office in 2007. It wanted to cement a repu­tation as more compassionate than the Howard government. When it unwound deterrence measures built up across 20 yezy;. it never intended to welcome larger numbers of asylum-seek­~rs. The boats had stopped coming apd, hoping to keep thin gs that 'fiay, Labor increased expenditure on b'J,der protection to record levels, lt niiscalrulated.

\ ••

Using the refugee convention to score political points was ilJ­advised. The domestic politics of asylum are toxic and divisive. Advocates think voters need to be better educated about signatory states' obligations. A growing number of voters think the refu­ge€ convention is past its use-by date. Australians see how Euro­pean countrieS struggle to inte­grate large, unplanned inflows of e<:onomic migrants and refugees. Familiar with managed humani­tarian migration, they see how the refugee convention advantages people on the basis of their ca­pacity to pay, and to play the sys­tem, overrefugees in greater need.

Australian voters also see the commonwealth budget has blown out by billions of dollars. trying to k€€p boatpeople out, rescuing, de­taining and procesSing those who manage to get in. They think bet­ter things could be done with this money: improved disability ser­vices for Australian residents, per­haps, as well as helping more needy refugees.

The credibility of the Labor government is destroyed, and a clear majority favour the Co­aliti on on this jssue. The oppo­sition, however, offers only a re­nrrn to measures that seem less likely to succeed the second time around and with larger nwnbers. ·It offers the depressing prospect of a lengthy, gruelling period of escalating toughness. Temporary protection visas are a weak deter-

•

rent. Not aU boats wiU be turm around. And even if offshore pro cessing does slow boat arrivals, transporting asylum-seekers to impoverished islands and caring for them at immense cost before, in all probability, issuing them with resident visas is ridicuJous.

The legacy of the Rudd and Gil~ lard policy failures could be that it is no longer possible to return to the halfway solutions that work~ in the past. The costs of pretend­ing to uphold obligati ons under the refugee convention. at least in the way they presently are inter­preted, have be<:ome too high.

As a country of m!gration, Aus­tralia needs its refugee policy to be sensible, morally defensible and well regulated.

We may have reached the point where the country's legal obl i­gations need to be brought into line with public expectations that the government will control the borders and that migration will be managed. It is time to reth ink dubious international obligations and to argue Australia's case. Aus­tralia should require as ylum­seekers wanting to settle in this country to apply for a refuge€ or humanitarian visa offshore, through our overseas posts or the UN HCR.

Adrie7!+Je Milfbank, a researcher at Monash University, appears in State o(the Nation: Aspects o( Public Policy, published 1Jy Connor Court ~his week.

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TOP 10 MIGRANT SOURCE COUNTRIES 2011-12

*Totals include 30 gender-not-recorded visa places not in country data . . . So urce: Department of Immigration and Citizenship

Culture ~'ervert~d

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01PE108EL0 ES :61 P10l/l1/11

Chinese lapping up dairy farms

1M new Chinese-own~.'(! l>wioess will be Austntia~ .la~t dairy fannilog co1»p3ay

CWllir.ual [rom ~· /9

>ea!e t>!50D million l~of millta year. it ""' taken ~ill: nKJnths lrut we ha••• now a mduding {boying)OOJ farms.· ·

1ben.-.·bu.'Ol\ess will be Au:s · trnli•'• ~tdair'! bernini! com· I'"' 1, fiw time• ~Jigger than the ian!< Va" Diemen's Land Corn­pa;;y {VOL) in nor.h>ret Tas­roania. "'bicll th<- stare-m.'OO:l ~ ]c\'eslrne'l'll c~ryoration carroe close lo buyiog las. _,-ear fur ·~1han121Xlm.

ll ><aS ab:> <=fi,.,..,.j this ~ that VDL is o~ ogaiD in pby. 1'1>! Au5lTflfiG<>ltJideJstands Miie GIJA!rin. a fucroer Eldes 00.. and lbe limD<:r chief=­tive o[ VDL Wltil he suddeoly ,.... ~ed early tJus yur. is putting togtlllengroop ofin,'eSICHS wi1b • Qtices. ro~y ~ SJ per ant, to bay \'DL's l9,000ba. 25 Farms aod 18,000 mil!<.in& dairy <XJv.~ o...,..d by NZ'l l'ltmoulh Di:strict Coun<il.

Mr GLI<rin '"'uld ool corn· DW11l yesterdar . AM in Ta$­Dll!.Jlia, w<fm.oA Hasrouru has """""~ 12 dairy fanru arwnd tll c· Smithton area mllectiveh' [or s..lef01 Slll>m ·

La.ndmad JI"'P!!1r dZrect<w lchn Hewil who rtl\lme<l last

'They only want to spend more than $100 million'

...ott:'C Mt:Wm U X r>W,\Al PAU;,;m

......e); frool China wh<re he ,... llW~etinJ: !lie 'North West Daicy Aggrtgotioo" d~ to pot~tiaiO<n=~..,idhe ]lad ~istd lalZ.year Ual DO Chi­nes<!COijl012to b;ddm waon1e<llx:> ~>lk abootprnportypurthastsofa scakSillalialhanSIOOm His~tTofbnns,aJI Iocat<ll

clo5c ~er. runs 12.000 CO""

Jll')4loci n c 60 IDillioo 1itres o(

milk anfl'll>llr. '"The maio ll<lrries i; n01 that ll'«"f ore t}'"' ki~ 01 ool interestl'd, but that the)' ooly ..-ant 1x:> 1p31d rom-r than SIOOm a.,d tyrt<a!l)· jX'<fe:r a ;J pu rent joint , . ..,run, dt<ll,' Mr He-~ ill said

Unear Capibls' Mr H.arpe< said Jel1<rrh"! aU his >«:Stem \'i ~­lariul fane purclwes .vere bd:ed ill, lbe in~l l!lOrJe\'

corruoitled aod ~ planis alre.ady on nwtrawi<lg lx>ani

He also CO!lfirm<1l w COOl·

pany is ab:> in di~rn "i!h Ill<~ gl1"m1mtnt ro lease the J20..be:l ronoer G l~on .gricu);ur.;! ~ at Mortlake "' pa:rt of the deal to use as • da iry tr.>inir:og and educatianal fildliry .

Bll farmer~ .... , th< W~·

ern VidDri:m ...W dairy group. "=' lb< plan is to fl)' IJI Chi~ dWy""""""' on l"" wages anti 45) visas. """ Gh:nonnistno ar their lrainilll: • rxl <a:ommod>· 1iou bo>e t;><; r«' beinj! dispal cll<'d

lOl ' HLUM

to 'Oro on the outl}ing 50U11r· v.'t"St ' ·:aoria.., &nus.

:'>l.r ~ J'<Omiledlhotb<al iarrne<l ""''Uld be tlu btndid· aries t>l th• Cllin.""' <llfiRICDn€1'­ale deal. a> llre new coo1p:mv >ttl.> to impRY>-e prodn<tlvit> oo it< fai1!1!2Jid builds (WO IX!IO' pro­Cf!S>i"g fldibe>

8u<. '"' m·al dai11· prore<""" with !>Ciolies rn the arar sud:> as Saputo ... •n<d >'imnarobool <.'hoes• & Br.rtt.,. ooory ot Anen­dale. M=y Goulb.Jm's chiry pTO<'<'SSi"" pl.:nl at Kccort and Footerr.~'s Cct.dot1 pion~ the I~ up o! 1.11< ;o farml witll tlreir "iiO million litre< o1 annual nWk~oruct»n~l.lle~ C1><Jl0rnlion wool:! lead to • dras · ticd>Cl(I<!Jeo!milkruwlJ'.

"I wouldnlca!l ~ adbruptioo, lHn a ~ o[ rnill ""P" plv; western Victoria v;astb< ool1 plaL-e ,.,. rould arggregi!1\" this nrDnlxr a[ fannl tog<tlledor lbe OIXIOUf'l! of milk ntt<!et!, • M1 HarverS>i<l.

I Riskiermortgages , growing fast Fitch I I J<Yl.AR I "" I lW<JCJNC

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MORTGAGE growth io Auslra­.lio ha> ~ !ttt:rngf:Sl in bigbr:r· iisk mve:stur loam aod in!tte<t· anJr I""""' acrording to J'3l:inss ageoq l'itc:b. aod ctsl:.! 'to t.l>e All:SiraiWI baruing system wcuJd .ci5l> if hOW>< price grow~}~ ><as to <Xllll:inueal ils=t r.de.

The FitdJ ~also lpC5-

tims tbe mojo< tr..W ~ that in~ mc:rrtgages por­ftxnotd largely in 5ne wid! owt>OJ-ocx:upicr loam, S'~g loans made to im-eslors il:n'e a higlll'f rate of an'eli<S.

Bultt>e ralK!gs agmcy still be­lie<es .si gnilicrn t lo:;!es in i::Gnk:{ II>Oftgagt boob are Ulllike/y. witll credit .W.ctards "'brow:lly rr.ain.taiotd" among RCOTd low r.lll?sand ao rise .in~ invest:menl

Whll< ~CI'.JJ>' "'~"' ""' rowrt far 40 pu em\ of bank ~ :setsiJIA1JSII'>}ia.~ve

U~D8 <t~od:...-dland po(l·

!olio ~ 113..., llrnit<d the risk to backs daring • sevm'

eronomic d0W71tum. lo ten:rt· oolr IIXIJIS )l:m, t<!eO gro-wing faster than inveo'1mrol loo.Di {or lb• last lix ~....., ~ to

Flld!, as tD deOJctilility creab1s ., iDrenli>-e ltv buym to """ "JislOC%' Joan products.

Paul Bloxham, H5DC eNd emncmist fc. AUJOiralia, said lbe R=rv~t BankbadtDO.veJY Clft­

h:i!Z>ou!II<llle:Mng in west 1li1<S IDo bw aod a.sting a property l:7llhble. "1'bfo ir><rea. ... in loons tl> il:lvemr.s i:! not a proill oro in arxf o[ md!, W.ce they ac< lyJ:OcaDy :iciMo- Iisl: bom>wa>.• MI Blox­ham S3id "'B<II. il .i> a sign.al1bat """"' paru c( tb< trlld:rt are bei.nJl dr;v.,~S]leW!.ali';< ll>ws

'1llt lad iovl:slon are m:>re im~d. in tb<~ is tile l:ey reason wby in'tl!rest-<Jr>l)o ~=;s :u?bemg tal< eo..

Toe Fitch analy>is. «Wained ill rlre Aus1ralian Banks' Morl· ~ E:q>arorl' spe<ial report, )Jtlinl<rl out lrooru aw-ore:llhat fell oobi:l~ of """il:ubility ai­l..-ia ha~ lliDOSl douJJ\ed to neal

• ~cmt.si:lr. 2~ ,.idJ . b;g IIJllicX in tire !art ..U UlOJltbo.

lhe ~ <s i:Jt;lt1he looge:r illttttst mes •toy :u ""Y 1ow i<'>'els tt>e """" likel r it is 11>e;e rulo mighl bui};l up: Mr lllaxham .s:OO. • Australi;o 00eso'1 l:2ve ~ ~.o .... ing bubblt bet if pn· te5 ct~nti.nlle to rUe at the same l3lt "'they wmadr are, w ri>k oC•I.Jubblel<:<tninl:lfiJiri.«."

Whitehaven sounds China import alarm ':i.\R..\H· I.-\NI· HSKl:Jt .. ::so•·~<ea

AUSTR.ALIIIN-LISTJ::D inde­f"'d.ent cealmic.,. WMei»Y<n OW ""-' w..,.,.,;J lh<re is omer­t!ifl8 uncertainly ai'OUI'I:f li:H' lulu!<> or <:JUn= itq>c<1 coodi· tiaru and., Ol'mupplio:l market but the rompar~ y u coofi<lrnl prj::es-.illgr..doallriloj:<tro·e

WM eh.a>'<tl o~ ill il:! ~ ~ yeste:day tllal durnlg 1he Septt:Jtlber qurter, tbe benchmark N~ ther­mal <Xlal index a~ $USf>S a tonne,l<lrid1 wa. a 6 pe< c<:nl 6.­a.a.-.ln:mthe pre-rious quari<O".

Jllr:re at? OOt'Jtinuir>g si8J>s !hit rtre the:mal ooaJ marl<d is wo:rrltiQo tlnoutlll an ~ ph_..,, -..bich beg;tn in 20JJ. IX> a rncn .<USlainable groo.o.th path,· lllerompooy said i:n ll>""''<lfl.

' l~ o:port> hove startedto6edine, hdped by anew regulatocy re;;;ito! .-equiring all et<li tlqXJ<t<n to be !icms«<. aod ao irxn:asi.D& nwnbcr crf new

tllonnal Jmie<t.< in Al!Strnlia art ~)105(]Xloed •

The COO'.parl)l saJd I ""1 31 mt­reo l pr.ce leYei> it >nSrtalOOabt. to flilt'C1 \bat \here would be Jlljft !UJ)ply ~tioo ill l ey !eOOQrne suwJy ~'and as ~ fln:lamrntal <mnges """"" Lltrough iJu> market. thee­mal ro.l prices 5l>ould gradU>liy impro"e. Australia'l ooal oectO< ... ~ ~ hs\ wee!< to llt"3rtl that the~ g<mmrnenlwas in~ aa irnpocl briff on coal. from 3 to 6 pucm1 dq:ulli­ingooW.IyiJ"ofcoal

Whieh:n"'" s.;d }'<Simloy llW sales to China ~ only .txro\ 7 per C1:nl of it> lOb] sale! . For i1s ~<gical cool prvducn, Whi~ recrl¥<d ., a~prio: oi.SUS89a ~ ovulbequarttr..OO ~ <xpe>:~Sihe ptttlo sUy 3.TOI1lld thollevtl for lb< na1 quarter. The C'Oillp2ny

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Agribusiness braces·for re Chinese 'lyre-kickers' ~,1AGGIE U.' )' l'EYAl\G DEALS

AUSTRAUA'S agri<:ulture busi­nesses should prepare for more Chinese "tyr~kickersM knocking on !.heir doors after the sealing of a free-trade agreement with China.

Tony Abbott and Chinese President Xi Jinping thi.s week conduded negotiations over a historic free-trade deal, which l'lill dramatically increase market ac­cess for Australian fanners, servi­ces and manufacturers. Deal­makers are expecting a significant boost in capital flow from China. particularly into the agriculture businesses.

That would see more Chinese parties approaching agriculture businesses, but not always in an effective way, said Darren McCoy, managing director ofVC Group, a Sydney-based advisory firnJ specialising in agriculture transacti.on.s.

~They sort of come to the mar­ket and think 'we can do it our~ s-elves', and have this DIY mentality, or they will send some bright yollllg graduates who have got wonderful Engli5h skills but (are) not able to lead their invest­mentstrategy,n MrMcCoysaid.

• Australian companies need to Deabletomakethedistinc'.ionbe­tween a serious;· wcil-resourced buyer versus someone who is going to waste their time."

In tile coming w~. Mr McCoy is takingaprivateC~ company on a farm inspection tour in NS W and Victoria to

· evaluate cropping and livestock investment opportunities.

He has led VC Group in the past th.o-ee years to work with Chi­nese clients on acquisitions, joint ventures. supply chain and distri­butionagreements in Australia

The finn serves big state­owned companies such as China­tex Corporation. one of China's largest textiles, grains and oils traders, as well as private com­panies and high net worth indi­Yiduals. Deal value has totalled more than $!00 million over the past 12 months for the group, but Mr McCoy srud it was f\ever easy

to complete a deal. particularly can feel happy and v.1th a Chinese party without a with. But wh , are missing is

tegy in tbe first place. really think this person "The C mese 1s usu- can get tile deaJ done inside the

ally: show me a project, what's the cornpany?'That'sthe challenge." price, now let's argue about the Even when a deal is done, OU-·price,H he said.. "\"'hene1·er we nese bidders often end up paying hear 'can you show me a project', a higher price for ~ts. as local we will immediately be worried, sellers askfor more to make up for because they don't know their the "completion risk". . strategy." ~(They wiU say) l haYe got this

On the other end, companies Chines-e party, 1 don't know them, complain a lot about tyre-kickers. [don't know how they operate, I "Australian companies get so am concerned about will they ac-many approaches from Chinese tually com,lete the deal,n Mr parties, they .sit do-o11 and are not McCoy said. "[ have seen them sure who theyaredeallngwith- (Chinese bidders) pay too much are they dealing with the decision ror an asset when there is no other maker?" Mr McCoy saJd bidder - this Ui whatwe called the

~ThPy find someone who can 'China premium'." speak English, and \-:hom they BlSil\'ISSSPECTATOR

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DEAL OUffRIDAY Coal and flu: An mlikely pair

CRISIS,PARTO ~~.;:· ·. ~ Why Europe is ·· _ · still a basket case : lPZ3]

BUSINESS S&F/ASX 20053JI6 (-11.8} OOU.AR US90.59c(•l.>s<l )6c) !RON ORESUSll.OJ()(Sturlf}

EXCLUSIVE UDP BOSS TARGETS HUGE MARKET

THE WALL Si'REIT JOURNAL

Nb.r SQ )QF.Rw:ms Compailies l'l~lcome

·. Wa~ policy calm {P22}

Dairy dynamo set to mil D A1>10N t;ITN EY DAJRl'

THE Hoog Kong enlrepreceur t<lio now controls Awtralia's l:ltgest prir2teiy OM>ed milk II'<>­CI!S30& o:unpaoy. u~ited Daily Pow<r{UOP), want> t<> use it., a spricgbo..,d to brealr. into the IIJUiti-billi<H~-dollar powd"Jed IOilk:nacUI in China

\'l~lia!D Hw. Yho las1 mooth paid .bout $70 million to tal<. 001)­

lrol ci UDP ftun itsfuunderTonr E.s)looto, .. td ll<! was wiUing to S])<'Jlf a lurtiler .S20rn to bolst~ ::ap.a<ity a t tbe grou1is fadmitl ar seel a.Jtt..oce:s to belp UDP ~p:nd iota the mil~ powder busin5s.

In his first~ roed.ia inte;­'riew,Mr Hui - lfho is also tbe cbaimuo of Sing•pore·listed $~ MediaTedalclogpcom­?01\fthor =kes and tr3&es C:O.. D VD; and otller m«li.a prod!;~ cts -so<! b•wasalso t!.lkq tobis b<W<r3 ol:cAA )>(>l<r.tially provid­:Og fuaocr lo UDP's !UilJlie<s to help flem bo!srer mill; SUJ']ilies.

He ~irl the company routd coJU.de7 purclla.!iog ranrung pr~ in lbe fnt:ur. liiS part al II.! oq>aosioo p lan for UDJ>. de­signe! to cash in em the bootnin~ dml:ntl ioc pootd!red IIJillr; prod­ucts il ChiDo.

'Th: il>lilnl milUconula mai­hl ic Cltioa is .set to douNe to Ul01'1:ihaD $2S \:illioo by 20.17. J!ul l<bileU.. global SJri<• fn< .-bo-le mill< ?0V<1e< jumped M ~ =t CMo't:>e paot ye;u, A uslr.lli:J'• pro­a,ct>o or milk pmow fe§ Z2 per ttlll.cm: II>< wneperiod.

Me tful stressed tbot ~com­pacy rema.ioed committed to ~ caparity;, the local lllaJht and would only for&e aheli.ldb ibeDQn<ii)S) ~:~ru. nit

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~ FORUM inpom.......,,.,h l'!2m MARCH 26. SYDNEY

MQ•IIlJans th<:austr.a!i;on.rom.•ul ~fan>m

could 50Ul't'O bil!ller mill:. su;>plies UDP, ba.<e:l ill South Melbowne, bao )»'ocessing f~cilitJes a t Poowooa in Y odoria and Mu=y Brici8~ and J~r>·ois io Soutb Austnlia.

Mr Hili 's ~· olth• OOCI · pany !a<t rear foUowed a fierce hi<ldiog 1t2T for tbe listed W=­naJOOool Cheese 8: Butter, al>attle ev""ruaDy woo b_v Saputo after tbe Cll!l•lliao giant ~~ off local rivah MwT.>y Gwlburn and 8ega ~

Tht ~ COTtl<:S as s....-.nl Chinese SU.t"""""ed mle:]>rises a.nd private camp:uJies are in c~to b:mkroll cmsiJ'liC· lion ol nett mili ]JOWde> plants in N!>W tbro~Q:h a plan being bro­kere:l by Dairy Conn<!ct, a not­for-profit arganisaticm !hal np­reseots W NSW daby lodnslry.

Mr Hui. ..no wu introduced to UDP in Aogust last }UT &y ~ shan Czpiul oo-foonder David O>eo,mntirmed tl>ere_..,..~ iov..too iD China ~ to .fo1-Jow his lead to~ oc invut in Al.l51r.iiall daily ass&

"We 1ooor Ibm are lots ol iD­V<Ston in ClUna," be said in"" ;.,. t.mew ><lib TheAustraliart

"W thE oorcirlg live Jea!3 thee wtl)l-:;~IMr.f,-,..Yn _._ .-~~ '""

iltis roarl<<t.lc the pastliv<yearsit h.as be-eo in mining, bot in ttlt­a:noing liv<rean ihrillbeiodaiJ)'.

'"1\'betner it is a b\gromJHl1lY tt ~ m~dicm-sR~ coatp~ny ill O.ina, the-t :...UI be inta-ested 1><­=!be dai'y pro<h>ct from Aw· trafuine:y~

"'Tbe enYiroroiJeot l!ere is ~ good for thH'<tWS and th• milk. Cbina 1m already b=t illlpo<tiog a lot<Kccws fnxnAustr.llia."

MJ Hui said his purcb~was • pn.,te oue aod •nrelatrd to Swing Media or Jtis otrerbusiness, Chinarise Capital, w~idt tr3des mobile plioDe bandseb aod a:m­poneo~tl.in Hang Kong

.Ertalllished to 1999, UDP pur­chas<:s mill from~ !Gri!>-o<med Lion-t•btiooal Fooi!:s Group biJ! al>o p!'IJYid<s transport lll!d lOll is­tic sen-lees as wtll a> manula.c­turiog faciliti .. '

The company maoufactur~ dairy products induding dledd.ar, tht ~turt 'brand of mozza· re\13 dtees.:, buner an<! wbey pt>'l'de1. •

Mr Hui's~panwillsrea majar ~iOll or produdioo lo aJ(ow diver~if&catJoc iota miJl ]JOWM. wbX:b will be fij)Ol1ed to Olina.

''W• 1>01'< still mainly rely on 1M local market; he said.

'1f we get IDOl< mj(}; supply tlte:n w• will divert to tho Cbina. maricc:t.

"'Our f.octories ha.., tbt poleo­Dal to prodx:e more but supply e at lilemuimum alreudy.

''We need to look for dte mill supply, in<:r.ase aur production om:l then we can co to Olin&

"&;gbt nD1f ""' ha .... ahotlt J50 Canners. S1J;lpUe13, aod w t att t'llking to than about S"W17IDg mart. We are also talking to cur t:mlk= t<>set ill!>ey cao allow w

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EVAN SCHWARTEN posal by the end oi Deeftllbef· . .... . ..... ........ -- . .. .. ... but that meeting haS )JeeO

AUSTRALIA'S biggest food pushed back unti1 the nrst maker, Goodman Fielder, is a quarter of2015. "o­step closer to beading offshore The deal al.so needs th~ "nd after its takeover was approved ahead from New Ze a ~by t~e FederalGovernment. authorities. . d\iSeS /l'. · Tne Foreign Investment .- "Goodman F1e\de.r a c.iUC

Review Board yesterday said it . that Wilmar and Fust pa 1)\e had no objection to the $1.4 bil- l are continuing to -progres~- i\ lion takeover by Singapore i other regu\atory appro" ' agribusine~ Wilmar and f,aid in a statement. elved Hong Kong investment com- The takeover haS ~an pany First Pacific. approval from lhe A -urner

..

But the deal is awaiting ap-· ~Competition · and Con:> proval from China. Last month Commission. vms a the company warned the pro- Goodman Fietder.

0c1ud\l\\!,

cess was likely to take longer G. g of food brands~ vrlt'~n than expected. Helga's mead. Mea ~ Vfbite

Goodman shareholders had milk and yogburt an been due to vote on the pro- ings baking produtu'·

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COURitRMAil.COM.AU MONDAY NOVEMBlR 24 2014

..... - - ............ .-.-- --

LAV,IRENCE JAMIESON PAGE 10

BUSINESS 39 -----·- ···- -'""'' __ ,_. ___________________ _,__ ___ , ____________ , ... _____ _

Chinese free-trade deal yields winners and losers KERR IE SINCLAIR ,.- l'haml•er uf CIIJllmCI'('I.' •nd In· LIAM WALSH \ cluslry Ou~~n$l•nd ~t·n,ral m~n-

. '4KC":r of ;uJvocaq, Nkk Behrens THE lonu-aw:.IIM fn:c·lrntlc ''~'' (picturc<l. h~low) 'JRi.tl the r-TA O••t Austr~lia has lnk•d wlllt wvuld uo<lcrm lnc >omo m11nuf~c-China i• ' douhlo-"d~~d 'word for turlnt; bu•ines.c~ lhat "would nJ-

, QueeMlan<J bu~iOP!ISes. ' ready have uone "vol")'thing four ll><•ny, it promise< "p<Jwer- pnS>iblc" to be competit ive.

ful •pringbunrd i•1to th~ world'! Rut he ~•id Quccnsllutd's eeotl· s<.-c.:ond-ht r'CCSt ecc,mu,ny omy WQUid be a d e;ar ne1 win ner,

11 can't ('(H11t: tif•on cnnugh for ~i"(':n Lh :J t the ~r~tP P.xport.t $)1.6 Qu~eruland's d•iry llldwtry, billiun of product' \t> Chino and which has been prayiuH for A mir. itnp•>rl• auuut $6.1 billi~n worth. adc to n!vtrse dire condllion~ Tht m~urwinner1 of I he: ChiJu .

Btll the fre..trMe P\1" will Pl'l <l•• l will beth~ co11lmin•r• ond the ev~n mvr~ preliti\lre tm Qvcems· mcca~. IJ3try, fn1i1 3nd Yt'Uet ;able In· JtJrid'., manuf~cturets. who have t.Ju.~triP.5. ~~tn strusKiinK to ("nmp£tC' :\gatnst Austr~lia.t1 hul'iru:!j~n:li wiH ge-t ,I')Ch,·np Chfnesc i10purt•. BJt:Ol lt:r ~cce-"s to Chinl~e:· privote

D aviU Krmp, m:muginH dlrec· ho,pilals ond nursir.c homes, tour· tor of AustraJh1'6 huJ;t ~l dome~ t ic i:un OJ'Itrator' wiiJ be utJJ ~ to buy shelving monufa~~ut~r. lll)S retilnur~nts • nd hotel.l, ~tld Aus­Group, whkh employ~ IOU staff ;•t trali>~n i n~utance companies will it!' Urtib ilm~ h ~~dc}\Umers, 5ays hi9 gel \tCC:C"-'1:., to the th irc.J.j)any m· induJtry hQ9 ::ah f";tcly hN.'fl jn rc. :sur;u)t!f! mRrkel. ccs.sj(m fur mnre th:1n a y l!';u . But Hrinb~nv·h;ur~d in.surer anrl - "I'm lhc ···~' nr 10 tn'l)or tn•IIU- b~nk St•ncnfjl, which h., ""Au~­~Jctucero of shop nuillR ;md , ... ,... lra)i~ . N•w Z:enlond [(ICU>, ""d th~ in~ mHnufil( turinH ,;ruducts IT• O~nk uf Oll~ml•ntl Llitl n~l AumuJi~. ()ver 10,000 Ul Ollr in· pl.'ttelve t•ny direct uppor­~v,try have heo pul out nf work: luoiti~$ from thQ I'TA. Mr K<IIIP ••id. li~wevcr, lht a~nk ur _. "China hno virt•JaiJy ti"*"Y' ''' Quee11sl~ml cxpt•t:lcd "In· the. monufa<=t;ur~nl:t of t~1 ~ Qood~ we (Jirl'C\ b~·mdih: from any do m Au.stn1lu\, econmnic imprc>vl!ment :..: nd

G~-Ht:o Uld B (~;H:k I)( ntellt•ctuaJ uppo rhmJ1jc;-, "~''H)CiA~l eotl

Ol>~~rty pnHc:o<1ion • nJtu f)mjttec.J with suppnninR cufi-Oin Mc•nctuy'.s FTA - m~;:uu (.11i- lt)J'ners who hflvr en rivals :~i(nply r.opy hi.'\ proCI· exptiNUr~ to the •• ~no • xpnrt them bnck 10 us. Chi~• morkel'.

IC Wil :l a ,:cntinHmt ~;t·hued by M it r1.in "i::llrt:t't, chfc r c:xeC'Vtivr of Jl"ndt•b•rg.Ou~~~ bulltling wde<y Wid¢ !loy. Ho twt•d a pl>t<nlllll fllrw-<m ~ffect to areas such •~ mlniog from il•oro.,.etl Chinese in­venmcnt, which roulrl help th• rQ· gioJIS fn which Wide Day Ot>erol!'f, such as lvhchy or Moro•tbnl>.

"If it $thnulate> those locill cconomiL"s, that will. in due cour5e, help u.,," Mr B~rtott said.

Kut AuJtralia's l i1 rgc·scale re­nowiii>J• energy •tctor, wbit:h faces , • potontial •l> utdown l>y lht Ab­balt Government at home, \1 ey~ tng Chin• •• a lifeline.

l)•vld McCollum, m•n•~ing di­r ~etar of Hrlsbane-ba~·~ Conergy AUst ralia. '~ld the a eal openecJ lite do~~r fur the company to Slart pur­'"ing coni ~>cts for •ef'Vlcts such as enKioterins. procurc:menl ;nd conslr.ucthm.

Givr. n that, in one y~ar alone, Chinb i• &el l~ odd 13 ~i~awatt5 Of 811lilr t: • p~elry, the oppor1unlties are v~ll. :

''We hovt been eagerly )I)Qk; In~ at opport1mitie• wittirn Chin• for the export of •e:l"'i­

t:e• for 1Kr¥e•>o~l• pt~J•c.ts, ond thl• ~gr~ement allow$ us

10 punuc t~t vigorously." Mr McCallum •aid.

"Wnhoul fail. on the tttrvice~ iide, the FI'A Is exnemcly l>r.neflci•l for us:·

11/12/2014 19:53 0738013410 LAWRENCE JAiv1IESDN

c• r~sidential :>perty dc;;velopers ¢culture. PRIMESPACE

Chinese ~ye farmland to broaden their horizons ----------\.RI<C lll\0\\'"1 "01\J(;IJLTUR'-

Cl-llNESS property devtlopers nre Ch9rging Into Au•IT'•Iian auri­<'Uiturc in • bid to limit their ex­posure to th~ residential property mnrker.

Chi•le•e-l>a(~ed property groups Greenlwd Holding Group. Country Garden. Hannan (ilobal, Evcrg_r$ndt Group and HaiU;~.ng C rC11Jp ~re among the mmp~nies running the ruler over a~rkultur~l.~ltes. • Crccnt~nd Auatroli~ man~g­

lng director Sherwood Lvo uld Chinese comp;j~>les had a wide sprea<l of investments In their dome~ tic 1nark~t.

"Grt-enland il$clf is 3 divt!r~i­fl•tl \.11•in<'.s. lt i$ not only prop­erty development, bul al&o in mini.ng, 1\nanC'e Hod rnt~ny othr:r ~~~cl ors. Tl'>l~ has ulways been the company'~ strategy." Mr Luosuid. · Greenland · hns lnvest~d SJ.6l>illion in Ausrrnlinn property projects - moslly residential -3lld the group thi> month an­oounc~l th•l it aimed to become­; pl~yorln b(!Qf, rlKiry and ;gricul­lur~. The ~e>mpnny i• understood to be nel,'<lli;ting on m!ljor agri· '"ltura.l propertie• •nd alms to ex­POrt products to the burgeonln~ Chinese middle class. Mr Luo said the frcc-t ... dt . agreement be· tween Au~tr4.1i• ""d China -which reduced moet tariff& on agrtcult\lr~l products - would )~od to more inve&tment.

CBRt agrlbuaines& rcsion director Da!lny Thoma• said there had been a surseo(lnquirie• for ~~rlcu ltural property !'rom the Chine$e mainland in the p~$t $1>< months.

Mr Thoma& Rld Cllinese de­v~lopment ~roups had ~erl-

She i'WOOd l,uo Sll)'S Greenlnntl tllveralflca!loo has alway' been ~ part or the COillp~ I\Y'i 6lrahtgy HliJIJ'OH ~t)WY'f.A.ROER

cn<cdhugc growth in U,epasttwo d<:<:~des due to the niltion's Ul'­

bani&ation, which required the constructlon of a vast number of new aptutmeot._ ~ Now that tl>e Chin .. e residen­tialmru-~et was slowing, property developer$ were expanding io\Q a~riculh1re as lt wu viewed as ~ growth &ector, MrTIJomas s~id.

• Asnculture i• a very logical .translation (for Chinese develop-

rn<mt compani••)." "• •• ;~ . "Theyu MrThom3$Sald ~out try assets agricultural mnrkct. 'We are con-Ito it ~• • natural area of 8rowth would not be popular with the ridcring It btcsu•c Auslr311an fof them to ~apltllllse on the Chine.~eastheproducew•sreadi- agriculturein gr•at opportunity emerging middle class In their svailsblcin China. for Chinese companies; we want count!")'. They have maulve mar- "But lritssomethlng expensive divert the risk (of too much U· ket power becuu•e ol tni! strong like beef or dairy. they will be osure to the residential mar-growth they've OlCperienced over focused very much on those et)." Mr He said. the p•sl decade ~tnd they are now ~3:1.-tl," he said. . ' A lot of Chh>ese busine&&mcn

thM they •c:t as I!Avmg vr:ry Chinese-backed residential de- agriculture and we think II would strong erowth fundnmentals for velopt!f Hannan Global, said the le;wl tomore lnveotrnont (il>toour the neXl decade." . v;-oup aimed to enter the local compnny) •

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able to leverage t,hM IIllO un "rt't J>\hau l-ie, chief CXO~"tivc o{ arc JoolcJng to set Into Austrahan

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