More foreign inroads into Australian agriculture

Vanguard February 2013
by Duncan B

(Below: Victorian dairy farmers meet to discuss grievances)

According to the annual report of the Foreign Investment Review Board, released in
December 2012, the agricultural, forestry and fishing sector accounted for about 2% of the total foreign investment of $170 billion in Australia.

There was a significant increase in investment in this sector from $1.4 billion in 2010-2011 to $3.8 billion in 2011-2012. The three largest investors in this sector are Canadian, British and American.

Foreign investors now own half the country’s 23 licensed wheat exporters, over half the country’s milk production, 60% of raw sugar production and over 40% of Australian red meat production.

Meanwhile, according to data released by the Australian Bureau of Agricultural and Resource Economics and Sciences, the value of vegetables imported into Australia rose from $786 million in 2010-11 to $908 million in 2011-12.

Concern has been expressed by AUSVEG, which is the peak industry body representing 9000 growers. It is feared that many growers will be forced to leave the industry as they battle rising costs while receiving prices for their produce that barely cover the costs of production.

The high Australian dollar is being blamed, as well as imports by the supermarket giants Coles and Woolworths for their Home Brand products.