Demand for AU citrus and the land to growing it
PF Olsen national agriculture manager Ed Dunn told an Investing in Agriculture conference last week there was demand for Australian citrus and land for permanent horticulture plantings.
“All our Mildura citrus is going to China,” he said.
“I had to do a ring around for someone who wanted a large shipment of oranges and I could not find a single piece. It’s all going to China for export.”
Mr Dunn said foreign investment in agriculture land was driven by interest in permanent horticulture plantings, including citrus and tree nuts.
He said the demand by foreign investors for permanent horticulture land in Australia was tied up with the droughts in California and the lack of water.
He said Californian farmers, trying to keep permanent plantings alive, had drawn down on aquifers following droughts.
But now the aquifers were struggling to recharge.
“In California, they turned on the bores and nearly emptied the aquifers because there’s not as much regulation as here,” Mr Dunn said.
“So investors are looking for alternatives to meet demand.”
He said there was burgeoning demand for protein and not just meat protein.
Mr Dunn said people wanted tree nuts for an alternate source of protein.
“There’s lots of demand for land along the Murrumbidgee and Murray for tree nuts,” he said,
“And if you have land like that, you’ll find you have four or five investors.”
Publication date: 10/5/2017
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