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Shanghai Zhongfu Group bids for Australian Farm Project
2012-08-17
Brief:Zhongfu Group is bidding for the Ord East Kimberley Expansion project in Western Australia, it plans to create a major agriculture business in the region.
Shanghai Zhongfu, a major Chinese property conglomerate, is bidding for a 58-square mile farming project in Australian outback as Canberra allows the north to use foreign investment to tap into the expanding demand for food from East Asia, particularly from China.

Currently Zhongfu Group is bidding for the Ord East Kimberley Expansion project in Western Australia. It plans to create a major agriculture business in the region, but it appears that it will face opposition from politicians who are concerned about Chinese investment in its farms.

Zhongfu Group has realized that Australia’s rich resources could benefit its business and helps it diversify itself from China’s resources. Larry Yang, Zhongfu’s vice President, told a reporter in late July, “It’s just a good business opportunity for us, as our boss found it might be profitable. We have engaged local lawyers and experts to work on this.”

China, a country that has the most people in the world, does not produce enough food for it’s 1.4 billion people. Authorities in Beijing are worried that the lack of food independence makes the country vulnerable to worldwide price fluctuations for grains, soybeans, and other important edible commodities.

Local media has said that the project will probably include a $411 million sugar mill and perhaps even a 500,000 head-a-year abattoir.

Australia has a history of foreign investors investing in Australia’s agricultural land.  Australian government data shows that about 11% of Australian’s agricultural land was owned by foreign enterprises at the end of 2010. And about A$17 million of that capital has come from China and Hong Kong.

Related News in Chinese:
上海中福集团出价竞购澳大利亚农场项目

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