International investors get taste for Aussie beef
A weakening Australian dollar coupled with a hike in US interest rates will see overseas investors clamour for a slice of Australian beef assets, a property group believes.
CBRE agribusiness regional director, Danny Thomas, forecast that Australia's agriculture sector will hit international investors' radars in 2016, providing a positive outlook for investment opportunities in the sector over the next 12 to 24 months.
"The lowering Australian dollar and stable commodities outlook will continue to have a positive earnings effect on the sector," he said.
"In the current climate, farms (for US dollar investors) are looking cheaper, which is having a positive impact on the level of investment interest.
"Beef assets will be the most sought after. Globally, we're seeing historically low herd numbers and increasing demand, which is driving markets for the world's biggest beef exporters, including Australia.
"The low national herd numbers in Australia, coupled with increasing livestock prices, will only see demand increase further and strengthen the appeal of these assets. To that end, we believe we are likely to see some very significant transitions in land stewardship and a level of consolidation that we have not seen for several decades through 2016.
"We expect to see more people wanting to invest in beef properties in 2016, with a particular focus on large scale breeding properties in northern Australia, but also very strong demand across NSW, Victoria and South Australia for going concern Angus enterprises.
"We're also expecting to see strong interest in the re-trading of key timberland assets in Australia and New Zealand between forestry funds and further sales of government owned estates."
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