Revealed: Who owns Tasmania’s farms now

A Mercury investigation can reveal Tasmania has been a key destination for capital in the race to invest in the agriculture space.

James Wagstaff

@james_wagstaff

2 min read

November 16, 2020 - 12:30AM

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The world-famous Royal Canadian Mounted Police, Chinese retailers and global business leaders are leading the charge for Tasmanian farmland.

A Mercury and Weekly Times investigation can reveal Tasmania has been a key destination for capital in the race to invest in the agriculture space with some of the world’s biggest pension funds and businesses snapping up prime dirt.

The single-biggest investor in Australian agriculture, Ottawa-based PSP Investments – which manages the superannuation funds of Canada’s public service, armed forces and the 30,000 member-strong mounted police – made its first investment in the Apple Isle earlier this year snapping up the Swansea Orchard as part of its $854 million takeover of the ASX-listed Webster Limited.

Webster – Australia’s fourth-oldest company and one of the nation’s biggest landholders – was founded in Tasmania in 1831.

Other foreign interests investing in the Tasmanian agriculture space in recent years have included the Chinese retail giant Dashang Group, which owns the Calthorpe and Millers cherry, apple and pear orchards at Sidmouth and Hillwood respectively.

Rushy Lagoon, Red Hills and East Wyambie in Tasmania.

At 22,000 hectares running 4000 dairy cows, Tasmania’s biggest farming business is Rushy Lagoon at Red Hills and East Wyambie, owned by one of New Zealand’s richest farmers Alan Pye. It was listed for sale in 2018 with an asking price of about $70 million.

The state’s dairy industry has attracted significant foreign capital in recent years. In 2018, US-backed Laguna Bay Pastoral Company purchased eight dairy farms around Smithton for more than $80 million. Two years earlier, China’s Moonlake Investments paid $280 million for the Australia’s biggest dairy operation – the 17,800-hectare VDL Farms near Cape Grim.

According to the Federal Government, 356,000 hectares of Tasmanian farmland, including forestry, was owned by foreign interests in June 2019 – a fall of 1.7 per cent on the previous year.

AAAW GROUP – AUSTRALIA AULONG AUNIU WANG GROUP (CHINA)

Owned by large Chinese retailer Dashang Group which operates department stores and supermarkets.

• Calthorpe Orchard, Sidmouth TAS – 94 hectares of established cherry, apple and pear trees

• Millers Orchard, Hillwood TAS – 30 hectares of established cherry, apple and pear trees. Purchased in 2017.

LAGUNA BAY PASTORAL COMPANY

• Tasmanian dairy aggregation, Smithton TAS. Eight dairy farms. Purchased in 2018 for more than $80 million.

VDL Company owner Lu Xianfeng.

MOONLAKE INVESTMENTS (CHINA)

Backed by Chinese businessman Lu Xianfeng.

• VDL Farms (formerly Van Diemen’s Land Company), Cape Grim TAS – 17,800 hectares. Australia’s biggest dairy. Purchased in 2016.

ONE TREE AGRICULTURE-PROTERRA INVESTMENT PARTNERS

Spin off of Cargill’s Black River Asset Management, Sold the 7350-hectare Kinbeachie aggregation in January 2019.

• Vaucluse, Conara TAS – 2654 hectares. Purchased in 2015.

PSP INVESTMENTS

– WEBSTER (100%)/KOOBACO (49.9%)

In February 2020 finalised its $854 million takeover of the ASX-listed Webster Limited – Australia’s fourth-oldest company and one of the nation’s biggest landholders with 340,000 hectares and 153,000 megalitres of water.

• Swansea Orchard, Swansea TAS.

ALAN PYE (NEW ZEALAND)

One of New Zealand’s richest farmers, having made his fortune in potatoes.

• Rushy Lagoon, Red Hills and East Wyambie TAS – 22,000 hectares running 4000 dairy cows, 8000 beef cattle and 7000 sheep. Purchased in 1997. Listed for sale with expectations of about $70 million.