Far North Qld avocado farms for sale in Mareeba region amid low retail prices
A Far North farm which was reportedly part of a failed $500m buying spree has been listed for sale while its neighbours make tough decisions on their futures amid rising input costs.
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More than 18,000 avocado trees across three farms are for sale via receivership in Far North Queensland, as farmers make “tough decisions” amid rising input costs.
Agent Colliers is marketing three freehold properties in the Mareeba region planted with 98.79ha of hass and shepard avocados, on behalf of administrator Ernst and Young.
Labelled the “Paddys Green Horticulture Portfolio” the three properties collectively span 169ha at Arriga, about 15km from Mareeba, with a 466 megalitre water allocation.
The sale includes a 1100 sqm packing shed with an office, multiple machinery and workers’ accommodation approved for 52 residents.
Colliers national director Duncan McCulloch said the properties offered opportunity for an astute buyer, offering more than 18,000 avocado trees in a world-renowned growing region, with the potential for further expansion.
“The Paddys Green Horticulture Portfolio offers the incoming purchaser an existing well-developed avocado orchard enterprise with further expansion and development potential,” Mr McCulloch said.
“With an exploding middle class in Asia, the Australian avocado industry is ideally located on the doorstep of lucrative export markets.”
It’s understood the three farms now for sale were bought for $15.1m by WealthCheck Management boss Sam Mitchell, who reportedly went on an agricultural buying spree of $500m across the country while allegedly trading insolvent for about nine years.
Colliers confirmed the three Far North farms were being repaired from their degraded states following Mr Mitchell’s acquisitions.
FNQ Growers president Joe Moro said while it was understood Mr Mitchell’s farms fell through due to overspending on machinery and infrastructure, the wider sector was “digging deep” to stay afloat as growers absorbed increasing costs.
He said that included the increasing costs of fertilisers and chemicals, to insurance, interest and electricity.
“And anything that has to do with road transport – the cost of fuel is on the farmer too,” Mr Moro said.
He said with the upcoming state and then federal elections, the expectation on future governments was to address “failing pieces of infrastructure,” primarily the roads.
“All the transport costs are borne by the farmer and just look at the (2023) floods, with the state of our roads then it was costing $15-$30 extra per pallet.
“And something has to be done about electricity costs – whether it’s a different tariff for farmers. Because any of the ideas the government or opposition have aren’t going to bring the unit price down, the rebates don’t help farmers.”
Mr Moro said farmers with large-scale irrigation or cold rooms were accumulating annual electricity bills in excess of $100,000.
AVOCADO OUTLOOK
FNQ Growers president Joe Moro says it has been a “tough couple of years” for avocado farmers with prices struggling to rise following the pre-Covid boom.
The latest data from Avocados Australia showed a single piece of fruit was retailing for about $1.61 on average across all major supermarkets.
“There’s not much left then to cover all your costs. Farmers are running close to the bone and they’re making tough decisions about their future,” Mr Moro said.
But he applauded family farmers for sticking at it across the horticulture sector.
“They’re really going into, and willing to go into their reserves, because they understand economics of the region,” Mr Moro said.
“Their money is going to local lawyers, accountants, it stays here.
“If you ask me, I prefer traditional farming over corporate farming because when the finances don’t add up for a corporate farmer they’re gone and it can leave a lot of local businesses depending on them behind.”
Mr Moro said there was a positive outlook for the industry with increasing Asian export markets including India on the horizon for growers, after years of a predicted oversupply within Australia.
North Queensland produces more than 40,000 tonnes of avocadoes per year which accounts for about 35 per cent of the nation’s production – higher than any other region.
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Originally published as Far North Qld avocado farms for sale in Mareeba region amid low retail prices
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