Bellamy’s China sale: Barnaby Joyce laments ‘another piece of Australia sold’

Former Nationals leader ‘disappointed’ in the $1.5bn foreign sale of a key infant formula producer, approved today by the Treasurer.

Former Nationals leader and deputy PM Barnaby Joyce says he’s disappointed ‘another piece of Australia has been sold to the Chinese’. Picture: Adam Yip

Former Nationals leader Barnaby Joyce says he is “disappointed to see yet another piece of Australia sold to the Chinese” after the government gave the green light to the foreign acquisition of a key infant formula producer.

The $1.5bn takeover of Bellamy’s Australia by China Mengniu Dairy Company Limited was approved by the Foreign Investment Review Board, subject to key conditions.

Under the arrangement, a majority of board directors will need to be Australian resident citizens. Bellamy’s headquarters will also be required to remain in Australia for at least ten years and an investment of $12 million will be made in establishing or improving infant milk formula processing facilities in Victoria.

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Mr Joyce implored the government to ensure that it enforced the conditions, arguing that they had failed to do so in the past.

However, he noted that Bellamy’s was “not a monopoly” and did not have “crucial control of the market.” 

“I hope they do comply with the conditions,” he told The Australian. “With a lot of other conditions there seems to be slippage. If you put conditions they’ve got to be met.” 

Senator Pauline Hanson has attacked the sale to China. Picture Kym Smith

Hanson: ‘Enough with the sell-off’

One Nation Leader Pauline Hanson said she was “fuming” about the acquisition and called on Mr Frydenberg to overturn the decision.

“It raises big concerns about food security in Australia,” she said. “Also, (it raises) concerns about the willingness of the FIRB to allow so many of these purchases with such apparent ease.”

“Enough with the rampant sell off of Australia,” Senator Hanson said. “Here we are allowing the Chinese to waltz in and snatch away one of the leading baby formula manufacturing businesses, with little consideration for what it means for our country’s future; this takes another chunk out of Australia’s ability to produce enough food for our own people.

“The Treasurer says the sale good for Australia, but I think it’s the opposite.”

“Why are we being so frivolous with Australian assets? We need to have some more respect for what’s ours and take more care, and not be so eager to give it away.“

Frydenberg approves $1.5bn takeover

The Treasurer said the approval for the acquisition would “ensure Bellamy’s can continue to support jobs in Australia and strengthen its ability to expand its domestic market as well as its export opportunities, particularly into the growing Asian market.”

“The decision will also provide opportunities for the suppliers that contribute to Bellamy’s products, including Australian dairy farmers,” Mr Frydenberg said.

The conditions attached to the takeover are aimed at ensuring Bellamy’s maintains its presence in Australia and that it proceeds with previously announced investment in infant milk formula processing facilities.

Treasurer Josh Frydenberg has announced the sale of Bellamy’s. Picture Gary Ramage

“The Morrison government welcomes foreign investment where it is consistent with our national interest. Without foreign capital and investment, Australia’s output, employment and standard of living would be lower,” Mr Frydenberg said.

“The conditional approval demonstrates our foreign investment rules can facilitate such an acquisition while giving assurance to the community that decisions are being made in a way which ensures that Australia’s national interest is protected.”

NSW Nationals MP David Gillespie, who has 30 per cent of NSW’s milk production in his electorate and was active in the debate over the dairy code of conduct, did not voice major objections to the takeover.

“Investment in the dairy industry is critical,” he said. “We’re trying to increase the transparency and open market structure as a lot of processors as well as actual dairy producers, farmers, are all under stress. 

“So investment in a milk processing facility is welcome. We want to keep it here, processing in Australia, in Victoria, and there’s sensible guidelines. 

“I am not too sure there’s any geopolitical consequences from milk powder production by Chinese owners.” 

Finance Minister Mathias Cormann said the takeover was “an incredibly fantastic opportunity for Australia to sell more of that product, not just here in Australia, but into the Chinese market.”