Chinese company Shanghai Zhongfu has bought one of Australia’s prized cattle stations in the Kimberley for about $100 million, opening the way for massive new cropping development and food processing in the Ord irrigation region on an unprecedented scale.
The sale of 476,000ha Carlton Hill near Kununurra by Australia’s largest private cattle holding Consolidated Pastoral Company, owned by Britain-based investment firm Terra Firma, was quietly approved in March by the Foreign Investment Review Board and Scott Morrison.
“The matter was assessed by the government prior to the election and not deemed to be contrary to the national interest,” the Treasurer’s spokesman said last night.
The deal delivers property and agricultural developer Shanghai Zhongfu, trading in Australia as Kimberley Agricultural Investment, enough new rich cropping country in the Ord irrigation scheme — including 13,000ha of freehold arable land — to justify investment in associated value-added food processing plants in nearby Kununurra.
On the potential drawing board are a long-discussed $400m sugar and biofuel mill, a possible cotton gin, cattle abattoir, grain grading facility and other food processing factories, including a fermented sorghum baijiu plant, all building on Australia’s reputation as a source of clean, green, safe and healthy foods for export to China.
KAI won the right in 2012 to develop 14,000ha of irrigated cropping land — opened up by the public purse — in the Ord irrigation scheme stage 2, paying $1 a year rent for the 50-year lease in return for pledging to invest more than $600m in land clearing, irrigation development, farming, processing plants and jobs.
With just 1650ha of cultivated land fed by irrigation channels developed and sown to chia, quinoa and maize this year, achieving critical mass for the Chinese cropping company has proved slow and elusive.