posted on Oct, 19 2014 @ 12:40 AM
In the Australian Business Revue on Friday was a story on how a Chinese dairy company has bought 50 farms and 90000 cows that produce 500 million
litres of milk annually this is about 12 percent or one eighth of Victorias milk production.This immediately rang alarm bells cheap Victorian milk has
decimated the dairy industry elsewhere in Australia and now the only place with a huge dairy industry left is selling out.This milk will be used to
make infant formula and other products for the Chinese market it is GONE from local supply and demand.There is of course much more than this purchase
going on for example two Chinese consortiums currently have a 3 billion dollar slush fund to buy agricultural land; as well as dairy they are
interested in beef,lamb and seafood all struggling industries where an average farmer is over 60 and will probably be only too happy to sell.
Its not panic stations yet Chinese currently only own a little over 1 percent of our agricultural land,but the future growth is set to be exponential
by 2020 China will be 65 per cent urban and its arable land area is rapidly shrinking,food security will be a major issue,this presents an opportunity
if Australian farmers and companies provide the food- but a threat if they are allowed to exponentially purchase agricultural land with the product
going to China,we could even be put in the ridiculous position of having to import milk or food.
Overall property investment is heralding the latter between 2009 and 2013 the Chinese invested 16.6 billion in our property market,in my state last
financial year they spent 463 million up 43 percent on the prior year,that's about 11600 average homes,Credit Suisse expects 44 billion will be spent
in the next seven years,I have no problem with overseas investment but I am reticent to have them own the land,in much of Asia foreign nationals for
the most part can lease land,but not own it,that's what I think should happen.
The Government is not going to do anything as it makes a motza on all the stamp duties and taxes on these investments,but I fear for the future where
only rich foreign nationals can afford a house and we end up tenants or squatters in our own country....any thoughts?