Poultry growing in prominence in Australia
Poultry has emerged as a key sector in Australia for investors, as processors continued to expand and the global food crisis had led to the emergence of protein that are more affordable.
In terms of volumes consumed, chicken meat is close to replacing beef as Australia's preferred meat, mainly due to the industry's success in reducing supply costs and retail prices, and ongoing product innovation and efficiency, according to Adelaide-based Colliers International Rural and Agribusiness' Jesse Manuel.
The chicken meat industry has reduced supply costs by raising both on-farm and off-farm productivity over several decades through better management, genetic improvement, economics of scale and mechanisation in processing, Manuel said.
Since the early 2000s, major asset transfer activity in the local industry has been centred on the restructuring and reconsolidation of larger producers, said Manuel. He said it happened earlier in the eastern states, but urban encroachment in some semi-rural areas squeezed intensive livestock operations out on both land-value and environmental grounds.
Manuel said he anticipated well-positioned producers and agribusiness funds and institutions with positive long-range investment strategies to position themselves as major players in the poultry sector.
The investors are entering this sector due to the ability to diversify their portfolio, he said.
Poultry farms and chicken meat processing facilities are usually located within 100km of major capital cities, but in the eastern states urban development is expanding rapidly and placing pressure on regions where some of the smaller and older farms reside, he said.
Colliers International recently sold a substantial broiler farm with a capacity of over 400,000 birds for over A$5 million (US$4 million) to a Sydney investor who fended off interest from a varied list of prospective buyers.
Manuel said that current opportunities include breeder and broiler farms in South Australia, Victoria and New South Wales, ranging from A$3 million (US$2.4 million) to A$18 million (US$14.3 million).
