March 5, 2020

Vietnam agricultural company purchases three cattle properties in Australia for US$86 million

The purchase by Vietnam's Clean Agriculture and International Tourism (CAIT) covers 732,900 hectares and 60,000 cattle, reported ABC News Australia.

A 130 million AUD (~US$86 million) deal was signed between CAIT and the Consolidated Pastoral Company (CPC) more than a year ago, but it was awaiting approval from the Australian foreign investment review board and the government of Vietnam.

CAIT is a subsidiary of TH Group. Most of CPC's employees involved in the purchased properties at Auvergne and Newry Stations, along with Western Australia's Argyle Downs Station will remain with CAIT.

Dr. Steve Petty, CAIT director and company representative in Australia said the company's approach to developing the newly purchased properties will be "slow and steady", in close consultation with the Government of the Northern Territory (NT Government)

The TH Group is a Vietnam-based agricultural company focused on dairy, producing 40% of Vietnam's fresh milk. The company owns 45,000 dairy cattle.

It has expanded to high tech machinery and invested US$630 million in a Russian milk processing plant.

Dr. Petty said the new properties is part of the company's initiatives to expand topastoralism, cropping and tourism. Currently the company will focus on consolidating and developing the existing cattle business from CPC.

CAIT will also look into sorghum growing and cotton, the latter grown in other Top End stations.

He said the NT government has supported development under existing regulations and potential impact to the environment.

-      ABC News Australia