October 11, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Following the death of one of its founding directors, the shareholders of Australian Food and Agriculture Co. Ltd.(AFA) have decided to sell the company’s aggregations totaling 222,000 hectares (approximately 550,000 acres) across New South Wales. 

Established in 1993 by the late Colin Bell with the acquisition of the historic Burrabogie Station, AFA is a privately owned, large-scale, diversified agricultural business that has grown over the years through the formation of three aggregations in the  Deniliquin, Hay, and Coonamble districts of New South Wales, and includes ownership of 54,000 megaliters of water licenses in the Murrumbidgee and Murray irrigation areas.

“AFA has been built over the last 30 years to be a major Australian agribusiness and holds the largest diversified agriculture portfolio in New South Wales,” said Alastair Provan, chairman, AFA. “Following Colin’s death, the shareholders have made the reluctant decision to sell their shares in the company to enable estate planning and the restructure of the affairs of the major shareholder.”

Bell Potter Securities Limited is acting as exclusive financial advisor in the sale of the company’s three extensive aggregations which have an overall average carrying capacity of approximately 246,000 DSE (dry sheep equivalent) and include some of the country’s most iconic farming assets.

Deniliquin aggregation: (approximately 137,500 hectares) Located north of Deniliquin, this aggregation primarily focused on sheep and cattle breeding, grazing,and irrigated and dryland cropping.

~ Boonoke

~ Wanganella

~ Peppinella
(Including the renown Wanganella and Poll Boonoke Merino Studs, along with Zara and Baratta)

Located north of Deniliquin, this aggregation is primarily focused on sheep and cattle breeding, grazing, and irrigated and dryland cropping.

Hay aggregation: (approximately 55,500 hectares)

~ Burrabogie 

~ Mulberrygong

Located northeast of Hay on the Murrumbidgee River, this aggregation includes grazing and cropping operations growing rice, cotton, and winter cereals. 

Coonamble aggregation: (approximately 53,000 hectares)

~ Wingadee

~ Netherway

Situated on the Castlereagh River this aggregation focuses on broadacre dryland cropping and grazing activities.

All told, this portfolio of assets totals 220,000 hectares (550,000 acres) of land, including 186,500 hectares (460,852 acres) of native grazing pastures that support one of the largest livestock operations in New South Wales, consists of 23,700 hectares (58,564 acres) of dryland cultivation, primarily in the Coonamble aggregation, and 11,500 hectares (28,417 acres) of irrigated land across the Deniliquin and Hay aggregations.

AFA noted that its livestock business has been driven by a strategy to produce a large-framed, medium wool Merino sheep that maximizes returns through a balance of high wool yields, quality meat, and strong fertility. 

Since 1993, AFA has also been a responsible steward of the land, continuing to invest in its development – including its most recent project detailing the addition of the state-of-the-art Conargo Feedlot with a total capacity of 12,000 SCU (standard cattle units) strategically located in the NSW Riverina District in its Deniliquin aggregation. Following the completion of the project, the capacity of the feedlot increased from 8,000 SCU to 12,000 SCU in H2 2023, which will result in approximately 30,000 head of cattle being sold per year.

\Additionally, over the last three years, AFA has produced, in total, 250,000 tons of rice, other grains, and pulses, and approximately 23,000 bales of cotton lint.

“The sale represents a once in a generation opportunity for a buyer to take custodianship of these iconic and highly productive Australian properties, supported by highly experienced management and staff that have driven the growth of the business,” commented Provan. 

Bell Potter Securities explained that the sale process for AFA begins with the initial submission of indicative offers, followed by negotiations with a shortlist of prospective buyers, and asks that  any enquiries please be submitted to afa@bellpotter.com.au. 

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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