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Chinese firms evince interest in Australian cotton farms
Aug '12
Chinese textile companies are vying for Australia’s biggest and best cotton farming properties.
Known for their abundant water irrigation facilities, good cotton growing conditions and high-quality crops, the farming units in Australia are being eyed as lucrative investment by the Chinese companies, Weng Chen Loh, Director of trade for Ecom Trading Asia, told on the sidelines of the Australian Cotton Conference.
Besides, the Chinese textile firms believe that Australia could be a good choice for entire textile value chain manufacturing processes, because of the cheaper cotton cultivation costs and the huge size of farms where the production is centralised.
Additionally, the Australian crop quality is considered to be better quality since it is machine-picked and hence non-contaminated. 
A good example of the growing trend of Chinese textile companies buying Australian cotton farming assets is the application submitted by Chinese textiles giant Shandong Ruyi with the Foreign Investment Review Board (FIRB) to buy Cubbie Station, which went into voluntary administration in 2009.
Located in the southeast Queensland, Cubbie Station is the biggest privately-owned farm in Australia that spreads over an area of nearly 93,000 hectares. The farm holds 51 water licences and possesses massive water storage dams with capacities of 539-billion-litres. The water units stretch up to a length of 28 kilometres along with a river that is a part of the Murray-Darling system.
Meanwhile, Australian cotton farmers are about to grow a bumper crop for the third time in a row this year on the back of abundant water resources and increasing demand from China, which imports nearly 60 per cent of Australia’s total production of cotton. 

Fibre2fashion News Desk - India

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