Yarrabee Park, south-west of Narrandera, is part of the Altora Ag portfolio. Photo: Altora Ag
AUSTRALIAN Food & Fibre (AFF) is set to absorb Altora Ag to create a powerhouse of both dryland cropping and irrigated cotton production and processing in Australia.
In a statement dated May 28, the Altora Ag website announced the incorporation of Altora Ag into AFF, saying it will “create a market-leading Australian annual cropping business”.
Both entities are majority owned by Canada’s PSP Investments, which has additional interests in Australian beef, dairy and horticultural, and Queensland egg production.
AFF is a joint venture between PSP Investments and the Robinson family of Moree, and is a major grower and ginner of cotton in New South Wales, as well as being a large-scale grain producer.
“The combination will take advantage of geographic overlap and operational synergies as well as providing greater ability to pursue growth opportunities, based on shared capabilities,” the statement said.
As also stated on the AFF website, AFF director Joe Robinson will serve as both managing director of AFF and chief executive officer of Altora Ag during the transition, which is subject to customary regulatory approvals.
At the completion of the transition period and following the integration, Mr Robinson will be managing director, and the Robinson family will continue as shareholders in the merged business.
Daybreak Cropping, also owned by PSP Investments, is the minority shareholder in Altora Ag.
Altora Ag manages more than 153,000ha in NSW, Western Australia, Queensland and Victoria.
Altora Ag has recently listed portions of its country in WA, namely the Waddikee Aggregation, and NSW with the Caringbah Aggregation.
Closer ties
In March, PSP Investments announced it had entered into a Memorandum of Understanding under the Canadian-Australian Pension Funds Investment Initiative, to mark its participation in a voluntary framework “that strengthens collaboration between Canadian and Australian long-term pension investors”.
Known as the CAP Invest Initiative, it was launched on March 3 in the presence of Canadian Prime Minister Mark Carney, Canadian Minister of Finance and National Revenue François-Philippe Champagne, and the Assistant Treasurer of Australia Daniel Mulino.
“It aims to facilitate dialogue with governments on policy barriers and associated solutions to improve the business environment for investment in each jurisdiction,” the statement on the PSP website said.
“This collaboration will unlock greater long-term capital for private investment on behalf of millions of working and retired people in both countries.
“The CAP Invest Initiative reflects the natural alignment between Canada and Australia.
“With a shared heritage, open and resource-rich economies, strong credit worthiness, and reliable and transparent legal institutions, PSP Investments believes there is fertile ground to bolster opportunities for investment between Canada and Australia.
“I’m proud of the strong relationships our team has built in Australia and excited about the role we can continue to play through this initiative,” PSP Investments president and CEO Deborah Orida said.
“For more than a decade, Australia has been an important market for us.
This Memorandum of Understanding strengthens cooperation among like-minded long-term investors and helps create the conditions for durable value and essential infrastructure that supports people and communities.”
Through the MoU, signatories also commit to building awareness of investment models that leverage the expertise of long-term and reliable pension capital with the objective of delivering risk-adjusted returns for working and retired people and value for investee companies.
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