Too Big to Sell !

When the 2008 recession descended on the world the big banks and major corporations were judged to be " too big to fail " and were bailed out by their governments.  Exactly that sort of thinking has come into play with the proposed sale of an Australian icon which is simply too relevant to our food supply.   The Kidman and Company cattle station is just " too big to sell " to a foreigner.

Most Australians would find it hard to envisage a cattle spread that is bigger than many European countries - and stretches into the states of Quensland, South Australia and the Northern Territory.  It runs two hundred thousand cattle on an acreage that consists of two hundred and one thousand kilometres of pasture.   That is not just " big " !   That is " gigantic  " !

The money offering is $ 371 million and the buyer appears to be the Communist government of China hiding behind proxies.   China - with it's huge population - is aware that the growing world numbers will threaten food supplies and has set in motion acquisitions to safeguard food security for it's own people.

Fortunately, Treasurer Scott Morrison has moved to stop this sale because it is " not in  Australia's interest. "  There has been criticism that by offering the Kidman cattle station as a single entity has put the asking price way above the capacity of most Australian buyers.  Perhaps it would have been better to break it down into smaller sections to spread ownership over a wider diversity.

The sale of Australian land to foreigners is certainly controversial.  The surging house price in Australian cities is influenced by foreign buyers and rules have been put in place to prevent them closing the market for local first home buyers.   There is also widespread opposition to what many people refer to as " selling the farm " - the growing interest by foreigners on the food growing capacity of this country.

While it is true that foreigners owning Australian land can not " pack it up and take it home with them ", they certainly have a say on where and how the produce of that land can be sold.  In the event of a world famine that could end up with military tension between us and a foreign land owner.  We need to ensure that our own food security takes first priority.

Perhaps the future of this vast cattle station offers an opportunity for the Mums and Dads of Australia to gain a little financial security.   Interest rates at a low two percent are causing many self funded retirees to bite into their capital.   Floating a national corporation to acquire the Kidman holdings should be of interest to the big superannuation funds as well as individuals looking for a secure investment that delivers a good return.   The superannuation industry certainly does have the financial clout to handle a purchase of that size.

All the statistics indicate a growing market for meat as a new middle class emerges in Asia and Africa.  Australia - with it's vast acreage and temperate climate has the capacity to gain from this segment shortage.  This is an export industry where the product to be produced is very much to our advantage.