05 Jul

Australia: Plenty of growth in agribusiness

By John Wilkinson,

The agribusiness managed investment scheme (MIS) sector has raised $1.26 billion for the 2007 financial year.

This was up 6 per cent on the previous year, according to new figures released by research house Adviser Edge.

The amount raised is seen as a positive considering the sector was facing drought, concerns over water rights and the Federal Government changing investment rules.

Adviser Edge managing director Shane Kelly said the extra cash raised this year has come from small to medium sized managers rather than major players such as Great Southern and Timbercorp.

“While perennial strong performers Gunns Plantations and Willmott Forests did very well, up 98 per cent and 20 per cent respectively, it was companies that are relatively unknown outside the MIS sector, such as Rewards Group, Arafura Pearls and Brooklyn Park Olives, that were responsible for gains in the amount raised,” he said.

“Standout sectors were horticulture, which accounted for more than $335 million, and high value timber, which raised $275 million, or about 20 per cent of total sales.”

Olives and nut crops were the popular horticultural sectors, raising $100 million and $168 million respectively.

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