Australia's cattle becomes good bet for investors
Rebounding prices for Australian livestock are attracting the attention of unlikely investors in the guise of mining groups and pension funds.
The $9 billion Michigan Municipal Employees' Retirement System (MERS) has committed $180 million to Queensland's Australian Pastoral Fund Management, investing $60 million to date.
"We're not investing in US farmland because we feel the valuations are much too high," said Jeb Burns, chief investment officer at pension fund. "We're turning to where there are still good valuations and opportunities in real assets and commodities."
In July it was reported that mining company Hancock Prospecting had bought Livering and Nerrima stations in west Kimberley, as well as an abattoir, in a joint venture with the Milne Agrigroup.
In May, Andrew Forrest, the founder of Fortescue Metals, bought Harvey Beef, Western Australia’s only licensed exporter to China.
