A CHINESE investment group has its sights set on at least 50 south-west farms as several of the region’s leaders voiced concerns about the proposed mega dairy deal.
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Investment firm Linear Capital announced its masterplan will involve the development of two new processing plants and the “acquisition” of dozens of dairy farms.
Apart from a vaguely-worded statement, Linear declined to comment on the proposed plan yesterday, or whether it wanted to buy farms or come to some sort of lease arrangement.
The Standard understands several dairy farmers have already signed up to the Chinese-Linear deal as part of a lease deal, while other landholders have made in-principle agreements with the group.
Former United Dairyfarmers of Victoria (UDV) president Doug Chant said the reticent style of Linear Capital had left many in the south-west concerned.
“The approach of this Chinese investment group has been secretive, very secretive,” Mr Chant said.
“As a patriotic Australian and dairy farmer, I cannot understand how anyone can support this model.
“I’m all for selling produce to China and reaping the benefits. But it is madness to sell our assets to the highest bidder and hope everything will be rosy. It won’t.”
Tasmania-based Linear Capital is acting for a Chinese company which it describes as having “established brands and long experience” in China.
Moyne Shire mayor James Purcell said the state government should impose a 50 per cent stamp duty on foreign investment in farmland.
The Vote 1 Local Jobs party founder said the cash raised would then be redirected into a first farm owners grant.
“Foreign investors understand that south-west Victoria is prime agricultural country yet no one in government does,” Mr Purcell said. “We should be charging 50 per cent stamp duty on all foreign purchases of Victorian land, be it farming or residential.
“All funds raised would be redirected into assisting the next generation of south-west farmers. It’s about smart foreign investment, not a free-for-all approach that we currently have.”
Mr Chant said he understood the pressures many dairy farmers of retirement age felt, but a Chinese deal was a “poisonous option”.
“It’s been suggested that this is a way for dairy farmers to retire with dignity,” he said.
“There’s no dignity in this. I’ve got no problem with farmers from any country coming here and setting up a farm as an individual. This is different. This is a foreign government, not a foreign company, a foreign government that will control large slabs of the south-west.”
Linear Capital has a particular focus on linking farms in the Camperdown, Cobden, Heytesbury, Simpson and Terang districts — traditionally considered prime dairy territory.
What remains unclear is the location of two milk processing plants proposed by Linear, or whether the group would acquire existing sites such as Murray Goulburn’s Koroit factory or Warrnambool Cheese and Butter at Allansford.
Both the Victorian Farmers Federation and UDV president Tyran Jones have broadly supported of the Linear-Chinese proposal. But Mr Tuohey said the Chinese company should use domestic labour first.
