Duxton Asset Management has continued its push into the Australian agricultural market, investing A$12m (US$11m) in apple grower Rivercorp Land and Water.
The Singapore-based group has already channelled funds into Australian stone fruit orchards, dairy farms and lamb production operations, as part of its US$620m investment in emerging agricultural sectors worldwide.
Duxton chief investment officer Desmond Sheehy said the Rivercorp investment had been made with the company’s export potential in mind.
“One of the reasons we invested in Rivercorp is because its market is predominantly domestic,” Sheehy told MoneyBeat.
“With the Australian dollar now well below US$0.95, the nation’s export-focused agricultural assets will become more interesting to us.”
Rivercorp is a member of the Lenswood co-operative, the leading apple to supplier to retail giant Woolworths in the state of South Australia.
It is also a partner of Geoffrey Thomson Orchards, who supply Australia’s other leading supermarket chain, Coles.
“Rivercorp fits well into our globally diversified agricultural investment strategy,” Sheehy said.
