Company Profile
PrimeAg has been formed to invest in select, quality Australian rural properties, some with attached water entitlements, to take advantage of the increasing global demand for soft commodities, such as wheat, chickpeas, sorghum and cotton, as well as for livestock products.
There is growing evidence that soft commodities may experience significant and sustained price rises relative to their levels of recent years. The major influences are world population growth, increasing affluence in emerging economies such as China and the growth of biofuels especially in developed countries. PrimeAg has been established to provide investors with an ASX listed vehicle to take advantage of this expected price appreciation as well as the anticipated capital growth from the properties and water entitlements.
PrimeAg's strategy is to achieve a diversified commodity exposure by establishing farming "Hubs" across a number of different geographic regions in Northern NSW and Qld. We aim to minimise the adverse consequences of risks such as drought and short term commodity price fluctuations which, of course, are an inevitable part of Australian agriculture. We will do this by:
- selecting properties in safer rainfall areas and, where appropriate, with irrigation water entitlements;
- geographic diversification across different climatic zones;
- efficient operation within Hubs (especially in terms of labour and machinery utilisation);
- capturing significant economies of scale advantages; and
- engaging superior management expertise that can adjust operations to changes and opportunities as they emerge.
Members of the Board and senior management of PrimeAg have extensive experience in delivering attractive returns from agricultural based businesses and are widely recognised in their respective fields. PrimeAg will focus carefully on:
- selecting quality properties consistent with our diversified multiple Hub structure;
- managing these properties and Hubs to generate returns in the top 20% in Australia for the agricultural enterprises undertaken by the Company as measured by industry recognised benchmarking firms;
- identifying development opportunities so as to maximise capital growth;
- providing a safe and positive workplace for our people; and
- simultaneously, being conscious of our environmental footprint responsibilities while maximising our productive capacity.