NewAustralian billionaire Gina Rinehart’s cattle station deal set to profit from China’s beef demand

Billionaire Gina Rinehart has bought a West Australian cattle station, further expanding into the country’s farm sector with a deal that positions the mining magnate to profit from a recent Australian live cattle-export agreement with China.

Rinehart, the richest person in Australia, completed the purchase of the Fossil Downs cattle station in the country’s Kimberley region, a spokesman for Rinehart, Jason Morrison, said. Financial details of the deal were not revealed.

The Fossil Downs cattle station was put up for sale for the first time in more than 100 years. It will give Rinehart nearly 400,000 hectares of agricultural land and 15,000 head of cattle, the listing for the site said.

Although not the largest cattle ranch, Fossil Downs is important as it is just over 400 kilometres from the Port of Broome, one of Australia’s largest ports.

The location should help Rinehart capitalise on the Australia-China deal sealed last week, under which Australia will become the first country to export live cattle for slaughter to China, with the trade likely to be worth as much as A$2 billion (HK$11.3 billion) annually over the next decade.

China’s beef consumption is set to grow around 2.2 per cent annually, faster than pork and poultry, according to Rabobank. By 2025, only 80 per cent of China’s consumption demand will be met by local supplies, down from 85 per cent currently, according to estimates from the bank prior to the deal.