Foreign investment to rise as Asia seeks security
Report says investors should expect a larger Asian influence in future.
Two recent reports have highlighted public fears of foreign ownership, particularly from Asia.
The facts show that most of that investment is Australian, followed by American and European interests.
Forsyth Barr’s latest Farm to Fridge report on agribusiness reveals foreign ownership of food, beverage and agriculture industries is increasing.
It finds that about 5% of all aggregated FDI (foreign direct investment) is within the agriculture, forestry and fishing industries, amounting to near $4.5 billion.
Forsyth Barr was unable, however, to extract data for the food and beverage manufacturing sectors.
“Our analysis of the origins of consents for the 2012 calendar year highlight the majority of consents come from Australia and North America. European investment is also more prevalent than Asian investment.
“We expect this dynamic to change over the longer term as security of supply becomes an increasingly important issue for Asia.”
The report says investors should expect a larger Asian influence in future on sector M&A (merger and acquisition) and investment, noting that Asian investment is already prevalent in the domestic beer industry (Kirin, Asahi) and growing rapidly in the dairy sector.
The second report, New Zealand’s Global Links, published by the New Zealand Initiative think tank, reveals Australians have nearly 56% of total foreign investment here and Asians 5%, with half of that from Japan.
The report exposes a “myth” that New Zealanders are likely to become tenants in their own land – of the country’s 28.7 million hectares, 8.5 million is managed by the Department of Conservation alone and only a million is owned by foreigners.
Nevil Gibson
Tue, 07 May 2013
Tue, 07 May 2013
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