IFFCO (International Foodstuffs Company) was formed in 1975 and is the ‘leading manufacturer and marketer of consumer goods in the Middle East and Africa’ (as stated on their website). United Arab Emirates based, IFFCO has offices from Russia to the U.S. and Indonesia. Michael Feller has written in Business Spectator that the company is privately owned, partly by the Allana family – who own a range of agricultural interests across the world. For example they are the world’s largest producer of halal buffalo meat. IFFCO is also in partnership with Felda, the leading palm oil producer in Malaysia. In addition to food production and marketing, real estate is listed as one of IFFCO’s business interests.
IFFCO is also the acronym for the Indian Farmers Fertiliser Cooperative Limited, the world’s largest fertiliser cooperative. The Indian IFFCO is quoted in some Australian newspaper articles as being the company that has bought into the Australian Agricultural Company; however it appears they are two entirely separate companies as there is no obvious link, although the UAE based IFFCO does have interests in India. There is no explanation on the UAE- based IFFCO website for their acronym – but this may well be because the original company name is in Arabic not English (although English is also commonly spoken in the Dubai business community these days). Presumably it’s just poor research that has led one journalist to presume these two IFFCOs are one and the same (or at least fail to properly explain that it is in fact just one company) – and newspaper syndication has led to repetition of the error (or repetition of the explanation omission). (A reminder of the perils of quoting one source without cross referencing; errors quickly become entrenched as fact.)
In February 2009 UAE-based IFFCO bought 14.99% of AACo shares, through Futuris. IFFCO’s objection to the Allan Myers Tipperary and Litchfield station sale to AACo, largely in return for shares, is primarily what stymied that plan in April (along with objections by other owners of big parcels of shares). IFFCO wanted to purchase a larger share of the AACo – another 5%, and this has recently been approved by the FIRB (Foreign Investment Review Board), so IFFCO now own 19.99% of the Australian Agricultural Company. The AACo board meeting on May 27th will be an interesting affair, with all board members up for election, including the recently appointed directors Peter Hughes and Stephen Lonie. Apparently it has been recommended that shareholders vote IFFCO’s director, Arūnas Povilas Paliulis, onto the board as well. (Presumably Arūnas Paliulis is from Lithuania.)
It is interesting to note that a business such as IFFCO believes buying into the Australian beef industry is a good investment. It supports forecasts of increasing food shortages/protein shortages, and rising food prices.
And it is a good reason for the FIRB to tighten up foreign ownership of agricultural production in Australia, and keep a beady eye on the potential downsides for Australians – now and in the distant future.
Tags: Pastoral companies