Foreign-Owned Cattle Empire Tightens Grip on Northern Territory Water: ‘Irrigation Hub’ Plans Spark Fears Over Australia’s Food Security
- Consolidated Pastoral Company buys Vermelha Station for $47.4 million, securing 2,956-megalitre water licence
- CPC now controls over 18,000ML of groundwater licences in the Northern Territory, sparking concerns over irrigation and land use
- Foreign-owned company’s vast portfolio of properties raises questions over Australia’s food security and sovereignty
- Plans for ‘irrigation hub’ development on Vermelha Station could see large-scale crop production and further strain on local water resources
The purchase of Vermelha Station in the Northern Territory by Consolidated Pastoral Company (CPC) has raised eyebrows over the foreign-owned cattle empire’s growing control over Australia’s water resources.
The $47.4 million deal not only secures the 204,000-hectare station but also comes with a 2,956-megalitre a year water licence, taking CPC’s total groundwater licence holdings in the NT to over 18,000ML per year.
CPC, owned by British billionaires Guy and Julia Hands, has been on a spending spree in recent years, snapping up properties across the country, including the Beetaloo Aggregation in the NT for over $300 million and Australia’s largest sheep station, Rawlinna in Western Australia.
The company’s asset base now exceeds $1.7 billion, with over 400,000 head of cattle, 50,000 goats, and 150,000 sheep spread across more than 6 million hectares of land.
But it’s CPC’s growing control over the NT’s water resources that has sparked concerns over the company’s plans for large-scale irrigation and land use.
The acquisition of Vermelha Station’s water licence has brought the company’s total groundwater licence holdings in the NT to 18,524ML per year, making it one of the territory’s largest irrigators.
According to CPC’s chief executive Troy Setter, the plan is to use the water to grow crops for cattle, with the company having already received water licences for Powell Creek, Dungowan, Tandyidgee, and Newcastle Waters.
“We’ve been dryland cropping on those [Barkly] stations for a couple of years now, growing sorghum, hay, and also a bit of cotton when the market was right,” he said.
“So the plan is to develop some of that farming land for irrigation.”
However, the water licence at Vermelha has been under-utilised, with only one 45-hectare pivot irrigator and 60 hectares of cleared land currently in use.
The station does have a clearing permit for 3,659 hectares, sparking fears over the potential for large-scale land clearing and irrigation development.
Analysis: What This Means for Australia
The acquisition of Vermelha Station by CPC raises serious concerns over Australia’s food security and sovereignty.
With foreign-owned companies controlling vast tracts of land and water resources, there are fears that the country’s agricultural sector is being sold off to the highest bidder.
Security analysts say that the concentration of ownership in the agricultural sector poses a risk to national security, as foreign companies may prioritize their own interests over those of the Australian people.
“This is a wake-up call for the government to take a closer look at our foreign investment laws and ensure that they are in the best interests of the country,” one analyst said.
Law enforcement insiders warn that the large-scale irrigation development planned for Vermelha Station could also have significant environmental impacts, including the depletion of groundwater resources and the destruction of native habitats.
“This is a classic case of the pursuit of profit over people and the planet,” one insider said.
Industry observers believe that the acquisition of Vermelha Station is just the tip of the iceberg, with more foreign-owned companies likely to follow suit in the coming years.
“This is a trend that we need to be concerned about, as it has significant implications for our food security and sovereignty,” one observer said.
As the debate over foreign ownership of Australian land and water resources continues to rage, one thing is clear: the acquisition of Vermelha Station by CPC is a wake-up call for the government to take action to protect the country’s agricultural sector and ensure that it remains in Australian hands.