It’s two and a half years since I wrote about Ken and Geoff Warriner leaving Consolidated Pastoral Company, saying: “…it will be interesting to see how long Terra Firma retains ownership of CPC. With few exceptions, overseas investment companies seem to retain Australian cattle station investments for less than five years, so it will be very surprising if Terra Firma have not sold their majority share in Consolidated Pastoral Company within a couple of years. It’d be tough to find a buyer for the whole CPC portfolio of 19 properties covering 5.8 million hectares, running more than 363,000 cattle.”
So no surprise today, that the Australian Financial Review reports Terra Firma is considering selling off up to 40% of CPC.
Of course, ‘good reasons’ are always given for such sales of property.
1. It’s not rocket science guessing that ownership was likely to be short-term; but it’s frustrating to see similar purchaser & seller statements published in the media, so often.
2. It’s possible to do a good job of managing northern cattle stations short-term-but it’s not common. And it’s impossible to do a first class job of managing cattle stations, without a certain number of upper management and hands-on staff with long-term experience. Experience with the local weather/seasons and how the cattle travel, sound knowledge of the soil/land and native vegetation; as well as management of station staff. And the patience to handle the inevitable droughts and market difficulties. These properties are worlds apart from cattle operations in closely settled, temperate regions. Long term ownership – twenty years plus – is vital, for first-class management. Changing ownership is not conducive to retaining staff, long term.
Here’s hoping the CPC buyers are in it for the long haul.
Tags: Australian cattle stations, Australian Beef Industry, Pastoral companies, Rural properties for sale and ownership