Rifa Salutary, the Australian arm of China’s global manufacturing and investment giant Zhejiang Rifa Holding Group, has announced its highest profit since its inception in 2014.
The company reported a net profit of $7.23 million for the 2017 financial year up from $4.64 million in the previous corresponding period. Underlying profit hit $16.32 million, up from $7.43 million in the prior year.
Rifa Salutary chief executive David Goodfellow said ‘‘It’s a very pleasing result for us, particularly given we absorbed significant costs of stamp duty and [Foreign Investment Review Board] fees as we acquired 11 new properties during the year,’’ he said.
During the financial year Rifa Salutary purchased four adjoining properties near Nundle in NSW – Middlebrook Park, Apple Tree, Kooroon and Keeva for $60 million.
The group also purchased four adjoining properties near Warialda in NSW – Highland Plains, Stonefield, Avondale and Durkin’s for $15 million and snapped up two properties in the lower Mallee of Victoria – Kulwin Park and McNicholl’s for $9 million. Most of the acquisitions were completed on a walk-in-walk-out basis, including livestock, plant and equipment. The company now has more than 48,000 hectares of agricultural land in Australia. Rifa has invested about $150 million of its capital into Australian agriculture including infrastructure on the farms.
Rifa Salutary runs 22,000 cattle and uses a strategy to trade up to 20,000 lambs and wethers each year to manage the variable cycles of pasture availability.
‘‘Right now, we’re having a great season in Victoria and it’s tough in NSW, but next year or the year after it could be quite the reverse,’’ Mr Goodfellow said. ‘‘You just don’t know what the seasons will bring in each region each year, so it’s great to have options to move livestock.’’
Rifa commenced exporting beef into the lucrative Chinese market this year and is working with local meat exporters to increase its supply of beef into the Chinese market. Mr Goodfellow, who was formerly Elders chief executive, wouldn’t give details on Rifa’s trading numbers but said major expansion was envisaged.
Picture - David Goodfellow