August 8, 2015
Member for Nanango Deb Frecklington has confirmed the Hope Dairies project in the South Burnett is “on hold”.
Mrs Frecklington told southburnett.com.au today she had received a letter from the group on Friday.
She said the decision was “hugely disappointing” for the South Burnett but what was encouraging was the fact that Hope Dairies were not pulling out of the region.
Instead they were planning to re-position the project around a wagyu cattle model.
Mrs Frecklington said Hope Dairies were continuing with land purchases the company had started and she believed none of the properties it had already purchased would be sold.
“There is still a contract on foot, I understand, and they are still proceeding with it,” Mrs Frecklington said.
Last December, mining magnate Gina Rinehart – the force behind the Hope Dairies project – was reported to have spent $25 million buying a number of cattle properties near Dubbo in NSW. She also bought the Greenhills wagyu cattle herd which has been described as the world’s second largest full-blood wagyu herd outside Japan.
Mrs Rinehart also owns grazing properties in Western Australia, including the iconic 400,000ha Fossil Downs station in the Kimberley which she bought for a reported $30 million in July.
Wagyu meat is highly marbled and commands a premium price, especially in Asian markets.
After paying record prices for milk, China started cutting back its milk imports last year just as extra output from New Zealand and Europe hit the market. This surplus supply caused the milk price to halve in just 18 months, dropping to a six-year low.
Mrs Frecklington said it was important to note the dairy project was just “on hold”.
She told ABC Rural Radio that as the local Member, she would be trying to encourage Hope Dairies back into the dairy project.
“I think it is vital for the dairy industry in Queensland that it does go ahead,” she said.
Mrs Frecklington refused to speculate on the reasons why the dairy had been postponed however she noted that market for milk in China had dropped since the project was first mooted.
- External link: Milk Powder Operation On Hold (ABC Rural)
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