Australian agriculture and animal husbandry investment:
Australia, with its developed agriculture and animal husbandry, is a major agricultural producer and wool exporter, creating a lot of investment opportunities for investors.
· Development situation:
Animal husbandry is one of Australia’s first industries and remains one of the main pillars of the Australian economy. In addition to the large export quantity of farm and pasture products, with wool export ranking the top of the world, meat ranking the second and wheat ranking the third, dairy products also take a large proportion of the export statistics. At the moment the rate of return in the Australian top farm is three times as much as the American farm.
· Investment trend
The FIRB 2016-17 annual report shows that, the investment from foreign countries to the Australian agriculture has boosted to 7 billion Yuan, which is 4.6 billion higher than the 227 approval in 2015-16. Therein, China was the most important source of investment. During 2016-17, Chinese investors spent 2.2 billion in purchasing or investing in the Australian farms, which was 996 million high than last year, whereas Canada ranked the second.
Cannabis legalisation in Australia:
Although cannabis is a taboo subject in China, it has been making breakthroughs in the overseas market. Australia, Canada, the US, South Africa…more and more industrial countries are making laws to legalise cannabis. People who advocates cannabis consider its medicinal properties may create economic value to the society after legalisation.
· Legal cannabis market situation:
During the past three years, the cannabis industry experienced a rapid growth of 5 trillion US dollars which was sourced from 5 different fields: Medical cannabis as one of the treatment method; recreational cannabis as social harmoniser; cannabis for the food industry for both human and animals; industrial cannabis as fibrous material; research and development. The return of legalised cannabis creates a perfect opportunity to join the skyrocketing market for investors.
· Investment trend:
In 2017, the sale of medical cannabis took up 85% of the cannabis market share. Despite the steady increase of income sourced from the medical cannabis, the recreational cannabis will make a catch up and surpass it within just two years.
Due to the boost in the evaluation of cannabis companies during the last 18 months, many emerging enterprises invested in the cannabis industry for new opportunities. To summarise, it is predicted that the interest in the cannabis related stocks of the investment sector will be aggravated.