World’s Largest Macadamia Producers Sell $70m Portfolio
Saratoga Holdings, recognised as the world’s largest producer of macadamia nuts, is selling its Gemfields portfolio. The aggregation has been given a value of $70 million. This reflects the high levels of macadamia production that takes place at the site as well as the potential for development.
Land Agribusiness Water and Development (LAWD) in conjunction with Ray White Bundaberg have placed the Gemfields portfolio on the market. This comes only months after LAWD also listed the adjoining Cowal Agriculture Portfolio for sale at a value of $120 million.
It’s also happening at the same time as LAWD has listed Elliot River Horticulture portfolio for sale at a value of around $30 million.
Key points
- Saratoga Holdings, recognised as the world’s largest producer of macadamia nuts, is selling its Gemfields portfolio. This is expected to attrract much interest from institutional investors and family enterprises.
- The Gemfields portfolio is valued at $70 million which reflects the presence of a highly-productive 455-hectare macadamia orchard and the potential for further development.
- Two land holdings make up the Gemfields portfolio and they cover 5,976 hectares overall. The holdings are located to the north-east and north-west of Emerald.
- The sale of the Gemfields aggregation is the latest movement in the Australian macadamia market which has been buoyant recently.
About the Gemfields aggregation
The Gemfields aggregation at Emerald is part of Saratoga Holdings which is owned by the Zadro family. The company is known to be the biggest producer of macadamia nuts internationally with the family growing nuts in northern NSW, Queensland, and in the South African market.
The Gemfields portfolio comprises two land holdings that cover 5,976 hectares overall. The holdings are located to the north-east and north-west of Emerald. This agricultural area is renowned for its diversity. Gemfields also benefits from 6090ML of Medium Priority water allocations that are delivered via a high-quality irrigation network.
Currently, there is a 455-hectare macadamia orchard on the Gemfields site. Production of cotton and cereal crops also takes place. According to the sale details, there is the potential to develop a further 916 hectares for the planting of macadamia, pecan, citrus, or table grapes. It is also possible for any purchaser to increase the flood irrigation of the property for cotton production.
In addition to these positive aspects, the portfolio features several other attributes. They include several machinery sheds, storage sheds, and significant residential premises across the site.
The sale of the Gemfields aggregation is the latest movement in the Australian macadamia market which has been buoyant recently. Earlier this year, Macadamia Enterprises listed its 390-hectare Bundaberg Orchard for sale.
Together with South Africa, Australia produces around 50% of the world’s macadamia nuts and top producers like Saratoga Holdings play a major role in the country’s macadamia success story. The sale of the company’s Gemfields portfolio is expected to attract interest from institutional investors and family enterprises given the boom time the Australian macadamia industry is experiencing.
About the Zadro family’s business
The owners of Saratoga Holding, the Zadro family, started farming nuts in Australia around 40 years ago. Since then the family’s business enterprise has grown considerably leading to them reaching their current position at the top of macadamia nut production in Australia and in the global market.
The family’s holdings at Emerald include Cypress and Bauhinias, which covers 3,607 hectares, as well as Gemfields. These holdings together represent the Gemfields portfolio that is currently for sale.
Cypress and Bauhinias is home to a macadamia plant nursery which produces around 150,000 trees annually and has the potential to produce a capacity of around 442,000. The overall portfolio is also home to a macadamia orchard as well as cotton, sorghum, and wheat production areas. There are also portions of dryland cropping present.
Given the success of the Zadro family’s business operations, and the excellent production opportunities offered by the Gemfields aggregation, the sale of the portfolio is set to attract significant interest. This will make it easier for the sale value of $70 million to be achieved.
Achieving the expected sale price will also be helped by the positive position of the Australian macadamia market and the global macadamia boom. Potential buyers can see the profits to be had from a site that is already home to productive macadamia orchards with the potential for further development.