SEDC chairman says Carmor Plains Station was not bought at inflated price, explains purchase was for economic, commercial reasons
Tan Sri Datuk Amar Abdul Aziz Husain
KUCHING: Sarawak Economic Development Corporation (SEDC) has refuted allegations by Pending assemblywoman Violet Yong that the price it paid for the cattle farm Carmor Plains Station in Australia was above the market value.
In responding to Yong’s claims, SEDC chairman Tan Sri Datuk Amar Abdul Aziz Husain explained at a press conference yesterday that the property was sold through bidding and the corporation had initially bid A$18 million but another bidder was willing to pay A$21.8 million for the farm.
“However, it was fortunate for us because the other bidder was not able to transact the property within the time limit and the agent came back to us asking us to pay A$21.5 million for the property but we bargained and in the end, we agreed to the price of A$20 million,” he said.
Abdul Aziz said purchasing farms was not like buying properties such as houses, as such opportunity would only come about every once in a while.
The A$20 million purchase of Carmor Plains Station was purely for economic and commercial reasons as SEDC decided it would complement its other Australian investment – Rosewood Cattle Station by becoming the new feeding and fattening centre for the 32,000 cattle at Rosewood, he explained.
According to him, the Rosewood station had to send its cattle to another farm for fattening as there was not enough grass at the facility for the purpose.
“We fattened our cattle in another farm called Blackwood and sold them from there. Last year, we had over 1,400 cattle in Blackwood and we had to pay more than A$200,000 just to feed our cattle there.
“So for that reason, SEDC had been looking for another place where we can do this (fattening). Now, the young cattle can be brought there (Carmor Plains) to be fattened and then sold from there – thus increasing production at the same time.”
Abdul Aziz explained that flooding at Carmor Plains allows for grass used to feed the cattle to grow, thus enabling the cattle to gain weight at a faster rate – six months compared to the 10 months it would take at Rosewood.
“At Rosewood, it is dry most of the time so having Carmor Plains Station is an advantage for us.”
He also said the location of Carmor Plains was another cost-saving factor as it would enable SEDC to take advantage of its proximity to Darwin Port – about two hours’ drive – where the full-grown cattle will be shipped for export.
“Rosewood Cattle Station is a remote and dry area that takes two days to reach by road. When it comes to rainy seasons, the only road connecting the station to other areas are flooded and closed to any traffic which causes the cattle trading to stop its operation,” he said.
Abdul Aziz went on to mention that the Rosewood facility – acquired by SEDC in 1982 – has been making profit over the last five years even though the number of cattle there could not be expanded.
“Last year we made about AS$2.5 million in profit; the year before that we made over A$1 million in profit and the year before that, we made over A$3 million in profit.
“So it’s an up-and-down business and therefore it is wrong to say that we have made losses.”