Going bananas: Australia’s biggest grower up for sale for $180m
The farms and operating business of Australia’s biggest banana grower, Mackays, have been put on the market and could fetch as much as $180 million to resolve succession planning issues after the interests of the owning family diverged too much for it to stay in charge of the operation.
The nine farms spread across the Tully and Lakeland regions of Far North Queensland span 5861 hectares and combined produce 13 per cent of the national banana crop.
The family’s first banana plantations were planted in 1945 on a 1.5-acre (0.6 hectare) block of land in Tully that was hand-cleared by sugarcane worker Stanley Mackay, who became one of the pioneers of the Australian banana industry after World War II.
By the time Mr Mackay died in 1990 his hobby farm had grown into 1100 hectares – half sugar cane, half bananas – and the Mackays were the biggest banana farmers in the country.
Successive generations of the Mackay family have continued to grow the business, which now employs more than 500 people, generates annual revenues of $75 million and has expanded into avocados, papaya, coffee, lychees, cacao (used to make chocolate) and beef production.
Almost 1200 hectares are planted to permanent crops, including bananas, 2407 hectares are used for irrigated and dryland cropping, and 1219 hectares are used for grazing. The portfolio offering includes 10,830 megalitres of water entitlements.
“Every week, we truck 45,000 to 50,000 15-kilogram cartons of bananas to supermarkets – that gives you an indication of the size of the business,” explained Alex Hutton, CEO of Mackay Farming Group.
Stanley Mackay’s five grandsons, Barrie, Gavin, Stephen, Cameron and Daniel, are directors and managers of the business and some of his great-grandchildren – the fourth-generation Mackays – are also involved.
However, Mr Hutton said there were also many fourth-generation family members who wanted to “go in a different direction” prompting the decision to put the business up for sale after nearly eight decades.
JLL’s Agribusiness team of Chris Holgar, Geoff Warriner, Clayton Smith and Jock Grimshaw have been appointed by Mackay Farming Group to sell the portfolio by expressions of interest.
“The Mackay family is synonymous with horticulture in Far North Queensland and have a successful 75-year history of building their banana (and tropical fruit enterprise) from small beginnings to being Australia’s largest banana producer,” Mr Holgar said.
Potential purchasers of the portfolio, he said, included existing participants in the horticulture industry, agricultural players looking to secure a foothold in Queensland and diversified farming funds.
Last year, the Mackays sold a 514.4-hectare former sugarcane property near Bundaberg to macadamia entrepreneur Dyson Bogg for more than $9 million.
The offering of Mackay Farming Group comes amid strong growth forecasts for the industry – bananas are the biggest-selling fruit in the country.
Australian banana growers sold nearly $600 million of the fruit to consumers in fiscal 2021 – 362,000 tonnes or 16 kg per person. This is forecast to grow 417,000 tonnes by 2026.
The offering of Mackay Farming Group excludes Mackay’s Marketing, which provides logistics and marketing services to Mackay’s own farms as well as to other large family-owned producers in Far North Queensland.
The marketing business established about 25 years ago is a passion project for the Mackay family, and includes research it undertakes into new varieties and other innovations.
A decade ago, the Mackays launched the country’s first banana vending machine in Brisbane.
In 1985, Stanley Mackay was recognised for his pioneering role in the Australian banana industry with an Order of Australia Medal.
Mr Hutton said Mackay’s had a strong commitment to sustainable farming practices.
“The group’s farms are currently being audited to ensure carbon sequestration strategies also deliver optimal results,” he said.
“Surplus banana production is not wasted, with the development of freezing operations in Tully, which process an increasing volume of packed frozen bananas.”
