Cubbie Station
| Company type | Private |
|---|---|
| Industry | Agriculture, Irrigation |
| Founded | 1983 |
| Headquarters | Near Dirranbandi , Australia |
Area served | Southern hemisphere, Murray-Darling basin |
| Products | Cotton, wheat, other crops |
| Owner | Macquarie Asset Management (MAM) |
| Parent | CS Agriculture (partnership between Macquarie Infrastructure and Real Assets (MIRA) and Shandong Ruyi) |
Cubbie Station, recognised as the largest irrigation property in the southern hemisphere, is situated near Dirranbandi in south-west Queensland, Australia. Covering an extensive area of , it is managed by CS Agriculture, a partnership between Macquarie Infrastructure and Real Assets (MIRA) holding 49% and Shandong Ruyi, a textile manufacturing company owned by investors from China and Japan, possessing 51%.
Land holding
Positioned within the Darling Riverine Plains bioregion, Cubbie Station encompasses the floodplains and channels of the upper reaches of the Darling River and Barwon rivers.
Cotton cultivation commenced in this area during the late 1970s, with Cubbie Station shifting its focus from livestock grazing to cotton farming in 1983. The estate comprises both farming and non-farming land, of which about is currently utilised for irrigation purposes, with an additional under development.
Water rights
Cubbie Station was established through the amalgamation of twelve floodplain properties, securing a total of fifty-one water licences. Its dams extend over 28 km along the Culgoa River within the Murray-Darling basin. The station typically consumes roughly 200,000 ML of water each year, increasing to 500,000 ML during favourable conditions.
This water allocation irrigates approximately 130 km² of cotton fields alongside other crops such as wheat, producing net annual profits estimated between A$50 million and A$80 million. The station holds a water licence permitting up to 460,000 ML—an amount comparable to all irrigation entitlements downstream in north-western NSW—and has the capacity to cultivate as much as 200 km² of cotton. Nevertheless, drought in 2006 severely depleted dam storage to just 1%, restricting cotton planting to a mere 200 hectares.
Cubbie Station has attracted criticism for its substantial water usage amid Australia's prolonged drought and ongoing issues within the Murray-Darling river system. After Macquarie Infrastructure and Real Assets (MIRA) acquired a 49% shareholding, CS Agriculture pledged to voluntarily release 10 gigalitres of water back into the Culgoa River without seeking compensation.
By January 2019, Cubbie had not extracted water since April 2017 when it took 14 GL from the total 156 GL flow passing through St George but allowed over 2 GL to flow downstream. In March 2018, it similarly refrained from using 3 GL of its entitlement.
During his period as Environment Minister, Malcolm Turnbull did not rule out the possibility that the Australian government might purchase Cubbie Station.
Sale of Cubbie Station to Macquarie Infrastructure and Real Assets (MIRA) and Macquarie Asset Management (MAM)
Cubbie Station is owned by Macquarie Asset Management (MAM), the asset management branch of Macquarie Group, which oversees Australia's largest irrigated cotton operation.
In 2012, Chinese textile firm Shandong Ruyi acquired Cubbie Station for $232 million. By 2019, an agricultural fund managed by Macquarie had secured a 49% interest, and in 2022 MAM purchased the remaining 51%, thereby obtaining full ownership.
Purchase of Cubbie Station by Shandong Ruyi
On 31 August 2012, approval was granted by the Australian Government for the sale of Cubbie Group to a consortium comprising Shandong RuYi Scientific & Technological Group Co Ltd—a Chinese-Japanese textile manufacturer—and the Australian Lempriere Group, which specialises in wool trading and agricultural property management. The approval allowed RuYi an initial controlling stake of 80%, with a requirement to reduce this share to 51% within three years through sale to an independent third party. Management remained Australian-based with existing water licence conditions maintained.
While the Liberal Party supported the transaction, some Nationals members opposed it due to concerns over foreign ownership of agricultural land and control of water resources.
The joint venture CS Agriculture completed the acquisition on 25 January 2013 for around A$240 million. Subsequently, in 2019 Shandong Ruyi divested its interest in Cubbie back to Australian-owned MAM.
Voluntary Administration
On 29 October 2009, Cubbie Group Limited, the then proprietor of Cubbie Station, declared its intention to enter voluntary administration the next day. This decision was driven by liabilities surpassing A$300 million, largely attributed to five consecutive years of inadequate regional rainfall. The corporate restructuring firm McGrathNicol was appointed as Administrator on 30 October 2009.
See also
External links
- Cubbie Group Limited – previous official website
- Cubbie Station map as of July 2018