Warakirri-PSP Culture Partnership Ends With Daybreak-BFB Merger | weekly farm

Prominent farmland management group Warakirri is severing ties with Canada’s Public Sector Pension Investment Board in the merger of two PSP farming businesses.

BFB’s cultivation, storage, transportation and agricultural input activities, majority-owned by PSP Investments, will be combined with the four-year-old Daybreak Cropping operation.

The United Businesses will be led by BFB’s current management team, primarily based in Temora, South West New South Wales.

Consolidation is poised to create one of Australia’s leading grain farming operations – 41 farms across 10 aggregations in four states.

In addition to its arable crops business, PSP has amassed agricultural and processing assets spanning cotton, tree nuts, pigs, dairy, beef and timber worth approximately $4 billion in Australia over the past of the last decade.

It ranks among the largest retirement investment managers in Canada which, 12 months ago, boasted about $220 billion in assets in real estate, infrastructure, natural resources and equity investments. credit.

Warakirri Asset Management, which was also a minority shareholder while managing the Daybreak business since early 2018, will make the transition over the next few months.

However, he continues to manage PSP’s majority-owned Aurora Dairies, which includes 39 dairy farms and dry cow blocks in South Australia and across Victoria.

Daybreak was formed with an initial 12,500 hectares of grain land unloaded by mining and agriculture giant Glencore, the parent company of grain marketing and logistics giant Viterra.

“We thank PSP Investments for a very successful partnership with Daybreak Cropping, and we look forward to continuing our longstanding partnership with Aurora Dairies,” said Warakirri Managing Director Jim McKay.


Marc Drouin, senior managing director of real estate assets for PSP Investments in Ottawa and global head of its natural resource investments, said the latest development was “a natural evolution of our portfolio of large-scale agricultural assets.”

“Combining the businesses will allow us to simplify operating structures and leverage operational scale while driving growth, performance and results,” he said.

The combination of two transactions is another example of PSP Investments’ long-term investment horizon and commitment to the Australian market.

The pension fund had a particular focus on sustainability, but expected to increase operational efficiencies and achieve even stronger growth through continued improvements in on-farm practices.

The transition was not meant, nor intended, to impact employees at the farm level.

He said PSP appreciated and thanked Warakirri for helping Daybreak Cropping become “a world-class sustainable farming operation”.

Mr. McKay of Warakirri said his team was extremely proud of their role in building a large national portfolio of investment-grade, high-crop assets.

The investment management group has prioritized a culture of staff safety and well-being alongside its goals of achieving sustainable scale by adopting global best practices.

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The Story Canada’s PSP merges Daybreak and BFB Farming Companies first appeared on Farm Online.

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