TIQ has congratulated Kialla Pure Foods on successfully attracting $12.3 million worth of investment to help grow its organic grain and flour processing business.
The Toowoomba-based company cemented a deal with Blue Sky Alternative Investments Limited that whereby Blue Sky Agriculture Fund III acquired 33% of family-owned Kialla Foods as part of a private-equity partnership deal.
TIQ, the government’s global business agency, had been working with Kialla, one of Australia’s largest organic grain processors, since 2015 to attract investors to advance the miller’s ambitious expansion plans.
The demand for organic grain for human consumption and animal feed currently far outstrips supply.
This deal positions Kialla Pure Foods to take advantage of the demand from the rising middle class in Asia who are looking for clean, healthy produce.
The $12.3 million capital injection will see Kialla Pure Foods:
- expand its existing storage and milling facilities
- purchase a farm for conversion to organic production
- increase grain storage facilities to support continued growth in the business.
According to Australian Organic, prices for organic grains are rising strongly as supplies are at an all-time low due to weather challenges, retiring farmers and water allocations that have reduced the number of growers in Australia.
The shortfall has had an impact on grain supply chains for local consumption and organic livestock feed.
Chairman of Australian Organic Dr Andrew Monk said the organic industry was worth over $1.7 billion in 2014 in Australia and export demand is also high.
“The settings are perfect for operators to expand and new entrants to innovate and diversify their current cropping and marketing practices,” Dr Monk said.