An international clothing manufacturer has emerged as the successful bidder for one of Australia’s largest irrigated farming operations, Gundaline, at Carrathool in the Murrumbidgee Irrigation area of NSW.

Danny Thomas and Elizabeth Doyle from national property firm LAWD handled the Expression of Interest process and has confirmed the purchase price is around $120 million, after receiving strong interest from local and international buyers.

Comprising approximately 14,916 hectares, Gundaline features 6,000 hectares of first-class flood irrigation land and secure access to surface and groundwater entitlements, as well as substantial water storages (in excess of 17,000 megalitres).

LAWD Senior Director, Danny Thomas, said Gundaline’s infrastructure and water access made it a very attractive prospect.

“The location, property development, quality of infrastructure and water security makes Gundaline an A-Grade agricultural asset,” Mr Thomas said.

“Demand was fuelled further by favourable global economic conditions, including current high commodity prices, and with Australia’s exchange rate at sub USD 0.70 our properties are very attractive to overseas buyers.”

The cotton operation on Gundaline will form part of the purchaser’s long-term strategy to provide full transparency and traceability from field to garment for their customers, he said.

The property has undergone significant development since 2014, when Customised Farm Management took over management. 

CFM’s Managing Director, Andrew Parkes, said the expansion of cotton growing area was matched by increased water storage capacity.

“When we took over, Gundaline had circa 2,800 hectares of flood irrigation in relatively small fields of around 60 hectares. Between 2014 and 2017, we developed around 3,200 hectares on a much bigger scale – between 180 and 250 hectares per paddock – which has made operations much more efficient,” Mr Parkes said.

“Increased water storage capacity means that both summer and winter crops can be irrigated, which helps increase the carbon that is sequestered in the soil.”

Under the management of CFM, Gundaline has expanded from cotton to additional crops including soybeans, wheat, canola and fava beans, with yields increasing each year. A further 750 hectares has been identified as having potential for intensive horticulture development, such as pistachios or citrus.

“The majority of Gundaline is medium clay soil. We’ve done a lot of work over the years incorporating gypsum and manures to help the plants access a deeper soil profile, which also helps increase water use efficiency,” Mr Parkes said.

“We try to incorporate precision farming elements in everything we do, and we’re now utilising nutrition and moisture at a depth we haven’t been able to utilise before.”

Mr Parkes said the new owners share CFM’s commitment to sustainable agriculture and supporting rural communities.

“Gundaline was one of the first properties to achieve carbon neutral accreditation for its cotton production, and the new owners are keen to continue that and ensure the carbon footprint of the property is kept under control,” he said.

“They’ve made a commitment to supporting local communities and rural life, as well as the current team of staff.”