THE United Dairyfarmers of Victoria (UDV) is calling on Hobart property developer Linear to give a clearer indication of where it stands in regards to its plans to purchase dairy farms throughout the Western District and into south-east South Australia.
Linear shot to prominence last October with bold claims it planned to buy up 50-70 dairy farms to attract interest from the Chinese market, but the industry is unsure on how the company is progressing with its aim.
UDV president Adam Jenkins said farmers wanted to know how Linear's plans were progressing
"We would welcome a conversation with them in terms of who is involved so we can draw a clear line in the sand," Mr Jenkins said.
"We need some clear guidance on where people stand."
If Chinese investment was not forthcoming, farmers needed to know Linear's options, he said.
He said offshore investors were not the only sources of alternate capital.
"If there is a way to capture some Australian super funds that would be good – if one buyer is gone, other doors may be opened," Mr Jenkins said.
He said farmers who had signed up with Linear might need legal advice if they wanted to seek other buyers.
The company remains upbeat about the plans despite refusing to confirm or deny to Stock & Land whether sale contracts have been signed.
It is believed farmers between Colac and Mount Gambier, SA, have been approached to sign "individual option deals" to eventually sell their properties.
Other property owners said they would be selling their farms outright.
There is yet to be any official release from Linear as to which Chinese investors it is working with.
Plans to launch the project, first announced in October last year, have progressively blown out, with no date yet set for the purchase of the farms.
The company has employed international firm FTI Consulting to speak on its behalf.
Senior director of strategic communications Sarah Brown said progress was being made on the deals.
"We are continuing to make positive progress both with the farmers we're working with and on the investor side," Ms Brown said.
"While the completion of those sales has taken longer than we would have liked, we have strong support from farmers and investors alike and look forward to bringing this exciting new project to the region."
Ms Brown said Linear Capital was "a diverse private investment firm whose principals have wide experience in a broad range of sectors".
In Victoria, one farmer said producers in the Heytesbury area had been approached to set up a cluster, or "hub", of farms.
But farmers in the South West are becoming frustrated with the continued delays.
Dairy farmer Chris Gleeson, Elm Banks Holsteins, Crossley, near Warrnambool, said Linear seemed to be continually postponing the project.
Uncertainty was not helping farmers who were seeking to leave the industry, he said.
"It leaves farmers in a very difficult position to farm," Mr Gleeson said.
"Is it good for the industry to be coming and promising to do this and that?
"If you don't have your 'i's dotted and 't's crossed it's more of a headache for the industry than anything."
Meanwhile, Linear's plans to buy the old Glenormiston Agriculture College to turn it into a training centre have hit a hurdle, with the Victorian Government saying it is still considering the sale.
Mayor of Corangamite Shire, which takes in Glenormiston, Chris O'Connor said he believed Linear's move was positive but it was taking time to line up the capital with the contracts.
"You are taking something that is fairly large and some of these things can take time," Cr O'Connor said.
He said Corangamite Shire was keen to get someone into Glenormiston.
"The window is starting to close," he said.
"Once you are out of a premises for a year or two years it starts to deteriorate quite quickly."
– Andrew Miller
