Cotton powerhouse Cubbie Station back in the spotlight after ownership change

Australia's biggest cotton grower is today dealing with the unplanned release of large amounts of irrigation water as a result of the breach.

Many comments on social media have suggested the station is still foreign owned.

China based textile group Shandong Ruyi this year sold its majority stake in Cubbie.

Junior partner Macquarie Asset Management, headquartered in Sydney, has taken full ownership.

The big Chinese group controversially took control of the struggling Cubbie in south-west Queensland's Dirranbandi and St George regions for $232 million in 2012.

Shandong Ruyi earlier this year has sold its remaining 51 per cent stake to an agricultural fund managed by Macquarie.

The sale of also includes the station's associated properties and cotton gin.

"The change of ownership will not materially change the day to day operations of Cubbie," Macquarie Asset Management said in a statement released to Cubbie's website.

"Paul Brimblecombe will continue as CEO of Cubbie supported by the existing management team, and all current employee positions remain unchanged."

The Cubbie Group comprises 93,700 hectares of farmland including 22,100ha of irrigated cropping supported by extensive on-farm irrigation infrastructure covering 13,300ha.

The properties can produce in excess of 250,000 bales of cotton in good years.

The station's enormous water storages stretch for almost 30 kilometres of the Culgoa River at the top of the Murray-Darling catchment.

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The station has irrigation entitlements approaching 500,000 megalitres.

The sale of Cubbie back in 2012 was conditional on a Foreign Investment Review Board stipulation the Chinese group sell down its 80pc share to 51pc which occurred in 2019 when Macquarie's fund took 49pc ownership.

Also, as part of the agreement "parties will voluntarily contribute up to 10GL to the Culgoa River and Lower Balonne intersecting streams over a five-day period following extended dry periods".

Macquarie said in its statement there would be be no change to the voluntary water contribution which was announced when its fund acquired its initial 49 per cent interest in 2019.

Shandong Ruyi's other business interests in Australia include the showpiece Western District property in Victoria, Larundel which is on the market, and wool trader and processor Lempriere Wool.