Property profile: Kaiuroo Aggregation

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Kaiuroo Aggregation (Kaiuroo) is a 27,879 ha cattle and cropping property, located on the Mackenzie River, approximately 125 km north-west of Rockhampton, Queensland. The aggregation comprises of four properties – Kaiuroo, Coreen, Eskfield and Yambuk, and is used for cattle backgrounding and breeding, as well as cropping. The acquisition included 12,448 ML of water allocations.

Rural Funds Group (ASX: RFF) contracted to acquire Kaiuroo in November 2021. The acquisition had a settlement period of up to 24 months, during which RFM was able to commence productivity developments.

Developments and water entitlements

Kaiuroo was acquired for its scale, underutilised water entitlements and suitability for further development. At the time of purchase, the property was primarily used for cattle grazing. Areas within the property are being developed for irrigated and dryland crop production.

Two properties within the aggregation, Coreen and Eskfield, are mainly used for dryland cropping, primarily wheat and chickpeas. The predominant soil types are red loamy sand and strong self-mulching black cracking clay, which are well suited for dryland and irrigated cropping. Developments will include furrow and sprinkler irrigation systems supported by an additional water storage.

The 12,448 ML of water allocations include a mix of unsupplemented (flow dependent) water and water sourced from the Fairbairn Dam. Kaiuroo’s location in the mid Fitzroy basin provides a high level of water reliability via access to the Nogoa Mackenzie water supply scheme and flows from the Comet, Mackenzie or Isaac River catchments.  

The remaining two properties within the aggregation  are mainly used for cattle breeding and backgrounding. Developments in these areas aim to increase cattle carrying capacity by improving the quality and the quantity of pastures and forage crops. Additional water points will also be installed to support the increased livestock and provide enhanced pasture utilisation.

RFM has significant experience delivering productivity improvements similar to those being carried out at Kaiuroo, such as on Lynora Downs (cotton) and Comanche (cattle).

Lynora Downs is a cropping property, located near Rolleston, central Queensland. Developments at Lynora Downs include construction of flood protection works, additional water storage, the installation of sprinkler irrigation systems and a river pump station. These developments contributed to a 300% increase in production to over 13,000 bales of cotton.

The cattle property Comanche is located approximately 45km south-east of Kaiuroo. Comanche was acquired by RFF in 2018 and subsequently operated and developed by RFM, prior to being leased to the Australian Agricultural Company (ASX: AAC) in 2022. Developments on this property included irrigated and non-irrigated cultivation areas and additional water points. These productivity improvements led to a 58% increase in carrying capacity from 2,850 AE to 4,500 AE and contributed to a significant uplift in the property’s value.

Drawing on experience at properties like Lynora Downs and Comanche, RFM is using its expertise to increase both cropping production and cattle carrying capacity. With a range of developments underway, including irrigation systems and pasture enhancements, Kaiuroo is being transformed into a more productive agricultural asset.