Cotton grower Tandou to sell water entitlements, convert NSW farm to lamb business
22 June 2017
ABC Broken Hill By Declan Gooch and Nikolai Beilharz
Far west cotton grower Tandou will decommission its irrigation system at Menindee and convert the property into a dorper lamb business, its owner Webster Limited has announced.
Webster said in a statement to the ASX it had entered into an agreement with the Federal Government to sell all 21,901 megalitres of Tandou’s water entitlements.
The property spans 79,000 hectares including dry lakebed south-east of Broken Hill in New South Wales.
The company said it would receive $78 million from the sale.
Tandou is preparing its final cotton crop which is due for harvest next autumn, following a tough period that saw the farm placed into care and maintenance mode last year.
Webster said the windfall would be used to repay debt, and it expected to record a profit of up to $37 million for the 15-month period ending September.
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