May 13, 2011

Cargill and Teys to combine Australian beef operations

Cargill Inc. and Teys Bros Holding Pty. Ltd. announced this week that they will combine their Australian beef operations into a 50/50 joint venture that will be named "Teys Australia -- A Cargill Joint Venture."

Board representation will be equally shared by the two companies, according to the announcement. Allan Teys will be chair, Brad Teys will be chief executive officer, and Geoff Teys will be responsible for cattle procurement.

The company will be headquartered in Beenleigh, Queensland. The deal will still be subject to a regulatory review.

Cargill's Australian beef operations, the fourth largest in the country, include feedlots and two harvest plants, with a capacity for 500,000 head per year.

Teys, the second-largest beef processor and exporter in Australia, operates a 30,000-head feedlot, four processing plants that run one million head per year, a tannery, and a value-added facility. Teys, founded in 1946, reported 2010 sales that totaled US$1.20 billion.