August 30, 2021

    

Minerva acquires meat processing plants in Western Australia

 

 

Minerva Foods, has made its first two processing plant investments in Australia, securing the Shark Lake and Great Eastern abattoirs in Western Australia.

 

Both sites are smaller facilities by Australian processing standards, but have room for expansion. Shark Lake near Esperance has capacity for both sheep and beef processing, while the Great Eastern Abattoir is a sheep-only facility near Tammin. Both sites are export licensed.

 

Operations at Shark Lake have been spasmodic, closing in 2017 before being bought and reopened by Rami Koyu's Central Agri Group a year later. Shark Lake closed again during 2020. At one point earlier in its history, Shark Lake processed around 25,000 cattle and 500,000 small stock annually.

 

Shark Lake and Great Eastern have been closed since last year due to airfreight export sheepmeat challenges and other factors, but Minerva has plans to expand the capacity and efficiency of both facilities.

 

The investments will be made as part of a US$35 million joint venture between Minerva Foods, which will own 65%, and the Saudi Agricultural & Livestock Investment Co, which will own 35%.

 

The joint venture investment will cover both the acquisition of the existing assets, investment to improve plants infrastructure and working capital. The joint venture will also support the creation of more than 150 new jobs across the two regions where the plants are located.

 

The investment in Australia is in line with Minerva Foods' strategic direction and uniquely complemented the company's operations in South America, the company's chief financial officer, Edison Ticle de Andrade Melo e Souza Filho, said.

 

"It will maximise commercial opportunities and operational synergies, reducing risks and contributing to our strategy to consolidate ourselves in the animal protein export market," he added.

 

Assuming necessary FIRB approvals are gained, Minerva will become the second South American entity after JBS to invest in red meat processing operations in this country.

 

Minerva hopes to commence operations at both plants either later this year or in the first quarter of 2022, subject to construction schedules and the approval of local regulatory agencies.

 

- Beef Central