Beef companies join forces
BREAKING: CARGILL Beef Australia and Teys Bros have today announced they have agreed to form a joint venture company.
The new company will be a 50-50 joint venture and will trade under the name of “Teys Australia – A Cargill Joint Venture”, with the proposal subject to regulatory approvals.
Board representation will be shared equally by Cargill and Teys, with Allan Teys as chairman and Brad Teys serving as chief executive officer in the new company.
Geoff Teys will be responsible for cattle procurement and the company’s head office will be at Beenleigh.
The new joint venture will include the assets of both companies’ existing beef processing and cattle feeding businesses, as well as Teys’ tannery and value adding facilities, and Teys’ share of its wholesale divisions.
Brad Teys said the combination of the two beef businesses would consolidate Teys’ position as the second largest beef processor and exporter in Australia.
The joint venture will have the capacity to process 1.5 million head of cattle per year.
“Since its humble beginning in 1946, Teys has become Australia’s second largest beef processor and exporter with a reputation second to none,” Brad Teys said this morning.
“We are proud of this heritage and confident this partnership with Cargill, a global leader in the food industry, will create a world class company and a flagship for the Australian beef industry.
“We are committed to providing growth and opportunity for Australian cattle producers through vigorous focus on efficiency and improved domestic and export opportunities.
“The combination of Teys and Cargill brings together our combined strengths to provide the best support for Australian cattle producers and strengthens our global marketing reach.”
Cargill senior vice president Bill Buckner said their by joining forces with Teys they would continue to “aggressively pursue and create distinctive value that has a positive impact on our employees, customers and communities”.
“We are committed to being the preferred employer in the Australian meat industry,” Mr Buckner said.
“The new joint venture will improve job security and expand career opportunities for our employees.
All of our existing facilities will be part of the new company and continue to operate.”
Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services. Founded in 1865, the privately held company employs 131,000 people in 66 countries.
Teys is the largest Australian-owned and second-largest beef processing company in Australia, processing one million cattle and turning over more than $AUD1.2B per annum. Teys comprises four modern beef processing facilities, a 30,000-head feedlot, a tannery, wholesaling divisions, and a value-added facility.