Cargill and Teys Bros form joint-venture16 May 2011
Cargill Beef Australia and Teys Bros said on May 11 that they have agreed to form a joint-venture company. The new company, pending regulatory approvals, will be a 50-50 joint venture and will trade under the name of ‘Teys Australia – A Cargill Joint Venture’. Allan Teys will be Chairman and Geoff Teys will serve as Chief Executive and will be responsible for cattle procurement. Teys Bros operations also include a tannery and other value adding facilities.
The joint venture will turn the nation’s second- and fourth-largest beef processors into an industry giant with capacity to kill 1.5 million cattle a year, within sight of major rival JBS Australia’s 1.98 million head.
The company comprises four modern beef processing facilities, a 30,000-head feedlot, a tannery, wholesaling divisions, and a value-added facility.
Teys tanning operation is the Murgon Leather Pty Ltd is a wet-bluing facility that Teys have been operating since 1991.
The tannery services the shoe and upholstery finished leather markets under the brand name of Murgon Lea.
Hides from Teys meat plants are transported daily to the tannery, where they are green-fleshed and processed into wet-blue or are sold salted. Hides are then exported to customers throughout the world for processing into finished leather.