FUND-based corporate beef and lamb producer AAM has moved further down the red meat value chain, launching the Australian Beef & Lamb Co dedicated wholesale, export and distribution business.

The new business also includes smaller stakes from Canadian-based meat trader and distribution company Sure Good Foods, which already has a strong track-record trading Australian beef and lamb into international markets, and the Graham family, which ten years ago established and ran the Argyle Foods integrated branded red meat supply chain in NSW.

Set up in February, the Australian Beef & Lamb Co is a new Australian red meat supply chain business connecting beef and lamb from paddock to plate.

The new AB&L business is based in Sydney, with Bryce Graham acting as chief executive officer, and input from AAM’s Cye Travers, who has extensive experience in the meat trading field.

With offices in Australia and the United States, AB&L Co sources red meat tailored to meet the needs of diverse global markets. The initial emphasis is on Certified Grassfed, Natural and Organic programs, with a grainfed program (currently small) to grow over time. Service kill arrangements have been finalised in Queensland, Victoria and NSW for different production streams.

Sure Good Foods will act as global sales and logistics partner in North America, with market expansion to Asia and the Middle East. Domestic sales and distribution in the US will be delivered in collaboration with Marcus Foods.

Beef processing has started under the new brand programs, with 300 tonnes of product already on the water to the US and Asia, while AB&L has established fixed supply offtake relationships with prominent large export customers.

With established US clients through pre-existing Sure Good relationships including the Chipotle Mexican Grill restaurant network and pioneer grassfed value-added brand marketer Teton Waters Ranch, AB&L Co says it is building a customer portfolio that balances nationally recognised brands with a growing network of regional smaller quantity ‘less-than-truckload’ customers.

Beyond the primary US market, more product is now heading into the Middle East, Korea and other parts of Asia.

AAM director Garry Edwards with Wagyu cattle on Bective Station neat Tamworth

AAM managing director Garry Edwards said the company had been approached for some time about getting involved in export to the US market, rather than simply being a ‘livestock producer at scale.’

This was an opportunity to set up a new business relationship, partnering with proven performers in their fields,” he said.

“It created a unique opportunity to align our businesses, and go into a new joint venture.”

The intention, going forward, is to allow other lamb and beef producers who have product that fits the business’s criteria to enter into long-term supply agreements.

“It’s about how we create value-added markets for the natural and organic products we specialise in,” Mr Edwards said.

“AB&L Co delivers a value-aligned supply chain for full carcase utilisation that will integrate with, and value-add, AAM’s existing beef and lamb operations that prioritise traceable grassfed, no-HGP production,” he said.

Mr Edwards said AB&L Co was the clear next step in the broader AAM business strategy of creating further security within its value chains, to achieve optimal outcomes for AAM operations, its investors and customers.

“This is a long-term strategy in what is a competitive protein market and a way for us to deliver a high-quality and consistent product that supports the values of AAM and the aligned businesses AB&L Co partners with,” Mr Edwards said.

Already, AAM had achieved success in the vertical integration of its timber and poultry operations, and looked forward to applying these learnings and expertise to identify and capture new opportunities for its red meat protein supply chains, he said.

“The philosophy driving AAM has always been diversification across geographies, commodities and production systems to maximise profitability and business resilience. AB&L Co allows us to benefit from the control and value capture of another supply chain and create unique pathways and marketing opportunities for our premium Australian red meat products.”

AB&L Co also ideally complemented the extensive work AAM has undertaken in developing some of Australia’s most high-performing sheep and cattle genetics through its investment in the Burrawang Dorper and White Dorper Stud, and its elite Wagyu seedstock program at Bective Station near Tamworth.

AAM Investments manages five large investment funds, some of which hold large pastoral and feedlot assets in beef cattle and lamb production, with holdings in the Northern Territory, NSW, Queensland and South Australia.