Five months after completing the sale of its livestock export business to an Australian and Chinese owned company, Elders has confirmed it is now offering its Indonesian cattle feedlot and beef processing assets for sale.
In a statement forwarded to Beef Central today, Elders said the company’s Indonesian-owned assets were performing below the required return on capital and it is reviewing options for the business.
“Elders prioritises investment in and retention and growth of those business units which generate a consistent return on capital,” the statement said.
“Our business units are therefore subject to constant performance review with the Eight Point Plan.”
Options being considered include divestment of the assets should a suitable offer be forthcoming, or Elders continuing to run the Indonesian business on an ongoing basis if the divestment does not proceed.
Regardless of the outcome, Elders said it was committed to the live export industry in Australia and the Elders brand would continue to have a presence in Indonesia through its meat distribution business.
PT Elders Indonesia operates a western standard abattoir, a beef distribution business and 8000 head feedlot in Lampung, southern Sumatera.
Dick Slaney ran the business from 2002 to 2016 (he now runs a cattle breeding project in Indonesia for Coffey International). Since April 2016 the business has been run by Jason Hatchett (see Ross Ainsworth’s earlier profile story on Jason here, and our earlier story on Dick Slaney here.)
The Elders abattoir at IPB is certified ISO 9001, HACCP, NKV (Indonesian certification of the highest standard facility), fully Halal certified and was the first abattoir to be audited and approved under Australia’s mandatory animal welfare accreditation systems in export markets introduced in 2011 (ESCAS).
PT Elders Indonesia’s initial Sterling brand evolved into Elders Classic Cuts before Elders launched its current “Kooyong” brand in Jakarta and Bali in 2014.
Today, the Kooyong brand is distributed across Indonesia by Elders with a team headed by Mr Hatchett (pictured).
Elders Indonesia also imports Elders Australia’s high-end branded products including “Killara” Black Angus beef.
The proposed sale of Elders’ Indonesian feedlots and processing business was first reported in an article in The Australian, which included speculation the assets may sell for about $10 million.
In June 2017 Elders confirmed it had sold its live export business, the North Australia Cattle Company, to a partnership between Australian and Chinese owned, and Hong Kong-based, Zhoushan Fanda Australian Cattle Industrial Co Ltd (“Fanda”) and the current management of NACC, with existing manager Patrick Underwood to be the director of, and also an equity partner in, the new business.