Australia’s peak cattle producer body says it has found no reason to oppose the recent Teys Cargill merger following its analysis of the deal.
The Cattle Council of Australia met with Teys chief executive officer Brad Teys and executive director, livestock, Geoff Teys last week to discuss the company’s 50-50 joint venture with US giant Cargill.
CCA chief executive officer David Inall said the Teys executives reaffirmed their long term interest in the Australian meat processing sector and outlined how the business would work together.
The company also indicated its commitment to keeping current processing facilities open, and to continue buying practices as normal.
Mr Inall said the CCA monitored the implications of mergers and joint ventures in the beef production sector closely but could see no reason to opposed the Teys/Cargill joint venture.
“Rationalisation in the meat processing sector has been ongoing and this is a part of that evolution,” Mr Inall said.
“That being said, Cattle Council’s overarching position is that we do not support any action or activity that results in detrimental outcomes for beef producers through a reduction in market competition; there is no reason at this stage to suggest that this venture falls into this category.”