AMG secures Elders’ Killara feedlot for $196m in quality beef program expansion

Story updated 2.261pm

A STRATEGIC push to expand its grainfed Angus beef programs is the key driver behind Australian Meat Group’s acquisition of Elders’ Killara feedlot, announced earlier today.

Melbourne-based processor and export brand manager AMG, led by industry veteran Joe Catalfamo and managing director Gilbert Cabral, has paid about $196 million for the Killara feedlot asset, including cattle on hand.

The purchase marks AMG’s first direct investment in the feedlot sector. The company operates the recently expanded Cootamundra export abattoir in NSW, now processing around 1000 head per day, as well as its original Dandenong facility in Victoria, also processing about 1000 head daily.

AMG has been custom-feeding cattle at Killara and other NSW feedlots for the past three to four years, and has developed a suite of high quality Grainfed, Grassfed and Angus brands.

Rumours of the sale emerged late last week, but neither Elders, AMG, nor marketing agent Kidder Williams were willing to comment until Elders informed the ASX this morning.

Strategic timing

Joe Catalfamo and Gilbert Cabral AMG

Asked why now was the right time to pursue a feedlot acquisition, Mr Cabral said AMG first needed to complete its expansion of the Cootamundra processing plant.
“With the completion of a major upgrade at Cootamundra, the time is now right to build a quality, assured grainfed cattle supply to support it,” he said.
“Killara will help secure supply to our Cootamundra site.”

Mr Cabral stressed that acquiring Killara did not signal a reduction in custom-feeding at other yards or decreased purchasing of externally supplied grainfed cattle.

On whether AMG had long been considering feedlot assets, he said the immediate priority was stabilising Cootamundra’s expanded operations, however AMG remained open to future acquisitions that support the business.

Killara, represented “a compelling strategic fit” for AMG and aligns with the company’s strong track record of growth through acquisition.

“We have a long-standing relationship with Killara and are impressed by the quality of the business and its people. Killara will enhance our ability to service our customers
with the highest-quality Australian beef,” AMG and Elders said in a joint statement.

Feedlot general manager Andrew Talbot will remain at Killara under AMG ownership.

In January, Elders completed its acquisition of Delta Agribusiness, paying $292 million to Delta shareholders.

Prior lotfeeding history

Under the former Tasman Meat Group processing and retail business, Joe Catalfamo previously owned and operated the Yambinya beef and lamb feedlot near Wakool, NSW.

About Killara

Killara has a working capacity of around 22,500 head and is located near Quirindi on the NSW Liverpool Plains. The facility benefits from access to high-quality feeder cattle, grain, roughage and water. It turns off approximately 62,000 head annually and sits on 1400ha of freehold land used for hay, silage production and backgrounding.

Elders managing director and CEO Mark Allison said Killara had long been a valuable part of Elders’ Products and Services portfolio.

“For Killara to continue to grow and develop as a blue-chip operation, it is appropriate for it to move to a more natural owner, and we have found this in AMG. The sale supports our value-creation strategy for Elders’ shareholders,” he said.

“We thank Killara management and its employees for their contribution to Elders.”

Elders has invested heavily in the feedlot over the past decade, lifting productivity and supporting strong growth.

“Killara is well positioned to unlock further growth and long-term success with the right buyer,” Mr Allison said.

Operational profile

Killara ranked 17th in Beef Central’s 2023 Top 25 Australian Lotfeeders list with annual turnoff of around 65,000 head. The feedlot manages a diverse range of programs,
including:
• A Woolworths domestic grainfed supply contract
• Midfed Angus programs (around 150 days on feed)
• A significant grass-finishing operation supplying about 260 Certified Grassfed cattle weekly to major supermarkets and export processors.

The grassfed operation can turn off approximately 10,000 head per year. Total land (owned and leased) amounts to around 1300ha, including 300ha of irrigation.
The site has undergone substantial infrastructure improvement in recent years, including new milling equipment.

Killara has committed to becoming carbon-neutral by 2030. A 500-kilowatt solar farm has been constructed, contributing significantly to the site’s energy use.

Recent sequence of feedlot sales

The sale is the latest in an unusual sequence of feedlot listings and sales that have occurred since October last year, including:

Mort & Co’s Pinegrove feedlot near Millmerran on Queensland’s Southern Darlnig Downs, was bought by Wagyu beef producer Peter Hughes and family, Hughes Grazing, in partnertship with Warwick lotfeeder Chris Shaw, Elbow Valley Beef, who will run the yard.
Marubeni’s Rangers Valley feedlot near Glen Innes in northern NSW, bought by Stanbroke for a figure close to $400 million, including stock and brand programs.
The Shearer-Smith family’s Smithfield feedlot near Proston in Queensland’s South Burnett region is in a second-round offers stage, with plenty of interest shown in the asset from large institutional, corporate and private investors, both Australian and offshore based.

Today’s transaction announcement continues an extraordinary period of significant feedlot sales and marketings this year – including the recent sale of Rangers Valley and
the offering of Mort & Co’s Pinegrove and Yarranbrook feedlots in southern Queensland.
In fact the recent cycle is unprecedented in Australian feedlot history. In the past, years have gone by with no major feedlot sales whatsoever, being one of the most tightly held asset classes in the entire beef industry.

Clearly, feedlot owners with a mood to shift assets see the current 2025-26 trading environment and market outlook as being the ideal time to test the market.

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