GrainCorp has announced its purchase of feedlot and pasture-based liquid feed supplement manufacturer Performance Feeds, in a move which will create a colossal footprint in the livestock industry nutrition field.

In a statement issued today, Graincorp announced its purchase of XF Australia, the US-controlled parent company controlling Performance Feeds and specialist feedlot nutrition consultancy service provider, Nutrition Service Associates.

Both are already among the largest liquid supplement providers in Australia.

A price of $35 million has been suggested.

Graincorp’s Animal Nutrition division already has a large presence in the Australian feedlot and pasture liquid supplement space with its Molafos range, in both suspension and solution form. It bought the original Molafos business from Champion Liquid Feeds (formerly Ridley) around 2013.

Performance Feeds manufactures a range of liquid and loose lick nutrition supplements to boost production and performance, and optimise the all-round health of grass and grainfed beef cattle, sheep and dairy cattle.

Performance Feeds operates three manufacturing sites in Queensland (Burdekin, Dalby, and Kingsthorpe) and a manufacturing site in Victoria (Kyneton).

Graincorp Liquid Feeds manufactures at three sites:

• Marian, a large-scale plant located adjacent to Mackay Sugar’s Marian Mill.
• Isis (Bundaberg) is capable of manufacturing molasses–based solutions and is situated next to Isis Central Sugar Mill
• Footscray Brandon Molasses (Melbourne) is a dedicated non-medicated facility.

The merger, designed to add synergies to both businesses, will create a market giant, servicing the feedlot industry and pasture-based customers across eastern and southern Australia.

Subject to certain regulatory and commercial conditions, the sale is expected to be completed by the end of January.

GrainCorp is an ASX-listed agribusiness and processing company that accumulates, produces, and trades agricultural commodities including grains, pulses, oilseeds, edible oils, animal feeds and human nutrition products domestically and internationally.

US-based XF was the pioneer of the liquid supplement industry in Australia, establishing a business here in 1993 based on its depth of experience in the US feedlot industry. The company was the first to supply US-trained feedlot nutritionists to service the Australian market, led by Johnny Horton, Gary Holcomb and many others, since the late 1980s.

XF’s contribution to the progress of the Australian feedlot industry is documented in the book “Grainfed: The history of the Australian lotfeeding industry.”

The current XF Australia management team will remain in the business under GrainCorp’s new ownership following completion.

XFA founder and major shareholder Hollis Klett said XFA, Performance Feeds and NSA were highly respected in the Australian feed supplement and animal nutrition consulting sector and after 38 years, the decision to sell XFA was not made lightly.

“Careful consideration was taken to choose a buyer that aligned with our culture and could support our company through its next phase of growth. We wanted to align ourselves with a company that provided a high level of service and quality products to its customers.

“We also wanted to ensure that our customers are cared for and secure into the future, with the buyer having the resources to manage agricultural cycles and take an innovative approach to their business and product offering.

“Our team are committed to working with GrainCorp to ensure a smooth transition and ongoing success. Seeing my vision grow and prosper has been my greatest achievement and pleasure, and I wish all involved every success and a prosperous future.”