THE need to expand elite bull breeding capacity was the motivation behind a strategic cattle property purchase by Consolidated Pastoral Co yesterday.
CPC outlaid a ‘competitive’ $8.325 million at auction in Rockhampton yesterday to secure Emu’s Nest, a 3940ha grazing property adjacent to CPC’s existing Allawah stud headquarters west of Biloela, in Central Queensland.
CPC currently runs about 1000 stud breeding cows on Allawah under the management of Jason and Hayley Purcell, and the Emu’s Nest purchase will roughly double the size of seedstock breeding operations on the aggregated properties.
Allawah is at the elite-end of CPC’s genetics program breeding stud bulls to go into herd bull ‘multiplier’ herds one Newcastle Waters on the Barkly and Bunda in the VRD district. Newcastle Waters alone runs a 4000 herd-bull multiplier cow herd.
Currently CPC has an annual replacement herd bull requirement of 800 to 1000 bulls.
The expansion will allow CPC to expand and better control its genetics progress, as more Angus and composite content is injected into CPC’s northern commercial breeding herds. Currently some elite bull breeding is done remotely, and other bulls bought externally, but the Biloela expansion will allow most of that to now be done within the company, Beef Central was told.
A range of breed types will be run on the combined Allawah/Emu’s Nest aggregation, from straight Brahman to composites and Angus.
Emu’s Nest comprises 1700ha of softwood scrub country and 2270ha of forest type country. There is a mixture of buffel and natural grasses with seca stylo throughout the property. About 1600ha has been pulled in the last two years, but not burnt.
The purchase represented a price of $2110/ha, or around $855/ac, or around $7500 a beast area.
CPC chief executive Troy Setter said the acquisition of Emus Nest was consistent with CPC’s strategy of selectively ‘bolting-on’ stations to provide additional scale to the portfolio and continued investment to strengthen its operations.
“CPC has focused on developing superior genetics capabilities across our portfolio for many years. Emus Nest provides us with an opportunity to extend and utilise our elite genetics and stud operations at Allawah, with the combination of the two stations further improving the productivity and performance of our cattle,” he said.
“CPC will continue to invest in its operations for the future, with a focus on operational excellence and productivity, to ensure we remain well placed to benefit from rising global demand for Australian beef,” Mr Setter said.
CPC’s portfolio of 16 stations across Queensland, Western Australia and the Northern Territory are vertically integrated with two joint venture feedlots in Indonesia and boxed beef markets, comprising a carrying capacity of more than 400,000 head of cattle.
Emu’s Nest has been in the one family since it was balloted in 1964.
Sole agents for the sale were Hourn & Bishop Qld. Principal, Gary Bishop said the auction result was a strong sale by local standards, and would help provide a ‘compass’ for local values for some time.
“We decided the right time to go to market was after the earlier October rain,” he said.
The property attracted 20 inspections, nine registered bidders, and five active bidders at yesterday’s auction – all substantial local district beef producers from Biloela, Duaringa, Morinish and Moura.