Cattle on feed in Kidman’s Tungali feedlot in SA

S. Kidman and Co has listed its Tungali feedlot in South Australia for sale.

The asset was not included in a string of pastoral and cattle assets put to market last year by Gina Rinehart’s Hancock Pastoral and S. Kidman divisions, most of which are now sold.

Following the earlier sale of Anna Creek, Macumba and Innamincka stations in South Australia’s northeast, the Tungali feedlot is Kidman’s last remaining cattle asset in South Australia.

It no longer served a strategic role within the company, and was considered surplus to requirements, Beef Central was told.

Speculation suggests possible purchasers of the Tungali feedlot might include Thomas Foods International, currently preparing its Murray Bridge beef and sheepmeat processing plant for re-opening later this year, after being ravaged by fire in 2018.

TFI is itself enlarging its Southern Cross feedlot (formerly known as Iranda Beef) near Tintinara, in SA’s Murray/Mallee region, expanding from 17,000 head to 30,000 head.

South Australia currently supports an NFAS feedlot capacity of 53,414 head, with numbers on feed in the December quarter of 44,096 head.

Located in the state’s southeast corner near Sedan, on the edge of the Barossa Valley, Tungali feedlot is licensed for 3200 head capacity, and has been used principally to finish 100-day shortfed export steers from company properties, some of which were fed into the company’s Kidman Santa Gertrudis beef brand program.

The company in 2019 secured approval to increase the feedlot’s capacity to 10,000 head, following a deal with SA Water to secure for more supply.

In an article on the Kidman website published in 2019, the prospect of an eight-fold expansion of Tungali feedlot was discussed.

“The feedlot currently has a carrying capacity of 3000 head, but following successful discussions with SA Water and SA Government infrastructure specialists over a period of two months, additional water was allocated that could allow in excess of 25,000 head to be held,” principal Gina Rinehart said.

Stage one would grow capacity from 3000 to 10,000 head, with stage two expanding to 25,000 head.

While technically registered as a ‘feedlot’, Kidman/Hancock’s only other similar asset was the Phoenix Farm live export depot facility near Katherine, NT, sold as part of a group of disposals last year.

Tungali will be listed with Elders.