TWO recent listings of commercial feedlots in southern Queensland will draw attention to the rising value seen in lotfeeding assets.
Both the Moruya feedlot near Goondiwindi, pictured above, and the Maidenhead Station (including Myranee feedlot) further east near Texas, have been constructed within the last five or six years.
History shows that commercial feedlots only rarely come on the market, and to have two appearing at the same time this month is somewhat unusual.
So what are feedlots worth in 2024, on a beast-area basis?
One large downs commercial lotfeeder told Beef Central recently that replacement cost these days for a larger, more sophisticated and well-equipped yard (ie steam-flaking grain processing, substantial grain storage and efficient cattle handling infrastructure included) was now closer to $2500/beast area, than $2000.
The general increase in construction materials (steel, concrete, electrical and other building materials) over the past couple of years was the primary reason, he offered.
Back in March, Herron Todd White’s annual rural property breakfast in Brisbane touched briefly on commercial feedlot values. Rockhampton-based valuer Will McLay drew attention to the sale of the Roma feedlot and spelling yards, which settled during February.
“Feedlots have a habit of selling off market, quite quickly, or sitting around on the market for a long time,” Mr McLay said.
“In this case the Roma feedlot was well-tested, and attracted a good level of interest when put out to market,” he said at the time.
The site, equipped with only fairly basic grain processing and milling infrastructure, ultimately sold for $20 million to St George (Qld) based graziers Hamish and Mary McIntyre, who already operate a commercial feedlot as part of their St George operations.
Developed in 2017, the near-new Roma facility is 50km from the region’s major livestock selling centre. The 4000 head feedlot and 2000 head spelling businesses operate on two contiguous holdings – Dunan and Oaklea – covering 2445ha. There is 1500ha used for cropping plus improved pastures, watered by groundwater allocations and associated bores, with all crops used in the feedlot.
“The price the Roma feedlot and spelling yards realised, at around $2000 per Standard Cattle Unit, to me indicated a step-change in value for feedlots,” Mr McLay told the recent HTW gathering.
“For a long time they sat around that $1000/SCU level, before some more recent sales lifted to the equivalent of around $1400-$1500/SCU – simply by virtue of the cost of construction materials in creating these facilities.
“I think the Roma sale has created another shift in the market. The buyer certainly had experience in feedlots; knew the infrastructure and knew what it cost to build; and saw the value in the asset at that new $2000/SCU level,” Mr McLay said.
Here’s a quick summary of the two new feedlot assets to come to market this week:
Moruya feedlot, Goondiwindi
JLL Agribusiness last week listed the Cooke family’s Moruya feedlot between Goondiwindi and Moonie.
The fully operational 5960 Standard Cattle Unit yard has been used continuously by the Cooke family for the past 15 years, but is being sold as part of succession planning.
The feedlot is surrounded by 841ha of Freehold title farming country (previously known as Belvedere) mostly used for silage production and some grazing.
The holding is benefited by the recent upgrade of feedlot pens and installation of a new Silencer cattle crush, backed by a long list of quality machinery and stock handling equipment.
Feed rations are stored in a 5000 tonne silage bunk, milled and mixed on-site.
The asset also includes an associated 2,380 SPU piggery registration certificate.
A GAB livestock intensive bore supplying both feedlot and grazing areas. In addition, several large catchment dams (gravity fed) also provides additional water security. A new owner could apply for feedlot expansion with the inclusion of bought water.
Facilities include a modern five-bedroom home, separate three-bedroom house and workers accommodation in a Donga style setup.
Moruya feedlot is offered for sale by expressions of interest closing 15 August on a walk-in, walk-out basis. Around 5000 cattle currently in the yard can be negotiated separately.
Click this link for details – https://invest.jll.com/au/en/listings/land/moruya-feedlot-strategic-intensive-livestock-opportunity-
Maidenhead station and Myranee feedlot
In a separate listing appearing on Beef Central from next Monday, LAWD is marketing Maidenhead Station including the recently constructed Myranee feedlot along the fertile flats of the Dumaresq River near Texas, right on the Qld/NSW border.
The mixed farming enterprise and commercial scale feedlot has significant growth potential, LAWD’s Simon Cudmore told Beef Central.
Currently built to accommodate 5600 cattle, the yard has a licensed capacity for 10,000 Standard Cattle Units (all DA approved), as well as 9000 Standard Sheep Units. While somewhat more common further south, it is possibly the only dual-species feedlot located in Queensland – if even just inside the border.
The surrounding 3529ha Maidenhead Station is suited to livestock breeding or backgrounding and producing fodder or cash crops throughout winter and summer months.
Water is secure from the Dumaresq River which forms part of the boundary, also servicing five centre pivots on river flats.
The feedlot project was developed by vendors Lyle and Jo Bellingham over the past five years, and has been used for custom feeding Wagyu, 100-day export and grainfed trade cattle. The grainfed lamb operation is based on bought weaners.
Interest could come from a larger pastoral operation looking at making an entry into integrated lotfeeding; an existing lotfeeder looking to expand into a second site for Wagyu or conventional cattle; or as a stand-alone enterprise.
LAWD director Darren Collins said the Myranee feedlot, located within Maidenhead Station offered significant growth potential for a buyer.
“The recently-built feedlot provides a great opportunity to generate an additional and consistent income stream,” Mr Collins said.
“A range of clients from family farmers to corporate businesses currently contract livestock on feed, and the new owner could expand capacity under the existing licence in the future.”
The feedlot includes 28 cattle pens and 16 sheep pens, with some shade infrastructure provided, and separate, fully equipped steel processing facilities. Feeding is supported by significant grain storage and silage pits, with ample water supplied to the feedlot.
Maidenhead has traditionally achieved double cropping by rotating forage sorghum and barley for silage, or lucerne and direct drilling barley during winter. Dryland cropping has focused on oats, barley and sorghum generating excellent yields each year.
The annual average rainfall is 723mm, complemented by a 300mgL allocation from the Dumaresq River, and 494mgL of bore water licences plus numerous dams and creeks. An extensive water management system uses a combination of electric, generator and solar pumps. Irrigated cropping consists of five centre pivots across 106ha of the property.
Grazing country is internally subdivided into 16 main paddocks. Half of the fencing was constructed less than four years ago and another 25pc in the past ten years. Exclusion fencing surrounds the Myranee feedlot.
Operational improvements include a roller mill and 1000t of grain storage, commodity shed, two sets of cattle yards, sheep yards, shearing shed, machinery shed, weighbridge, office, two homes, manager’s residence and two sets of workers’ quarters.
Cattle markets are easily accessible in nearby Inverell, Warwick, Armidale and Tamworth while eight processing facilities are within a 300km radius.
Price expectations for the combined Maidenhead Station and Myranee Feedlot are around $25-$30 million.
The sale will be conducted under an Offers to Purchase process, through LAWD’s Darren Collins, Simon Cudmore and Grant Veivers.
Details linked via an ad appearing on Beef Central from Monday.
Great article but Myranree is not the only dual species feedlot in Queensland
The Coggan family’s “Enarra” feedlot has been feeding both sheep and cattle intensively since 2015, not sure if there are others.
Cheers Josh Hornbuckle
Thanks for the update, Josh. We stand corrected! Editor