THE 2311ha Wanderribby feedlot in South Australia’s Upper Southeast is back on the market, after an investor described as an Australian and Chinese cattle company failed to settle on a deal.
Marketing agent Colliers International said the feedlot had been re-released to the market, because the original purchaser could not meet obligations under the sale contract.
Wanderribby had been under contract since September 2017 to the prospective buyer, who had planned significant development including doubling the capacity of the yard and installing advanced grain processing infrastructure for better grain utilisation.
“The purchaser had significant development hopes for the property and is disappointed not to be able to complete, due to regulatory issues,” Colliers said.
Wanderribby comprises an 8000-head capacity yard and large areas of established lucerne, located 7km south of the Lakes and Coorong township of Meningie. The asking price is more than $9 million.
Owner Perry Gunner said there had been several inquiries for the property during the time it was under contract, and Colliers International was contacting all interested parties informing them that Wanderribby is now again available for sale.
The feedlot was operating at near maximum capacity, with the majority of cattle destined for live export. The yard has fed cattle for a range of major clients and feeding regimes over the past 20 years, including EU, domestic shortfed, 100-day Jap Ox and CAAB.
“It’s a good time to take the property back to market given the lack of grass feed available across southern Australia that’s resulting in an increase in demand for intensive feeding,” Mr Gunner said.
Wanderribby was purchased by the Gunner family in 1990, and has been one of the foundations of their successful vertically-integrated beef business.
Perry Gunner, who is now winding back his cattle industry activities, and son Richard control a supply chain starting from seedstock and commercial cattle production to lotfeeding, the award-winning Coorong Angus Beef brand, and a successful wholesale/retail meat operation trading in several states as Richard Gunner Fine Meats.
The yard is located in an area of abundant grain and cattle supply, with favourable climatic conditions for feedlot operations. About 1000ha of country is established to lucerne, with a similar area of native and improved pasture.
“The facility has achieved MSA scores that put it in the top 5pc of performers within the nations’ feedlot operators, and we’re excited at the prospect of presenting such a highly regarded feedlot with substantial and high quality land assets to the market during a period of significant international interest in the Australian beef industry,” Colliers’ Tim Altschwager said.
He said the yard had expansion potential, was close to major meat processing facilities at Murray Bridge and Naracoorte, and sat in a large catchment area for high quality cattle coming out of the South East of SA and Victoria’s Western District.
“There is a significant trend towards higher slaughter weights in Australia to increase beef output and one of the best ways the Australian industry is going to keep up with the demand is to put greater numbers of cattle through feedlots,” he said.
Colliers International’s agents Jesse Manuel and Tim Altschwager are handing the sale.
Wanderribby is in close proximity to meat processing facilities and has access to large supplies of grain and hay.
“There is a significant trend towards higher slaughter weights in Australia to increase beef output,” Mr Manuel said in a Colliers statement.
“The only way the Australian industry is going to keep up with global beef demand is to put greater numbers of cattle through feedlots. This places increasing reliance on facilities like Wanderribby, which is very well placed to benefit from this market trend.”