Teys gets closer to US end-customers through Cargill distribution deal

Jon Condon, 20/10/2013

The Teys Australia Cargill joint venture has announced a closer alignment over the distribution of the company’s Australian beef products into the US market.   

Under the agreement, Cargill’s US Food Distribution division, which has nine large cold-storage distribution centres scattered strategically across the US, will bring high quality Australian beef to US restaurants and dinner tables.

The distribution agreement will carry a variety of Teys Australia beef products from its portfolio of grass and grain-finished beef brands. Cargill Food Distribution provides quality fresh meat products to retailers, further-processors, distributors and other institutions throughout the US.

Teys Australia spokesman Tom Maguire said the agreement in simple terms was about getting Australian beef as close to the end-user in the US market as possible.

Previously Teys Australia beef into the US has gone through various channels, predominantly via importers/ and or traders, but a much larger portion of that would now go through the Cargill Food Distribution network.

“It’s about the continuing push within the company to build closer relationships with North American end-customers, whether they be in the food service, supermarket retail or manufacturing sectors,” Mr Maguire said.

The distribution agreement was another step in the collaboration between Teys Brothers and Cargill which started with the establishment of the Australian processing joint venture in mid-2011 (see Beef Central’s original news-breaking report here).

“Lots of synergies between the two businesses were going to evolve over time, and this is another example of that,” Mr Maguire said.

In a statement to the US market, Cargill Food Distribution’s  John Niemann said Teys was a known and trusted Australian beef processor that had built its reputation for offering quality products over the past 67 years, and Americans would now be able to enjoy those products “without having to travel Down Under."

"We have a long-standing business relationship with the Teys family, and believe Americans will embrace their company's beef products when they have an opportunity to try them," Mr Niemann said.

The statement said as a vertically integrated business, Teys managed every aspect of beef production, from cattle production and feedlot operations, meat processing and distribution, creating a cost-effective supply chain that provided value to commercial customers and consumers.

Chicago-based Teys USA general manager Michael Forrest said Teys was excited by the opportunity to offer its high quality Australian beef products to American consumers through the Cargill Food Distribution network.

"The agreement with CFD will allow both Teys Australia and CFD to offer existing and new customers an unrivalled range of products and the highest level of customer service in the industry," he said.





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