Cargill, Teys to create beef j.v. in Australia
May 11, 2011
MINNEAPOLIS — Cargill Beef Australia and Teys Bros Pty. Ltd. are forming a 50-50 joint venture company called “Teys Australia — A Cargill Joint Venture.”
“Since its humble beginning in 1946, Teys has become Australia’s second largest beef processor and exporter with a reputation second to none,” said Brad Teys, chief executive officer of Teys Bros. “We are proud of this heritage and confident this partnership with Cargill, a global leader in the food industry, will create a world-class company and a flagship for the Australian beef industry.
“We are committed to providing growth and opportunity for Australian cattle producers through vigorous focus on efficiency and improved domestic and export opportunities. The combination of Teys and Cargill brings together our combined strengths to provide the best support for Australian cattle producers. It strengthens our global marketing reach to expand markets for Australian beef and deliver best-of-class service to our strategic partners. It’s a winning combination for beef producers in Australia.”
The joint venture will include assets of the beef processing and cattle feeding businesses of both companies as well as Teys’ tannery and value-adding facilities and Teys’ share of its wholesale divisions. The new company will have the capacity to process 1.5 million head of cattle per year.
“Both Cargill and Teys are committed long term to the Australian beef industry,” said Bill Buckner, senior vice-president at Cargill. “Cargill believes that combining Teys and our Australian beef business is the best way to grow and better serve our Australian and global customers. Our partnership will leverage the strengths of both companies.”