ELDERS has announced the sale of its Killara feedlot, telling the ASX this morning that it had entered into an agreement to sell 100pc of Killara’s shares to a major southern processor.

The announcement said the agreement was for the Australian Meat Group to purchase the operation for about $195.8m.

The sale is subject to approval from both the Foreign Investment Review Board and Australian Competition and Consumer Commission. Dependent on the success and timing of these approvals, Elders expects the sale to complete prior to 30 June 2026.

Killara operates as an integrated grain-fed and grass-fed beef production facility in the Liverpool Plains region of NSW. It has a combined annual throughput of approximately 62,000 head of cattle and sits on 1,402ha of freehold land.

The feedlot came in at number 17 on Beef Central’s 2023 top 25 biggest lotfeeders list, with a one time capacity of 22,000 head – feeding for short-fed supermarket programs, mid fed Angus programs and some Wagyu. It is managed by Andrew Talbot, who also sits as a director on the Australian Lot Feeders’ Association board.

It was put on the market at the end of last year, alongside a series of other significant feedlots – including Mort & Co’s Yarranbrook and Pinegrove feedlots and the Smithfield feedlot.

Elders managing director and chief executive officer, Mark Allison, said Killara has long been a successful and valuable part of Elders’ products and services portfolio.

“We feel for Killara to continue to grow and develop as a blue chip operation, it is appropriate for it to move to a more natural owner, and we have found this in AMG.

“The sale at this time supports our value creation strategy for Elders’ shareholders,” he said.

“We thank Killara management and its employees for their contribution to Elders.”

Source: Elders