Allied Beef Completes Two Large Commercial Feedyard Investments
Allied Beef has made a significant commitment to the future of the beef industry in Australia with its two recent major feedlot purchases. The acquisitions are of Vandyke feedlot near Springsure in Central Queensland, and Gunyerwarildi feedlot near Warialda in northern NSW.
These large feedlot investments by Allied Beef are a natural extension to the work the company has previously completed using custom feeding services and leasing feedlots. The financial size of the recent investments is not known as the details remain private.
What is clear is that moving from a leasing focus to feedlot ownership gives Allied Beef the opportunity to build additional capacity and efficiency.
Key points
- Allied Beef has purchased two feedlots, Vandyke feedlot near Springsure in Central Queensland, and Gunyerwarildi feedlot near Warialda in northern NSW.
- The investment will help the company build additional capacity and efficiency which is good news for its future.
- The purchases also support improved sustainability and animal welfare both of which are vital considerations in the meat livestock in Australia and globally.
- Allied’s move is in line with industry trends to expand capacity.
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Sustainability and animal welfare at the centre of new investment
Improved sustainability and animal welfare are also integral to the recent feedlot investment by Allied Beef. The company is able to integrate pre-conditioning and finishing. It can also make use of surrounding cultivation to improve feeding efficiency. This is a more sustainable way of working.
It also helps to protect the health of cattle which is an essential aspect of operating within the beef cattle industry. So, this feature of Allied’s investment offers valuable advantages.
Benefits of diverse locations
A further advantage of Allied’s feedlot investment is the ‘north-south’ aspect of the two feedlots. This enables Allied Beef to overcome issues of seasonal variations in particular localities. It also provides the company with access to different cattle supply pools for each feedlot.
Allied has plans to expand the capacity of both feedlot sites. Overall, the capacity should reach a one-time operating capacity of approximately 35,000 head as well as an annual turnover of approximately 60,000 head. This will cover everything from Wagyu to mid fed cattle and domestic supermarket weights.
There is also potential for the development of the company’s international markets, but this is in its early stages.
Recent history of Vandyke and Gunyerwarildi feedlots
Vandyke feedlot first went on the market in 2018. Since then, it has been marketed several times. Now, Allied Beef, that previously leased the property, has purchased it. The purchase includes around 2,500ha of cropping and backgrounding country that surrounds the feedlot.
Currently, there is a license for around 9,500 head with present development of around 7,000 head. So, there is potential for growth.
Infrastructure of the feedlot includes:
- 36 pens
- Two hospital pens and yards
- Drafting and induction facilities
- Nine silos with a capacity of 1750t.
- Commodities shed
- Roller mill
- Weighbridge
- Generator shed
Gunyerwarildi feedlot, near Warialda covers around 6100ha. The property was developed by Ceres Agriculture that went into administration in 2019 resulting in some assets being sold.
The license at this feedlot is for 20,000 (around 23,000 head on feed) but the property is only currently developed for a capacity of around 7,000 head. This opens up good opportunities for Allied following the purchase.
Infrastructure of the feedlot includes:
- Silo storage of 5,500 tonnes.
- 70 pens
- Multiple cattle yards
- Sheds
- Workshops
- Housing
The future of the feedlots under Allied
At both Vandyke and Gunyerwarildi, the procurement of cattle and marketing will be managed by Allied’s general manager livestock, Grant Haddin. He will have support from Warren Hohnke in Toowoomba and Peter Elmes in Augathella.
Work at the feedlots is commencing now that the purchases have been completed. At Vandyke, Allied is setting up a new mill. The company also has plans to cultivate around 500ha for silage and hay production.
It’s worth remembering that Allied already feeds a combination of cattle on the property which it previously leased. This will continue now that it owns Vandyke.
Ceres used Gunyerwarildi for its Grain Assist feeding program prior to the sale of the property. Allied has no plans to continue with this and instead intends to revert to more conventional feedlot operations.
Work to expand the feedlot to its full capacity is expected to be completed over the next couple of years. The use of the property will be dedicated to custom feeding Allied owned cattle including F1 Wagyu, 150-200 day mid-fed Angus steers and some supermarket steers and heifers.
Overall, Allied Beef’s recent investments present exciting opportunities. They are also in line with industry trends to expand capacity.
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