NEW England meat processor, Country Fresh Australia, has ended 12 months of speculation by announcing the sale of both its domestic and international infrastructure.
South Australian processor, T and R Pastoral, has agreed to buy the Jackson family’s business lock stock; from its Tamworth and Wallangarra abattoirs, to its Coffs Harbour distribution plant, and its overseas offices in America and China, subject to regulatory approval.
Country Fresh Group chairman, John Jackson, Armidale, said the family had been in talks with several potential buyers but would neither confirm or deny that big South American meat giant, JBS, was among the suitors.
Neither would he disclose a sale price.
T and R’s owners, the Thomas family, have been in talks with the Jacksons for some time, and also recently secured a 50 per cent share in leading chilled red meat import and distribution company, Foodcom International, which primarily operates in the United States.
T and R celebrated its 10th birthday last December, having grown to supply 80 countries from its two South Australian processing plants at Murray Bridge and Lobethal.
Its three brands, Clare Valley Gold, Murraylands Premium and Murray Bridge Meats generate annual turnover of more than $500 million.
T and R Pastoral has pledged its acquisition will lead to more jobs, at least at the Tamworth abattoirs – which the Jacksons only last year spent $9.3 million streamlining.
In January the Jackson family shutdown the night shift at Tamworth, displacing 137 workers, while the Wallangarra plant on the Queensland border ceased production twice last year in July and in October.
Sheep shortages were cited as the reason, along with the high Australian dollar and competition from live exports.
T and R Pastoral is, however, unfazed by the shortages, with chief executive officer, Darren Thomas, saying the acquisition would be a “strategically good fit” and expected it would be “business as usual” post transition.
“T and R is under no illusion that the processing sector will encounter tough times as the flock rebuilds, and there is no doubt the industry is going through structural change at the moment, but we are excited about the opportunities that lay ahead,” he said.
Mr Thomas said immediate plans were to maintain or increase shifts at Tamworth and Wallangarra – which returned to operation in December – and for business to be “as usual”.
He also believed sheep shortages would soon plateau.
“With the addition of the Country Fresh buying team to our own resources we will have greater access to livestock throughout the eastern States,” he said.
Mr Jackson described the sale as a satisfying deal.
“We’ve had a family friendship spanning 10 years so when we recently got talking we came to this arrangement,” he said.
He was proud to be passing a successful meat operation to another “100pc Australian owned company”.
Estimates place the Country Fresh workforce at about 450 and Mr Jackson, said these employees would be a valuable commodity to the Thomas family.
“We thank our loyal staff for contributing to our growth and success.”
The Jacksons, who have been regular attendees at sales across northern NSW for decades, plan to consolidate their beef and sheep grazing enterprises – remaining in the livestock industry.
Mr Jackson was last week quoted as saying: “We didn’t want to pass an opportunity that we thought was good for the family.”
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