Agribusiness

CopRice, Reid, Riverina expand in separate deals

Grain Central, February 5, 2021

AMBOS Stockfeeds at Young has been bought by Riverina. Photo: AMBOS

A PERIOD of consolidation and expansion is under way in the Trans-Tasman feedgrain sector as evidenced by three acquisitions which have taken place since December.

The first was CopRice’s purchase of Ingham’s dairy feed mill New Zealand, and associated dairy feed assets for around NZ$11.5 million, and announced on 18 December.

This was followed this week by Reid Stockfeeds’ purchase of Five Star Stockfeeds in Victoria, and Riverina (Australia) Pty Ltd’s purchase of AMBOS Stockfeeds in New South Wales.

CopRice expands to NZ

CopRice is owned by ASX-listed SunRice Group, and the Ingham’s assets is has purchased are at Hamilton in the Waikato district of the North Island, one of New Zealand’s major dairying districts.

“The sale reflects Ingham’s focus on optimising its core poultry business as part of its strategic objective to deliver more consistent, predictable and reliable returns to shareholders,” Ingham’s company secretary David Matthews said in a statement.

CopRice is an established manufacturer of feed for livestock and companion animals in eastern Australia, and its purchase of the Ingham’s assets have expanded its operational footprint into New Zealand, already a market for its Australian-made products.

In August last year, CopRice bought Riverbank Stockfeeds, a manufacturer cattle feed based at Leongatha in Victoria’s Gippsland district.

Riverina ups southern presence

On Tuesday, Riverina announced it was acquiring Ambos Stockfeeds at Young on the south-west slopes of NSW.

“This acquisition is an exciting and logical step for the company as the style and location of Ambos complements our existing business wonderfully,” Riverina (Australia) Pty Ltd managing director David Hunter said.

“Whilst Riverina has operated in the domestic grain-supply chain in eastern Australia from farm gate to end users for many years, it will be exciting to be once again manufacturing our feed products in the Riverina region of NSW.”

Riverina began in 1927 at Narrandera in the Riverina region of New South Wales.

It is an exporter of bulk grain, and its animal feed division operating in Queensland and NSW has five dry grain-based feed mills and one liquid molasses feed mill which primarily supply markets in both states as well as the Northern Territory.

The purchase of AMBOS provides Riverina a further distribution centre for packaged products to ag retailers in southern markets.

AMBOS Stockfeeds’ vendor Alan Threlfall said he “couldn’t be happier” with the sale.

“I am really looking forward to seeing Riverina take the AMBOS business and team forward as a great addition to their business,” Mr Threlfall said.

Reid buys Five Star

On Monday, Camperdown-based business Five Star Stockfeeds announced it was being acquired by Reid Stockfeeds.

In a statement, Five Star Stockfeeds directors Colin Symes, Heath Campbell and Linton Reilly said synergies between the two companies would contribute to a smooth transition of ownership.

“The Reid family have emphasised the fact that there will be no change to branding in the foreseeable future, and all existing employees will be offered ongoing employment,” they said.

Reid Stockfeeds was founded in 1982, and is now headquartered in Melbourne.

It has facilities at Colbinabbin in the Goulburn Valley, Trafalgar in Gippsland and Cobden in south-west Victoria, and will be taking over Five Star’s sites at Camperdown in south-west Victoria, and Gunbower in the state’s north.

Sources: Five Star Stockfeeds; Ingham’s; Riverina; SunRice.

 

 

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