Elders Ltd, the Australian agribusiness group, has announced the sale of its Killara feedlot business in New South Wales to Australian Meat Group for $196 million. The Killara feedlot, located in the Liverpool Plains region, has a throughput capacity of 62,000 head of cattle. Elders provides a range of products and services to primary producers including rural products, agency services and financial services. It operates across rural Australia, providing essential support to farmers and the agricultural sector.
The company intends to use the proceeds from the sale to reduce its debt. Elders’ chief executive officer, Mark Allison, noted that the Killara feedlot business generated earnings before interest and taxes (EBIT) of $12.1 million in the 2024-25 financial year. “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,” Allison stated.
Last year, Elders completed the acquisition of Delta Agribusiness for $475 million, expanding its portfolio within the agricultural sector. The sale of Killara represents a strategic decision to streamline operations and optimise the company’s financial position.
Following the announcement, shares in Elders experienced a positive movement, rising by 2.1 per cent. The transaction is expected to have a positive impact on Elders’ balance sheet, enabling the company to focus on its core agribusiness activities.
