Cargill, Australian Beef Co. Start Joint Venture
Wayzata-based Cargill, Inc., has formed a joint venture business with an Australian beef processing company called Teys Bros Pty., Ltd.
The companies announced their partnership, which is subject to regulatory approvals, on Wednesday.
The new entity will be a 50-50 joint venture between the two companies and will operate under the name Teys Australia-A Cargill Joint Venture. Board representation will be shared equally by Cargill and Teys, and the new company's headquarters will be located in Queensland, Australia.
Allan Teys has been named chairman of the new venture, and Brad Teys will serve as CEO. Both now serve in the same capacities at Teys Bros Pty.
The joint venture will have the capacity to process 1.5 million cattle per year. It will include the assets of both companies' existing beef-processing and cattle-feeding businesses in Australia, as well as Teys' tannery and value-adding facilities and wholesale divisions.
“Both Cargill and Teys are committed long-term to the Australian beef industry,” Bill Buckner, Cargill senior vice president, said in a statement. “Cargill believes that combining Teys and our Australian beef business is the best way to grow and better serve our Australian and global customers. Our partnership will leverage the strengths of both companies.”
Cargill-an international provider of food, agricultural, financial, and industrial products and services-is Minnesota's largest private company with annual revenue that exceeds $107 billion.