Elders to sell Indonesian assets

AGRIBUSINESS Elders has decided to sell its underperforming feedlot and processing assets in Indonesia, and will extend its agricultural chemicals business and livestock agency operations in Australia.

Elders Indonesia operates a feedlot with a capacity of about 8200 head, as well as an abattoir.

Elders has decided to sell the assets, following a performance review which showed they were performing below the required return on capital.

“High cattle costs and changing Indonesian governmental policies have adversely affected the performance of our Indonesian business, making it appropriate to divest these assets,” Elders chief executive Mark Allison said yesterday.

Mr Allison said Elders will still have a presence in Indonesia — along with China and Vietnam — through its retail meat distribution businesses in those countries.

Elders also said it has agreed to acquire Titan Ag, an Australian-based producer and supplier of crop protection and animal health chemicals and fertiliser, which has been selling its products in Australia through Elders.

Elders is also set to buy Kerr & Co Livestock, the largest independent livestock business in southwest Victoria, which handled about 416,000 sheep and 16,000 cattle last year. AAP