Elders to sell up offshore complex

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, and an abattoir.

Elders has decided to sell the assets after a performance review which showed that 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 would still have a presence in Indonesia – along with China and Vietnam – through its retail meat distribution businesses in those countries.

Mr Allison said exiting the Indonesia feedlot and processing facilities would allow Elders to redirect capital to the retail meat distribution business in Indonesia, and initiatives more aligned with Elders’ acquisition strategy.

Elders hopes to complete the sale of the Indonesian assets to PT Pramana Austindo Mahardika by June 30.

Elders also said that it had 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, and buy Kerr & Co Livestock, the largest privately owned livestock business in southwest Victoria.