Cargill, Teys to Combine Beef Businesses in Joint Venture

MINNEAPOLIS, May 10, 2011 /PRNewswire/ -- Cargill Beef Australia and Teys Bros (Holdings) Pty Ltd (Teys Bros) announced today that they have agreed to form a joint venture company.  The new company will be a 50-50 joint venture and trade under the name of "Teys Australia – A Cargill Joint Venture."  The proposed joint venture is subject to regulatory approvals.

Board representation will be shared equally by Cargill and Teys.  Allan Teys will be chairman, and Brad Teys will serve as the chief executive officer in the new company.  Geoff Teys will be responsible for cattle procurement.  The company's head office will be located in Beenleigh, Queensland.

The new joint venture will include the assets of both companies' existing beef processing and cattle feeding businesses as well as Teys' tannery and value adding facilities, and Teys' share of its wholesale divisions.   The combination of the two beef businesses will consolidate Teys' position as the second largest beef processor and exporter in Australia. The joint venture will have the capacity to process 1.5 million head of cattle per year.

"Since its humble beginning in 1946, Teys has become Australia's second largest beef processor and exporter with a reputation second to none. We are proud of this heritage and confident this partnership with Cargill, a global leader in the food industry, will create a world class company and a flagship for the Australian beef industry," stated Brad Teys, chief executive officer of Teys Bros.

Teys explained, "We are committed to providing growth and opportunity for Australian cattle producers through vigorous focus on efficiency and improved domestic and export opportunities.  The combination of Teys and Cargill brings together our combined strengths to provide the best support for Australian cattle producers. It strengthens our global marketing reach to expand markets for Australian beef and deliver best-of-class service to our strategic partners.  It's a winning combination for beef producers and Australia."

"Both Cargill and Teys are committed long-term to the Australian beef industry.  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," stated Bill Buckner, Cargill senior vice president.

"Our dedication to quality and food safety has driven progress and innovation throughout the industry, and we remain committed to always enhancing our role as an industry leader.  By joining forces with Teys, we will continue to aggressively pursue and create distinctive value that has a positive impact on our employees, customers and communities, as well as enhancing our overall business performance," Buckner added.

"We are committed to being the preferred employer in the Australian meat industry.  The new joint venture will improve job security and expand career opportunities for our employees.  All of our existing facilities will be part of the new company and continue to operate.  This will expand our flexibility to serve our customers and give us more opportunities to grow the business," stated Brad Teys.

Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services. Founded in 1865, the privately held company employs 131,000 people in 66 countries. Cargill helps customers succeed through collaboration and innovation, and are committed to sharing our global knowledge and experience to help meet economic, environmental and social challenges.  For more information, go to:  www.Cargill.com

Teys is the largest Australian-owned and second-largest beef processing company in Australia, processing one million cattle and turning over more than $AUD1.2B per annum. Teys comprises four modern beef processing facilities, a 30,000-head feedlot, a tannery, wholesaling divisions, and a value-added facility. For more information, go to www.teysbros.com.au

SOURCE Cargill

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