The new company Bindaree Beef Group would integrate both the production and marketing and logistics of the two companies, according to a statement concerning the deal.
Sanger would continue to operate as an independent subsidiary in the “no money” merger, it has confirmed.
‘Period of consolidation’
“During a period of recent consolidation within the meat industry, we saw the opportunity to partner with our major supplier, who supports our customers with about 55% of their combined orders,” said Sanger chief executive officer Graham Greenhalgh.
Bindaree Beef director John Newton said: “The merger will also allow our livestock team to work more closely with the sales team to deliver better outcomes for our customers and producers.”
Sanger has expanded rapidly over the last five years, and has marketed and sold AU$650m of meat, supplying 350 regular customers around the world.
Record high levels
The merger comes as Australian cattle prices have been trading at record-high levels. In the latest report from the Meat & Livestock Australia in April, it revealed that the Eastern Young Cattle Indicator averaged 427 cents per kg.
Last week, the Department for Agriculture revealed that Australia has already exported more than half of its beef quota to the US this year.
Minister for Agriculture Barnaby Joyce has already said that the quota allocation system would be triggered if Australia reaches 85% of its US beef export quota before 1 October. At the current rate of usage this could occur by mid-August.