RFM Poultry ARSN 164 851 218

Fund Overview

RFM Poultry (RFP) operates large-scale chicken broiler farms under long term growing contracts with Baiada Poultry Pty Ltd and Turi Foods.

RFP’s highly experienced managers oversee the growing of approximately 30 million birds per annum, making it one of Australia’s largest chicken growers. RFP carries out its chicken growing activities in poultry farms situated in Griffith, New South Wales and Lethbridge, Victoria that it leases from Rural Funds Group (RFF).

Importantly, RFP does not own any chickens, and does not have any direct exposure to the chicken meat price. Baiada and Turi supply the day old chicks, necessary food and other inputs, and then collects the chickens for processing once they reach marketable weight. The payment that RFP receives under the contractual arrangements is based on the size of the chicken growing facilities that RFP leases and not on throughput.

RFP’s scale and investment in the latest technology produces an efficient operation that achieves competitive grow-out times and feed conversion rates.

The Fund was established from a demerger with the RFM Chicken Income Fund (CIF) in December 2013 and listed on the National Stock Exchange (NSX) in March 2014.

Assets / Operations

RFM Poultry (RFP) leases and operates the poultry farms owned by Rural Funds Group (RFF).

Figures 1 and 2 detail the number of sheds on each poultry farm.  The sheds range in age from eight to 32 years and all sheds provide a reasonable level of comfort, particularly heating and cooling for the chickens as they move about the sheds. All sheds are fully automated with farm managers able to monitor and modify temperature, humidity, food and water supplies quickly and easily. An extensive maintenance program undertaken by RFP ensures the sheds remain in good condition and are economically efficient to operate. RFP also adopts a policy of ensuring each shed is inspected three times daily to observe the chickens. These frequent inspections assist farm managers monitor the status of each shed, specifically the health and comfort of the birds.

Griffith Farms

Griffith, New South Wales (NSW), is one of the major chicken meat producing regions in Australia. The Griffith farms are located within eight kilometres of the Baiada processing plant and are the primary contributor to that plant.

Baiada’s processing plant is supported by 234 sheds, growing approximately 43 million birds per annum. RFP leases 134 of these sheds and is integral to the throughput. The processing plant supplies chicken meat to the NSW and Australian Capital Territory markets.

Figure 1: RFP poultry farms – Griffith

Lethbridge Farms

The Lethbridge farms are located north west of Geelong, Victoria, and comprise of four farms consisting of five sheds each. The Lethbridge farms supply chickens to Turi Foods.

Figure 2 shows summary information for the Lethbridge farms.

Figure 2: RFP poultry farms – Lethbridge

Financial Information

RFP Distribution History

¹Total distribution, including franking credits

RFP Net Asset Values

RFP is a result of a demerger with the RFM Chicken Income Fund (CIF) on 19 December 2013. The NTA as at the day of the merger was $6.8m.