Property Profile: Cattle feedlots

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In October 2018 RFF acquired five cattle feedlots located across NSW and Queensland. The feedlots, listed individually below, with a combined capacity of 150,000 head at acquisition, and are leased to JBS Australia Pty Ltd for 10 years.

1. Riverina Beef - Located in Yanco, NSW,

2. Prime City - Located in Griffith, NSW,

3. Caroona - Located in Quirindi, NSW,

4. Mungindi - Located in Mungindi, QLD,

5. Beef City - Located in Toowoomba, QLD,

JBS overview

Founded in Brazil in 1953, JBS S.A. (JBS) is the world’s largest beef producer and operates across multiple countries including the United States, Australia, United Kingdom, Mexico, Canada, Europe, and New Zealand. Their global presence and extensive operations allow them to be the leader in beef production and processing.

Listed on the Brazilian Stock Exchange (BVMF: JBSS3) JBS has a market capitalisation of BRL$70.6 billion, or approximately AUD$18.7 billion.

Locally, JBS owns JBS Foods Australia, the country's largest meat and food processing company, with 74 locations.

The role of lot feeding in beef production

Feedlots are an integral part of the supply chain of one of Australia’s largest agricultural industries. A cattle feedlot is a managed facility designed to provide livestock with a balanced, nutritious diet aimed at producing beef of consistent quality and quantity.

According to the Australian Lot Feeders' Association (ALFA), about 4% of Australia’s cattle population is in feedlots at any given time, with grain-fed beef accounting for 30-40% of Australia’s total beef production.

The cattle feedlot industry is a significant contributor to the Australian economy, contributing $4.6 billion and employing around 2,000 people directly.

Sustainability

JBS Australia outline their sustainably approach includes practicing environmental stewardship, social responsibility, and economic viability for the benefit of livestock, people, and the planet.

The company is also working toward achieving net-zero greenhouse gas emissions by 2040. JBS Australia recently announced two bioenergy systems located at their processing facilities which provide reductions in carbon dioxide equivalent emissions across both sites.