The poultry growing farms are located in Griffith, New South Wales, and Lethbridge, Victoria
There are 17 farms in total, consisting of 154 sheds aged between 8 and 32 years. As at 30 June 2018 the poultry farms were valued at $80.8 million. There is a small number of related water entitlements owned by RFF which are held in the Murrumbidgee Irrigation Area.
All sheds provide shelter, heating and cooling for the chickens. All sheds are fully automated with farm managers able to monitor and modify temperature, food and water supplies quickly and easily. An extensive maintenance program is required by the lessee RFM Poultry (RFP) to ensure the sheds remain in good condition and are economically efficient to operate.
The majority of the farms are located in Griffith, which 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. The Baiada processing plant supplies chicken meat to the national market.
The farms are leased to RFP which operates the farms in accordance with chicken growing contracts with Bartter Enterprises Pty Ltd and Turi Foods Pty Ltd.
Bartter Enterprises Pty Ltd is a wholly owned subsidiary of Baiada Poultry Pty Ltd. Baiada is a national poultry processor established in the 1950’s, which acquired Bartter Enterprises and the Steggles brand in 2009.
Turi Foods Pty Ltd is Victoria’s largest processor, distributing chicken products through major and independent supermarkets, craveable brands restaurants and other chicken outlets. Turi’s key brands include ‘La Ionica’, ‘Golden Farms’ and ‘Bannockburn Free Range’.
^Directors valuation consistent with management’s approach to depreciate assets
*Lease expiries weighted by forecast FY19 rental income