One of Australia’s largest grainfed beef producers, Toowoomba-based Mort & Co, has announced plans to sell some of its feedlot assets as part of a strategic business restructure. The decision, communicated to staff and key stakeholders, marks a significant shift for the company, which is known for its substantial presence in the beef industry.
The move involves selling the Pinegrove and Yarranbrook feedlots in southern Queensland, both of which have considerable potential for expansion. This decision comes as Mort & Co seeks to adapt to changing shareholder interests and market conditions. Major shareholders, including Charlie Mort and board chairman Richard Hughes, have played pivotal roles in the company’s growth, but the Hughes family now plans to exit the business to pursue other ventures.
Background and Strategic Intent
Mort & Co’s decision to restructure follows a period of strategic evaluation, driven by the need to align with shareholder requirements and investor feedback. The company, which has been a cornerstone in the Australian beef industry for over two decades, is responding to evolving market dynamics and the interests of its shareholders. The Hughes family, a foundational shareholder, has been instrumental in the company’s development, but their departure signals a new chapter for Mort & Co.
The sale of the Pinegrove and Yarranbrook feedlots is part of a broader strategy to optimize the company’s asset portfolio. Pinegrove, located near Millmerran, operates under a license for 9,698 Standard Cattle Units (SCU) with approval to expand to 21,100 SCU. Meanwhile, Yarranbrook, near Inglewood, recently received approval for expansion to 35,000 SCU, demonstrating its growth potential. Mort & Co acquired Yarranbrook outright in 2023, having initially entered into a joint venture with Wagyu producers Stone Axe Pastoral in 2019.
Expert Insights and Market Context
Industry experts view Mort & Co’s restructuring as a strategic pivot in response to market demands and shareholder interests. According to sources, the company’s capital raising efforts, which began earlier this year, attracted significant interest from both domestic and international investors. However, no suitable offers were received for an equity stake in the entire business, prompting the decision to sell individual feedlot assets.
“We, as a board and a company, recognize the potential for those three sites and firmly believe the future success of both Yarranbrook and Pinegrove feedlots is in the ability to expand and meet the growing grainfed beef requirements worldwide,” said Charlie Mort, executive chairman and founder.
The sale of Yarranbrook and Pinegrove follows a recent trend of feedlot sales in the industry, including the notable sale of the Rangers Valley feedlot to Stanbroke Beef for nearly $400 million. This trend underscores the growing interest in feedlot operations as key components of the beef supply chain.
Implications and Future Prospects
Mort & Co’s restructuring aims to unlock the high value of its assets while ensuring continued growth and success for its operations. The sale is expected to provide a capital inflow for shareholders and create opportunities for expansion at the Pinegrove and Yarranbrook sites. The company is also offering its interest in the proposed Gogango feedlot, a greenfield site with approval for a 36,500 SCU feedlot.
Stephen O’Brien, Mort & Co’s chief executive, emphasized the importance of the company’s workforce in maintaining its reputation and operational excellence. He noted that the assets are more than just physical infrastructure; they represent entire business operations supported by dedicated employees.
“These assets are not simply a ‘bricks and mortar’ sale,” O’Brien stated. “They are whole business operations made valuable by our people on the ground who continue to keep the Mort & Co brand reputable.”
As Mort & Co navigates this transition, the company’s focus remains on strategic growth and adaptation to market needs. The sale of key assets is a testament to the company’s ability to pivot and seize new opportunities in the ever-evolving beef industry landscape.
Looking ahead, Mort & Co is poised to continue its legacy of innovation and excellence, leveraging its remaining assets and expertise to meet the demands of the global grainfed beef market. The restructuring represents not only a response to current challenges but also a strategic positioning for future success.
