Poll Herefords will replace Bos Indicus beef on the world’s largest cattle station, the 2.36 million-hectare “Anna Creek”, which has now changed ownership as the long-running S. Kidman and Company takeover winds up.
Gina Rinehart’s Australian Outback Beef (AOB) syndicate has also made its $365 million bid for the remaining Kidman business “unconditional” after its 33 per cent Chinese partner, Shanghai CRED, gained approval for the deal from the Chinese government.
Completion of the Anna Creek Station sale to South Australia’s Williams Cattle Company late last week will see the new owners re-stocking the big 23,000 square kilometre spread with mostly Poll Herefords and Hereford-Angus cross cattle to service domestic beef markets.
“Anna Creek”, in northern SA,includes the historic 8877 square kilometre The Peake Station.
The exact sale figure has not been disclosed but has been mooted as nearing $20m.
Negotiations between Kidman and Co and the Williams family began in April when the federal government blocked the full Kidman estate sale to majority Chinese interests, including Shanghai CRED, quoting concerns about Anna Creek Station’s proximity to the Woomera rocket and defence tracking base.
The new owners are already planning improvements to the remote pastoral property including dam cleaning, yard upgrades, new bores, fencing and some road maintenance.
In “coming months” they will also de-stock “Anna Creek” under the terms of the sale agreement with Kidman, re-stocking with about 8000 surplus cattle from the Williams’ existing herds to concentrate on a southern Australian marketing strategy.
“Kidmans focused more on the live export market to the north, while our emphasis will be on the southern and domestic markets,” said Williams Cattle Co co-director, Tony Williams.
The Williams’ target markets for cattle up to two-tooth age at carcass weights between 260 kilograms and 320kg – something the past year’s good season has achieved comfortably.
Mr Williams said having a greater geographic diversity of country with “Anna Creek” and “The Peake” would enable him to meet those marketing goals more consistently.
The latest purchase effectively doubles the size of the Williams’ Coober Pedy-based holdings to about 45,000sq kilometres, with a combined carrying capacity of up to 35,000 cattle.
The expanded seven-station leasehold portfolio includes “Nilpinna” adjoining “Anna Creek”.
The five Williams families’ business began 50 years ago.
“We’ve dreamt about this for years,” Mr Williams said.
“It’s an iconic station in a perfect location for us.
“We’re obviously delighted the purchase has been finalised and know it will be a game changer for our company.
“Area is everything in pastoral holdings.”
The Williams also run a large holding and 3000-head capacity beef feedlot near Carrieton in SA’s Flinders Ranges.
The Carrieton operation also has 2400 hectares of cropping country and runs 6500 ewes to lamb.
Matt Williams and his wife Chantelle will be managing “Anna Creek” on behalf of Williams Cattle Co.
Meanwhile, AOB expects to shortly receive full shareholder acceptance of its takeover offer for the remaining S. Kidman and Co business, including the remainder of its 170,000-strong Santa Gertrudis-Shorthorn based herd.
About 99.95pc of shareholders have already agreed with the deal.
Mrs Rinehart was delighted by the support so far from Kidman shareholders for the offer.
“My executives and I are very much looking forward to meeting Kidman’s management team this week,” she said.
“I look forward to visiting the station managers in January, and getting to work with the Kidman staff to begin the next chapter in the history of Kidman.
“This is a historic time for (AOB partner) Hancock Beef and me personally, which is set to transform our beef business with further diversification of our pastoral interests across Australia.”
Her combined Hancock Beef and Kidman cattle herd will become the third largest in Australia.
Mrs Rinehart noted Kidman founder, Sir Sidney Kidman, and her grandfather, James Nicholas, owned stations and ran businesses together.
She has also welcomed Shanghai CRED’s role in AOB, acknowledging its chairman Mr Gui’s support for, and commitment to the Kidman bid and to “promoting clean quality Australian beef to the Chinese people”.
Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
