Harvey Beef has been sold to mining billionaire Andrew Forrest in a deal believed to be worth $40m.
Harvey beef is WA’s biggest beef exporter, and the only one accredited for exports to China, The West Australian reports.
Forrest pledged to invest in upgrading the abattoir which processes about 145,000 cattle per year and plans to open up live cattle exports to China.
The deal signed in Perth between Forrest’s company Minderoo and a Hong-Kong based private equity fund returns Harvey Beef to local hands for the first time in almost a decade.
“Following detailed discussions with the Chinese leadership, we are determined to ensure that the Australian agricultural industry’s future in China is just as bright as our mining future,” Forrest said.
The Harvey Beef plant is 140km south of Perth and employs about 300 people.
“We hope this acquisition will send a strong message of confidence in the future of the industry,” Forrest said. “To provide confidence to increase supply and make Australia the supplier of choice to meet Asia’s long term food security requirements.”
Forrest has been pushing to secure a deal with China for live cattle exports since last year.
Forrest and Australian agribusiness Elders have been working together to create a supply chain into China and talks with senior Chinese officials in WA surrounding the relaxing of Beijing’s strict quarantine laws represent a significant step towards the venture becoming a reality.
Minderoo will take ownership immediately and has no plans to change the current management team.