T&R Forges Ahead after Buyout

T&R Pastoral is now under the sole ownership o the Thomas family, following the buyout of the Rowe family’s share in the State’s largest meat processing company.
T&R’s executive director Darren Thomas said this week he and his father Chris took the reigns of the company in June but would not officially settle on the takeover until Christmas.
It meant “business as usual” for producers, with the company processing 14,000 sheep and lambs and 900 cattle a day.
“It was a very amicable agreement between the two families who have been in business together for 40 years and nothing about the new ownership will affect producers,” Mr Thomas said.
“We will continue to grow our business through further acquisitions, and the takeover shows that Chris and I have a great faith in and are committed to the SA meat industry.”
Takeover plans had been on the cards for several months and the mutual decision would allow the Rowe family to concentrate on  its “agriculture production”.
“The company will remain in the family ownership, not foreign, and both parties are lucky that they have been able to pursue their own interests,” Mr Thomas said.
“Chris and Bob have been in business for decades and the families have been successful in building a small trading operation into one of  Australia’s top processors.”
Simon Rowe would continue to represent T&R at the Dublin saleyards and remain a large supplier of livestock to the company.
Mr Thomas said the current conditions – such as the $A continuing to drop – would not necessarily result in gains for producers.
“The dropping $A has got to be positive for our export market primarily because our product is more affordable for customers,” he said.
“But prices do adjust with deprecation on exchange prices, so I don’t think producers can necessarily assume that they will get more money.”
Because of the rapid depreciation of the $A, the market would take time to settle down and gain more confidence.
“A lot of importing countries are sitting on their hands and waiting to see where the prices and exchange rates will settle,” he said.
T&R bought 85 per cent of its stock direct on-hook and had sailed smoothly through the shortage of lambs this winter because of its strong relationship with direct businesses across SA.
The company also dealt with seasonal fluctuations in paddock supplies through forward contracting and major risk management strategies.
“Unlike our competitors we have maintained tow shifts a day, five days a week because of our relationship with livestock suppliers.”
An increase in livestock for marginal cropping regions was on the cards because of to the unreliability of recent seasons.
“People need to understand that they have to get the balance right – you can’t go one way too much because you’ll burn,” Mr Thomas said.
“The future for SA meat industry is bright because the world will continue to demand food from Australia.”
“I think it’s healthy to have a livestock balance on any property with any sort of cropping.”
Apart from the Wall Street crisis, the softening $A and lack of livestock numbers would keep meat prices firm for now.
Mr Thomas said the family had taken over T&R in a period of prosperity because Australia was well-placed to capitalise on demand.
“The world will struggle to feed itself and Australia is well-placed to capitalise on that strong demand,” he said.

By Emma Partrige  (Stock Journal 16/10/08).

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