HARMONY Agriculture and Food Co's beef cattle feedlot in the Wheatbelt has been listed for sale.
With price expectations of more than $5 million, the property is being sold on behalf of secured creditor NAB, after Harmony went into liquidation in September last year and a receiver was appointed to take charge of the company's assets.
The WestBeef feedlot, at Burakin, has the capacity to hold 5000 standard cattle units (SCU), but has approval to hold an additional 2500 SCU.
The company paid $4.25m for the 1030ha feedlot in 2016 and was one of its first purchases.
Harmony sold its Esperance property Rancho East, of 1600 hectares for $3.4m in late-2018.
It's prestigious Victorian property Mt Fyans, of 5400ha was purchased by sheep farmers from the Riverina, by Ian and Camilla Shippen for $38m.
It still owns the Gerang Feedlot, near Dimboola, Victoria, which it bought for $3.1m in February 2018.
At its peak, Harmony had more than 17,000 head of livestock across its holdings and up to 40 employees.
The Harmony group blamed its Chinese backers, Dalian Hesheng Holdings, for being slow to provide equity funding, resulting in a breach of contract with JHW Paterson.
Spanning 1030 hectares, the feedlot is listed for sale through Jesse Manuel and Greg O'Meara, of Colliers International.
"In addition to cattle finishing, WestBeef can also be utilised as a quarantine depot and spelling facility, with these two important service offerings providing additional revenue opportunities," Mr Manuel said.
"As a result of the highs in red meat prices in recent years, an increase in the production and marketing of branded beef products and the national dry conditions result in lower grass feed volumes, demand for lotfeeding is currently strong.
"Further, grainfed cattle exports to China are increasing steadily, largely fuelled by the impact African swine fever has had on protein availability."
Co-selling agent Mr O'Meara said in terms of processing, WA had 12 privately-owned beef abattoirs including five with accreditation for international export.
"Two plants currently have Chinese accreditation and others are in the process of gaining Chinese accreditation," Mr O'Meara said.
Colliers International head of Agribusiness Transactions Rawdon Briggs said through his team's work in the feedlot sector, there had been a noticeable trend towards custom feeding facilities, largely driven by beef producers seeking a finishing system to ensure they can provide a consistent product to the market year-round.
"Custom feeding has also allowed feedlot operators to de-risk their businesses by removing the need to fund the purchase of cattle on feed," Mr Briggs said.
"While demand has been improving, buyers remain focused on quality assets within strategic locations to fodder sources and/or their preferred source of cattle, and in this regard, WestBeef is well-placed."
The property is for sale by expressions of interest closing on Thursday, April 16, 2020.
