WESTERN Australian-based agribusiness Craig Mostyn Group has announced its purchase of stockfeed manufacturer Patmore Feeds.

Patmore Feeds is located at Cuballing in WA’s southern wheatbelt and has a production capacity of 180,000 tonnes per annum in total of pellets for beef cattle, sheep, lambs and pigs.

The company primarily supplies livestock producers in Western Australia.

CMG chief executive officer Wayne Crofts said this acquisition provided the company with the opportunity to further support WA agriculture.

“We have consistently said that we see a bright future for Western Australia’s livestock sector,” Mr Crofts said.

“This investment backs that up and is a tangible demonstration of our confidence in our vital agricultural sector while aligning with our strategic plan to maintain security of supply.”

Mr Crofts said as the livestock sector continues to shift to backgrounding and feedlotting, CMG will be looking for ways it can expand at Patmore Feeds to support industry growth.

“Our focus is on lowering production costs, improving flexibility in recipe formulation to deliver a nutritionally superior pellet, and increasing pellet durability, resulting in higher feed conversion rates, among other things.

“The benefits generated from each of these will flow to the farmers who use Patmore Feeds pellets in their livestock operations.”

CMG owns and operates pig farms across WA, and acquiring pigs from third parties to produce pork at its abattoir and processing facility at Wooroloo in Perthy’s outer east.

Its meat products are sold under the Amelia Park, Linley Valley Pork and V&V Walsh brands.

The acquisition means CMG can now supply a significant proportion of its pig feed requirements.

The company’s other businesses include Talloman, Craig Mostyn Protein Trading and Jade Tiger Abalone brands.

ACCC approvals

The acquisition has already received support from the Australian Competition and Consumer Commission which signed off on the sale in March.

The consumer watchdog considered whether the acquisition would substantially lessen competition by giving CMG the “ability and incentive to foreclose rival” pig feed and sheep feed producers in southern WA.

It found that it was unlikely to be the case in both sheep and pig feed markets.

The ACCC said CMG’s current demand for sheep feed was not large enough to substantially affect rival operators, adding the company could also source pig feed from outside the Patmore operation to “ensure security of feed supply and mitigate production and welfare risks”.

Source: Craig Mostyn Group, ACCC