AUSTRALIA – GrainCorp has acquired XF Australia’s (XFA) Performance Feeds and Nutrition Services Australia (NSA) businesses.
XFA, renowned for its high-quality feed supplement products and expertise in nutritional consulting, has long been a trusted partner to Australia’s feedlot and grazing sectors.
With an annual provision of over 400,000 tonnes of feed across Australia and New Zealand, GrainCorp’s Animal Nutrition business is already a significant player in the market.
The addition of XFA’s capabilities is set to further bolster this position, particularly in molasses-based feed and other supplements.
Moreover, the acquisition is expected to accelerate the development of sustainable feed solutions, including products derived from Asparagopsis seaweed.
Commenting on the acquisition, Robert Spurway, Managing Director and CEO of GrainCorp, expressed his enthusiasm, stating, “GrainCorp is excited to welcome the XFA teams into our Nutrition and Energy business and expand our Animal Nutrition offering to Australian producers and customers. Performance Feeds and NSA have long been recognized for their expertise in providing feed supplements and nutritional consulting services within the Australian livestock industry.”
The acquisition brings under GrainCorp’s umbrella a portfolio of well-established brands, including Molafos, Rumifeed, Energo, Performance Feeds, Anipro, WeatherPro, and crude molasses and dry feeds.
Dr. R. Hollis Klett, founder and principal shareholder of XFA, expressed confidence in the acquisition, stating, “After 38 years of success, I wanted to work with a company aligned with our culture and capable of supporting us through our next growth phase. GrainCorp’s commitment to service and quality products reassures us that our customers will be well supported into the future.”
The financial details of the transaction remain undisclosed, but the move underscores GrainCorp’s determination to broaden its reach and enhance its offerings in the animal nutrition segment.
Competition police approve acquisition
In December 2023, the Australian Competition and Consumer Commission (ACCC) reviewed the proposed acquisition and concluded that it is not likely to substantially lessen competition in any market in Australia.
The ACCC conducted a review to assess the level of competition between GrainCorp and XF Australia. The focus was on whether the proposed acquisition of XF Australia would result in a significant reduction in competition in the supply of animal feed supplements in regional markets across the east coast of Australia.
Another focus of the review was whether the acquisition would provide GrainCorp with the ability or incentive to restrict the sale of molasses to other third-party distributors and competing producers of animal feed supplements.
“After carefully examining the molasses supply arrangements between GrainCorp, XF Australia, other animal feed supplement suppliers and sugar mills, we concluded there would be no substantial lessening of competition,” ACCC Commissioner Stephen Ridgeway said.
For all the latest grains industry news from Africa, the Middle East, and the World, subscribe to our weekly NEWSLETTERS, follow us on LinkedIn, and subscribe to our YouTube channel.
