Australia’s second-largest free-range poultry farm, specializing in the production of chicken under the renowned Lilydale brand, is now on the market with an expected price exceeding $20 million. The Southern Cross Farms Portfolio, which transitioned to free-range operations in 2015, comprises four interconnected broiler farms located in South Australia’s lower and mid-north regions. Together, these farms encompass 29 poultry sheds totaling approximately 61,000 square meters and have the capacity to house around 947,200 birds per batch.
JLL’s Agribusiness team is overseeing the sale through an on-market Expressions of Interest campaign on behalf of the private seller. Chris Holgar, Senior Director at JLL, highlighted the opportunity for investors to secure a substantial stake in Australia’s multi-billion-dollar poultry industry, appealing to both current industry players and newcomers seeking entry at a significant scale. Holgar emphasized the farm’s modernization and the advantageous price expectation compared to its construction costs.
With the increasing demand for free-range and organic chicken, which currently represents a notable portion of the domestic market and is projected to expand further, Southern Cross Farms presents a compelling investment opportunity. The farm boasts extensive long-term grower agreements with Baiada Poultry Limited, a major chicken processor linked to Lilydale, ensuring a stable demand for its products.
Geoff Warriner, another Senior Director at JLL, emphasized Southern Cross Farms’ appeal as a self-sufficient operation with contemporary production systems. The farm holds a current Development Approval supported by Baiada to add eight additional sheds by 2027, a move that would seamlessly integrate with the existing infrastructure and reduce construction expenses.
The portfolio’s advanced facilities, including newly converted free-range broiler sheds, cutting-edge management systems, and on-site amenities such as a desalination plant and a large solar system, contribute to its operational efficiency. The presence of extensive accommodation, supporting infrastructure, and equipment further enhances its investment value.
Moreover, Southern Cross Farms boasts geographical separation among its farms, providing a biosecurity advantage against cross-farm contamination. This, combined with its access to water from the South Australian system and its proximity to Adelaide, offers potential for additional revenue streams or future development opportunities.
Jock Grimshaw, Associate Director at JLL, highlighted the evolving landscape of the Australian poultry industry, with a shift towards institutionalization from traditional family-owned farms. He emphasized the strategic importance of acquiring or expanding operations like Southern Cross Farms in this evolving market, which has seen a rise in consumer preference for chicken over other meats.
The Expressions of Interest campaign for Southern Cross Farms is set to conclude on November 21, presenting interested parties with a compelling chance to invest in a well-established, strategically positioned poultry operation poised for continued growth within Australia’s thriving agricultural sector.
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