Sea Forest signs distribution deal with Teys Australia

Triabunna-based agricultural business Sea Forest has signed a distribution deal with Teys Australia, one of Australia’s biggest beef processors and exporters.

The agreement will increase Sea Forest’s total number of head of cattle under agreement from 131,000 to 541,000, including the existing 70,000 head already contracted with Teys Australia.

Under the deal, Teys will be the exclusive distributor of SeaFeed for the beef industry in Australia and New Zealand.

Sea Forest has been using Asparagopsis, a type of seaweed, to produce a livestock feed supplement that reduces methane emissions in cattle.

The company’s CEO and managing director, Sam Elsom, said the deal was a significant step forward for Sea Forest.

“It really shows that we are creating meaningful commercialisation across the industry, with us working with such a reputable industry partner in Teys,” Mr Elsom said.

“It sees us taking our science and innovation and creating real impact for the industry, so it’s huge.”

The commercial terms of the agreement include the stipulation that both companies “will work in good faith and use reasonable endeavours to achieve a target of at least 480,000 head of cattle on feed by the end of the 2026-27 financial year”.

Mr Elsom said he was confident that that target could be reached.

“There’s 1.8 million head of cattle across the grain-fed beef space in Australia, so it represents a meaningful but not overwhelmingly unachievable section of that market.

“Our team have been working over the past few years developing relationships with industry partners that exist within that network, educating nutritionists, and working with existing customers who are seeing fantastic results from the use of SeaFeed.

“The work we have done in parallel to securing this agreement and building confidence across the industry and awareness puts us well placed to be able to achieve that.”

Sea Forest has built a new distribution hub in Newcastle, which is currently being commissioned.

“This new deal will not change our production,” Mr Elsom said.

“The Newcastle hub adds an additional 300,000 head of cattle that we can feed on a daily basis, in addition to the 500,000 cattle that we can service from Tasmania.

“We’re starting to get to our total production capacity, which is exciting for us.”

Along with Teys, Mr Elsom said Sea Forest has been working with organisations and businesses such as TasFarmers, Woolworths and DIT AgTech to build a business case for how its products deliver economic and efficient outcomes for primary producers.

“We know how the product works, and if we can demonstrate that it delivers positive unit economics on farm, then I believe that opens us up to an enormous opportunity to service what is 30 million head of cattle across Australia.

“That’s the holy grail for the business.”