AS one of the largest in its field in Australia, Allied Beef is a new company forging ahead in the beef industry, and a large part of its business is focused on quality Charolais-cross cattle.
Described by company director, James Maclean of Toowoomba, as a supply chain production, management and marketing company, Allied Beef is essentially a backgrounding operation for feedlots in southern Queensland and northern NSW.
Allied Beef has been operating for the past 18 months, based in Toowoomba, and was the brainchild of Mr Maclean, who has many years experience in the beef industry, including jobs as supply chain coordinator for the Meat and Livestock Authority and commercial manager for agent Mort and Co.
The establishment of Allied Beef has allowed traditional livestock producers to specialise on their own properties by providing a niche market, according to Mr Maclean.
"I believe traditionally, people on the land owned their properties and ran their own cattle, but I believe as we move forward there will be more specialisation on-farm," he said.
The Australian beef industry has grown at a rate of 10 percent per annum for the past 10 years, Mr Maclean said, and feedlots purchased between two and 2.5 million head of cattle each year.
"Feedlots are becoming more prevalent, and 50pc of all beef cattle produced is targeted to feedlots," he said.
"There are 80,000 beef cattle producers (private family operations) which make up the rest of the industry, so there is a hell of a lot of fragmentation in this sector."
As a result, Allied Beef has sought to become a select producer of beef cattle suited to the premium markets.
"We have standard production protocols for cattle and we try to deliver a fair bit of scale to accommodate what they (feedlots) want on a regular basis," Mr Maclean said.
"We have sought out what we call property partners and have developed arrangements with each one on an individual basis.
"Allied Beef purchases the cattle and then works out an arrangement to produce an article to meet market specifications."
The company currently has 30 production partners or properties, located throughout Queensland and NSW, ranging from Clermont in the north to Armidale in the south.
"We specifically have four different lines of cattle which are suited to a number of target customers," Mr Maclean said.
One of which is their Northern Prime line of cattle made up of 25pc Charolais-infused cattle.
Each line of cattle is suited to the environment and resources and location of the property.
"Charolais-infused cattle are ideally suited to most premium shortfed markets that the Australian feedlot sector supplies," Mr Maclean said.
"There is a very high demand for this type of cattle."
Allied Beef has a capacity to handle between 25,000 and 26,000 head of cattle, and prefers to have a minimum of 500 head on an individual property.
"Of that number, about a quarter of the cattle we handle would have a Charolais influence," Mr Maclean said.
"Our primary market is the 100-day shortfed market, supplying to feedlots and onto major processors in southern Queensland and NSW.
"Primal beef cuts typically go to Japan, Korea and the United States."
Mr Maclean said Charolais cattle or infused Charolais cattle, given their higher maturing body weight, had the capacity to grow out to a greater extent, and on average had a higher carcase weight.
"As a result, they have the ability to generate a higher return in the 100-day market," he said.
"Charolais-infused cattle are well suited to the commercial demands of the Australian feedlot sector."
Allied Beef is constantly buying cattle, predominantly on-farm, but when needed through the saleyards.
Livestock manager Cameron Lehman and Augathella-based buyer Peter Elmes travel around and visit the properties where Allied Beef has cattle (production partners) to check and monitor the cattle.
"They assist with the drafting of cattle to ensure customers' demands are met," Mr Maclean said.
"We work counter cyclical, and are proactive rather than reactive with our buying, but there is a risk.
"If we buy a lot of cattle now, we don't know if there will be good spring rain or even summer rain.
"Cameron and Peter and a network of other buyers attend sales from Albury/Wodonga to Central Queensland, and we may need to buy cattle from Blackall this week, but next week from Dubbo.
"As we are an active purchaser of weaner cattle, we are actively seeking communication with breeders who seek to offload those cattle and develop a relationship with backgrounding/feedlotting operators."
Allied Beef also has adopted best practice health protocols for its cattle, to help improve its on-farm and post-farm/feedlot performance.
"Most of our cattle are on properties for between four to 10 months, and are grown out to meet a predetermined weight," Mr Maclean said.
"Then all cattle are sold into feedlots to finish, but we do feed some cattle ourselves, subject to the market.
"We also assist in the management of non-owned cattle for a number of producers."
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