Article by Andrew Marshall courtesy of the Land.
Privately owned agribusinesses thrived on good seasons, heady markets and strong demand during 2022 with the farm services sector a standout performer among Australia’s top 500 private companies.
Agriculture, fishery and forestry support service operators generated almost 57 per cent more revenue, on average, last financial year than in 2020-21.
It was the largest revenue growth performance of any sector in IBISWorld’s ranking of the nation’s top private companies, although building industry firms, representing about 10pc of the top 500 companies, made the most revenue – $25.6 billion.
Notable farm support services players in the top 500 included Queensland-based feedlot, stockfeed, fertiliser, transport and export beef operation, Mort and Co, ranked 127th on the list with revenue estimated at $527 million.
NSW-based farm supplies and advisory company, AGnVET Services, placed 135th with revenue estimated at almost $500m, and east coast dairy processor and farm supplies co-operative, Norco, ranked strongly in 88th spot, with revenue of about $675m.
Crop chemical producer, Corteva Agriscience Australia, placed 398th after a 33pc revenue rise to $179m, while North West NSW-based farm inputs suppliers, McGregor Gourlay and B and W Rural (a joint venture with Elders), ranked 446th and 469th with respective revenues of $159m and and $151m.
However, leading the charge for agribusiness in the top 500 list was big West Australian grain handling, marketing and processing co-op, CBH, powering home in third place overall, with a 31pc revenue jump to $4.2b.
CBH came in behind Anthony Pratt’s Visy company ($9.3b) and Australia’s top performing private business, Gina Rinehart’s Hancock Prospecting, which has now held the top spot for three years.
The Perth-based Hancock company includes Mrs Rinehart’s Hancock Agriculture pastoral and feedlot beef enterprise, which has been in the news of late as she prepares to sell 2.4m hectares of S. Kidman and Company pastoral country in northern Australia bought in 2016.
Australia’s richest person, whose wealth last year was calculated by rich list analysts at about $34b, achieved an 11.7pc revenue lift from Hancock’s operations to $19b in 2021-22.
In total, Australia’s top 500 private companies recorded $277b in revenue – up 11pc on the previous year – and averaged about $596m each.
More than three quarters of businesses on the list enjoyed revenue growth last year, up from 60pc in 2020-21.
While WA’s biggest private companies continued to grow bigger, NSW and Victorian firms accounted for 63pc of all the revenue generated by the top 500.
Meaty performers
Meat processors were notable performers in 2022, with South Australian-based Thomas Foods International rating as our 15th biggest private business after lifting revenue 9.5pc to an estimated $2.48b, just ahead of Brisbane’s Teys Australia at $2.43b.
However, Teys’ performance bucked the growth trend, with revenue down almost 20pc on the previous year.
Victoria’s Midfield Group placed 42nd after a 12pc revenue lift to almost $1.4b and WA’s farmer-owned lamb processor, WAMMCO, generated almost $500m after a 27pc revenue rise to 137th spot, while another prominent WA meat processing and seafood name, Craig Mostyn Group, placed 237th.
Other red meat processors and traders to make the list included Melbourne’s Australian Lamb Company (157th), Ausfine Foods International (376th) and Pacific Meat Holdings (473th).
Interestingly, farmer levy-backed peak marketing and research body Meat and Livestock Australia scored an entry on the top 500 list, too, in 272nd spot with revenue of $258m – down about 1pc.
Sydney-based poultry meat giant, Baiada, chalked up almost $2b in estimated revenue to be 29th; Victoria’s Turosi placed 87th; Hazeldene’s Chicken Farms, 192th, and big Queensland egg producer, Sunny Queen Farms 160th.
