Teys Australia and Tasmanian feed additive maker Sea Forest have signed what Beef Central describes as the first grainfed cattle agreement aimed at cutting methane at significant scale. Under the distribution deal, at least an additional 480,000 head of feedlot cattle are to receive Sea Forest's SeaFeed additive by 30 June next year, on top of cattle already contracted with Teys.
SeaFeed products are designed to reduce the methane cattle produce. Some are based on Asparagopsis, a red seaweed that Sea Forest grows in land-based ponds; newer ones use factory-made compounds identical to the seaweed's active ingredient. The ASX statement did not say which will be used, but the agreement covers current and future product formats, including oils and lick blocks for cattle on pasture. Teys has trialled SeaFeed for the past 12 months at its Charlton, Jindalee and Condamine feedlots.
Teys becomes the exclusive distributor of SeaFeed for the beef industry in Australia and New Zealand, subject to purchase volume targets, and gets preferential pricing adjusted for transport. Within its own feedlots the deal covers about 70,000 head on feed at full use; the rest of the 480,000 target is cattle in its customer network. The agreement runs to 2030 with options to extend.
"Formalising this distribution agreement lets us help make SeaFeed available to a larger part of the supply chain, giving producers a practical option to consider as part of their own sustainability efforts," said Grant Garey, Teys Australia's feedlot general manager.
The economics are still being worked out. Methane-reducing additives typically cost at least A$1 per head per day, which adds about A$120 to a 120-day grainfed program. Beef Central understands Teys may not put low-carbon claims on packs; carbon credits from the additives could instead be sold to buyers such as airlines. An export meat trader estimated that if a low-carbon claim were carried only by the grilling cuts, about 40 kg of a carcase, it would add around A$3/kg, which "might be challenging" with beef prices near record highs.
Photo: Jean-Pascal Quod / Wikimedia Commons (CC BY-SA 3.0)
Source: Beef Central
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