Gina Rinehart’s Kidman locks in sale of four historic cattle stations

The historic properties were put up for sale in November, prompting months of rumours about who would take over the holdings.

Gina Rinehart’s companies are shifting focus away from live exports and towards eastern processing markets.

Gina Rinehart-owned S. Kidman & Co has confirmed the sale of four properties, totalling 2.4 million hectares, in Queensland and the Northern Territory as the company continues in its new direc­tion.

The historic properties were put up for sale in November last year, prompting months of rumours in outback communities and within the beef sector about who would take over the holdings.

The sale includes three cattle stations in the grass-finishing Channel Country in southwestern Queensland. Durrie, Naryilco and Glengyle stations – totalling about 20,000sq km – were acquired by the Appleton Cattle Company, S. Kidman & Co confirmed in a media release on Tuesday.

Brunchilly Station in the NT was purchased by the Harris family, which owns neighbouring Rockhampton Downs.

The sale follows years of divestments, mostly in northern and Central Australia, as Ms Rinehart’s companies shift their focus away from live exports and towards eastern processing markets.

S. Kidman and Co, which was founded on the empire built by “Cattle King” Sir Sidney Kidman in the late-1800s, has been owned jointly by Ms Rinehart’s Hancock Agriculture and Chinese-owned CRED Pastoral since 2016.

Only three properties from the original Kidman portfolio remain, but the company now is primed to expand its footprint in higher rainfall areas in the east.

“The above sales have received all necessary statutory approvals and have settled, with formal handover to the new owners having just occurred,” the company said in a statement. “The sale of these properties is consistent with S. Kidman & Co’s strategy of divesting properties where significant investment has improved them by focusing on essential maintenance and specific areas, including improved animal welfare and employee safety, the use of technology and innovation and improvements across the herds.”

The company said the properties had been “purchased by Australians who are experienced in cattle operations”, but the purchase price was confidential.

S. Kidman & Co will retain existing properties in Queensland and the NT, but the divestment of the four stations reflects an ongoing strategy by the company to rekindle brand recognition and focus on breeding and fattening higher-margin santa gertrudis cattle, which spend up to 150 days on grain. Wagyu santa crossbreeds are marketed under a premium label, with heifers fed grain for 200 days and steers 350 days.

“S. Kidman & Co will further focus on expanding its grain-fed santa gertrudis and Kidman premium beef brands, which utilise a combination of santa and wagyu genetics and which are served both domestically and internationally in many premium restaurants,” the company said. “The sale of these stations will assist in providing further capital to focus on purchasing and improving other properties for S. Kidman & Co’s agricultural opera­tions.”

While S. Kidman & Co hones its focus on santa gertrudis cattle, Hancock Agriculture has been concentrating on growing its wagyu operation.

When Ms Rinehart purchased Kidman in 2016, the company was focused mostly on raising brahman cattle for the live export market, but it has become steadily more reliant on domestic processing as its focus shifts to eastern grazing lands in proximity to feedlots, processors and markets.

While the Channel Country properties offered good cattle-fattening options, the distance to markets created some log­istical issues.