Sea Forest Signs Teys Deal Targeting 480,000 Head of Cattle

Sea Forest (ASX:SEA) signed a distribution agreement making Teys Australia the exclusive distributor of its SeaFeed product for the beef industry in Australia and New Zealand, with a joint target of at least 480,000 head of cattle on feed by 30 June 2027.

The agreement lifts the total head of cattle under agreement from 131,000 to 541,000, including the existing 70,000 head on feed already contracted with Teys Australia. Teys, which has trialled SeaFeed in its feedlots over the past 12 months, agrees to keep using it across its Jindalee, Charlton and Condamine feedlots at no less than the recommended dosage, subject to operational, animal welfare and product-availability requirements and agreement on price. That use is expected to represent approximately 70,000 head at full utilisation. The initial term runs until 30 August 2030, with options to extend by mutual agreement. Teys must achieve certain purchase volume targets, including within its customer network, to keep exclusivity. If exclusivity ends, Teys becomes preferred distributor with the lowest pricing given to other Sea Forest customers, adjusted for transport costs.

The 480,000 head figure is a target the parties will use reasonable endeavours to achieve, not a commitment. Pricing is to be agreed on an ongoing basis, Teys may terminate on 90 days' notice without cause, and the release does not state expected revenue.