Press

RM Williams branches out through alliance

By Asa Wahlquist
The Australian

THE famous RM Williams name will be linked to a range of premium beef, lamb, chicken and grain products—as well as carbon reduction and biofuel schemes—under a major new alliance unveiled by the bush outfitter.

Ken Cowley, whose family owns RM Williams, yesterday announced the creation of RM Williams Agricultural Holdings—a joint venture with rural investment company Primary Holdings International. Primary brings several properties to the new venture, which will develop a diversified portfolio of properties and companies to supply "a full range of premium-branded organic and protein-based commodities, for both local and international markets".

Mr Cowley, who bought out his partners in RW Williams in 2003 to take the company private, will be chairman of RMWAH. He is a former chairman and chief executive of News Limited (owner of The Australian). RMWAH executive director Hamish Turner, the chief executive of RM Williams, said the new company was the culmination of "a number of years of work from both Primary Holdings and from RM Williams", which owns 40 stores in Australia and sells its boots and clothing in at least 15 countries.

"This business is based on strategic investment and partnerships to grow the Australian agricultural industry in an intelligent and commercially and environmentally responsible manner," he said. "We are excited about the future of RMWAH. The enduring and authentic nature of the iconic RM Williams brand and how that translates into premium Australian foods is a very natural progression."

He said the company wanted to make sure its operations were environmentally responsible in terms of land management and agricultural process and were also "good for Australia".

Primary Holdings is run by two sets of brothers—Bob and James Tucker and Angus and Bryce Graham—who will all be on the new executive team, to be led by David Pearse. Last year, Primary Holdings bought two Northern Territory stations, Labelle and Welltree, for a reported $72.5 million. The properties, to be backed into RMWAH, are close to the coast and Darwin, ideally positioned for the live cattle trade.

Primary Holdings also owns Mirage Plains on the Warrego River in Queensland. Mr Turner said that property was well positioned to grow organic grain for human consumption and stock feed, and the new venture was considering operating a prime lamb business there. RMWAH is also in the process of acquiring the organic poultry business, Inglewood, in southeast Queensland.

And the company will also invest in forestry plantations and biofuel projects with the aim of reducing carbon emissions.

C-Quest Capital, a carbon value adding and trading company, has made a "substantial" equity investment in the new company.