- 01Targets SeaFeed adoption across 480,000 cattle by June 2027.
- 02Teys gets conditional exclusive AU/NZ beef distribution; agreements rise to 541,000 head.
Sea Forest (ASX: SEA) has signed a distribution agreement with Teys Australia for broader commercial adoption of its methane-reduction product SeaFeed, targeting at least 480,000 head of cattle by 30 June 2027.
The agreement increases the number of cattle under Sea Forest agreements from 131,000 to 541,000 head, including those already contracted with Teys Australia.
Teys will become the exclusive distributor of SeaFeed for the beef industry in Australia and New Zealand during the agreement term, subject to meeting specified purchase volume targets.
The arrangement follows 12 months of SeaFeed trials within Teys Australia feedlots and runs initially until 30 August 2030, although Teys Australia may terminate without cause on 90 days’ notice.
If Teys Australia’s exclusive distribution rights cease, it will become a preferred distributor with access to the lowest pricing offered to other Sea Forest customers, adjusted for differences in transport costs.
Full Feedlot Utilisation
Subject to operational, animal welfare, product availability, and agreed pricing requirements, Teys Australia has agreed to continue using SeaFeed across its Jindalee, Charlton, and Condamine feedlots at no less than the recommended dosage.
Full utilisation across those feedlots is expected to represent about 70,000 head of cattle, while the broader 480,000-head target includes usage by Teys Australia and its customer network.
“This is a transformational commercial milestone for Sea Forest and a step change in accelerating industry-led adoption of methane reduction technology for the Australian agricultural sector,” chief executive officer Sam Elsom said.
“The agreement brings together two organisations with a shared commitment to practical innovation, commercial discipline, and delivering meaningful climate outcomes.”
“By combining distribution capability, customer relationships, operational know-how and carbon market opportunities, the partnership is intended to support adoption at scale and to make a material contribution to Australia's emissions reduction task.”
Beef Supply Chain Targeted
SeaFeed is a nature-identical formulation of the bioactive compounds of Asparagopsis, with which Sea Forest reports that it can reduce methane emissions from ruminant livestock by up to 80%.
The Teysdistribution agreement covers SeaFeed and future enhancements for the beef industry in Australia and New Zealand, with other territories able to be added by agreement between the parties.
Teys Australia’s existing customer relationships and distribution capability are intended to support wider availability of SeaFeed beyond its own feedlots, while the purchase targets determine whether its exclusive distribution status is maintained.
The deal forms part of Sea Forest’s strategy to commercialise methane-abatement technology through agriculture and downstream supply chains, with the company operating three Australian sites and supplying trials in the United Kingdom, Europe, and South America.
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