Media Release
September 16, 2024
Balco on the move for global growth
Balco Australia has announced plans to build a new hay processing plant in South
Australia.
Located in Monarto, it will become the company’s fourth processing plant in Australia
and cement Balco’s position as one of the largest exporters of oaten hay.
At the same time as increasing its regional investment, Balco is moving to a new
head office in Adelaide.
“We’re in the midst of a major growth phase,” Balco Australia CEO Rob Lawson said.
“There is strong demand for high quality Australian hay across the world and we’re
looking to capitalise on the opportunity. We’re on track to sell 270,000 tonnes of
oaten hay this year, up from 190,000 tonnes last year.
“With the addition of a Monarto facility and continued expansion of our other existing
plants, our future annual processing capacity will extend to 400,000 tonnes.
“Dairy industries across Asia seek Balco hay to feed their cattle – from Japan and
China through to emerging markets in Vietnam, Indonesia and the Middle East. We
hold a positive outlook and we’re investing for the long term to position Balco as a
leading supplier to the global agriculture industry well into the future.
“While Balco is on a strong global growth trajectory, we remain firmly committed and
connected to our regional communities and our local growers.”
Monarto
Balco plans to build a new processing and storage facility on a 157 hectare
greenfield site in Monarto, which it has secured via the company’s major
shareholder, located within the region’s designated employment zone.
“The new facility, which we plan to be operational in approximately two years, will
allow more growers in the South East to add hay into their crop rotations,” Mr
Lawson said.
“We see potential for this facility to add a further 100,000 tonne processing capacity to our national operations and create local jobs.
“We will continue to invest in our other sites at Bowmans, Brookton and Raywood
including to expand storage capacity and upgrade worker amenities.”
New head office
Over the coming months Balco will consolidate its administration and management
operations to a new head office in Adelaide, centrally positioned between Bowmans
and Monarto.
As part of this transition, the existing head office in Balaklava will be closed, along
with the current office in Adelaide.
Most of the 20 staff currently working in the Balaklava building will be supported in
relocating to either the new Adelaide office, or the nearby Bowmans facility.
A small number of Balaklava-based positions are expected to be made redundant
with those staff impacted to receive their full entitlements and support.
“While we will be sad to say goodbye to the Balaklava building, our bond with the
local community remains as strong as ever. Our field teams will continue to work
closely with our growers in the region and we will be expanding our Bowmans office.
“Balco will continue to support the local community by sponsoring events, sporting
teams and other charitable groups as we have done for the past 34 years. We are
also investigating options for the ongoing community use of the Balaklava office
building.”
Background
Established in 1990, Balco Australia is a leading exporter of Australian oaten hay
with processing facilities at Bowmans in SA, Brookton in WA and Raywood in
Victoria employing a total workforce of 150.
Balco has a vision to redefine the global oaten hay industry. In November Balco and
its Chinese partner Bright Farming signed a 10-year-deal worth $100 million to
supply oaten hay to China, while earlier last year Balco expanded into Victoria with
the purchase of the Raywood hay processing facility.
