Pace Farm has signed an in-principle agreement to acquire Victorian fresh egg producer, Kinross Farms. The acquisition is subject to regulatory approval and is being reviewed by the ACCC.
Both companies have longevity, having been established in the mid-60s (Kinross Farms) and 70s (Pace Farms). Kinross began when current owner and managing director, Philip Szepe’s, parents migrated from Hungary and started the farm with 2000 hens. Szepe and his wife, Jane, have run the company for the last 30 years.
Pace Farm was founded by the Pace family and in 2023 it was purchased by Australian equity investment firm ROC Partners. It has farms and processing facilities across Australia’s east coast.
(Source: Kinross Farms)
Kinross Farms is a significant supplier of free-range eggs in Victoria and other states. It operates a mix of free-range and barn-laid farms, and is recognised as an industry leader, particularly in bird welfare, employee safety, and product quality.
Its main products are table eggs, eggs for vaccine production, and liquid egg products (LEP) that are used as a binding agent in food manufacturing.
Szepe said, “This was a natural progression for the business as we look to maintain our commitment to continuous improvement, investing in technology and innovation across the farms, improving productivity and reaching new markets.
“We are extremely proud of our history and our ongoing focus on bird welfare, employee safety and product quality, and are pleased to see this legacy and ethos will be honoured through this new partnership.”
Pace Farm CEO, Philip Wiese, said the acquisition is part of the company’s goal to provide quality, affordable eggs across the country year-round.
“The investment in Kinross Farms is in line with Pace Farm’s commitment to continuous improvement and strategic growth. Its tradition of excellence and clear opportunities for future growth made this an obvious investment decision for Pace Farm.
“The strategic alignment between the two organisations makes this a natural fit and we anticipate a smooth transition for both teams over the coming 12 months,” Wiese said.
Australians consume around 263 eggs per person every year compared to the global average of 161. There is a current egg shortage in Australia due to avian influenza outbreaks last year, which heavily impacted egg production in Victoria, New South Wales, and the ACT, high seasonal demand over Christmas and the summer holidays, and the transition of some farms from cage egg production to free-range.
For Pace Farm, Kinross is a leading, established free-range and barn-laid egg business (see our story in the October/November edition of Food & Drink Business) that is primed for growth. For Kinross, Pace’s extensive resources and expertise enables it to scale to a high level. The goal for Pace is to weather flu outbreaks, seasonal fluctuations, and other challenges and provide eggs to Australians every day.
Pace Farm said, “As a business with its own history steeped in family farming, Pace Farm understands Kinross Farms’ commitment to its team members as an integral part of the farm family.
“We admire the efficiency, productivity and innovation driving Kinross Farms’ operations and are keen to adopt its industry-leading practices.
“With our extensive resources and industry expertise, the Kinross Farms will be in good hands to scale operations and reach new markets.”
Szepe will stay on as a consultant. “We would like to thank our team and all those who have been with us over the journey, for their dedication and ongoing support.
“I am looking forward to working with the Pace Farm team as we embark on the next chapter for this great business, we have all built over the past half century,” he said.
The ACCC told Food & Drink Business it was talking to the two companies, and a public review would begin soon. Details will be published on its public register.
