Sea Forest Limited, an Australian environmental technology company listed on the ASX as SEA, has signed a distribution agreement with Teys Australia Pty Ltd, a leading beef processor and exporter. The agreement targets at least 480,000 head of cattle on feed by 30 June 2027 through distribution of SeaFeed, Sea Forest's methane-reducing supplement. The deal lifts total cattle under agreement from 131,000 to 541,000 head, including about 70,000 head already contracted with Teys Australia.
Distribution Agreement Details
Under the agreement, Teys Australia becomes the exclusive distributor of SeaFeed, including future enhancements, for the beef industry in Australia and New Zealand, with possible extension to other agreed territories. Teys Australia must achieve certain purchase volume targets across its own operations and customer network to maintain those exclusive distribution rights. The initial term runs until 30 August 2030, with options to extend by mutual agreement, while standard termination rights apply for unremedied breach or insolvency.
Commercial Terms
Teys Australia has agreed to continue using SeaFeed across its Jindalee, Charlton, and Condamine feedlots at no less than the recommended dosage during the term, subject to operational, animal welfare, product availability, and price conditions. This usage is expected to represent approximately 70,000 head of cattle at full utilization. The parties will work in good faith and use reasonable endeavors to achieve the 480,000 head target, while product pricing will be determined on an ongoing basis and must remain commercially viable for both parties.
Leadership Commentary
Sea Forest Managing Director and Chief Executive Officer Sam Elsom said the agreement is a transformational commercial milestone that brings together shared commitments to practical innovation, commercial discipline, and climate outcomes. Teys Australia General Manager Feedlots Grant Garey noted the company was pleased to participate in trials and to formalize the distribution agreement to make SeaFeed available to a larger part of the supply chain. He added that the partnership reflects Teys Australia's ongoing commitment to sustainable, science-backed innovation across the industry.
About SeaFeed and Industry Context
SeaFeed is a nature-identical formulation of the bioactive compounds found in Asparagopsis seaweed, and it is proven to reduce methane emissions in ruminant livestock by up to 80% while creating positive economic outcomes for producers. Sea Forest operates three Australian sites across Tasmania and New South Wales, and its land-based cultivation solution is supplying trials in the United Kingdom, Europe, and South America. The B Corp certified company is also expanding research and development into aquaculture and nutraceutical solutions.
Strategic and Market Context
Teys Australia is one of Australia's leading integrated beef processors and exporters, producing approximately 1.7 billion beef meals globally each year and exporting Australian beef to more than 60 countries from 14 locations. The company employs more than 5,000 people from over 70 nationalities and supports more than 17,500 jobs in rural and regional Australia. Its integrated supply chain and established producer and customer relationships position it as an important partner in delivering practical sustainability initiatives across the beef supply chain.
By aligning Sea Forest's methane reduction technology with Teys Australia's integrated beef supply chain and customer relationships, the partnership is designed to support adoption at scale and contribute materially to Australia's emissions reduction task. The agreement formalizes a commercial pathway for producers to consider sustainability options while maintaining operational and economic viability. With volume targets extending to 2027 and a term through 2030, the collaboration signals growing commercial confidence in methane-abating feed supplements within the livestock sector.