MacLachlan farming empire undergoes historic split after 135 years

Key takeaways

Introduction

The Australian agricultural landscape is witnessing a major transformation as one of its oldest and most prominent farming families has decided to divide their extensive rural empire. The MacLachlan family, who owns Jumbuck Pastoral, has announced a historic split of their livestock stations, marking the most significant change in their business in 135 years. In this article, we will explore the background, details, and implications of this momentous decision.

Background

The MacLachlan family has a long and storied history in the Australian farming industry. The family traces its roots back to 1888, when Scottish immigrant John MacLachlan bought his first sheep station in South Australia.

Since then, the family has expanded its holdings to include some of the country’s largest and most iconic properties, spanning across four states and territories. The family’s business, Jumbuck Pastoral, is one of the leading producers of beef and sheep in Australia, with an annual turnover of over $100 million.

The family is also known for its philanthropic and civic contributions, supporting various causes such as education, health, arts, and conservation. The family has been awarded several honors and accolades for their achievements and services to the nation, such as the Order of Australia and the Centenary Medal.

The current generation of the MacLachlan family consists of Hugh MacLachlan, who serves as the chairman of Jumbuck Pastoral, and his four children: Jock, Callum, Airlie, Islay, and Brooke. Hugh MacLachlan is the grandson of John MacLachlan and the son of Donald MacLachlan, who was instrumental in expanding the family’s empire in the 20th century.

Details

In a newsletter written to their personnel, which was shared privately in July and just made public, the MacLachlan family disclosed that brothers Jock and Callum would be exiting the family firm. Their departure is a deliberate strategy including the rationalization of Jumbuck Pastoral and corresponds with long-term succession planning within the family.

The MacLachlan brothers officially left the company at the end of September, concluding their illustrious tenure at Jumbuck Pastoral. Their departure has resulted in the partitioning of Jumbuck Pastoral’s colossal 5.2 million-hectare empire, a property portfolio larger than the entire Netherlands¹² and valued in the hundreds of millions of dollars. The empire will be split between the two brothers and their father, Hugh MacLachlan.

Jock MacLachlan will assume control of two stations: McCoys Well station located in South Australia and Derby Station in Western Australia. McCoys Well is a 58,680-hectare property that runs around 30,000 merino sheep. Derby is a 505,857-hectare property that runs around 50,000 cattle.

Callum MacLachlan will take charge of two stations: Wave Hill Station in the Northern Territory and Killarney Station. Wave Hill is one of the family’s most iconic assets, a 1.2 million-hectare property that runs around 160,000 cattle. Wave Hill was jointly purchased by Jumbuck in collaboration with the wealthy Wilson family for $104 million in 2021. Killarney is a 541,400-hectare property that runs around 80,000 cattle.

The MacLachlan family’s remaining properties will be retained by their father, Hugh MacLachlan, who will continue to oversee Jumbuck Pastoral along with his daughters Airlie MacLachlan (who serves as a director), Islay McKenzie (who serves as a general manager), and Brooke Yates (who serves as a marketing manager). The properties include:

• Blina Station in Western Australia, a 1.1 million-hectare property that runs around 100,000 cattle.
• Bulgunnia Station in South Australia, a 1.1 million-hectare property that runs around 100,000 sheep.
• Commonwealth Hill in South Australia, a 1.8 million-hectare property that runs around 200,000 sheep.
• Gunbar Station in New South Wales, a 40,000-hectare property that runs around 20,000 sheep.

Implications

The MacLachlan family’s decision to split their huge farming business signals a turning moment in the Australian agricultural environment, changing the hierarchy of the country’s wealthiest landowners and creating a new chapter in the legendary history of Jumbuck Pastoral.

The split will have significant implications for the family’s business operations, management, and strategy, as well as for the industry and the environment. Some of the possible implications are:

• The split will allow the brothers to pursue their own interests and visions for their respective properties, as well as to diversify their portfolios and explore new opportunities. For instance, Jock MacLachlan has expressed his interest in investing in renewable energy projects, while Callum MacLachlan has indicated his interest in expanding into tourism and hospitality.
• The split will also create more competition and innovation in the market, as the brothers will be able to leverage their expertise, networks, and resources to enhance their productivity, profitability, and sustainability. For example, Callum MacLachlan has been praised for his pioneering work in carbon farming at Wave Hill Station, while Jock MacLachlan has been recognized for his efforts in improving animal welfare and genetics at Derby Station.
• The split will also have an impact on the environment and the communities where the properties are located, as the brothers will have different approaches and priorities for managing their land and resources. For instance, Jock MacLachlan has been involved in various conservation initiatives at Derby Station, while Callum MacLachlan has been engaged in various social and cultural programs at Wave Hill Station.

Conclusion

The MacLachlan family’s announcement of splitting their farming empire is a historic event that will have far-reaching consequences for the family, the industry, and the nation. The split is a testament to the family’s legacy, vision, and resilience, as well as to their commitment to ensuring the future success and sustainability of their business.

The split is also an opportunity for the brothers to pursue their own passions and goals, as well as to contribute to the development and innovation of the Australian agricultural sector. The split is also a challenge for the brothers to maintain their high standards of excellence, quality, and ethics, as well as to balance their economic, environmental, and social responsibilities.The split is also a celebration of the family’s achievements, values, and contributions, as well as of their remarkable journey from Scotland to Australia.