Highlights

  • Sea Forest (ASX:SEA) has delivered its quarterly investor presentation, highlighting progress in SeaFeed commercial adoption, with ongoing growth in Revenue from the company's flagship methane-reducing livestock supplement.
  • The company has executed new Supply agreements, expanding the number of cattle under SeaFeed agreements, with an indicative target of 480,000 head supplemented by 30 June 2027 following a distribution deal with Teys Australia.
  • Sea Forest's SeaFeed product is scientifically formulated to replicate the bioactive properties of Asparagopsis seaweed and is demonstrated to reduce methane emissions from ruminant livestock by up to 80%.
  • The company is advancing its Verra-registered carbon project, which creates an additional pathway for generating revenue from certified methane emission reductions delivered by SeaFeed.

Sea Forest Limited (ASX:SEA) has delivered a quarterly investor presentation providing an update on commercial activity, distribution agreements, and the company's broader strategic initiatives. The presentation covers SeaFeed's continued adoption by Australian cattle producers, the progress of international partnerships, and the company's Carbon Credit revenue pathway, reflecting a Business in an active commercial growth phase.

SeaFeed Commercial Progress and Supply Agreements

SeaFeed is Sea Forest's proprietary livestock feed supplement, formulated to replicate the bioactive properties of Asparagopsis, a red seaweed native to Australian coastal waters. The product is scientifically demonstrated to reduce methane emissions from ruminant livestock by up to 80%, while also delivering productivity benefits for farmers. The dual value proposition — environmental and commercial — has underpinned the company's commercial strategy.

During the period covered by the presentation, Sea Forest executed new supply agreements with several agricultural partners, expanding the number of cattle under SeaFeed agreement. A distribution agreement with Teys Australia, one of the country's leading beef processors and exporters, was a key highlight, supporting an indicative target of 480,000 head supplemented by 30 June 2027. The company also noted the launch of a low-carbon Regal Wool Collection in Partnership with the fashion Brand Theory, demonstrating the broader applications of its climate-friendly farming approach.

Carbon and Sustainability Revenue Pathways

Sea Forest has registered a carbon project under the Verra Verified Carbon Standard program, a globally recognised voluntary carbon credit framework. This registration enables the company to generate carbon credits from the certified methane emission reductions delivered through SeaFeed supplementation, creating an additional revenue stream that complements the feed supplement sales business.

The integration of a carbon credit pathway reflects a more sophisticated commercial model than a simple feed additive business. Farmers adopting SeaFeed may benefit from both productivity improvements and potential access to carbon revenue, while Sea Forest captures value at both the product supply and carbon certification level. The carbon credit pathway is at an early commercialisation stage, and the company continues to work through the verification and credit issuance process. As adoption scales, the carbon revenue potential may become a more material component of the overall business model.

International Expansion and Strategic Partnerships

Sea Forest's international strategy is developing across several markets. In Japan, the company has entered into a strategic arrangement with food business Oisix Ra Daichi, granting exclusive rights to distribute and manufacture Sea Forest's supplements in that country. Oisix Ra Daichi provides a direct route to Japan's premium food and agricultural market, where sustainability credentials are increasingly valued by both businesses and consumers.

The company also noted entry into South American markets during a prior period, indicating a broader geographic expansion ambition beyond Australia and Japan. As SeaFeed's commercial case becomes more established through growing Australian adoption, international expansion offers the potential to significantly increase the addressable market. Regulatory requirements around livestock feed additives vary by jurisdiction, and the company works to navigate these requirements as part of its international commercialisation strategy.

Key Insights

Sea Forest's quarterly investor presentation reflects a company making tangible progress across its commercial, carbon, and international strategic pillars. The distribution agreement with Teys Australia and the advancement of the Verra carbon project represent meaningful steps in building a diversified and scalable business around SeaFeed. The company's growing customer base and expanding partner relationships position it for continued momentum as it works toward its 480,000 head target.