Harvey

Other Names

• Harvey Beef

Current Operation

• Operating as at 2013. Establishment #648

Location              

• Harvey WA. 160km S of Perth
• rolling foothills of the Darling Range, 3km from Township of Harvey.

Owner

• Joint venture – Harvey Beef Industries. General Manager Dean Goode⁷
• Harvey Indsutries group purchased for $27M 2006⁸
  • Harvey Industries group is owned by International private equity firm – Harmony Capital management¹⁰
• Others in Group with Harvey Beef Industries
• Elders – 20% stake – sold to Harmony Investment Fund (Harmony Capital) $0.7M, June 2009⁸
• Stark Investments sold to Harmony Investment Fund, June 2009⁸

Operation

• Site is 190ha¹⁰
• 180 ac kill 100 000 animals¹
• 175 000² (3,500hd a week)– assume when upgrades done about 2004/2005
• Processes 145,000⁹
• Largest processor in WA⁹
• Harvey also operate Harvey Industries Processing Centre (HIPC) – a boning facility in Fremantle¹⁰
• Cattle only⁵
• export accredited, does operate in domestic, main focus is export²
• Domestic – process 11% of states supply for WA⁴
• Processed 80-90% of beef export (prior to Waroona closing)⁶
• Medium sized²
• 700 workers²
• Processes large steers, area of Capel, for export, only ab to be able to process the large animals³
• $150M turnover⁴
• Export to 30 countries – Indonesia, Malaysia, Singapore, USA, Canada,Japan, Korea,Taiwan, Middle East^{4 & 10}
  
• 70% of Harvey beef product is exported¹⁰
• Could process 210 000⁴
• Food safety processes in place
  • Hazard Analysis Critical Control Points (HACCP) – process used for identification, evaluation & control.¹
  • Onsite microbiological labratory accredited by the government National testing authority¹⁰
  • Underpinned by comprehensive standard operating procedures¹⁰
  • AQIS oversees meat hygiene, safety regulations and certification¹⁰
  • NLIS – use for identification and tracking of animals.¹⁰
• Harvey Beef is accredited by globally recognised standards¹⁰.
  • USDA Approval
  • JAS Accreditation
  • MSA/EQA – gaurantees eating quality
  • Halal Religious and cultural criteria
  • Ausmeat A+ accreditation
  • Exceeds ISO standards under AQS

History

1919

• Cited as the start of the establishment of WA largest beef producer at the site¹⁰

1924  

• Built by Ernest and Mary Green¹

1939 

• Transported meat wholesale to metropolitan areas¹

1945  

• Company EG Greens and Sons Pty Ltd established.¹
• Started to acquire pastoral land – Balmoral Station & farms, Raised stock, shorthorns, Herefords, fat lambs, pastoral leases in NW, covered 1M hectares¹

1959 

• Granted export licence, continued to buy land, horse breeding and pastoral activities¹.
• Abattoirs improved and modernised, brine curing plants to handle skins and export of leather¹.

2002 

• Utilisation rate 60% – Industry average 70%⁵

2004

• Utilisation rate 90% – Industry average 85%with 70-80% export⁵

2005  

• Mentioned in review

“it is critical that this firm remains profitable and efficient to ensure the industry can continue to grow”²

• Recently made additions to plant on slaughter floor and boning rooms²
• Shut – Causes of downturn, drought, influx of cheap meat imports, LE and changing markets¹
• National Australia Bank/AWB landmark/Elders placed under recieivership²
• Harvey had 90% of export market
• Loss of Harvey result in direct cash loss of $8.5M in the town alone, multiplier $1.10 for every dollar lost, $2.10 equates to $17.5M/yr²
• Corporate decisions cited as main problem causing closure^{2 & 4}
• Attempted to rationalise assets – sale of stations, Abattoir had 2 very bad trading months²
• Some creditors owed $1M, producers $250 000, are others owed⁴

2006 

• Purchase $27M – Harvey Industries Group⁸

2009  

• March. WA largest abattoir – bargaining with unions “cost parity it needs to be competitive”
• Workers rejected a 3 year workplace agreement for the 2^nd time, 1^st rejected month earlier. 160 workers since made redundant⁷
• 115 voted against/99 in favour, would have led to a pay cut of 20% for 1/3 of workforce for 3 years⁷
• Alternative may be short term agreement, wage cuts lasting 2 years some entitlement provisions⁷
• April. 160 workers redundant, remaining workers accepted pay cut⁸
• June. Harmony Capital buy all of Stark Investments and Elders shares in Harvey Beef⁸
• Values company at $3.5M, 3 years previously paid $27M⁸???????? $3.5 sounds too low.
• Harvey Beef website (accessed 22.06.13) updated 17.08.09.
  • Processing 145,000 grass and grain fed animals a year.¹⁰
  • Employs 300 people¹⁰

   

2013

• Harvey Beef Website (accessed 22.06.13) undated Fact sheet.
  • Employees 650.¹⁰
  • Processing capacity 4,500 per week¹⁰
  • By products Hides, Meat and bone meal, blood meal and tallow¹⁰

2014

• Andrew Forrest Minderoo group purchase for more than $30M¹¹
• Craig Mostyn Group – WA biggest pork processor had attempted to buy the facility¹¹

Sources

1. Harvey History Online. Undated
2. Parliament Hansard 17.08.05.P Omodei.
3. Parliament Hansard 17.08.05 S. Thomas
4. Parliament Hansard 17.08.05. M Trenorden
5. WAMIA . Meat Processors (2013)
6. Parliament Hansard K. Chance 13.10.98
7. ‘Harvey Beef workers vote against workplace agreement but new proposal offers hope’ AFN 27.03.09
8. ‘Private equity firm snares Harvey Beef’ AFN 16.06.09
9. ‘Northern Australian beef industry – Assessment of risks and opportunities’ ABARE 2012
10. http://www.harveybeef.com.au/index.php/home
11. ‘Craig Mostyn sell-off aims to boost growth’ Stock & Land 07.08.2014