Bordertown

Australian Abattoirs, South Australia 19/11/2013 Leave a comment

Other Names

 

Current Operation

  • Aus Meat Accreditation registration dated 29/12/2015 #1614 – JBS Australia Pty Ltd (Bordertown).8
    • registered as a Sheep export facility.8
  • Direct employment enquiries to www.jbssa.com.au

Location   

  • Bordertown is located 270km south east of Adelaide in South Australia

Hema Maps – Australia Truckies atlas.

Owner

Operation   

  • Establishment # 1614
  • Lamb, Hoggets and mutton1
  • Employs 4001
  • Daily capacity 5,200 head1

History

2009

  • JBS buy plant operations2
  • Invested $6.5M on robotic technology on the kill floor2

2012

  • JBS Australia split into two operating entities to make Northern and Southern regions in relation to abattoirs and feedlots within those areas5.
    • South – Victoria, South Australia and Tasmania5
    • North – NSW and QLD.5

2013

  • Sept. Launches own brand – Great Southern2
  • Oct. Will introduce a second shift of operation2
    • increasing throughput from 4000 to 8000 sheep and lambs a day2
      • current livestock purchases are $140M per year3
      • Utilites including power and water currently $3.1M per year3
    • employing 150- 180 more permanent staff2
      • Wages budget is $25.2M3
      • Extra shift will increase wages by 40%3
      • Extra shift  and business decisions will provide continuity of employment through the year3
    • needed due to improved access to China and increasing demand for high value chilled and frozen lamb in European Union and USA2
    • Looking for financial supportfor on-site cold storage – project costing $12M3
  • Local town looking to improve its houseing and infrastructure to support new workers2
    • Priority to Migrant support servicesand re-opening of Migrant resource centre2
  • “High cost of meat processing in Australia was a constant challenge – at about 2.5 times the cost of the US” – and while technology and training added to efficencies, the state and Federal governments need to provide direct financial support to investments such as JBS are making” John Berry ( JBS director)2
  • “..with a high percentage of our product destined for hihgly competitive international markets and competing against animal proteins from around the world” John Berry (JBS)2
  • Installation of automated prcessing technology3
    • $6.5M – x-ray primal saw machine in boning room3
      • determines dimensions of major bones before moving along the chain past rotating blades, cuts the carcase into forequarter, middle, loin and leg sections3
      • Process up to 10 lambs a minute3
      • cutting tolerance of 5mm3
      • is just one of two machines in Australia3
  • Middle machine will be first of its kind in Australia when installed.3
  • November. JBS Swift Australia install closed-circuit television camera’s (CCTV) in it’s Australian meatworks.10
    • For the purpose of animal welfare and meatworker safety issues.10
    • CCTV for internal use by only JBS, with no plans to allow outsiders to view the footage.10
  • JBS’s US beef division (which includes Australia) delivered drop in net sales and earnings in it’s third quarter financial results.10
    • Australia’s division performance and overall contribution to the overall result is impossible to distinguish due to inclusion with US and Canadian beef processing results.10
    • Earnings before tax $134M,.10
      • Down by 22.5% on previous quarter.10
      • Down by 28.4% on third quarter last year.10
    • result reflection of domestic North American markets.10
      • Improved performance had occured in Australian.10
        • Demand had increased in Chinese markets.10

2014

  • July. Expected to replace two dimensional x-ray imagery with Dual Energy Xray Absorption (DEXA)4
    • Will find the skeleton but at the same time produces a lean meat yeild estimate4
  • July. JBS Australia across all facilities in operation kills daily5
    • 8,500 cattle,5
    • 24,000 smalls – which includes lambs5
    • Employs more than 8,000 people5
  • July. JBS Australia purchase majority shareholding in NSW based Andrew Meat.11
    • specialise in high quality, portion cutting and further processing of meats for domestic and international restaurant and foodservice customers.11
    • produce ready-cooked meals.11
    • company banner Creative Food Solutions.11
    • Andrew Meat will allow JBS expansion into high growth retail and value-adding segments.11
  • Expansion of the Andrew Meats business will start in November .12
    • JBS global strategy to expand into value added meat protein – opportunity to expand margins.12
    • JBS have an existing value-added division – Food Partners.12
      • supplies food service customers like Pizza Hut and Domino’s with toppings.12
    • Andrew Meats focus will be produce ready meals.12
      • ‘grab & go’ beef roasts, designed to compete head on with hot cabinet roast chickens sold in supermarkets.38
      • Domestic markets were very immature but also with significant growth potential.12
  • At this time JBS operate.11
    • 10 processing facilities.11
      • Daily processing capacity of more than 8,000 cattle and 21,000 small stock.11
    • 5 feedlots.11
  • December. JBS currently operate 12 meat processing plants across 5 Australian states6
    • Wages & local procurement $730M (Excluding livestock purchases)6
    • Employs 8,500 people at the facilities6
      • Employs 12,000 people in Australia6
    • Total revenue of $6.5B6
  • JBS plants 2014_edited-1

    JBS processing plants in Australia

    Source JBS submission #50 Market Consolidation.

    • JBS estimates its current share of four eastern states beef kill – 20% (excludes service kill)6
      • JBS share of Australian beef production 16%6
      • Market share of national small (lamb, mutton & goat) 16%
    • JBS spent $2.4M on halal certification costs of approved religious certifiers in 20146

    2015

    • June. Cost of processing in Australia 1.5-3 times the cost of processing animals in another country6
    • cost of processing grain-fed cattle in Australia is twice of the USA6
      • lower levels of productivity in Australia in regards to kg per unit of labour6
      • 2 major differences between Australia and the USA6
        1. Government regulation
          • $10 a head more in Australia6
          • Dept. of Australian Agriculture fully recover costs of meat export inspection and certification6
            • Australia wide DAFF costs $80M6
            • JBS contribute $14.5M6
          • Export plants don’t use DAFF but use approved employees, which plants fully cover costs6
            • JBS estimate an additional $30M at Export level6
          • USA & Brazil governments provide services at no or minimal costs to processors6
        2. Energy Costs
          • $15 a head more in Australia6
      • Technical barriers to trade (TBT’s)- Total value in Australia estimated at $1.25B as identified costs6
        • 261 TBT’s in 40 key markets6
          • 136 have significant trade distortion impacts6
  • July. The following charts are from a submission by the Australian government Department of Agriculture to the Senate rural and regional affairs and transport references committee inquiry into Market consolidation and the red meat processing sector.

  • T2 Throughput state beef_edited-1

    Share of throughput by state for beef in 2014. Pg 16

    T4 processing companies market share_edited-1

    Major Processing companies by market share May 2015. Pg 16

    M4 direct cattle movements NLIS QLD_edited-1

    Cattle Movements to abattoirs. Pg 25

    F12 hourly labour costs food manufacturing_edited-1

    Hourly labour costs for food manufacturing industry Pg 30

  • December. ATO publishes tax data for agribusiness corporates.7
    • Data interpretation – Companies do not pay company tax on revenue (total income) they pay on profits after paying all expenses, including wages, capital replacement, supplier costs and other operating expenses.7
    • Income tax information is for 2013/14.7
    • JBS Holdco Australia Pty Ltd produced Total Income $4,040,948,610.7
      • Taxable Income $419,882,525.7
        • Tax Payable $44,809,334.7

Sources Bordertown – SA. JBS

  1. ‘Our plants – Bordertown’ http://www.jbsswift.com.au Accessed 13.11.2013
  2. ‘Second shift at JBS meatworks’ Stock Journal 03.10.2013
  3. ‘Robot Revolution’ Stock Journal 17.10.2013
  4. ‘Technologies take quantum leap’ The Land 24.07.2014
  5. ‘The next Swift Shift’ Weekly Times 30.07.2014
  6. sub50_JBS Inquiry into the effect of market consolidation on the red meat processing sector
  7. ‘ATO publishes tax data for agribusiness corporates’ Beef Central 18.12.2015
  8. AUS-MEAT Accreditation Listing 29.12.2015
  9. ‘Swift CCTV camera action’ Weekly Times 13.11.2013
  10. ‘JBS delivers lower third quarter beef sales, revenue’ Beef Central 14.11.2013
  11. ‘JBS takes stake in Andrews Meat’ www.farmonline.com.au 09.07.2014
  12. ‘What’s behind JBS taking a big stake in Andrews Meat Value adding Businnes? Beef Central 10.07.2014

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