Bordertown

Jo Bloomfield

12 years ago

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

Tatiara Meat Company²
JBS Australia (2009)¹
- one of Australia’s largest meat processors²
- Australian Director – John Berry²
Abattoirs owned by JBS in Tasmania
- Devonport abattoir (Tas) (2008) – another multi species abattoir.
- Longford (Tas)
- King Island abattoir (Tas) (2008) – closed in 2012.
Abattoirs owned by JBS Queensland.
- Townsville (QLD)
- Rockhampton (QLD)
- Dinmore abattoir (QLD)
- Riverview (QLD)
- Toowoomba (QLD) – more commonly known as Beef City
Abattoirs owned by JBS in Victoria
- Brooklyn (Vic)
- Cobram (Vic)
Abattoirs owned by JBS in New South Wales
- Yanco (NSW)
Abattoirs owned by JBS in South Australia
- Bordertown (SA)

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 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.
- Dept Ag. Submission to Market consolidation and the red meat processing sector July 2015

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

Major Processing companies by market share May 2015. Pg 16

Cattle Movements to abattoirs. Pg 25

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