Devonport

Devonport abattoir, located in Tasmania and owned by JBS, a multi species abattoir with a checkered past.

Other Names

• North West Rendering⁸
• Devonport City abattoir.

Current Operation

• Aus Meat Accreditation registration dated 29/12/2015 #13T – JBS Australia Pty Ltd (Devonport).¹⁸
  • registered as a Beef, Sheep and Pig, Domestic facility.¹⁶
• Direct employment enquiries to www.jbssa.com.au

Location   

• Devonport is located approximately midway on the Northern coast of Tasmania
  

Hema Maps – Australia Truckies atlas.

Owner

• North West Rendering and Devonport City abattoir (1980)⁸
  • Co-owner Dale Grey⁸
  • Co-owner – John Brown⁹
• Tasman Group (2005)⁹
• JBS (2008)¹
• 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)
  • Scone abattoir (NSW)
• Abattoirs owned by JBS in South Australia
  • Bordertown (SA)

Operation 

• Multi species abattoir located ajacent to Devonport saleyards¹
  
  • Processes beef, sheep and pork¹
  • Capacity 150 beef daily and 1,200 Smallstock daily (Lamb, mutton, Veal and Pork)¹
• Employs 150 people¹

History

1977

• Devonport rendering plant had been in operation⁶
  • Note – some conflict of when abattoir operations began, not sure if 1977 was a previous owner prior to Devonport City abattoir acquisition.

1980

• Meatworks operation began⁹

1995

• August. Employee Ian Sutton sacked by abattoir for mistreatment of sheep, Industrial relations hearing of Ian Sutton was supported by AMIEU for unfair dismissal – court dismissed and sacking held.¹⁰

1997

• Expanded rendering works.⁵

2000

• October. Quoiba Progress Association Ltd v North West Rendering Pty Ltd. – Resource Management and Planning appeal tribunal found that the rendering works had caused material harm in breach of section 52 of the Environmental Management and Pollution Control Act.⁵
  • Facility was to cease operating unless after 12 months it could reduce emissions of odour by 2 odour units.⁵
  • NWR given 18 months to fix odour problems⁷

2001

• Rendering works was the only facility in Tasmania taking external meat waste from around the state to⁵

2002

• March. Contested hearing conducted – regarding Rendering works – to consider if had complied with tribunal orders⁵
  • residents still experiencing odour problems⁷
  • Works operators and Director of Environmental management submitted to hearing that rendering works had “substantially complied”⁵
  • Quoiba Progress association disputed claim.⁵
  • Tribunal found rendering works hadn’t complied – effectively ruling that after 27 April 2002 operation of the rendering works at the current premises in Quoiba was unlawful⁵
  • Given 12 months to relocate⁷
  • NWR commenced supreme court action challenging original decision⁵
    • Judge ruled testing regime for acceptable odour emissions as set out in original orders was too unclear⁷
    • Matter set back to original tribunal panel to decide if any fresh orders should be made.⁷
• June. Smithton abattoir (Tas) retrenches 21 workers.¹¹
  • Blue Ribbon (owners of Smithton) insolvent and collapse.¹²
• Devonport says it is doing well but calls for inquiry into the state meat industry¹¹
• September. Agreement reached for new site for rendering plant⁸
  • Previous negotiations had considered operating hours and ungrades.⁸
    • Planning & Appeals tribunal decreed odour still unacceptable.⁸
  • NRW have agreed with Websters to purchase 65ac near Parramatta creek.⁸
  • Cost of $3M⁸

2003

• August. Installed $125,000 bio-oxygen odour control generator at the rendering plant⁶
  • Local residents had complained of smells since 1977⁶
• Abattoir had considered relocated but was unable to find suitable land in the last 12 months⁶
• Would have to sack 200 people if business was closed⁶
• September. Resource Management and Planning Tribunal would rule on decision to allow plant to operate or close it down⁶

2004

• Devonport City abattoir had owned Wignalls – sold to Tasma smallgoods in Hobart.
  • focus on contract killings at Devonport (Quoiba) site

2005

• July.Tasman Group purchase Devonport facilities.⁹
• Resource Management and Planning tribunal hearing⁷
  • North West Rendering Pty Ltd (NWR) confirmed that the rendering plant and land had been sold and the company was no longer involved with the operation of the plant – to Tasman Group Services (JBS)⁷
  • NWR changed name to Brown and Grey No2 Pty Ltd.⁵
  • Quoiba progress Association to work with new owners to address odour problems.⁷
  • Tribunal was unable to make any orders in relation to ongoing plant operations⁷

2006

• Tasman Group Chairman – Giuseppe Catalfamo brided Cole’s head of supermarket merchadising Peter Scott (Coles fired Scott in 2007).¹³
  • Scott had acquired million dollar bayside apartment from Catalfamo¹³
  • Considered a breach of retailers code of conduct – Tasman group main supplier of beef in Victoria and Tasmania¹³
  • Catalfamo been caught bribing and meat substitution in past – horse-meat substitution scandel that threatened Australia’s export industry 20 years ago, fined and banned from exporting to the USA for 10 years.¹³
• Devonport abattoir provides Woolworths with fresh sausages for 29 Tasmanian stores¹³
• Tasman Group – report ending 2005¹³
  • sales had increased 30% but profit halved to $6.3M¹³
  • Company borrowings total nearly $62M¹³
    • Main creditors – National Australia Bank, ANZ and Japanese meat company Hannan Corporation¹³

2008

• JBS purchased as part of Tasman group when entered Australia with acquitsition of AMH³

• Tasman Group consists of abattoirs in Tasmania – Longford, Devonport and King Island¹⁴
  • Tasman group 3 abattoirs in Tasmania including King Island and 3 in Victoria.¹⁴
  • JBS paid $US150M¹⁴
• JBS also purchased Smithfield Group $US565M¹⁴
  • Has four abattoirs¹⁴
• JB also purchase National Beef $US560M¹⁴
  • Has three abattoirs¹⁴
  • 2 meat processing facilities¹⁴

2011

• JBS elect to combine it’s US and Australian beef processing results into a common finanical report presented at ‘US beef’.²²
• Impossible to distinguish Australia’s performance and contribution to the overall result.²²

2012

• JBS Australia split into two operating entities to make Northern and Southern regions in relation to abattoirs and feedlots within those areas¹⁵.
  • South – Victoria, South Australia and Tasmania¹⁵
  • North – NSW and QLD.¹⁵

2013

• Closure of King Island abattoir (Tas) assisted the supply of cattle to Longford.
• JBS “Company is still pleased with its decision to close (King Island)” John Berry. JBS director²
  • Islands King Island and Flinders supply 200-450 head cattle a week, higher in spring run.³
  • Longford process 450 cattle a day – 4 day week roster.³
• King Island cattle supply receives freight subsidy – sliding scale – $26 into Stanley in proximity to Smithton abattoir (Tas), $30 into Devonport⁴.Where cattle can be sent to Devonport or Longford abattoir (Tas)
  • Scale acts as disincentive to increase freight efficency.⁴
• September. JBS launch brand launch.²⁰

Great Southern Logo. Source Beef Central 27.09.2013

• Great Southern grassfed beef and lamb.²⁰
  • Products first of their type in Australia.²⁰
  • third party audited program JAS/ANZ ISO.²⁰
  • 65 accredited farm quality assurance programs backing the brand.²⁰
  • huge demand in domestic and global customers for traceable fresh grassfed meat.²⁰
    • supplied by best practice producers with better livestock genetics.²⁰
    • MSA graded for eating quality.²⁰
    • Farmers would receive premium prices.²⁰
      • 10c/kg premium applied to grid for UK.²⁰
      • 650 farmers through NSW, Vic & Tasmania accredited to supply the program.²⁰
      • Audit costs (for farmers) are paid by JBS.²⁰
        • Audits conducted by AsureQuality.²⁰
      • Animals are consigned driect to JBS.²⁰
      • forward pricing.²⁰
      • Animals consigned through saleyards would not be eligible.²⁰
• “Today the margins are so tight that if you want a point of difference and that premium or no discount, you have got to be involved with quality assurance” Jeremy Upton, Producer.²⁰
• November. JBS Swift Australia install closed-circuit television camera’s (CCTV) in it’s Australian meatworks.²¹
  • For the purpose of animal welfare and meatworker safety issues.²¹
  • CCTV for internal use by only JBS, with no plans to allow outsiders to view the footage.²¹
• JBS’s US beef division (which includes Australia) delivered drop in net sales and earnings in it’s third quarter financial results.²²
  • 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.²²
  • Earnings before tax $134M,.²²
    • Down by 22.5% on previous quarter.²²
    • Down by 28.4% on third quarter last year.²²
  • result reflection of domestic North American markets.²²
    • Improved performance had occured in Australian.²²
      • Demand had increased in Chinese markets.²²

2014

• April. Devonport currently employ 150 people.¹⁹
• July. JBS Australia across all facilities in operation kills daily.¹⁵
  • 8,500 cattle,¹⁵
  • 24,000 smalls – which includes lambs¹⁵
  • Employs more than 8,000 people¹⁵

• December.
  • JBS currently operate 12 meat processing plants across 5 Australian states¹⁶
    • Wages & local procurement $730M (Excluding livestock purchases)¹⁶
    • Employs 8,500 people at the facilities¹⁶
      • Employs 12,000 people in Australia¹⁶
    • Total revenue of $6.5B¹⁶

  

  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)¹⁶
    • JBS share of Australian beef production 16%¹⁶
    • Market share of national small (lamb, mutton & goat) 16%
  • JBS spent $2.4M on halal certification costs of approved religious certifiers in 2014¹⁶

  2015

  • June. Cost of processing in Australia 1.5-3 times the cost of processing animals in another country¹⁶
  • cost of processing grain-fed cattle in Australia is twice of the USA¹⁶
    • lower levels of productivity in Australia in regards to kg per unit of labour¹⁶
    • 2 major differences between Australia and the USA⁸
      1. Government regulation
         • $10 a head more in Australia¹⁶
         • Dept. of Australian Agriculture fully recover costs of meat export inspection and certification¹⁶
           • Australia wide DAFF costs $80M¹⁶
           • JBS contribute $14.5M¹⁶
         • Export plants don’t use DAFF but use approved employees, which plants fully cover costs¹⁶
           • JBS estimate an additional $30M at Export level¹⁶
         • USA & Brazil governments provide services at no or minimal costs to processors¹⁶
      2. Energy Costs
         • $15 a head more in Australia¹⁶
    • Technical barriers to trade (TBT’s)- Total value in Australia estimated at $1.25B as identified costs¹⁶
      • 261 TBT’s in 40 key markets¹⁶
        • 136 have significant trade distortion impacts¹⁶
• December. ATO publishes tax data for agribusiness corporates.¹⁷
  • 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.¹⁷
  • Income tax information is for 2013/14.¹⁷
  • JBS Holdco Australia Pty Ltd produced Total Income $4,040,948,610.¹⁷
    • Taxable Income $419,882,525.¹⁷
      • Tax Payable $44,809,334.¹⁷

 

Sources Devonport Tas. JBS

1. http://www.jbsswift.com.au
2. ‘Abattoir closure continues to bite’ ABC News 14.09.13.
3. ‘Expansion plans ahead for JBS Longford – One of Australia’s most versatile meat plants’ Beef Central 18.10.13.
4. ‘King Island freight subsidy fight’ ABC rural. 17.09.2013
5. Environmental Defenders Office (Tas) inc. Bulletin Dec 2002.
6. ‘Hope for NW abattoir jobs as stink fades’ Examiner 04.09.2003.
7. Journal – ‘Impact’ – #79 Sept 2005.
8. ‘NW rendering plant to Move’ ABC rural 04.09.2002
9. ‘Devonport abattoir sold’ ABC rural 15.07.2005
10. AMIEU v Devonport City Abattoir T5776 of 1995
11. ‘Devonport City abattoir doing well’ ABC rural. 26.06.2002
12. ‘Australia: Smithton abattoir to reopen tomorrow’ Just foods. 04.03.2002
13. ‘Woolies sticks by kickback butcher’ SMH. 15.01.2007
14. ‘Big Beef producer cuts deal with Tasman Group’ The Age. 06.03.2008
15. ‘The next Swift Shift’ The Weekly Times. 30.07.2014
16. sub50_JBS Inquiry into the effect of market consolidation on the red meat processing sector
17. ‘ATO publishes tax data for agribusiness corporates’ Beef Central 18.12.2015
18. AUS-MEAT Accreditation Listing 29.12.2015
19. ‘JBS expands its books’ Stock & Land 24.04.2014
20. ‘JBS unveils new QA driven southern grassfed brand program’ Beef Central 27.09.2013
21. ‘Swift CCTV camera action’ Weekly Times 13.11.2013
22. ‘JBS delivers lower third quarter beef sales, revenue’ Beef Central 14.11.2013