Toowoomba (Beef City) JBS

More commonly known as Beef City.

Other Names

Beef City

Current Operation

Aus Meat Accreditation registration dated 29/12/2015 #170 – JBS Australia Pty Ltd (Beef City).³
- registered as a Beef, Offal export facility.³
Direct employment enquiries to www.jbssa.com.au

Location

Hema Maps – Australia Truckies atlas.

Owner

JBS Australia Pty Ltd³

Operation

Aus Meat Accreditation registration dated 29/12/2015 #170 – JBS Australia Pty Ltd (Beef City).³
- registered as a Beef, Offal export facility.³
Direct employment enquiries to www.jbssa.com.au

Other historical and current meat processing facilities located in Australia can be viewed at;

Australian abattoirs inactive map

abattoirs_edited-1

History of Toowoomba (Beef City) #170

1990

ABARES report – Foreign Investment and Australian Agriculture
- ABARES foreign ownership 2011

8. ABARES Nov 2011_edited-1

Proportion of cattle slaughtered by ownership of abattoirs 1990
Source ABARES foreign ownership 2011 Pg 31

1991

77 Beef export Abattoirs are in operation in Australia at this time.⁹
- 27 have some level of foreign ownership.⁹
- Ownership dominated by Japan, UK and the US.⁹

2005

Significant regions of drought across QLD.

QLD Drought 2003_2005_edited-1

Queensland drought situation 2003 – 2005 www.longpaddock.qld.gov.au

2007_2009_edited-1

Queensland drought situation 2007 – 2009 www.longpaddock.qld.gov.au

2010

IBIS Jun 2010_edited-1

Major Companies in the Australian Red meat processing industry

Source IBIS world June 2010

2011

January. Devastating floods across Central and southern QLD and large parts of NSW and Victoria.¹¹
- affected slaughter numbers to abattoirs.¹¹
July.National slaughter rates decline 5%.¹²
- Australian currency pressures.¹²
  - A$ is now above US108c.¹²
  - economic news out of US could send currency even higher.¹²
  - higher A$ would cripple Australia’s already limited price competitiveness for beef in international markets.¹²
- QLD which does approximately half of Australia’s processing capacity.¹²
  - Down 8% from the previous week.¹²
  - lowest kill recorded in QLD in July for past decade.¹²
  - Down 21% on same period last year.¹²
  - Significant number of QLD plants only killing 3-4 days.¹²
- listless export beef demand.¹²
- Meat processing and export is low-margin business due to.¹²
  - Import duties.¹²
    - Indonesia 9%.¹²
    - Korea 40%.¹²
    - Japan 38%.¹²
  - New AQIS charges on meat inspection would add millions to processor costs.¹²
- Is currently a big build up of meat in cold stores due to difficulty in selling into sluggish markets, Japan and the US.¹²

November. ABARES foreign ownership 2011 report is released

7. ABARES Nov 2011_edited-1

Red Meat throughput Australian abattoirs, Foreign and Australian owned 2011 Source ABARES foreign ownership 2011 Pg 29

2013

March. AACo conduct service kills for it’s brand products of 1824 and Waygu beef are being conducted at Oakey (QLD) NH Foods and Toowoomba (QLD) JBS Beef city.¹⁷
- AACo don’t harvest and retain all of the material from the animal.¹⁷
  - processor (Not AAC0)keeps red & white offals, blood products, meat and bonemeal and tallow.¹⁷
  - AACo are in direct competition with major processors JBS, Teys/Cargill and Nippon in brand products.¹⁷
  - AACo began building their abattoir near Darwin.¹⁷ Livingstone abattoir (NT)
November. JBS Swift Australia install closed-circuit television camera’s (CCTV) in it’s Australian meatworks.⁶
- For the purpose of animal welfare and meatworker safety issues.⁶
- CCTV for internal use by only JBS, with no plans to allow outsiders to view the footage.⁶
JBS’s US beef division (which includes Australia) delivered drop in net sales and earnings in it’s third quarter financial results.⁷
- 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.⁷
- Earnings before tax $134M,.⁷
  - Down by 22.5% on previous quarter.⁷
  - Down by 28.4% on third quarter last year.⁷
- result reflection of domestic North American markets.⁷
  - Improved performance had occured in Australian.⁷
    - Demand had increased in Chinese markets.⁷

2014

July. JBS Australia purchase majority shareholding in NSW based Andrew Meat.⁵
- specialise in high quality, portion cutting and further processing of meats for domestic and international restaurant and foodservice customers.⁵
- produce ready-cooked meals.⁵
- company banner Creative Food Solutions.⁵
- Andrew Meat will allow JBS expansion into high growth retail and value-adding segments.⁵
Expansion of the Andrew Meats business will start in November .⁸
- JBS global strategy to expand into value added meat protein – opportunity to expand margins.⁸
- JBS have an existing value-added division – Food Partners.⁸
  - supplies food service customers like Pizza Hut and Domino’s with toppings.⁸
- Andrew Meats focus will be produce ready meals.⁸
  - ‘grab & go’ beef roasts, designed to compete head on with hot cabinet roast chickens sold in supermarkets.⁸
  - Domestic markets were very immature but also with significant growth potential.⁸
At this time JBS operate.⁵
- 10 processing facilities.⁵
  - Daily processing capacity of more than 8,000 cattle and 21,000 small stock.⁵
- 5 feedlots.⁵
December. JBS currently operate 12 meat processing plants across 5 Australian states¹
- Wages & local procurement $730M (Excluding livestock purchases)¹
- Employs 8,500 people at the facilities¹
  - Employs 12,000 people in Australia¹
- Total revenue of $6.5B¹
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)¹
  - JBS share of Australian beef production 16%¹
  - Market share of national small (lamb, mutton & goat) 16%
- JBS spent $2.4M on halal certification costs of approved religious certifiers in 2014¹
2015
- January. MLA forecast.¹⁰
  - Australian cattle herd has gone from 35 year high (2013) to 20 year low (2015).¹⁰
  - Australian cattle herd slip to 26.8M head by June 2015.¹⁰
    - by 2016 expected decline to 26.5M head.¹⁰
    - by 2020 27.9M head.¹⁰
  - Adult cattle slaughter expected to slump 15% year on year.¹⁰
    - 2015 to 7.8M head.¹⁰
    - 2020 expected 7.9M slaughter.¹⁰
  - Long term Female average in 2014 52%.¹⁰
    - Normally female kill percentage 47%.¹⁰
    - Only in years 1977, 1998 & 2003 has female kill been above 50%.¹⁰
  - Beef exports record levels in 2014 1.39M tonnes shipped weight.¹⁰
    - Expected to drop 20% to 1.3M tonnes in 2015.¹⁰
- March. Foreign ownership of Australian red meat processing facilities
- Share of Australian red meat processing
  
  Source The Stock Standard. VFF March 2015

March. Cyclone Marcia cross the Capricornia Coast some plants were damaged.⁷⁰

- Supply is exceeding capacity in QLD at this point.⁷⁰

Cyclone Marcia Feb 2015_edited-1

Impact of Cyclone Marcia February 2015. www.longpaddock.qld.gov.au

June. Cost of processing in Australia 1.5-3 times the cost of processing animals in another country¹
cost of processing grain-fed cattle in Australia is twice of the USA¹
- lower levels of productivity in Australia in regards to kg per unit of labour¹
- 2 major differences between Australia and the USA¹
  1. Government regulation
    - $10 a head more in Australia¹
    - Dept. of Australian Agriculture fully recover costs of meat export inspection and certification¹
      - Australia wide DAFF costs $80M¹
      - JBS contribute $14.5M¹
    - Export plants don’t use DAFF but use approved employees, which plants fully cover costs¹
      - JBS estimate an additional $30M at Export level¹
    - USA & Brazil governments provide services at no or minimal costs to processors¹
  2. Energy Costs
    - $15 a head more in Australia¹
- Technical barriers to trade (TBT’s)- Total value in Australia estimated at $1.25B as identified costs¹
  - 261 TBT’s in 40 key markets¹
    - 136 have significant trade distortion impacts¹

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
- - Capacity of major beef abattoirs in QLD. Pg 15
    
    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.²
    - 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.²
    - Income tax information is for 2013/14.²
  - - JBS Holdco Australia Pty Ltd produced Total Income $4,040,948,610.²
      - Taxable Income $419,882,525.²
        
        Tax Payable $44,809,334.²