New South Wales | Australian Abattoirs

Category Archives: New South Wales

Mudgee

Australian Abattoirs, Beef processing abattoir, Goat processor, Mudgee, New South Wales, Sheep processing abattoir 16/07/2014 Leave a comment

Other Names

Cudgeong abattoir

Current Operation

Location

Mudgee is located 120 kilometres north of Lithgow in NSW on the western side of the Great Dividing range.

Hema Maps – Australia Truckies atlas.

Owner

Cudgegong Shire Council ( ? – 1988)¹
Flectcher International exports – 1988¹

Operation

Last council-owned meatworks to survive the rationalisation of the meat processing industry¹

History

1965

Built as a service works for local butchers²

1981

Roger Flectcher – started his meat processing career when he leased the boning room at Mudgee and operated until 1988² when he built Dubbo abattoir (NSW)

1996

Up to half of NSW abattoirs could close with the loss of up to 5,000 jobs¹
- abattoirs are outdated and inefficent¹
- Beef export abattoirs at Wingham (NSW), Mudgee (NSW), Gunnedah (NSW) and Inverell (NSW) are most at risk to close¹
- Small number of modernised plants likely to survive restructuring Young (NSW), Cootamundra (NSW), Gundagai (NSW), Culcairn (NSW), Harden (NSW)¹
- Handful of efficient and niche market operators insulated from fall out Casino (NSW), Macksville (NSW), Scone (NSW) and Lismore (NSW)¹
- New privately owned and speciality sheep plants such as Goulburn (NSW) and Dubbo (NSW) killing 60% of NSW mutton are examples of what can be achieved by investment in capital¹
- Increased US beef into previous Australian market share in Japan, Korea and Taiwan increased pressure¹
- Live export of 500,000 cattle to Indonesia and Philippines increased pressure on operations of beef processing abattoirs¹
Authors Note – Majority of live export cattle during this period would have been Bos Indicus or crosses to South East Asia markets, sourced from mainly northern Australia. Not animals suited to heavy slaughter in Australia and from herds whos’ production was not likely destined for abattoirs in NSW.

Source – Live Cattle Exports. Australian Commodities Vol 5 #2 June 1998

Chart showing the high volume of South East Asia live cattle export destinations period 1990 – 1998

2003

August. Mothballed¹
Had employed 230 people¹
Accumulated debts of $13M, had appointed an administrator.²
2002/2003 processed²
- 32,000 cattle²
- 600,000 sheep, lambs and goats²
- 1,300 deer²
Liquidator – Steve Parberry of PPB chartered accountants²
Tender Sale conducted by David Nolan Rural and Project marketing²
Previous 5 years of operation it had worked almost entirely for 5 major export customers including²
- Mudgee co-op for sheep²
- Melbourne beef processor – GH Keily²
December. Purchased by Fletcher International Exports.¹
- Fletchers own Dubbo abattoir (NSW) and Katanning (WA)
Would be atleast a year or later before the plant will be sufficently renovated to enable operation¹
- $3M rebuilding program at the plant¹
  - New freezers would need to be installed to allow for more freezer capacity¹
  - the current coal-fired boilers need to be replaced with natural gas to cut operating costs¹
  - Beef line was good, boning room had heavy investment¹
  - Utilise as a single species abattoir – beef¹
    - enable plant better chance to survive as cattle numbers not as severely depleted due to drought¹

Sources

‘Abattoirs revived’ Stock and Land 24.12.2003
‘Meatworks jobs saved’ The Land 25.12.2003
5,000 jobs at risk:Abattoirs facing closure’ Sydney Morning Herald. 21.05.1996

Orange

Australian Abattoirs, Beef processing abattoir, Orange 16/07/2014 Leave a comment

Other Names

Current Operation

Location

Orange is located 250 km east of Sydney
Abbattoir is located on Clergate road

Hema Maps – Australia Truckies atlas.

Owner

Roger’s meats²
TA Field²
Metro Meats²
Bindaree Beef¹
- McDonald Family
- Purchased in 1992²
- Also own Inverell abattoir (NSW) about 1995/96, and Murgon abattoir (QLD)²

Operation

History

1920’s

First opened by the Graziers meat service²

1960’s

by this period the plant was on of the largest meat works in NSW²
Soon dogged by²
- stock shortages²
- industrial action²
- volatile export market²

1992

McDonald Family who also own Inverell (Bindaree Beef) abattoir (NSW)
- purchase the Orange facility
  - at this stage it is a meat processing facility that doesn’t slaughter animals.

2002

Originally only a packing room, the slaughter floor was opened at this time²
Closed after only 9 months operation²
- 350 people out of work²

2004

June. Last 18 months meatworks in Woy Woy, Mudgee abattoir (NSW), Orange, Forbes abattoir (NSW) have all closed, loss of close to 500 jobs.³
Bindaree Beef announce a major recruitment drive that would lead to 1,200 new jobs at the abattoir²

2005

August. Recruitment drive on hold as plant is limited to ‘value adding ‘ operation at present²
Work has been carried out at plant over the last 4 years is continuing²

2010

article notes that the Orange abattoir was closed and scrapped. (not date specific)³

Sources

‘Abattoir cuts 150 jobs’ AMIEU Archives. 05.07.2004
‘Bindarees Beef’s 1,200 jobs are still on hold’ Central West Daily 14.08.2005
‘Who is JR McDonald’ The Land 05.03.2010

NSW abattoir list A – Z.

Aberdeen, Australian Abattoirs, Bega, Blayney, Bourke, Camperdown, Collarenebri, Coonabarabran, Coonamble, Cootamundra, Cowra, Culcairn, Dubbo, Duringula, Forbes, Goulburn, Grafton, Gundagai, Gunnedah, Guyra, Harden, Inverell, Lismore, New South Wales, Oberon, Uncategorized 26/05/2014 Leave a comment

This list is only of those facilities currently on this blog.

For sites in other parts of Australia, go to Australian Abattoir Locations

Aberdeen abattoir. Closed. Last owned by AMH

Bega. Current operation unknown

Blayney abattoir. Closed Last owned by ANZCO

Bourke (Proposed) Goat

Camperdown

Casino abattoir. Currently operating

Collarenbri. Proposed goat abattoir

Coonabarabran abattoir. Closed

Coonamble abattoir

Cootamundra

Cowra abattoir. Currently operating

Culcairn

Deniliquin abattoir. Current operation unknown

Dubbo abattoir. Currently operational. The largest sheepmeat processing facility in Australia.

Duringula abattoir

Forbes abattoir (NSW)

Harden abattoir. Closed in 2006.

Inverell. Better known as Bindaree Beef. Currently in operation.

Lismore

Oberon abattoir

______________________________________________________________________________

Aberdeen abattoir

Now closed, located in north east NSW, was last owned by AMH.
Historically a very old facility – originally began in 1891. Most recently upgraded in 1996, closed 1999,

Bega

Opened in 2004 as a small species abattoir processing rabbits and poultry, located south of Canberra in NSW. Had operating cost issues in 2013, closure threatened.

Blayney abattoir

Located in southeast NSW. Began operations as a freezing works in 1900, became insolvent in 1996, then purchased by ANZCO, with debts still owing to unsecured creditors of $6M. Closed in 1998. AMIEU citing economic reasons rather than stock shortages as the main cause of closure.

Bourke (Proposed) Goat

2008 local council proposed establishment of a goat abattoir to process 1,500 goats a day.

Camperdown abattoir

Located only 8km Sydney, closed 1991 following violent industrial disputes.

Casino abattoir

Currently operating in 2014. The only Australian farmer co-operative abattoir of its kind. Specialised Wagyu plant that has two operating floors for different size slaughter animals.

Collarenebri (Proposed) Goat

Formally a failed emu and ostrich abattoir a proposal was put forward in 2008 to develop the site to process 750 goats a day for 8 months of the year.

Coonabarbran abattoir

Located 600km north west of Sydney. Was the only abattoir in the region that did service kill of 3 species, cattle, lamb and pigs. Had environmental pollution problems in 2008 which attracted legal action and fines. Closed in 2012 citing costs of fines from 2008 issues.

Coonamble abattoir

Closed in 2001 due to government GST and regulation costs, is currently being upgraded for reopening in 2014

Cootamundra abattoir

Cowra abattoir

Located 250km west of Sydney the abattoir has been through closures but is currently operating.
Commenced operations in 1970, pay disputes in 2006, administrator appointed in same year. While insolvent owner conducted illegal activity by transfer of deed to another company and allocating 1st mortgage status to it and not the bank, with employee entitlements last and unable to be paid. Administrators sold facility in 2007, it underwent significant upgrades in 2012 with CCTV installed.

Culcairn abattoir

Deniliquin abattoir

Deniliquin had a freezing works in the late 1800’s. The current abattoir was built at a different site and was operating prior to 1990. It opened and closed a number of times. Recently being sold the facility has undergone upgrades with intentions of being opened in 2013

Dubbo abattoir

Largest sheep meat processor in Australia currently in operation. A new plant built in 1988 which was the first to have a processing chain that was a hot boning system for mutton. When developed the employment was shift based and not tally as other abattoirs at the time. Did have a wool processing facility that is now closed. Production has been affected by supply of animals, high Australian dollar, sheep prices and reduction of the Australian sheep herd. It proposed in 2010 to merge 2 shifts for one as a 10 hour work day, unions resisted.

Duringula

Located mid north east NSW, currently closed. Local government considering injecting funds for refurbishment of the facility.

Forbes abattoir

Located southwest NSW, built in the 1950’s, owned and operated by Japanese 1988 to 2003. Plant required significant capital upgrades which the owners were not prepared to do and it closed in 2003. Talk of reopening in 2013.

Goulburn abattoir

Located 200km southwest of Sydney and north of Canberra. Has faced major shortage of animal supply issues in the past due to drought and decreased national sheep herd. Recently increased costs of water affected operations

Was operating prior to 1960 as a government owned facility, closed to be reopened by the council as a service kill facility. Racking up substantial debts of $6M these were waived at sale in 1985 to be reopened then closed again in 1993. AMH purchased around this time and entered into a partnership with DR Johnston to operate. Involved in significant industrial disputes the plant was regarded as marginal it was closed permanently in 1996. Currently being considered for development of the site as a rabbit farm

Harden abattoir

Built in the 1970’s by council, Southern meats purchased and ran Harden with a US consortium. US sheepmeat import tariffs caused short operational closures but lack of supply of animals due to extended drought caused final closure in 2006.

Inverell abattoir

Located in northern NSW, a privately owned abattoir more commonly known as Bindaree Beef. Recently received $23M government grant for a biogas project. Negotiations in 2014 with union regarding EBA have stalled, workers have had a number of stop works in recent months over pay disagreements.

Lismore abattoir

Oberon abattoir

Located 200km east of Sydney, Privately owned facility that was shut for a period due to a business deal. Re-opened in 2014 targeting Asian market preferences in Sydney.

Lismore

Australian Abattoirs, Lismore, New South Wales 26/05/2014 Leave a comment

Other Names

Current Operation

Location

Lismore is located in the far north east of NSW close to the border with Queensland

Hema Maps – Australia Truckies atlas.

Owner

Operation

Has a strong domestic supply to its own localities¹

History

1996

Up to half of NSW 56 abattoirs could close with the loss of up to 5,000 jobs¹
- abattoirs are outdated and inefficent¹
- Long awaited restructuring of the state’s meat processing sector needs to occur and has begun¹
- Beef export abattoirs at Wingham (NSW), Mudgee (NSW), Gunnedah (NSW) and Inverell (NSW) are most at risk to close¹
- Small number of modernised plants likely to survive restructuring Young (NSW), Cootamundra (NSW), Gundagai (NSW), Culcairn (NSW), Harden (NSW)¹
- Handful of efficient and niche market operators insulated from fall out Casino (NSW), Macksville (NSW), Scone (NSW) and Lismore (NSW)¹
- New privately owned and speciality sheep plants such as Goulburn (NSW) and Dubbo (NSW) killing 60% of NSW mutton are examples of what can be achieved by investment in capital¹
- Increased US beef into previous Australian market share in Japan, Korea and Taiwan increased pressure¹
- Live export of 500,000 cattle to Indonesia and Philippines increased pressure on operations of abattoirs¹

Sources

‘5,000 jobs at risk: abattoirs facing closure’ Sydney Morning Herald 21.05.1996

Gunnedah

Australian Abattoirs, Gunnedah, New South Wales 26/05/2014 Leave a comment

Located north east of Wagga Wagga. Originally Gunnedah was a service abattoir owned and operated by the local council. It increasingly developed serious debt problems and received a number of assistance packages from Federal and state government to maintain operations. Sold to private enterprise in 1996 it only operated a very short time before permanently closing in 1997.

Other Names

Current Operation

Closed 1997.³

Location

Gunnedah is located in northern NSW, approximately 550 km north of Sydney

Hema Maps – Australia Truckies atlas.

Owner

Gunnedah Shire abattoirs¹
- Manager Ray Grout¹
Edmonds Meat Exports³ (1996 – 1997
- Manager Peter Spackman³

Operation

Export abattoir¹

History

1957

Gunnedah abattoir established.⁴
- One of four strategic local government abattoirs⁴
  - Goulburn (NSW), Wagga Wagga and Dubbo (NSW)⁴
- Set up by state government to boost local employment and offer processors and producers their own regional selling centre.⁴
- Gunnedah was the most successful and once described as the shining light of the meat processing industry⁴
- At its peak the abattoir through service operators had 600 employees.⁴

1994

One of Australia’s biggest export abattoirs¹
April. Ray Grout gave notice of resignation, council accepted but then Ray Grout wanted his job back and it was refused.¹
- Ray Grout won the right for reinstatement as Gunnedah abattoir manager then changed his mind¹
  - claimed $100,000 damages.¹

1996

April. Facility had soaked up $1.8M in council support since 1993²
Currently employs 200 people²
Fallen on hard times⁸
- partly due to effects of extended drought in northern NSW⁸
- abattoirs lack of meat industry experience⁸
Delivers $150M into the regional economy each year.²
Report conducted by Price Waterhouse findings²; to determine the role the abattoir played in the regional economy and to see if there was any hope of returning it to profitability⁸
- Recommended abattoir be corporatised and assets transferred to a seperate legal entity⁸
- Independent board with meat industry experience⁸
- abattoir to be sold at any reasonable offer or closed if the business remains unviable and sale is unlikely within 2 years⁸
- package of state and Federal government assistance⁸
- Acknowledged plant was uncompetitive²
  - - but could be salvaged under new management if it corporatised for preparation for sale within 2 years.²
    - Federal government received $1.25M in quarantine service fees and $2.5M PAYE each year²
State and Federal government deal to prop-up facilities operations.²
- $2.1M. in total²
  - $1.1M. exemption from payroll tax and stamp duty²
  - $1M. Quarantine and hygiene inspection costs pickup up by Commonwealth.²
  - Gunnedah was the most strategically placed in eastern Australia²
  - Gunnedah was one of only 5 abattoirs licensed to export to the 5 key export regions²
Describing the problems at the abattoir² as an
- “example of everything that is wrong in Australia’s meat industry” – John Carter, Former head of NSW Meat industry authority.²
- “The situation at the Gunnedah works is indicative of the endemic problems that seriously threaten the competitiveness of Australia’s second largest export industry” – John Carter.²
- “Last week Australia utilised just 69% of its killing capacity compared to the US, which was working at 200% by doubling its shifts – and we wonder why we are failing to compete” – John Carter.²
- “200 abbatoirs must be cut to around 50 if we are to be competitive” John Carter²
May. $1M assistance package is put in place.⁶
- $1M over a 2 year period by state⁸
- Federal government gave some concessions on quarantine and inspection services⁸
  - Council implement recommendations of Price-Waterhouse report – included appointing a new board.⁶
    - Greg Upton – Grazier and Chairman of North west electricity⁶
    - Jason Strong – Chairman of the Cattleman’s union and National livestock marketing board.⁶
    - Authors Note – Not sure if this is the same man. Jason Strong appointed Chief Executive of Australian Agricultural Company in 2014⁵
  - 4 companies have approached council about establishing operations in Gunnedah⁶
    - included on of the worlds largest corporations.⁶
Up to half of NSW 56 abattoirs could close with the loss of up to 5,000 jobs⁷
- abattoirs are outdated and inefficent⁷
- Long awaited restructuring of the state’s meat processing sector needs to occur and has begun⁷
- Beef export abattoirs at Wingham (NSW), Mudgee (NSW), Gunnedah (NSW) and Inverell (NSW) are most at risk to close⁷
- Small number of modernised plants likely to survive restructuring Young (NSW), Cootamundra (NSW), Gundagai (NSW), Culcairn (NSW), Harden (NSW)⁷
- Handful of efficient and niche market operators insulated from fall out Casino (NSW), Macksville (NSW), Scone (NSW) and Lismore (NSW)⁷
- New privately owned and speciality sheep plants such as Goulburn (NSW) and Dubbo (NSW) killing 60% of NSW mutton are examples of what can be achieved by investment in capital⁷
- Increased US beef into previous Australian market share in Japan, Korea and Taiwan increased pressure⁷
- Live export of 500,000 cattle to Indonesia and Philippines increased pressure on operations of beef abattoirs⁷
Authors Note – Majority of live export cattle during this period would have been Bos Indicus or crosses to South East Asia markets, sourced from mainly northern Australia. Not animals suited to heavy slaughter in Australia and from herds whos’ production was not likely destined for abattoirs in NSW.
- Source – Live Cattle Exports. Australian Commodities Vol 5 #2 June 1998
Chart showing the high volume of South East Asia live cattle export destinations period 1990 – 1998
State government concessions designed to prop up the ailing Gunnedah abattoir were hastening their demise.⁷
- forced other abattoirs to compete with inefficent works being handed unfair trading advantage⁷
December. Abattoir sold to Edmonds Meat Exports.³

1997

April. Plant offically reopened.⁸
- Record kill levels 30% above council management⁸
- Hope new abattoir will expand into sheep, pigs with a view to new exports in Europe⁸
Other retailers have set up in Gunnedah – McDonalds.⁸
Turkish investor is interested in Gunnedah tannery for purchase and expansion⁸
Abattoir now has $10M debt.⁸
370 workers put off³
- mostly casual staff³
- Not sacked , when market improves would endeavour to re-employ³
Plant was paying more for cattle but getting less for product when it was sold overseas³
Companies decision was inevitable and would have come even if the meatworks was not privatised³
- had been expected for a while due to conditions in the industry³

Sources

‘Legal dispute over dismissal or resignation’ Sydney morning herald. 23.11.1994
‘Call to Scrap $2.1M abattoir rescue plan’ Sydney morning herald. 08.04.1996
‘Abattoir shutdown a jolt for Gunnedah’ Sydney morning herald 14.10.1997
‘A giant in the life of Gunnedah – 100 years since O’Keefe born’ Namoi Valley Independent 23.10.2012
‘Strong happy to shoulder the load’ Stock and Land 24.04.2014
‘Gunnedah shire abattoir’ Parliamentary Hansard, 14.05.1996
‘5,000 jobs at risk: Abattoirs facing closure’ Sydney morning herald. 21.05.1996
‘Gunnedah shire abattoir’ Parlimentary hansard 17.04.1997

Gundagai – South. (Est #106) (NSW)

Australian Abattoirs, Gundagai, New South Wales 25/05/2014 Leave a comment

Other Names

Current Operation

Location

Gundagai is located 70 km east of Wagga Wagga

Hema Maps – Australia Truckies atlas.

Owner

Operation

Aus-Meat Accreditation. As at 02/10/2017.
- Export abattoir processing Beef, sheep and pigs.

History

1996

Up to half of NSW 56 abattoirs could close with the loss of up to 5,000 jobs¹
- abattoirs are outdated and inefficent¹
- Long awaited restructuring of the state’s meat processing sector needs to occur and has begun¹
- Beef export abattoirs at Wingham (NSW), Mudgee (NSW), Gunnedah (NSW) and Inverell (NSW) are most at risk to close¹
- Small number of modernised plants likely to survive restructuring Young (NSW), Cootamundra (NSW), Gundagai (NSW), Culcairn (NSW), Harden (NSW)¹
- Handful of efficient and niche market operators insulated from fall out Casino (NSW), Macksville (NSW), Scone (NSW) and Lismore (NSW)¹
- New privately owned and speciality sheep plants such as Goulburn (NSW) and Dubbo (NSW) killing 60% of NSW mutton are examples of what can be achieved by investment in capital¹
- Increased US beef into previous Australian market share in Japan, Korea and Taiwan increased pressure¹
- Live export of 500,000 cattle to Indonesia and Philippines increased pressure on operations of abattoirs¹

Sources

‘5,000 jobs at risk: Abattoirs facing closure’ Sydney Morning Herald 21.05.1996

Grafton

Australian Abattoirs, Grafton, New South Wales 25/05/2014 Leave a comment

Other Names

Current Operation

Closed October 2011

Location

Grafton is located close to the North east coast of NSW. It is approximately 80km north of Coffs Harbour

Hema Maps – Australia Truckies atlas.

Owner

Operation

History

2003

Government assisted with a financial package around this period to help restart the works¹

2010

Ramsey Meats was fined $130,000 for polluting a local creek²

2011

November. Grafton facility is closed¹
Ramsey Meat business was heavily focused on veal production²
Since closure had moved to a service kill at Casino²
Prior to closure the Ramsey group abattoir was one of the bigger employers in the district²
- 150 staff²
  - Some staff relocated to Casino²

2012

January. Northern Cooperative meat Co at Casino takes a controlling interest in Ramsey Meats²

Sources

‘Fobres abattoir financial assistance’ Parliamentary Hansard. 18.09.2003
‘Casino takes big stake in Ramsey Meats’ Beef Central 11.01.2012

Culcairn

Australian Abattoirs, Culcairn, New South Wales 25/05/2014 Leave a comment

Other Names

Current Operation

Location

Culcairn is located approximately 60 km north of Albury in southern NSW

Hema Maps – Australia Truckies atlas.

Owner

Operation

History

1996

Up to half of NSW 56 abattoirs could close with the loss of up to 5,000 jobs¹
- abattoirs are outdated and inefficent¹
- Long awaited restructuring of the state’s meat processing sector needs to occur and has begun¹
- Beef export abattoirs at Wingham (NSW), Mudgee (NSW), Gunnedah (NSW) and Inverell (NSW) are most at risk to close¹
- Small number of modernised plants likely to survive restructuring Young (NSW), Cootamundra (NSW), Gundagai (NSW), Culcairn (NSW), Harden (NSW)¹
- Handful of efficient and niche market operators insulated from fall out Casino (NSW), Macksville (NSW), Scone (NSW) and Lismore (NSW)¹
- New privately owned and speciality sheep plants such as Goulburn (NSW) and Dubbo (NSW) killing 60% of NSW mutton are examples of what can be achieved by investment in capital¹
- Increased US beef into previous Australian market share in Japan, Korea and Taiwan increased pressure¹
- Live export of 500,000 cattle to Indonesia and Philippines increased pressure on operations of abattoirs¹

Sources

‘5,000 jobs at risk: Abattoirs facing closure’ Sydney Morning Herald 21.05.1996

Cootamundra.1 #87. NSW

Australian Abattoirs, Beef processing abattoir, Cootamundra, Goat processor, New South Wales, Sheep processing abattoir 25/05/2014 Leave a comment

Cootamundra is located in south eastern NSW. It was operated by one owner for over 30 years to be recently sold to another Australian group, Manilda in 2014. The same year it obtained tier 2 export status. The facility was mothballed in February 2017 due to lack of sheep supply but remains registered under Aus-meat. (Accessed 02/10/2017)

Other Names

GM Scott lamb and beef processing plant²
Manildra Meat Company, from 2014.

Current Operation

Is currently mothballed as at 25/02/2017
Ausmeat accreditation Number 0087.⁶
- Accredited as a domestic abattoir current in 1987 as #35N⁷
MSA accredited plant Establishment Number 0035 current as at 27.08.2013⁸
Accredited as a Export abattoir current in 2013 as #87⁶

Location

Cootamundra is located approximately 95 km north east of Wagga Wagga
Facility is located on the Temora road¹⁹

Hema Maps – Australia Truckies atlas.

Other Australian Abattoirs.

This link will lead to a interactive page that lists past and present abattoirs, meatworks and processors in Australian.

Owner

GM Scott¹
- Owner Barry Noble.³
Manilda Group (2014)⁴

Operation

Cootamundra is a multi species abattoir that has capacity to process²²
- 4,000 small stock and²²
- 600 head of cattle per day²²
- Has a goat processing line²²
- Export access to 160 countries including Asia, The Middle East, Northern America and Pacific Islands²²
- Employs 300 people²³
GM Scott – Is a privately owned business with an annual turnover of $25M³
Gas-Flushed cryovac system for products produced³
- Product is sold into export and domestic markets³
Brand name used is – Noble farm brand.³

Source. ‘Manildra remains committed to town’ Cootamundra Herald 11.06.2015

Manildra Meat Company, Cootamundra abattoir

Contacts

For employment enquiries contact Manildra Meat website and go to contacts.

History

1952

Cootamundra facility established³

1963

Cootamundra facility is currently operated by Conkey & Sons Ltd³⁴
- Export facility that has chilling, freezing and freezing storage capacity³⁴
- Authors Note. This facility could actually be in relation to Harden NSW

1980’s

Noble family purchase facility³
Manager / Owner is Barry Noble¹²
- Originally the facility was established by Mr Noble’s wife’s (Colleen) parents¹².
- GM Scott name is derived from Mrs Colleen Noble’s mother’s name. Grace Margaret Scott¹².
  - Mr Barry Noble had worked at an abattoir in Homebush¹²..
    - Homebush was Government owned and closed down¹²..
    - Upon closure Mr and Mrs Noble looked at sites for their own establishment¹².
Area of Cootamundra was centrally located with an abundance of top quality livestock in the area to source supply¹².

1987

Facility is currently registered as a domestic processing facility under Aus-meat #35N³⁵
- Registered name under GM Scott as a domestic facility³⁵
Authors Note. It is possible that Cootamundra had 2 abattoirs operating in the region at this time. (Note made 04.01.2018)
- Another domestic facility is operated as Cootamundra Abattoir see Harden NSW

1996

Up to half of NSW 56 abattoirs could close with the loss of up to 5,000 jobs¹
- abattoirs are outdated and inefficent¹
- Long awaited restructuring of the state’s meat processing sector needs to occur and has begun¹
- Beef export abattoirs at Wingham (NSW), Mudgee (NSW), Gunnedah (NSW) and Inverell (NSW) are most at risk to close¹
- Small number of modernised plants likely to survive restructuring Young (NSW), Cootamundra (NSW), Gundagai (NSW), Culcairn (NSW), Harden (NSW)¹
- Handful of efficient and niche market operators insulated from fall out Casino (NSW), Macksville (NSW), Scone (NSW) and Lismore (NSW)¹
- New privately owned and speciality sheep plants such as Goulburn (NSW) and Dubbo (NSW) killing 60% of NSW mutton are examples of what can be achieved by investment in capital¹
- Increased US beef into previous Australian market share in Japan, Korea and Taiwan increased pressure¹
- Live export of 500,000 cattle to Indonesia and Philippines increased pressure on operations of abattoirs

1997

July. Cootamundra abattoir is currently Domestically registered under Aus-Meat as #35N³⁶
- Operator – GM Scott P/L.³⁶
  - Processing Beef and Sheep³⁶

2000

March. Cootamundra abattoir #35N is currently registered as a domestic processing facility³⁷
- Operator – GM Scott P/L³⁷
  - Processing Beef and Sheep³⁷

2008

June 7. Major product recall occurs for lamb products supplied by Cootamundra to Woolworths supermarket chains⁹
- Lamb products brought between May 27 and June 5 in NSW, Vic, Tas, SA and NT have been recalled⁹.
  - QLD products brought between June 7 – 14, only lamb and cheese rissoles, lamb mini roast and economy burgers are recalled¹⁰
  - No products are affected in WA¹⁰
  - Safeway has issued a recall of some of lamb products in some of its Victorian stores¹⁰
- strange odour emanating from some of the products⁹
- no specific health risks but issuing the recall as a precaution¹⁰
Manager at Cootamundra abattoir, Arthur Cullen resigns¹¹
GM Scott Current Director – Peter Noble¹¹
July. Cootamundra abattoir #35N is currently registered as a domestic processing facility³⁸
- Operator – GM Scott P/L³⁸
  - Processing Beef and Sheep³⁸

2009

July. Cootamundra abattoir #35N is currently registered as a domestic processing facility³⁹
- Operator – GM Scott P/L³⁹
  - Processing Beef and Sheep³⁹

2010.

Meat processed at Cootamundra was sold in all Woolworths stores throughout NSW²²
- boneless leg of lamb or a French rack of lamb²²
March. Cootamundra abattoir doesn’t appear on Aus-Meat registration listing⁴⁰

2012

June. Facility received a significant industry accolade award for development work with a robotic carcase cutter.²
Current capacity to process 200 cattle and 3,800 lambs daily²
Principally supplying supermarket group Woolworths.²
Robotic arm development – Robotic Ovine Cutter (ROC)²
- First of its kind in the world²
- Originated from a prototype installed at Midfield Meats in Victoria around 2006²
- Can cut up to 4 cuts per carcase²
- Processing 360 carcases an hour (Average 10 seconds per carcase)²
- If doing 2 cuts per carcase can process 450 carcases per hour (Average 8 seconds per carcase)²
- Cutting system is designed to²
  - handle wide range of carcase size²
  - utilises vision-profiling²
  - dustless blade-cutting technology which prolongs shelf life²
  - High cutting efficiencies that increase accuracy and yields²
- ROC is expected to have significant impact on the meat processing industry over the next 5 years²
- Eliminates 4 bandsaw cuts that would otherwise be made manually by an operator²
- Increases OH & S significantly²
- With further refinement anticipate speeds up to 600 carcases per hour (Average 6 seconds per carcase) could be achieved²
August. Cootamundra abattoir is the first abattoir in Australia to receive Federal Government funding for carbon mitigation project.³
Facility will undertake $200,000 project to help industrial refrigeration units to run more efficently³
- Include upgrading or recycled rainwater project³
- will combat rising energy costs and improve productivity³
Current processing capacity 3500 lambs and 200 cattle daily³
Currently employs 200 people³
December. Patriarch Barry Noble passed away⁴
- Owner of the Cootamundra facility Mr Barry Noble dies of a respiratory illness¹².
  - Died at 85 years old. Established the abattoir in the 1980’s¹².
- Installation of improved technology had always been very important to Mr Noble to enable the facility to keep ahead of competition¹².

2013

Facility placed on the market as family members pursued other professional interests⁴
Facility had recently had $17M invested on a new processing floor with a view to upgrading from tier one to tier two export status⁴
- Allowed opportunity to export markets like Japan, Korea and the US⁴
January. Cootamundra abattoir is registered with Aus-Meat as an export processing facility #87⁴¹
- Operator – GM Scott P/L⁴¹
  - Processing Beef, sheep, goats and offal⁴¹

2014

April. Plant cuts production from five days to four due to lack of lamb supply¹⁹
June. Manildra Group Purchase facility⁴
- Manildra is Australian owned⁴
  - Manildra is 100% Australian owned¹³.
    - Family owned and run business¹³
      - Honan Family¹⁷
      - Interests in ethanol, flour, sugar and value added products such as starch¹³
      - Stockfeed business with crop processing ventures in 5 regional centres¹⁷
    - Company is 62 years old¹³
      - Employs over 1,000 people¹³
        
        Most are located in regional Australia, head office is located in Sydney¹³
    - Manildra also recently purchased a beef boning room and retail ready meat packaging facility in Bomaderry (150km South of Sydney on the East Coast)¹³
    - Also operated starch and gluten plants in the US for 35 years¹⁷
    - Purchased Argyle Prestige Meats in the South West Slopes¹⁷
      - Manildra purchased a 50% stake¹⁷
      - Argyle meats moved from leasing boning and packing facilities at Harden abattoir to a high tech operation at the former Dairy farmers factory in Nowra¹⁷
2 Chinese entities and 2 Australian entities considered or placed bids for facility⁴
Manildra plan to lift processing capacity beef kill immediately to 150-200 a day⁴
- processing mainly company owned cattle.⁴
- The existing beef line has been under-utilised in the past¹³
  - Modestly working 100 head per day initially¹³
Facility has current service kill contract with Woolworths to process and bone 1,400 lambs a day⁴
Lambs are sourced from Wagga to Griffith, Forbes, Goulburn up to Cooma⁴
The local area is very high MSA (Meat Standard Australia) capabilities
- Major selling point for Manildra with easy access to stock¹³
Manildra had been a client of GM Scott in the past¹³
July 1. Official takeover of Manildra group of the Cootamundra abattoir ¹³
Management team
- Launches the Manildra Meat Company ¹⁷
- GM Scott business manager – Bill Scott¹³
- Manildra Group director of business development Peter Millard¹³
- GM Scott CEO Len Jones¹³
Full export licence granted – expanded potential overseas markets from 18 to 148⁵
- ‘tier two’ export¹³
- Has taken 14 months in application of process to obtain the licence¹³
  - Market export increase capability from 22 to 184¹³
- GM Scott already had connections with USA & Hong Kong¹³
  - working toward ties with China¹³
Cootamundra abattoir is the largest employer in the area¹³
Target markets will be⁵
- Saudi Arabia, Hong Kong, Indonesia, Taiwan and Papua New Guinea⁵
- China – Took over the Middle east as Australia’s biggest lamb and sheep meat market⁵
- Middle East markets – take a lighter lamb, most sourced locally or from the New England area⁵
  - recently was a good market for mutton to ME but now is not viable to produce for⁵
Most prime lamb is sourced within 100km of abattoir⁵
- 70% of the meat processed is service kill.⁵
- 30% is export⁵
Currently processing 4000 lambs and 200 cattle a day, with 200 employees⁵
Cootamundra abattoir is confident of continued source of supply even if abattoir at Young opens⁵
Cootamundra compete with abattoirs in Victoria and Queensland for livestock⁵
September. New Goat abattoir is proposed at Blayney, off Newbridge road¹⁴.
- Blayney is located approximately 200km North East of Cootamundra¹⁴
- Goat specific abattoir $38M project¹⁴
  - Only one of its kind in the state of NSW¹⁴
    - Capacity 13,500 goats¹⁴
      - 4,500 processed daily¹⁴
    - located at the current SeaLink Freezer site¹⁴
  - could employ 165 people likely 5 days per week¹⁴
- Environmental impact will be completed mid October¹⁴
- Strong opposition from neighbours, residents and business in regards to noise, traffic, smell and impact of the facility¹⁴
Cootamundra livestock producers are looking to a 2nd abattoir in Cootamundra to process livestock for the domestic market¹⁵.
- Export lines are given priority kill over other supplies of kill space¹⁵.
  - Facility and management require large numbers and would desire full vertical control of all animals and outgoing meat products¹⁵
- Many farmers in the area are organic producers¹⁵.
- Manildra investment is great for the town has meant some producers have had to seek other facilities to kill stock¹⁵
- Manildra meat Company have offered producers services of its plant on commercial terms appropriate to the operation of the business¹⁵.
October. Cootamundra abattoir is currently export registered #87⁴³
- Operator – Manildra Meat Company⁴³
  - Licensed to process beef, sheep, goat and offal⁴³
November. 2nd abattoir in Cootamundra gains momentum with a proposed location identified along Turners Lane¹⁶
- Facility would focus on service kills¹⁶
- small multi-species abattoir¹⁶
- Local farmer David Booth leading the push for the abattoir¹⁶
  - previously had lambs and goats processed at Manildra¹⁶
  - Not allowed to open a small abattoir on his property due to Council Local Environment Plan of the area zoning¹⁶
- Investment funding is being sought¹⁶
  - Potential investors have pledged support¹⁶
    - wholesalers in Canberra, butchers and small farm operations¹⁶
- Proposed abattoir would be independently run¹⁶
- New proposal could exist with current abattoir¹⁶
  - “We will focus on small, domestic service kills, They will be all about processing only with no packaging or wholesale from the site. We don’t intend to put anything in a box” Mr David Booth¹⁶.
December. $10M upgrades are occurring at the Cootamundra abattoir¹⁷.

2015

March. Facilities staff and management commit to very high standards of Animal Welfare¹⁸
- Livestock manager David Alexander¹⁸
- Abattoir aimed to not only meet industry standards but be industry leaders¹⁸.
Animal Welfare is the single biggest issue currently being faced¹⁸
- Improvements are made to ensure the animals are calm and as stress free as possible¹⁸
A new shed will increase the undercover capacity to 7,000 animals¹⁸
- sheep will be kept dryer and cleaner¹⁸
- New pens will enable better access to water¹⁸
- flooring used will be steel mesh¹⁸
  - Previous timber floors break and cause injury¹⁸
Vets are in attendance each day and asses each animal for injury and ailments¹⁸
Any animals deemed unfit for slaughter are euthanased¹⁸

Source ‘Animal Welfare awareness at the abattoir’ Cootamundra Herald 26/03/2015

Working dogs are muzzled to prevent biting. The dogs are restrained in purpose built dog boxes when not required and used sparingly.

Graded steel ramp used for the sheep to reach the initial restrainer stunning area is about 3 – 5 storeys high. Sheep were unsettled when the sheep could see they were elevated. Construction of a corrugated iron floor beneath the ramp, concealed the height and allowed the sheep to move up it more calmly¹⁸.
- Eventually the entire ramp will be concealed¹⁸.

Source ‘Animal Welfare awareness at the abattoir’ Cootamundra Herald 26/03/2015

Sheep following each other towards the restrainer

Source ‘Animal Welfare awareness at the abattoir’ Cootamundra Herald 26/03/2015

This sheep stands at the top of the ‘restrainer’ before it is electronically stunned by the device pictured

4 men herd the sheep through the gates and towards the stunning area¹⁸.
3 men are stationed at the helm of the operation of the stick hole¹⁸
- 1 is the stunner and 2 hang the limp carcases¹⁸
Manildra process 3,400 sheep and lambs each day¹⁸
- and 100 head of cattle¹⁸
- Site is being upgraded to process 4,000 sheep and lambs¹⁸
  - and 300 head of cattle a day¹⁸
June. Seasonal downturn allows for upgrades to the meatworks¹⁹
Rumours working hours have been reduced¹⁹
Lamb prices were up to $6.10/kg carcase weight at the last Cootamundra stock yard sale¹⁹
- Higher prices are believed to be part of the reason for cut in production¹⁹
Other abattoirs are facing similar issues¹⁹
- Dubbo, Fletchers had shut its plant for a week due to a shortage of sheep¹⁹
  - Non-production week used to do maintenance on the plant¹⁹

2016

September. Abattoir nears completion of capital works²⁰
- Expansion of the beef slaughter floor²⁰
- Improvements to staff amenities²⁰
Had been a contraction in beef processing line due to on farm and saleyard cattle prices²²
October. Dam located on Manildra meats property bursts it banks and nearly derails a train²¹
- Dam is located 2km from the abattoir facility²¹
- Dam only contains run off storm water²¹
- Dam had burst its banks and washed away part of a railway embankment²¹.

Source ‘Train nearly derailed as dam bursts’ Cootamundra Herald 06.10.2016

Dam located on Manildra Meat company land bursts its bank and undermines the train track.

As of December this year the Cootamundra abattoir would no longer process meat for Woolworths²².
- Traditionally Woolworths had been a major customer²²
- Well known in 2010 that lamb meat processed in Cootamundra was sold throughout NSW Woolworths stores²².
- Followed a competitive tender process²⁴
- Loss of Woolworths will provide Cootamundra opportunity to expand domestic and export business²²
Staff numbers would be assessed according to seasonal demands and industry challenges²²
Contract to process lambs for Woolworths has been lost to the Junee Abattoir²⁴
Local producer Ron Ward and ACT’s Griffith butchery win 3 awards at the Official Great Aussie pie competition²⁵
- Mr Ron Ward used to have his meat processed at Cootamundra but since 2014 now has his stock processed at Cowra²⁵.
November. New General Manager Jason Graham²⁶
- Managed New Zealand abattoir 3 years²⁶
  - New Zealands’ largest red meat processing facility²⁶
Accessible abattoirs willing to process organic produced animals is of concern to local producers²⁷.
Very important to local producers to have the capability to diversify to spread risk and enable a spread of earning possibilities²⁷
- Manildra closed its beef floor to organic animals²⁷
- Cowra’s Breakout River abattoir beef line is fully booked at the moment²⁷
- Young abattoir may re-open for beef, but not sure when²⁷
- Sheep can be service- killed at Cootamundra²⁷
- Goats can be killed at Cootamundra²⁷

2017

February. Manildra Meat Company, Cootamundra Abattoir will close²⁸
- Last kill will occur 24/02/2017²⁸
- Plant will be mothballed²⁸
Authors note – Mothballed is a term used to describe placing a facility in shutdown but still keeping up maintenance and all required standards to re-open and begin operation of animal slaughter in a short period of time. Facilities may maintain Aus-meat registration status even though they are not actually processing any stock.
- A maintenance team will be at the facility²⁸
Very difficult meat processing environment at the moment²⁸
- Near record high slaughter cattle prices²⁸
- Intense export market competition²⁸
  - particularly Brazil²⁸
- Processors have taken heavy losses in the last 12 months²⁸
  - A QLD processor was reporting losses of $200 per head on heavy grass-fed steers²⁸
Facility currently employed 150 permanent and 70 casual staff²⁸
- All employees will be paid full entitlements²⁸
All outstanding financial obligations will be met²⁸
Plant will not be sold²⁹
“We cannot continue to maintain a viable business in the current industry environment, particularly given the record high livestock prices and the inability of our customers to absorb these price increases” Manildra Meat General Manager Jason Graham²⁹
“Abattoir operations can be a volatile industry especially when cattle prices are at the level they are at now. My thoughts are with the individuals and families as they go through this tough time” Member for Cootamundra. Katrina Hodgkinson³⁰
Cootamundra township has a current population of 7,500 people³²
- Loss of 220 jobs in that size of a town has a huge impact³²
- Some staff have applied and obtained work at other meat processing facilities such as Wagga Wagga #291 NSW, Gundagai #106 NSW and Young #128 NSW. ³³
- Some staff have also been accepted to work at the Junee Correctional centre³³
Roger Fletcher, Owner of abattoirs at Dubbo.2 #2309 NSW and Narrikup in WA comments on the current trading conditions of processing lamb and sheep at the moment and that it is a tough industry³²
- “I do the numbers and it’s unsustainable where we’re at”. Roger Fletcher³²
- “It’s a bit like if there are six hotels in a town and there’s only enough room for five drinkers, one’s got to close. And there will be more close.” Roger Fletcher³²
April. JBS Australia announce they will temporarily close two of its southern lamb processing plant due to current livestock supply and price conditions³¹.
- Cobram #397 Vic.
- Longford #195 Tas.
Other facilities that have also stopped production or reduced throughput recently are³¹
- Deniliquin #2123 NSW
- Esperance #1459 WA
- Gunbower # Vic
- Tamworth 1. #394 NSW
Some plants are currently operating on loss-making skeleton 3 day weekly kills³¹
Recent spate of abattoir closures raises questions in regards to over capacity of the processing sector with oversupply of stock due to drought³¹
Has been high levels of foreign investment interest in investments directed into processing³¹

Sources Cootamundra #87

‘5,000 jobs at risk: Abattoirs facing closure’ Sydney Morning Herald 21.05.1996
‘Productivity: Cootamundra’s robotic carcase cutter wins innovation award’ Beef Central 04.06.2012
http://www.beefcentral.com/processing/cootamundra-plant-blazes-trail-in-carbon-mitigation-projects/
http:’Manildra secures Cootamundra beef, lamb abattoir, despite Chinese competition’ Beef Central 27.06.2014
http://www.theland.com.au/news/agriculture/general/news/meat-from-coota-to-the-world/2704030.aspx
AUS-MEAT accreditation list 01.01.2014
AUS-MEAT accreditation list 1987
MSA Licensed Plants Meat and Livestock Australia 27.08.2013
‘Woolworths not to blame for product recall: GM Scott’ ABC News 07.06.2008
‘Woolies recalls lamb products’ ABC News 07.06.2008
‘Meatworks manager leaves in wake of Woolies lamb recall’ www.austfoodnews.com.au 11.06.2008
‘Loss of noble man’ http://www.cootamundraherald.com.au 05.12.2012
‘Abattoir purchase official’ Cootamundra Herald 27.06.2014
‘Blayney neighbours unhappy with plans for goat abattoir’ Western Advocate 26.09.2014
‘Farmers look to a second Cootamundra abattoir’ Foodmagazine 08.09.2014
‘Second abattoir proposal gains momentum’ Cootamundra Herald 21.11.2014
‘Manildra Group’s meaty move’ Stock and Land 13.12.2014
‘Animal Welfare awareness at the abattoir’ Cootamundra Herald 26/03/2015
‘Manildra remains committed to town’ Cootamundra Herald 11.06.2015
a
‘Train nearly derailed as dam bursts’ Cootamundra Herald 06.10.2016
‘End of an era for Cootamundra abattoir’ Cootamundra Abattoir 26.10.2016
Manildra Meat website
‘Competitive process results in end of Cootamundra contract’ Cootamundra Herald 27.10.2016
‘Vote of confidence for local farm’ Cootamundra Herald 28.10.2016
‘Manildra director pays tribute to former CEO’ Cootamundra Herald 01.11.2016
‘Spreading risk at Cootamundra’ Cootamundra Herald 15.11.2016
‘Cootamundra plant closure could flag more widespread processor shut-downs’ Beef Central 17.02.2017
‘150 permanent and 70 casual staff out of a job’ Cootamundra Herald 17.02.2017
‘Member for Cootamundra, Katrina Hodgkinson saddened by decision’ Cootamundra Herald 17.02.2017
‘Indefinite closures for JBS lamb plants, as supply challenge reaches critical point’ Beef Central 20.04.2017
‘Shortage of lambs for slaughter pushing up prices, forcing abattoir closures’ ABC Rural 24.02.2017
‘Meatworkers consider their fate after abattoir shuts down’ Cootamundra Herald 24.02.2017
‘World on a plate, A history of meat processing in Australia’ Stephen Martyn. 2012
Aus-Meat Accreditation Listing 1987
Aus-Meat Accreditation Listing November 1997
Aus-Meat Accreditation Listing March 2000
Aus-Meat Accreditation Listing July 2008
Aus-Meat Accreditation Listing July 2009
Aus-Meat Accreditation Listing March 2010
Aus-Meat Accreditation Listing January 2013
Aus-Meat Accreditation Listing October 2014

Inverell #218. NSW

Australian Abattoirs, Beef processing abattoir, Inverell, New South Wales 25/05/2014 Leave a comment

Located in northern NSW, privately owned abattoir more commonly known as Bindaree Beef. Recently received $23M government grant for a biogas project. Negotiations with union regarding EBA have stalled, workers have had a number of stop works in recent months over pay disagreements.

Other Names

JR Meats – Owner is JR McDonald
Bindaree Beef – Owner is John R McDonald
Yolarno Pty Ltd
Purchased by Archstone Investment in August 2017⁶¹

Current Operation

Bindareebeef currently in operation as at 2018
Contact for employment opportunities Bindaree Beef Employment

Location

Inverell is located in north east NSW.
Abattoir is located Gwydir Highway Inverell.

Hema Maps – Australia Truckies atlas.

Owner/s

North West Exports Pty Ltd³
Smorgons³⁵
Bindaree Beef²
- Family owned and operated²
  - John McDonald.
- Manager Leigh Belbeck⁴
- Took over operation around 1995/96⁴
- Owned in the past other abattoirs at Murgon (QLD) and Orange (NSW)
Archstone Investment purchase a 51% stake in business⁶¹.
- Hong Kong based, Australian citizens. The Hui Family^61.

Operation

Ausmeat Accreditation #0218²²
- Yolarno Pty Ltd.²²
Export abattoir, beef and offal.²²
Process 1,300 cattle per day ²
- 5,600 cattle per week¹⁶
Employs over 600 people²
- Employment contact – humanresources@bindareebeef.com.au
Location is strategic to ensure source of cattle 12 months of the year²
Abattoir and holding pens 143ha, adjoining farm 491ha⁸
Inverell is the largest abattoir in NSW²⁵

History

1970’s

Near fatal blow to private processors when State governments stepped in to assist financially troubled council-run abattoirs⁶, such as Gunnedah abattoir (NSW)

1951

Abattoir established as North West abattoir²
- originally processing both sheep and cattle²

1976

Plant becomes single species plant only processing sheep.²

1995

At this point in time owned by North West Exports Pty Ltd.³
Abattoir closes³
- Loss of 450 jobs³
- Abattoir was the districts largest employer.⁵³
- Inverell at the time had population of 10,000 people.⁵³
Operations of the facility
- Plant had been affected by strikes from time to time.⁵³
- Was a poor water supply at the plant.⁵³
- Processing plant was old and in much need of refurbishment.⁵³
- Was a forlorn hope the facility would be reopened.⁵³
Area is still suffering from aftermath of catastrophic floods few years before³
Abattoir purchased by Bindaree Beef around this period⁴
- confirmed Bindaree beef acquired plant at this time²
- clearly communicated to all that employees must be drug and alcohol free.⁵³
  - work would be hard but teamwork was main.⁵³

1996

Up to half of NSW 56 abattoirs could close with the loss of up to 5,000 jobs¹
- abattoirs are outdated and inefficent¹
- Long awaited restructuring of the state’s meat processing sector needs to occur and has begun¹
- Beef export abattoirs at Wingham (NSW), Mudgee (NSW), Gunnedah (NSW) and Inverell (NSW) are most at risk to close¹
- Small number of modernised plants likely to survive restructuring Young (NSW), Cootamundra (NSW), Gundagai (NSW), Culcairn (NSW), Harden (NSW)¹
- Handful of efficient and niche market operators insulated from fall out Casino (NSW), Macksville (NSW), Scone (NSW) and Lismore (NSW)¹
- New privately owned and speciality sheep plants such as Goulburn (NSW) and Dubbo (NSW) killing 60% of NSW mutton are examples of what can be achieved by investment in capital¹
- Increased US beef into previous Australian market share in Japan, Korea and Taiwan increased pressure¹
- Live export of 500,000 cattle to Indonesia and Philippines increased pressure on operations of abattoirs¹
Authors Note – Not sure if Inverell is solely a sheep abattoir at this point as in latter years it processes cattle. In regards to cattle processors, the majority of live export cattle during this period would have been Bos Indicus or crosses to South East Asia markets, sourced from mainly northern Australia. Not animals suited to heavy slaughter in Australia and from herds whos’ production was not likely destined for abattoirs in NSW.
Source – Live Cattle Exports. Australian Commodities Vol 5 #2 June 1998

Chart showing the high volume of South East Asia live cattle export destinations period 1990 – 1998

1999

February. 143 head of cattle are condemned after tests show endosulfan residues 5 times higher than Australian maximum residue limit (MRL)²³
- Animals had been worth $525 a head – $75,000 in total²³
- Residue level of 1mg/kg had been detected²³
$180,000 worth of processed beef was downgraded from export standard for being above 0.1mg/kg but below domestic requirement of 0.2mg/kg²³
Authors note – Endosulfen was a product found in herbicides and some agricultural chemicals used on crops such as cotton, tropical fruits, vegetables and nuts.
- Endosulfen was banned from Australia in 2010.

2001

Census figures show 7,800 abattoir jobs lost in regional Australia between 1996 to 2001^50.
- A further 2,160 were lost from Abattoir closures to 26/10/2003⁵⁰
Authors Note – these figures don’t match ABARES.
- 1996/97 ABARES ACS 1999 Employment in meat processing 28,900 people
- 2000/01 ABARES ACS 2003 Employment in meat processing 28,000 people

2002

July. recommenced slaughtering cattle but don’t hold the complete environment protection authority licence to kill cattle¹⁵
- regarded as a clerical error when EPA licence was sought for an increase in volume, wasn’t picked up until July 2003.¹⁵
December. Facility is not meeting Environment Protection Authority standards on odour control²⁴
- odour is caused by effluent currently stored in dams at the site²⁴

2003

June. Forced to lay off 70 employees⁴
- - 30 casuals⁴
  - 40 permanent staff⁴
- First time in 8 years employees laid off.⁴
- Reasons cited for lay off⁴
  - Drought causing a drop in stock numbers was the greatest problem⁴
  - High Australian dollar – makes less attractive in export⁴
Production dropped by 20% in last 6 months, many abattoirs having the same problem⁴
Recently odour problems from the plant have been occuring¹⁵
- failure of aerobic and anaerobic ponds to break down organic matter, in particular blood¹⁵

2007

Bindaree Beef sell Murgon abattoir Otherwise known as South Burnett works.

2009

Process of Slaughtering Cattle in an Abattoir – Bindaree Beef

2010

April Inverell council refuse an application to financially back the abattoir²⁷
- Money was to be for expansions²⁷
- Amount applied was $30M²⁷
  - Create 600 jobs²⁷
- Council refused as it could not afford the money without reduction of services to the community²⁷
  - Legislative laws that restrict council finanical support of private enterprise²⁷
- Abattoir was appealing to the community to lobby council to change position²⁷
  - Abattoir want to stay but need finanical support to expand²⁷
July. Fear that beef imports will shut down facility⁴
- due to Australia negotiating free trade agreements and abolishing 9 year ban on beef imports from mad cow countries.⁴
  - Mad cow disease is only present in spinal column, only muscle cuts are imported.⁴
currently employs 600 people at Inverell.⁴

2011

Bindaree Beef Inverell on video showing Cattle slaughter from live animal to point of retail.
Authors note – I highly recommend viewing of this video it is an extremely informative short narration of how a live animal is prepared for slaughter, stunned and the carcase processed – From Farm gate to your Plate.
Bindaree Beef video 2011
Transformation of organic waste into methane idea begins³⁹
Approximately 65% of production is exported⁵⁰
- 35% sold on domestic markets⁵⁰
Census figures show 7,800 abattoir jobs lost in regional Australia between 1996 to 2001⁵⁰
- A further 2,160 were lost from Abattoir closures to 26/10/2003⁵⁰
Authors Note – these figures don’t match ABARES.
- 1996/97 ABARES ACS 1999 Employment in meat processing 28,900 people
- 2000/01 ABARES ACS 2003 Employment in meat processing 28,000 people
Australian meat processor corporation predicts that 20% of the currently remaining Australian abattoirs will be closed within the next 10 years⁵⁰
Most abattoirs that have closed in the past 15 years have been supplying the domestic market⁵⁰

2012

Bio-digester and rendering plant proposal⁷
- $43M project⁷
- highly effective waste treatment system to produce biogas, clean water and liquid fertiliser.⁷
- utilisation will generate power and steam for on-site use⁷
- replace rendering plant that will use less electricity and steam⁷
- First of its kind in Australia⁷
- Planned construction to begin July 2014, in operation March 2015⁷
Current waste process⁸
- waste effluent travels to floatation tank, then pumped to anaerobic lagoon⁸
  - waste water from the lagoons is used for farm irrigation⁸
- Paunch material (internals of guts and stomachs) is used on farm as land fill⁸
- steam is produced by 2 coal fired boilers⁸
- All animal by products are cooked to be pressed and used at meat meal or tallow⁸

Source – Bindaree Beef Preliminary environment Assessment – Rendering plant and biodigester plant.

The current abattoir meat processing facility showing the current lagoons

Source – Tony Windsor Independent MP, Media release. 03.07.2013.
Proposed establishment of biogas and rendering system

November. Pilot biogas and rendering plant is installed³¹
- Cost $2M³¹
- Making adjustment to find best operation³³
- results are far better than they had hoped for³³
  - Amercian suppliers have been amazed³³

2013

Biogas system Federal Government contribution⁹
- Total Project to cost $45,833,306.00⁹
- Grant Amount $22,941,653.00 (50%)⁹
  - funding not provided by ‘Australia’s carbon price’ via clean technology Food and Foundaries investment program’ but directly from government revenue from carbon tax.¹⁰
- Total taxable emissions 2011/12 23,345 tonnes CO2-e⁹
- Total taxable emissions after project 1,253 tonnes CO2-e⁹
- Carbons emissions reduced by 98.58%⁹
  - equivalent to removal of 60,000 cars from the roads over 10 years¹⁰
- Total annual projected operating cost savings $2,442,544.00⁹
- Total annual additional income $1,1796,150.00⁹
- Utility cost of processing cattle cut by third for every animal⁹
- extra production shift create 200 new jobs⁹
- fertiliser for sale will create 10 new jobs⁹
- Previously Class D nutrient rich water produced, project will produce Class A⁹
- No need for landfill use⁹
- saving 7,200t coal burning a year⁹
- no odour from lagoons or smoke from coal.⁹
The system will be a world first biogas project.¹¹
American technology, methane is retrieved,liquid fertiliser and Class A water.¹¹
Pennsylvania-based organic waste-to-energy specialist²⁸
Bioconversion Solutions²⁸
- methane is captured and stored, cleansed and then used to fire gas-fired boilers¹¹
- technology has the capacity to bio-digest the stomach contents of animal, which has never been done in Australia.¹¹
- undigested grass, manure & blood will go into an equalisation tank, pH levels are corrected before pumped into a anaerobic bio-digester³³
  - 1st gut of the animal – normally very difficult to process and was previously disposed of in landfill³⁷
- organisms do work in bio-digester to generate bio-gas³³
  - also produces fertiliser & Class A water for irrigation³³
$2M had gone into research of the project¹⁰.
- on-site pilot project is already operating to prove the system works¹⁰
- Bindaree staff visited a site in USA Philadelphia to see the technology at work
Installation of project means Bindaree Beef no longer liable to pay carbon tax price.¹⁰
- site had previously been identified among 10 or 12 largest Australian processing sites¹⁰
- directly liable for carbon tax based on yearly carbon emissions above 25,000t¹⁰
July. Estimates of 700 workers now at Inverell.¹²
- almost 5% of the city’s population¹³
September. Project and grant have now been formally approved.¹³
- site preparation to start early 2014, completed within 2 years.¹³
November. Article questions the issue of transparency of the grant and its sheer size compared with other grants in the industry¹⁴
- A copy of the grant submission isn’t available, “commercial in confidence” reason cited by government and accounting firm who assisted with grant application.¹⁴
- Independent MP of New England – Tony Windsor was instrumental in keeping Gillard labour government in power.¹⁴
- John Clements – who was advisor to Windsor now works for Bindaree¹⁴
- When Abbott liberal government got in power – announced would disband the Clean energy finance corporation¹⁴

Inverell Abattoir coal pile. Source ABC rural 07.03.2013

2014

February. Plant infrastructure expansion enabled employment of 150 new employees²⁵
Pay dispute over negotiation of bargaining agreement (EBA)¹⁶
Meat Workers Union (MWU) say – Grant Courtney – radio interview¹⁶
- 450 people directly employed at plant, 165 are union members .¹⁶
  - Authors note – 36% of workforce are union members
  - Grant Courtney claims union represents 50% of the workforce¹⁷
- Another article cites 800 workers at this point in time²⁵
  - 238 employees eligible to vote²⁵
    - 162 actually voted²⁵
- Company fears stoppages would cripple production
- Union members allowed to vote Protected action ballot – 88 chose not accept agreement¹⁶
  - Authors note – 19.5% of workforce being union members voted for non acceptance of EBA.
- Under the Commonwealth government Fair work Act – right to strike.¹⁶
  - voted to proceed with industrial action¹⁹
  - rolling stop bans and stoppages are threatened¹⁷
  - 2 to 8 hour stoppages to begin from 24th Februrary.¹⁹
  - MWU – Grant Courtney spoke to JR McDonald (Owner Bindaree Beef) – if stoppages occur, plant would be shut down.¹⁹
    - Authors Note – If a plant is under industrial action, stoppage or ban (control of workers) there is a point at which the workers receive entitlements, plant may still be in partial operation so some are still working. If it is shutdown then the control is in the employers hands and the rules of payment are different for entitlements and all workers are affected irrespective of if in a union or not.
- Strike at this point not an authorised action by union as that requires 72 hours notice to employer¹⁶
- MWU say Bindaree Beef offering¹⁶
  - Want to take away gauranteed pay for Christmas and Boxing day¹⁶
  - force work on ANZAC day¹⁶
  - offering 0.2% wage increase per week in¹⁶
    - 1st year – ($1.46 for lowest paid to $2.17 for highest)¹⁶
    - 2nd year – 2.8%¹⁶
    - 3rd Year 2.8%¹⁶
- MWU say they want 3% wage increase in first 12 months¹⁶
  - Fair work increases minimum wage is $17 per week¹⁶
  - Increased payment for slaughtermen, boners, carcase graders and cleaners¹⁹
Bindaree Beef say they voluntarily increased the wages $25 per week when the previous EBA expired in mid 2013 for all workers.¹⁶
- Company and AMIEU had agreed on arrangement for next 4 years.¹⁶
- Grant Coutrney part of the negotiation and agreed to it, verbally stating support.¹⁶
- Production based incentives mean 3% will be easily exceeded as production expands.¹⁹
- since agreement union has come back twice wanting additional benefits and company agreed.¹⁶
- Now is the third time and the union are asking for another $2 per week.¹⁶
800 workers employed at Inverell.¹⁹
Latest offer is extra $25 -$75 a week, depending on grade of the worker.¹⁹
- union demand amounts to $27-$77.¹⁹
Bindaree workers receive¹⁹
- $80 attendance allowance – for turning up to work 5 days in a row¹⁹
- $5 a day – ‘awful allocation allowance’ – paid to workers for dealing with back tripe.¹⁹
- Grade 1 slaughtermen get $7 ‘handling bonus for every animal processed over 20¹⁹
  - worth an average $77 per day¹⁹
Former agreement¹⁹
- Grade 1 slaughtermen and neck boners earn basic wage $689.30¹⁹
  - is actually $1,166 with bonus’s on average for 2013²⁰
  - will be more in 2014²⁰
- Carcase graders get $643.70¹⁹
Wage increase agreed too with Bindaree and AMIEU will cost Bindaree $8M more.²⁰
March. Workers stop work at Inverell¹⁸
Stop work meeting occured 05/03/2014²⁹
120 Union members attended off-site meeting²⁹
- First time work is stopped in 18 years.¹⁸
- Minister of Environment – Luke Foley says¹⁸
  - 85% of voting employees rejected proposal of 0.2% increase.¹⁸
  - Past 16 years workers have been forced to work ANZAC day¹⁸
  - meatworkers are among lowest paid manufacturing workers in this country¹⁸
  - NSW abattoirs are very full and are doing very well.¹⁸
  - The Mudginberri abattoir (NT) dispute pioneered new right attacks on wages and conditions.¹⁸
- AMIEU pushing for 3% – 0.4% above CPI²⁹
  - $19.60 for lowest paid per week²⁹
  - $27-$28 for highest²⁹
  - “…that is a reasonable wage claim, clearly this company can afford it, (because) this company is doing record kills at the moment” Grant Courtney²⁹
- Bindaree offered 2.8%, includes 2.6% passed on in June 2013²⁹
  - Will adopt National Employment Standard in regards to public holidays²⁹
    - company has the right to ask employees to work and employees have right to refuse²⁹
  - irresponsible to offer further pay increases without productivity agreements²⁹
    - Wages increase over next 4 years $8M²⁹
New range of high quality grass and grainfed beef brands²¹
- based on Meat Standards Australia’s Optimisation model and MSA index²¹
- improve communication with both producers supplying the plant and end-user consumers.²¹

Source http://www.bindareebeef.com.au
Only some of the brand names promoted by Bindaree Beef.

June. Application is lodged with NSW major projects to build rendering and bio-digester plant³⁰
- Capital outlay $43,945,000³⁰
- construction jobs required 64 people³⁰
- Operational jobs 1 person³⁰
July. Clean Energy Finance Corporation (CEFC) agree to co-finance Bindaree Beef project at Inverell.³¹
- Clean Energy Finance invests commercially to increase flow of funds into renewable energy, energy efficency & low emissions technologies³²
- Invest by way of direct investment that attracts private sector finance³²
  - with stategic co-financing partners³²
  - CEFC operates under Clean Energy Finance Corporation Act 2012³²
- Funding is via special statutory appropriations to ensure capital and ability to undertake investment³²
  - CEFC Act establishes a CEFC account which receives $2B per year³²
    - Funding 01/07/2013 to 2017³²
    - Amounts can be rolled over into future years if not invested entirely in one year³²
Abbott government tried to dismantle CEFC in early 2014³⁷
pressure from power and fossil fuel companies³⁷
- CEFC will provide finance of up to $15M³¹
  - commercial terms with no concessionality³¹
  - worked with Bindaree for 2 years³¹
    - initially as Low Carbon Australia³¹
- Australian Government will provide grant $19.7M³¹
  - through AusIndustry³¹
- Bindaree Beef and it’s own bank will provide rest of funds³¹
- Project total estimates now $46M
Purpose of the project³¹
- Deliver significant boost to the competitiveness of the Bindaree Beef operations³¹
- Employs 830 people³¹
  - Inverell population 16,000³³
- Annual Turnover $400M³¹
- Estimated market share 2.5-3%³¹
- Plant is capable of processing 1,200 head of cattle a day³¹
Project Impact³¹
- Cut energy bills by 50%³¹
  - save $2.4M in operating costs³³
- Eliminate use 7,300 tonnes per annum of coal³¹
- Avoid shutdowns due to power fluctuations³¹
  - power fluctuations or brown outs cause the boiler motor to shut down³³
- Produce 1.2MW – 1.6MW of power³¹
- Reduce annual GHG emissions by 76%³¹
  - 32,720 tonnes Co2 pa³¹
  - Lifetime savings of 654,400 t Co2³¹
  - Taxable emissions will go from 28,000 tonnes to 1,200 tonnes³³
    - elimation of 95% taxable emissions³³
    - Equivalent to removal of 60,000 cars over 10 years³³
- Generate income through fertiliser sales $1.7M per year³³
- Reduce direct pollution from smoke³³
  - When boiler motor stops light grey smoke from chimney stack turns thick and black³³
- Reduces all odours as the anaerobic lagoons will no longer be needed³³
- Company is value adding to it’s core agriculture business rather than exporting the raw product.³⁷

Inverell abattoir proposed biodigester and rendering plant
Source www.meateng.com.au

Australia is allowed re-opening of beef exports into China following a 9 month stoppage⁵⁵.
- Chinese trade for chilled beef exports is limited to 10 facilities in Australia based on prior performance with a 6 month trial period⁵⁵
  - 3 Teys Australia.
  - JBS. Dinmore #235. QLD
  - Kilcoy Pastoral Co Kilcoy #640. QLD
  - G & K O’Connor. Pakenham #1265. Vic
  - Northern Co-operative Meat Co. Casino #239 NSW
  - John Dee. Warwick #243. QLD
- Chinese trade has significantly excluded some facilities⁵⁵.
  - Nippon meat packers. Oakey #558. QLD
- Chinese deal involves packing of Australian beef in Chinese language with MSA grading characteristics⁵⁶
September. Some of the workers have been at the facility since the current owner JR MCDonald purchased the facility 18 years previously (about 1995/1996)³⁵
JR McDonald speeks about reform in the industry³⁶
- MSA grading³⁶
  - 8M head Australian cattle slaughtered every year³⁶
    - only 2M head graded under MSA³⁶
  - MLA plans to increase to 3M head³⁶
  - Vast majority of cattle sold through saleyards are not under MSA³⁶
    - Yet very good types of cattle are sold³⁶
      - Not under MSA if sold as mixed consignments³⁶
        
        means 2 good beasts in a mixed lot don’t meet MSA³⁶
        
        Large lots of hundreds of head meet MSA but boning group represents lower end of scale³⁶
    - MSA started as simple system³⁶
      - grades ranging from 1 to 6, based on marbling and age³⁶
        
        mainly a system to grade British breeds³⁶
      - Now MSA is unwieldy – with 18 boning groups³⁶
        
        include old bullocks and old cows³⁶
    - Beef industry is renowed for manipulation and control³⁶
    - Dumping of old cows on the domestic market is a particular problem³⁶
      - Cow being sold beside prime, skinless chicken³⁶
- Domestic market should not be given more importance³⁶
  - 65% of meat is exported³⁶
    - represents 80% of the industry value³⁶
  - old cow should be labelled ‘economy’ steak rather than low grade³⁶
- Trimming costs in abattoirs needs to be lowered³⁶
- Australia is expensive place to do business³⁶
  - Australian Government costs $18 per beast³⁶
    - US $1³⁶
    - Argentina $0³⁶
  - Costs should be able to get back to $2 head in Australia³⁶
  - Costs $300 a beast to process in Australia³⁶
    - US is one third of that³⁶
  - Inverell power costs at the plant $10,000 a day³⁶
  - AQIS costs $6,000 a day³⁶
  - Workers Compensation $10,000 a day³⁶
    - plus wages for 830 staff³⁶
- Currently record kills are bringing in big money for abattoirs³⁶
Bindaree beef looks to sell ‘retail ready’ beef to China³⁸
- Deal signed – Bindaree Beef / Sanger Australia³⁸
  - Packing Australian beef in Chinese language packaging and air-freighting to China³⁸
  - Bindaree already sell primals to China³⁸
    - this opportunity will allow value add of product that normally went to US grinding³⁸
  - Product is MSA graded to align with cooking methods³⁸
- Increasing market for high-quality meat³⁸
  - increasing mistrust for low-grade produce due to food substitution and poisoning scandals³⁸
  - Small percentage of Chinese who can afford Australian produce³⁸
    - small percentage of a huge population is still a substantial market³⁸
- Bindaree will release new payment grid in October³⁸
  - provide incentives to producers to meet brand specifications³⁸
  - acknowledge processors fortunes are tied to producers³⁸
  - supports Bindaree moves from shipping a commodity to supplying a product³⁸
November. Australian-Sino 100-Year Agricultural and Food Safety partnership (ASA 100) is established⁵⁷
- Initiative between Australia and China to position Australia as a supplier of premium agricultural products that are friendly and safe for the next 100 years⁵⁷.
  - Unite Australia in market approach⁵⁷.
  - Competitive markets supported by efficient modernised operations⁵⁷
    - Energy efficiency and better access to workers including 457 visa applicants⁵⁷
December. NSW Minister grants permission approval for the rendering plant and digester to begin construction³⁹
- Work should begin in February and completed 18 months³⁹
  - Actual power output when fully operational is difficult to estimate³⁹
  - Should supply one-third of energy needs at the plant³⁹
  - Coal fire system will stay as a back up incase needed³⁹
Chinese free trade agreement signed with Australia expected to enable red meat producers$11B boost through abolition of tariffs over the next 9 years.⁴⁰

2015

January. Bindaree Beef seek a strategic investor to make $100M cash injection⁴⁰
- Aim to increase processing capacity and enter new export markets⁴⁰
- Hired PricewaterhouseCoopers Securities – Brisbane⁴⁰
  - Calling for first round bids in late February⁴⁰
- Bindaree is one of top five red meat processors⁴⁰
  - capacity to handle 1,300 cattle daily⁴⁰
- Includes Sydney based sales & trading arm⁴⁰
  - supplies beef, lamb, pork, veal and poultry to more than 40 countries⁴⁰
- Bindaree Trading in 2013/2014 year⁴⁰
  - Over $40M in earnings before interest, tax and amortisation (EBITDA)⁴⁰
  - $571M revenue⁴⁰
  - Forecast ambitious 61% EBITDA in 2015⁴⁰
    - Difficult to see how 61% can be supported if Bindaree/Sanger relationship is simply Sanger selling Bindaree’s product⁴¹
      - Means Bindaree don’t control sale of it’s own product⁴¹
- Industry sources estimate value of business $400-$500M⁴⁰
  - Typical processing sector benchmark trading 4.5-5 times EBITA⁴¹
    - Values Bindaree at $200-$250M⁴¹
- Possible sale process masqueradeing as strategic stake auction⁴⁰
- Sales pitch
  - growing global beef consumption⁴⁰
    - Particularly China’s emerging middle class⁴⁰
  - Industries high barriers to entry⁴⁰
  - large-scale processing facilities⁴⁰
  - Bindaree brand portfolio⁴⁰
If overseas injection occurs makes a mockery of JR McDonald’s longstanding public opposition to foreign ownership of Australian beef processing assets⁴¹
Bindaree agree to a 3 year Beef Supply deal with a customer Chinatex⁶⁴
- Involves processing 900 head of cattle per week for export to China⁶⁴
- Chinatex were to bear risk of rising cattle prices⁶⁴
- Chinatex were warned that cattle prices were likely to rise, and there would be highs and lows over the contract period⁶⁴
- Chinatex had done smaller frozen beef deals out of Australia in 2014 that had been profitable due to low cattle and meat prices at that time⁶⁴
- Chinatex contract has no connection to the Shandong Delisi group merger or Quigdao meat processing facility discussions that occurred later in 2016⁶⁴.
April. Mr John McDonald, Chairman of Bindaree Beef writes a submission to the Senate Inquiry into the effect of market consolidation on the red meat processing sector⁵⁸.
- There is massive amount of collusion and misuse of power in the processing industry⁵⁸
- Consolidation having a huge impact on farm gate prices, up to 80% of beef producers in bad financial situation⁵⁸
- Existing selling structures are satisfactory – Problems are due to consolidation causing less competition⁵⁸
- Regulatory environment is working OK⁵⁸
- Rural debt crisis is imminent⁵⁸
  - Bindaree Beef has been approached regularly for financial assistance and support to producers in the Goondiwindi, Moree, Coonamble, Casino and Inverell areas⁵⁸
    - Bindaree Beef has leased some properties and purchased stock⁵⁸
      - Allows guaranteed cashflow to producers⁵⁸
    - Rural debt has esculated from $20B in 2000 to $65B in 2015⁵⁸
    - Nippon, JBS and Cargill have taken over the beef industry⁵⁸
      - Control all meat industry boards⁵⁸
July. Bindaree Beef merge with meat marketing and distribution company Sanger Australia⁴²
- New Company – Bindaree Beef Group⁴²
  - Effective 06/07/2015⁴³
  - organisations combined $750M per annum⁴³
    - 350 customers⁴³
    - 50 countries – Including North & South America, China & Europe⁴³
- two companies have worked together for 40 years⁴²
  - Other articles cite 42 years⁴⁴
  - Negotiations began 18 months ago⁴⁴
  - Bindaree supply up to 55% of the product which Sanger sells⁴⁴
- Sanger will continue to operate as an independent subsidiary⁴²
  - sold $650M worth meat last year⁴⁴
Script Merger⁴²
- No money is involved in the transaction⁴²
- Sanger have taken shares of Bindaree Group⁴²
- Chairman – JR McDonald⁴²
- Inverell facility can process 6,000 cattle a week⁴²
  - cattle supply base is New England area⁴²
  - prospered when dozens other regional meatworks have failed⁴⁴
Enables growth of the business next 20-30 years⁴³
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 NSW. Page 15.

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

2012 NLIS Cattle Movements to abattoirs. Pg 25

Hourly Labour costs for food manufacturing industry. Pg 30

August. Bindaree Beef Group Executive officers⁴⁶
- James Campbell – CEO, effective 18/08/2015⁴⁶
  - Family farm, Boorowa NSW⁴⁶
  - Double degree in commerce and business administration⁴⁶
  - KPMG – accounting involving restructuring and insolvency for corporate agricultural businesses⁴⁶
  - ANZ agribusiness boss in China⁴⁶
    - 4 years in Shanghai⁴⁶
- Graham Greenleigh – former CEO⁴⁶
  - Led Sanger’s 2 years⁴⁶
  - Now Director of groups business development director⁴⁶
    - Been director at Sanger since 1995⁴⁶
    - Started with Sangers 1987⁴⁶
Bindaree are in negotiations to buy a feedlot at North Star in NSW⁴⁶
- NSW largest feedlot ⁴⁶
- capacity 20,000⁴⁶
- Annual turnover capacity 80,000⁴⁶
- Paid $25M in July.⁵¹
September. Sangers (a division of Bindaree Beef Group) strike a deal with JD.com, an online retailer⁴⁷
- exposure to China’s 600M internet users⁴⁷
- Brand will be developed exclusively online⁴⁷
- Beef will be processed at Inverell, packed into consumer ready packs, chilled and sent to JD’s cold storage wharehouses in China⁴⁷
  - JD.com had invested heavily in distribution infrastructure⁴⁷
  - employing 30,000 people⁴⁷
- JD.com closed loop supply chain, dealing directly with suppliers⁴⁷
  - ensures product integrity⁴⁷
  - protection against imitation is key to partnership decision⁴⁷
- Product will be cheaper cuts of beef normally made into minced meat and fast-food hamburgers⁴⁷
  - initially a modest amount will be exported⁴⁷
  - online retail being the fastest growing component of purchasing in China⁴⁷
  - range of meat products will broaden overtime⁴⁷
  - Products will begin sale Mid September⁴⁷
One of China’s largest meat processors – Shandong Delisi Food Co is in negotiations with Bindaree Beef regarding a strategic stake in the business⁴⁸
Shandong Delisi Food sign $140M agreement for a 45% stake in Bindaree Beef⁴⁹
- transaction is still subject to foreign review board approval⁴⁹
- one of the first major deals to be announced since the China/Australia FTA⁴⁹
- Advise to the transaction supplied by King & Wood Mallesons (KVM).⁵²
  - required navigation of complex Chinese regulatory requirements.⁵²
- Delisi⁴⁹
  - Is listed on the Chinese Shenzen Stock Exchange⁴⁹
  - Market capitalisation $1B⁴⁹
  - Sales network can reach 700M people⁴⁹
  - 20,000 busines customers^51.
  - Is the largest pure-play pork processor in the worlds⁵¹ largest pork-consuming country⁵¹
Beef deal with Chinatex is under pressure. Benchmark Eastern Young Cattle Indicator (EYCI) having lifted from 416c/kg in March to 596c/kg in September⁶⁴.
- Rise of EYCI of 43% in 6 months⁶⁴
October. Delisis injection will mostly be spent around the Inverell plant⁵¹
- upgrade technology of freezing, chilling and boning⁵¹
  - help to improve yield and efficency⁵¹
Bindaree Beef is now valued at $400M⁵¹
December. Function is held to celebrate 20 years of Bindaree Beef.⁵³
- Lot of challenges – plant had been old, finance to modernise was hard to get and costs crippling.⁵³
- Over the last 20 years Bindaree has.⁵³
  - processed 5.2M cattle.⁵³
  - employed 7,000 people.⁵³
  - Paid $750M in wages and salaries.⁵³
  - Returns to cattle producers has topped $5B.⁵³
  - 225,000 truck movements in and out of the meatworks.⁵³
  - Beef has been exported to 70 countries.⁵³
Single lane bridge between Walcha and Inverell would be upgraded to allow heavier truck access.⁵⁴
- current wooden bridge can only handle B-doubles.⁵⁴
- New concrete bridge will handle much heavier loads.⁵⁴
- Vital access improvement for transport to and from Inverell abattoir.⁵⁴

2016

May. Chinatex default on 3 year supply agreement set up in early 2015⁶⁵
June 30. Deadline for contract agreement Delisi Group⁶⁰.
Bindaree Beef reduce casual employee numbers by around 100 personal⁶⁰.
Bindaree begin court action to pursue payment of contract with Chinatex⁶⁵
July. Contract agreement date for deal with Delisi group is not finalised⁵⁹
Balance sheets of meat processor would have looked far better 12 months previously⁶⁰
Rumours of staff retrenchment would halve the plants current carrying capacity⁶⁰
August. Contract agreement date for deal with Delisi group is not finalised⁵⁹
November. Two large Chinese investment deals to purchase Australian-owned processors have failed to go ahead⁵⁹.
Bindaree beef $140M investment deal with China’s Delisi group has not been executed⁵⁹.
- Speculation is the hesitancy to complete the deal is linked to current processing industry profitability⁵⁹
- Discussion’s had re-opened with other interested parties⁵⁹
Other facility considering joint venture agreement – Churchill #8Q. QLD⁵⁹.
Bindaree was currently processing 4,000 cattle per week⁵⁹
National Beef herd has sunk to 20 – year lows⁵⁹
- Balance sheets in the red with large losses at processing⁵⁹

2017

August. Bindaree beef sell 51% of business to Hong Kong based, Australia citizens, the Hui family, Archstone investment⁶¹
Reported $120M sale ⁶²
- Hui family is led by Hue Mang Mau^61.
- Primary business interests are in property development in Asia controlling businesses on Shanghai and Hong Kong stock exchanges^61.
- Also hold some property in Western Australia⁶¹
  - Archstone established Consolidated Australian Pastoral Holdings (CAPH)^62.
    - Moola Bulla station, Shamrock station^62.
    - WA properties will be more geared to live export^62.
- Intention to make further acquisitions of cattle properties in the Inverell area⁶¹.
- AMIEU claim Hui Wang Mau paid $150M for 51% stake in Bindaree beef operation⁶⁹.
Bindaree has current operating capacity of around 900 head cattle per day⁶¹
- last 2 years has seen a significant reduction in numbers processed due to severe cattle shortage^61.
Bindaree Beef will establish 7 member board⁶¹
- 3 from original Bindaree beef group⁶¹
- 4 from Hui/Archstone investments⁶¹
- Andrew McDonald to remain as CEO⁶¹
- Sanger Australia to retain a minority shareholding with others⁶¹.
November. Supreme Court order a Chinese business, Chinatex to pay Bindaree $31.35M as compensation for reneging on a beef deal struck in 2015⁶⁴.
- Chinese customer – Chinatex⁶⁴
- 3 year supply deal had been to process about 900 head of cattle per week for export to China, with the meat sold through it’s own contacts⁶⁴
  - Chinatex had been warned of cattle price pressures at the time of the contract signing in 2015
  - Chinatex’s representative Zhiuhua Liang feared Chinatex’s own customers would leave and requested help to hide losses⁶⁴
    - Mr Liang didn’t want head company at Beijing to know of losses⁶⁴
    - Bindaree continued to purchase and slaughter cattle for Chinatex in line with the contract⁶⁴
- Bindaree found other customers for some of Chinatex’s product, with Chinatex buying some⁶⁴
- Chinatex has recently been brought out by Chinese state-owned behemoth China National Cereals, Oils and Foodstuffs Corp. (COFCO)^64.
  - It would not be a good look for COFCO to walk away from a court order covering a company it owned⁶⁴
- Bindaree apply and receive a court appointed freezing order against Chinatex Australia⁶⁵
- Chinatex write a response to Fairfax media claiming that Bindaree are using unfair pressure on a foreign company to reach their purpose through political means⁶⁶
  - Chinatex claim that Bindaree beef didn’t suffer any actual loss from the deal as they sold the product to other customers⁶⁶.

2018

January. Bindaree Beef are concerned about the increased competition of Brazil and Argentina into Hong Kong and China frozen meat products⁶³.
- Brazil regained access to Chinese markets mid 2015⁶³
  - Brazil supplied 30% of China’s imported frozen beef in 2016⁶³
- United States gained access to China in 2017 after a 14 year abscence⁶³
- Argentina have just signed a bi lateral agreement with China to supply beef and sheep meat⁶³.

Source MLA Snapshot. China January 2018.

Types of Australian beef exports that are sent to China

Source MLA Snapshot. China January 2018

Proportion of Australian beef exports that China receives.

March. Bindaree returns to court after November 2017 ruling pursuing payment by Chinatex’s parent company COFCO⁶⁵
- Federal Senate, National Senator John Williams says the matter greatly concerns him⁶⁵
- “It is an example of an overseas-owned company that appears to be making every attempt to defy an Australian court judgement, which in turn would have a severe impact on a large Australian employer” Se John Williams⁶⁵.
- COFCO have stripped Chinatex of their assets⁶⁵
  - Chinatex Australia transferred its shares, $38M from Australian subsidiary cattle Unibale Pty Ltd to related party Chinatex Fortune, a Hong Kong based company⁶⁵
  - Bindaree had successfully obtained a freezing order against Chinatex since December 2017⁶⁵
- June. Chinatex enter Voluntary Administration on 22/06/2018⁶⁷.
  - Administrators – Grant Thornton.⁶⁷
  - Claims against the company amount to $115M. Including Bindaree debt⁶⁷
  - Estimations of Bindaree’s likely hood to receive fund are from 0% to 20% likely (Pg 11)⁶⁷
October. Bindaree release a new premium beef brand⁶⁸.

‘Bindaree launches all-new premium beef brand’ www.farmonline.com.au 23.10.2018

Research conducted by Bindaree lead to development of range that is MSA graded for consistency⁶⁸
October 24. A workers strike occurs after months of negotiations and meetings fails to reach agreement on a wages dispute⁶⁹.
- Fair work Commission recent Award review require a 2% increase as absolute minimum on wages⁶⁹.
  - Bindaree claim its workers are already receiving above award wages and wish to only pay the 2% increase⁶⁹.
  - AMIEU want more than the 2% increase⁶⁹.
Bindaree Beef agree to pay only the minimum increase required by Fair Works Commission recent Award review⁷⁰
October 27. Another strike for 2 half hours by workers is to occur, with the evening shift workers also striking⁷⁰.
- AMIEU want 3% after the 2% increase⁷⁰.
  - Believe Bindaree can afford it because its part owner Hui Wing Mau has a net worth of $7.2B⁶⁹
  - AMIEU claim Bindaree Beef is profitable and can afford it while its workers are struggling to meet living costs⁷⁰
  - Award wage is minimum of $803 per week⁷⁰
    - Boner’s are paid $1,500 to $1,800 per week⁷⁰.
    - Unskilled workers already receiving 50% above award wage⁶⁰
    - AMIEU claim only 5% of workers earn above the minimum wage⁷⁰.
Bindaree has currently been processing stock 5 days a week⁷⁰.
- Has been able to increase wages in the past due to improvements in efficiency and equipment⁷⁰.
- Current supply of stock is reducing due to severe drought across Eastern Australia⁷⁰.
  - East coast processors are forecast to drop production in the immediate future due to drought and supply pressure⁷⁰
  - Farmers are not able to plant crops due to current drought and have not been profitable recently, they are not sympathetic to meatworkers asking for higher pay rises when economically things are so unstable.⁷⁰
  - Workers demands are adding to the unrest in the region due to drought pressures⁷⁰.
  - Abattoir in Tasmania has already closed due to high energy costs and lack of support for supply and funding⁷⁰
    - Devonport (Tas) , owned by JBS was promised $800,000 2 years in government funding to remain open. It has received some of that funding but will close 15/11/2019⁷¹
The following charts were adapted from the Analysis of Regulatory and Related costs in Red Meat Processing. AMPC. SG Heilbron. Oct 2018.
- This project identified and quantified the costs of red meat processing, including assessing the regulatory components. It compared costs with key international competitors in United States, Brazil and Argentina⁷².
- Information was assessed from 29 facilities representing the national slaughter of 60% cattle and 35%⁷².

Key Cost Components Australian Cattle 2015/ 2016. 100% costs excluding Livestock purchase

Weighted Average Processing Costs. Key cost components were assessed based on per head of throughput ratio

Comparison of Operating costs with major competitors, US, Brazil and Argentina.

Sources. Inverell. Est # 218. NSW

‘5,000 jobs at risk:Abattoirs facing closure’ Sydney Morning Herald 21.05.1996
http://www.bindareebeef.com.au. accessed 27.02.2014
‘Inverell business community’ Parliamentary Hansard 01.06.1995
‘Drought, dollar forces lay offs at Inverell abattoir’ The Northern daily Leader. 18.07.2003
‘Coles, Woolworths to shun beef imports’ Perth Now 02.03.2010
‘Who is JR McDonald’ The Land 05.05.2010
‘Bindaree Beef – Bio digester and Rendering plant’ http://www.mitchelhanlon.com.au. accessed 27.02.2014
Bindaree Beef Preliminary environmental assessment rendering plant
‘Carbon price secures Inverell’s future’ Tony Windsor MP. Independent for New England 03.07.2013
‘Bindaree Beef scores unprecedented $23M grant for carbon price’ Beef Central 03.07.2013
‘NSW meatworks soon to be cooking with biogas’ ABC Rural 03.07.2013
‘One of Australia’s biggest abattoirs proves Gillespie wrong’ http://www.roboakeshott.com 04.07.2013
‘Innovative regional thinking behind world first biogas project’ Beef Central 13.09.2013
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‘Licence blow to beef plant’ Central Western Daily 17.02.2003
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‘Bindaree takes new approach to beef brand identity’ Beef Central 03.03.2014
Ausmeat Accreditation listing. accessed 25.05.2014
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- ‘Australia joins other countries in banning endosulfen’ www.smh.com.au 13.10.2010
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Major projects Planning. NSW 16.06.2014
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www.cleanenergyfinancecorp.com.au
‘Inverell meat works shows the world….’ 2degreesproject.com.au
‘Bindaree bio Digester’ Meateng
‘JR McDonald: a Bindaree Beef legend’ www.northernstar.com.au 11.09.2014
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‘No guts, no glory on clean energy’ The Saturday paper 13.09.2014
‘Bindaree beef carves path to China’ www.farmonline.com.au 29.09.2014
‘Bindaree plan – bio-digester on the boil’ www.northerndailyleader.com.au 30.12.2014
‘Bindaree Beef in $500M auction’ www.farmonline.com.au 29.01.2015
‘Bindaree Beef seeks $100M equity investor’ Beef Central 02.02.2015
‘Meat Processor Bindaree Beef to merge with meat sales company Sanger Australia’ ABC Rural 08.07.2015
‘Bindaree Beef and Sanger Australia tie the knot’ www.foodanddrinkbusiness.com.au 08.07.2015
‘Streamlining supply benefits beef’ www.farmonline.com.au 10.07.2015
Dept Ag. Submission to Market consolidation and the red meat processing sector July 2015
‘Campbell New Sanger CEO’ The Land 18.08.2015
‘China’s middle class to get skirt that tastes as good as sirloin’ www.afr.com 03.09.2015
‘Shandong Delisi to take stake in Bindaree’ www.afr.com 16.09.2015
‘China abuys 45% stake in Bindaree Beef for $140M’ The Australian 27.10.2015
Bindaree Beef submission Inquiry into meat marketing May 2011
‘Why Bindaree chose Delisi’ Nth QLD Register 28.10.2015
‘KVM advises Bindaree Beef on significant Chinese investment’ www.kvm.com. 04.11.2015
John Williams, NSW National Party Senate speech 01.12.2015
‘Finish line in sight for Abington Bridge….’ www.barnabyjoyce.com.au 14.12.2015
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‘China Argentina beef deal highlights our cost pressures’ www.farmonline.com.au 23.01.2018
‘Bindaree’s Chines partner ‘lacked moral compass’, court says in $31M judgement’ Beef Central 27.01.2017
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Chinatex Voluntary Administration. Grant Thornton. 22.06.2018.
‘Bindaree launches all-new premium beef brand’ www.farmonline.com.au 23.10.2018
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‘Bindaree pay dispute’ ABC Rural radio. 27.10.2018
‘Devonport closure puts more than 100 people out of work’ ABC News 22.10.2019.
Analysis of Regulatory and Related costs in Red Meat Processing. AMPC. SG Heilbron. Oct 2018

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