Category Archives: Southern QLD

Roma

Other Names

  • Ladbrooks1

Current Operation

Location   

  • Roma is located in Central Queensland approximately 470km west of Brisbane.

 

Hema Maps – Australia Truckies atlas.

Owner

  • George & Alanah Ladbrook1

Operation   

History

2002

  • Abattoir purchased by Ladbrooks.1

2014

  • Was killing 40 head of cattle and 200 lambs a week.1
  • Sold abattoir due to difficulty in operating two businesses of the abattoir and a butcher shop1

 

Sources

  1. ‘George on the job 20 years’ QLD Country Life 03.07.2014

Killarney #22Q. QLD

Current Operation

  • Closed 08/02/2010.    

Location     

  • Killarney is located in the far southern region of South East Queensland within 5km of the QLD / NSW border.
    • Located Brosnan Road, Killarney, 2 hours drive from Brisbane CBD43
  • Killarney’s major closest small town is Warwick, population of approximately 15,500 people1.
    • Warwick is located 30km Northwest of Killarney
  • Killarney’s major larger towns are Toowoomba 100km north and Brisbane 130km to the North East1.

Australia. Killarney 06.04.2017

Killarney. QLD. 06.04.2017

Location relative to other abattoirs across Australia

abattoirs_edited-1  Location of Australian Abattoirs

How this map works.
This is a google engine layered map. At the moment it consists of 7 layers. By clicking on the box on the right hand side of the layers names it will illustrate the location of the abattoirs.

This is a work in progress and is not a complete list of all abattoirs that have operated in Australia or are currently operating.
Locations are approximate and are in relation to the closest town to which they are addressed.

The same abattoir site may appear in two different lists.

Use this link to access the Google map Australian Abattoirs locations.

 Location of Australian Abattoirs      

Owner

  • Hancock Family. 1976 – 20088
    • Roly Hancock8.
      • sons of Roly, Rohan, Hector and Tony8

 Operation

grant thronton receivers.

  • Aus-meat Accredited Establishment list at July 199764
    •  as a domestic abattoir. Accreditation number #0022Q
    • Operated as Killarney abattoir
      • Processing Beef, sheep and pigs
  • Aus-meat Accredited Establishment list as at 18/07/200868
    • as a domestic abattoir. Accreditation number #0022Q
    • Operating trading name – KA Operations Pty Ltd
    • Processing beef, sheep and pigs
    • Rating – A
  • Aus-meat Accredited Establishment list as at 18/03/201065

 History

1976

  • January 17. Killarney abattoir begins operation under Roly Hancock8
    • Staff of 15 men8

2000

  • Facility is taking a break only over 3 public day holidays of Christmas period2

2004

  • December. Plant rolls back working hours from 38 hours per week to 30 hours per week4
    • Seasonal shortage of stock is the main reason4
      • drought breaking rains  in the region
      • lowest level of sheep numbers in Australia this decade
      • Australian dollar peaked at record highs
    • Production is usually offset by higher returns for by products such as hides, tallow and meat meal4
      • High dollar exchange has made exports actually worth less
    • a lift in the Australian dollar will hopefully lead to a short reduction in working time4

2006

  • January. Warwick town shire is considering tighter water constrictions if levels in reserve drop too low5
    • Killarney abattoir bores have not been considered in any proposals at this time
  • Feedlot application for 999 standard cattle unit capacity (SCU) located North branch road at Warwick is refused by council6.
    • Objections had been citing concerns of odour, water supply and conflict with rural residential character of the district6.
    • New application is made for 499 SCU6.
  • Feedlot application for 999 SCU at Loch Lomond (10km west of Killarney) is approved by council7.
    • No objections are made against the proposal7.
  • August. MLA conduct a research project to look at the collection of carcase weight and information to utilise for computerisation and ability to relay information to the producer, processer and wholesaler67.
    • system must be compliant to export standards.

Analysis of Information flows and implementation of an e-business solution for Killarney abattoir. Project P.PIP.OO79. D. Bowler. August 2006

MLA report 2006. Pg 11

Source. MLA report P.PIP 0079. Inside the boning room. Pg 11

2007

  • January. Feedlot application for 1,700 SCU located at Loch Lomond  is sought to be built on the property ‘Belvedere’6.
    • 1km from the previous proposal approved in late 20067.
    • ‘Belvedere’ 440 ha property purchased by Gold Coast based company ‘ Professional Investment Cattle’6.
      • subsidiary of ‘Professional Investment Holdings’6.
        • Licensed dealer in securities with $12.5B under management6.
    • Feedlot would turn off 170 cattle after feeding for 70- day period, to be processed at Killarney abattoir6.
      • represent a 15% increase in cattle processing6.
        • “Help to ensure economic future” Killarney CEO Hector Hancock6.
    • Road works upgrades would be required to accommodate semi-trailer turning movements6.
    • Protests are held against the proposal citing smell, devalued properties, noise, building restrictions, dust and Condomine river pollution7.
      • Area was a hub for life-stylers and retirees7.

2008

  • January 21. Announcement is made of sale of Killarney abattoir to Dudley Leitch8
    • Killarney abattoir sold for $5.1M 62
    • Dudley Leitch already owns another abattoir facility at Pittsworth8
      • 5km South west of Toowoomba
    • General manager of operations – Hector Hancock (of previous ownership)8
  • Sale of abattoir occurred in conjunction with a separate purchase of Condomine River meats8
    • Included property ‘Berrima’ and feedlot of 5,000 head capacity8
  • Sale of abattoir was never advertised. Roly Hancock wished to take a backwards step from the operations8.

Map proximity to Pittsworth 06.04.2017

Source. Hema Maps. Showing Proximity of Pittsworth abattoir south west of Toowoomba to Killarney abattoir near NSW QLD border. approximately 120km apart.

  • Dudley Leitch came into business success with gold discoveries in Victoria, listing ‘Perseverance Company on the Australian stock exchange in 19878.
    • shares rocketed from 25c to $13 in 4 months8.
  • Abattoir will capitalise on 2 of its by -products that have doubled in value recently8
    • Tallow, base for soaps and cosmetics, bio-diesel source8
      • $300 / tonne to $1,000 / tonne8
    • Meat-meal, replacing grain in diets for pigs and chooks8
      • doubled price in last 3 years8
  • Machinery will be installed to ensure the retention of more tallow8
  • Abattoir currently employs 179 people8
  • Abattoir capacity has the ability to process daily8
    • 400 cattle
    • 100 pigs
    • 1,100 sheep and lambs
  • “Half of the staff I’m related to and the other half I grew up with, We didn’t want to sell to just anyone but we feel Dudley is genuine, caring and recognises the value of our workers and we are confident he will look after our family at the abattoir” Hector Hancock8
  • June. 2008 season has been very wet in most parts of QLD causing stand-downs and in most places, the plants starting dates were delayed3
  • New owners will continue to work on working agreements and work with union3
  • Expectation that a new Enterprise agreement will be negotiated towards the end of 20083
  • Australian Bureau of Statistics (as at 30/06/2008) estimate Australia’s sheep flock is down 10% (fallen by 8.78M)51
    • Lowest Australian sheep flock since 191651
    • QLD record a lowering of 3.96M head51

2009

  • June. Warwick saleyards receives a record high price of $84.50 for butchers merino’s51
    • sold to Killarney abattoir51
    • competition for some sheep came from Fletchers International (Dubbo)51
  • Currently very positive for sheep producers due to 51
    • sheep prices increasing51
    • low stock numbers 51
    • concern for future over supply by wool growers51
      • meat processors anticipated shortfall in sheep availability during winter months51
  • July. During the last 12 months 70%, 140 employees have undertaken some form of on-the-job training9.
    • All levels of the workers from managers to newly -recruited school leavers9.
    • Aim was improve training opportunities and have skills formerly recognised9.
    • Technology advances and OHS has placed increased pressure on people to undertake formal training9.
  • Leitch Pastoral Group owned meatworks employ 190 locals9.
    • including 50 casual staff9.
  • It is claimed 42 employees lost their jobs at the Killarney and Pittsworth plants22
  • Dudley Leitch is ranked in QLD top 100 rich list53.
    • #80 $109M53.
  • September. Dudley Leitch believes he has discovered potential to revolutionise the meat processing industry10.
    • Transforming animal by-products into organic fertiliser10.
    • Intends to develop the organic fertiliser and test it extensively on their own properties10.
    • Using methods on the properties to stop degradation of farming land10.
  • Organic product will put carbon back into the soil with high phosphorous10.
    • Utilises natural products that make the soil super-absorbent with combined with nitrogen and phosphorous10.
  • Commercialisation of the product will incorporate intention to float a public company in 201010.
  • Leitch group currently own 52,600 ha in the region10.
    • intensively grazing10.
      • 100,000 meat ewes
      • 3,000 nanny goats
  • Temporary job losses occur for a month as facility is shifted from mutton to young cattle and prime lambs10.
    • 10-12 people will be laid off10.
      • Offered positions on other properties of the company10.
  • Killarney markets are mainly into Sydney where there is heavy competition with exporters10.
  • Local markets will now be the focus10.
    • bone more lamb and young beef10.
      • output will be a higher quality product10.
  • Pittsworth facility has undergone recent $6M renovations10.
    • New rendering plant that cost $4M10.
  • New rendering plant is being considered for Killarney10.
    • Current process takes 12 hours10.
      • new facility would take 45 minutes10.
        • Tallow quality is better10.
  •  Editorial article in Warwick Daily applauds the long-term business investment in the region of operators such as Dudley Leitch11.
    • Other regions of QLD are reliant on the mining boom11
    • Areas of agriculture require  long-term investment11
  • October. Shortage of suitable cattle for slaughter is causing loss of production at the facility12
    • John Dee (Oakey QLD) is similarly affected, missed 1 production day12
  • Contributing factors causing supply problems12
    • Seasonal conditions12
      • Stock are not finished as well12
    • Rising Australian dollar12
      • Places pressure on price causing some plants to offload product into the domestic markets12
  • Leitch Pastoral Operations manager – Rob Doro12
  • Cattle markets had tightened recently making it difficult to source livestock12
  • Killarney is committed to operating full kill 5 days per week, throughout the year12
  • Wallangarra (NSW) is temporarily closed due to a shortage of sheep13
    • Facility was planning to modify its plant to equip as a beef chain but this would take 9 months to complete13
  • December. Rumours are quashed by Dudley Leitch that the Killarney abattoir is in financial trouble14
  • Recent restructuring at the abattoir had cost 18 people their jobs14
  • Forward contracts had been introduced14
  • Negotiations are ongoing with the unions14
    • Enterprise agreement for Pittsworth abattoir and Condamine river meats.14
    • New enterprise agreement for Killarney would occur in early 201014
  • Renovation of the waste-water ponds was occuring14
  • Development talks were occurring in regards to the compost material14.
  • Clearing sale of some machinery items were to be sold on December 19 owned by Dudley Leitch14
    • 20 properties had been purchased in the last 3-4 years and a large volume of old machinery had accumulated14
  • Rumours had been concerned with how well the Killarney abattoir was running
    • Annual Christmas party had failed to occur14
    • Rumours had surfaced that Killarney production was slowing to concentrate on Pittsworth plant14
  • Loss of Killarney as an employer would be devastating for the town14
  • Hancock family have officially severed all ties with the Killarney plant14
    • Split had been amicable14.

2010

  • February 8. 240 workers are stood down from Killarney and Pittsworth abattoirs15
  • Both meatworks would have suspended operations15
    • including wholesale and feedlot arm Condamine River meats15
  • Management say abattoir is not closed and they have not sacked anyone15
  • Stand down was a result of current economic climate15
    • competitive marketplace a factor16
  • “The meat industry is a difficult environment at the best of times and this has been a particularly tough period” Rob Doro. Leitch Pastoral Group operations manager.15
  • Announcement of stand down comes only 2 months of assurances the abattoir wasn’t in financial trouble.15
  • Further announcement is expected to occur 12/02/201016
    • Management were confident of the plant re-opening, staff were not16.
  • Pittsworth residents said closure of the Pittsworth abattoir would be a massive blow to the community17.
    • Pittsworth currently employed 110 people17.
  •  Killarney currently employ 130 workers18.
  • Condamine River meats, uncertain of number of employees stood down18.
  • Meatworks would continue to operate with skeleton staff18.
  • Leitch Pastoral group would ensure employees were paid entitlements18.
  • Outstanding debts to Leitch pastoral were being actively pursued to meet creditor obligations18.
  • Killarney had been the regions largest employer for 30 years18.
  • Yangan abattoir was receiving enquiry from wholesale and retail butchers desperate to secure kill space in wake of the Killarney closure18.
    • Yangan didn’t have the infrastructure to process more stock18.
      • currently at 70% kill capacity18.
        • To increase capacity use would require significant increase in the workforce18.
  • February 12. confidence increases for the meatworks re-opening due to the fact 800 sheep are in the abattoir yards19
    • Management say the stock have been in the yards since the initial shutdown19
      • Stock have been on feed and water for the duration19
  • Announcement is made that the closure of the Killarney and Pittsworth abattoirs will continue in-definitely20
  • Dudley Leitch is confident the plant will re-open20
  • Grant Thornton, Brisbane based management consultants are hired to begin a debt collection program20
    • Expected to accelerate recouping of debt owed
  • Government provide assistance packages and support to employees of the facilities21
    • Jobs Assist program to assist employees to look for other positions21
    • Working with the unions to provide accelerated Centrelink entitlements
  • An independent government review identifies solutions that will keep the business afloat21
    • Company may or may decide to accept the proposals21.
  • Annual turnover of the 2 plants is in excess of $80M22
    • Businesses have a substantial amount owing from debtors22
  • Workers are angry and in disbelief at the recent announcements22
    • Claim the owners misled them22
  • Some producers are owed money by the abattoirs for livestock sold as well as for wages owed22
  • Government had been providing  assistance for some time to the abattoirs through the ‘Job assist program’22
  • February 16. AMIEU call for urgent meeting with management to provide definite dates and certainty to workers regarding work and entitlements23
    • Staff are not yet legally redundant, therefore are effectively still employed by the facility23
    • Workers are unable to claim concessions if they are not made redundant
    • Centrelink unemployment entitlement may allow $400 / fortnight payment23
      • Wages were nearer $1200 a week23.
  • February 19. 4 Workers accuse Leitch Pastoral Group have failed to make superannuation payments to employees accounts since June 200924
  • Payroll anomalies are being investigated by Grant Thornton management consultants24
    • Some employees are also owed holiday pay24
  • Employees have contacted superannuation funds, who then referred to Australian taxation office to begin an investigation into the workers entitlements24.

GT 2nd report. pg 25

Source gtal 2010 ka operations report released 01/04/2010
Showing final figures of monies owed for employee entitlements by KA operations.

  • Wallangarra (NSW) plant is sold to South Australian company25
    • workers at Wallangarra are assure their jobs are secure25
    • Wallangarra has been accessing some stock that normally would have been processed at Killarney and selling product into areas traditionally sold to also by Killarney25
  • Current sheep prices are very high25
    • due to low flock numbers nationally25
  • Gympie meatworks – Nolan Meats business was operating as normal52
    • highest throughput of cattle, processing 400 head a day52
  • March 3. Leitch Pastoral Group is placed into voluntary administration26
  • Dudley Leitch assures those affected by the Killarney abattoir the facility would be re-opened once debts had been collected from suppliers26
  • Several parties have shown interest in creating an alliance to keep the facility in operation26
  • Leitch Pastoral Group is now under the control of Michael McCann from the Grant Thornton accounting firm27
  • Operations at the Killarney and Pittsworth abattoirs would remain suspended
    • Likely the facilities will be placed for sale27
  • Westpac bank announce a relief package to assist customers who are employees of Leitch pastoral company affected by the closure of the abattoirs28
    • Home loans may defer payments for 3 months28
    • Existing business loans can request loan restructure without usual bank fees applicable28
    • Credit card customers can request emergency credit limit rises28
    • Personal loan customers can apply to refinance at a discounted fixed interest rate28
    • Westpac will waive interest penalties for early drawing of term deposits28
    • Free consultations with financial planners28
  • March 5. Alleged theft occurs of $31,000 worth of equipment from Leitch Pastoral Group properties in the last fortnight29
    • Killarney abattoir had a mig welder and maintenance equipment29
    • Elbow valley Property lost a spray unit29
  • Dudley Leitch is confident abattoirs will re-open30
    • Not necessarily under Leitch Pastoral Group30
    • Both plants are only 2 multi species abattoirs of significant size in the region30
  • Reason for failure of the abattoirs30
    • Outstanding payments to Condamine river meats30
    • Failed bid to unite various wholesale groups under one banner30
      • “The main problem we were having out there firstly the wholesale people not selling the meat at the right price and not making money” Dudley Leitch30
      • Lack of salesmen pushing the product and lack of ability to collect debts
    • Dudley Leitch would step back from meat operations of the Leitch Pastoral Group though he would continue to run the farming  entities30
      • Dudley Leitch insisting the farming entities were separate to the processing30
      • A number of Leitch properties were already on the market for sale
  • Core staff and basic maintenance crew remain at the plant enabling it to be re-opened if required30.
  • Leitch Pastoral Group owe in excess $7M to over 200 claimants31
    • Warwick Livestock agents31
      • Stock and Station agents across Darling Downs are owed more than $900,00031
    • cattle producers31
      • Coomith Cattle Company $170,00034
      • Un-named producers supplied stock worth $22,000 for slaughter of 31 head in November35
        • Had suspected problems with Killarney and had begun to grow heavier cattle and sell to another abattoir at Oakey prior to the end of 200935
          • Increased freight cost of $16-$20 per head35
        • Producers weren’t suppling stock to Killarney because the facility wasn’t making timely payments for them35
          • Producers had to chase abattoir for payment35
    • Superannuation funds $307,500, with over $265,000 to one fund alone31
      • Employees have received additional information from Grant Thornton but may have to wait 8-10 months before payment31
      • $3,000 garnered from employees wages for child support agencies was not forwarded to the agencies31
      • Employees are receiving formal notice of their termination of employment31
    • Government bodies31
      • WorkCover QLD $584,00031
      • Governments Levies Revenue Service $78,00031
  • Dudley Leitch himself is listed as a creditor – owed $2.25M31
    • Dudley Leitch supplied stock from his own properties to the Killarney abattoir when the facility was struggling to source stock35
    • $946,000 is owed internally between the 3 entities of the Lietch Pastoral Group31
    • Dudley Leitch had personally rung people to assure they would receive their money31
  • Full liabilities is still unknown as they don’t include former employees or financiers31
  • Suppliers feel Dudley Leitch should not be listed as a creditor31
    • Now like all failed businessmen he is finding blame with everyone but himself” – suppliers31
  • Creditor documents cast doubt on whether those owed money would see much32
    • Creditors view that voluntary administration absolves the groups owner of any responsibility to pay his debts32
    • Dudley gets to keep his assets because the voluntary administration only relates to the 3 other entities32
  • Employees rank as a priority ahead of claims by ordinary unsecured creditors and ahead of secured creditor31
    • 2nd – Rural Bank31
  • Accounting firm Grant Thornton to receive $225,000 for resolving the crisis31
    • $485 hourly rate31
    • Suppliers were cynical of administrators being able to guarantee their payment but not payment to other creditors31
  • Dudley Leitch quits as Director of Kings Minerals due to personal reasons32
    • Walks away with share portfolio of $5.7M32
    • Not uncommon for company directors to resign from other positions if certain their interests could be subject to intervention32
  • March 10. A proposal by the Leitch Pastoral Group to resurrect the Killarney abattoir as a co-operative with financiers Rural Bank is put forward33
    • Rob Doro resigned as Leitch Pastoral Group operations manager but allowed him to put proposal forward33
      • May allow creditors to recover money 33
      • Killarney to retain a major employer33
    • Would require Dudley Leitch and Rural Bank to forgo the assets of both Killarney and Pittsworth plants and roll them into a new entity33
      • Abattoirs would have an accountable board with independent and professional directors33
      • Require government support in the form of start up capital
        • Interest reduced loans33
  • Co-operative idea is labelled as “unrealistic, Cinderella solution” to the “only hope” for those owed monies34
    • Those owed money could translate their debt into shares34
    • Financial data was viewed that the abattoirs could be viable under a tightly controlled management regime34
  • Creditors and suppliers were wary of proposal but considered it may be a real option34
  • preference to see State Government take action to ensure corporations were not allowed to protect assets behind trading companies34
  • Views34
    • Co-operative concept had merit if close attention was paid to developing a sensible business model to ensure sustainable volume and pricing34
    • Bank wouldn’t for-go assets in the interest of a few trade creditors34
      • Lietch had always structured the business to protect assets
    • If the meatworks are actually viable why had Grant Thornton not recommended trading out of the situation34
  • March 12. Creditors meeting is held at Grant Thornton offices in Brisbane35
    • Grant Thornton indicate that unsecured creditors would not receive any money35
  • Further meetings are held with government organisations to consider the co-operative proposal35
  • Employees will receive monies owed in 90 days36
    • $1.6M in entitlements36
      • $1.3M is expected from debtors36
    • Federal Government General Employee Entitlements and Redundancy Scheme will top up any outstanding amounts36
  • Southern Downs Regional council developed a 70 ML off-stream storage facility last year with the understanding it was critical to the Killarney abattoir37
    • Ratepayers may be forced to pick up the $1.1M cost of the facility37
    • Killarney abattoir had been expected to use 50% and be the main contributor to the cost recovery37.
  • April 1. Report to creditors is released by Grant Thornton.

gtal_2010_ka_operations_pty_ltd_second-report_to_creditors

GT 2nd report pg 2.

Source gtal 2010 ka operations. Recommendations of action Pg 2

  • Reasons for failure of the business as cited on page 6 of gtal report.
GT 2nd report. pg 13

Source gtal 2010 ka operations. Reasons for failure. Pg 6

GT 2nd report pg 7.

Source gtal 2010 ka operations. Insolvent trading Pg 7

 

 

GT 2nd report. pg 8

Source gtal 2010 ka operations. Return to creditors Pg 8

 

GT 2nd report. pg 16

Source gtal 2010 ka operations. Profit and Loss Pg 16.
All accounts are un-audited and showing a trading loss of $1.27M at 28/02/2010

GT 2nd report pg 13.

Source gtal 2010 ka operations. Statement of Position Pg 22
Statement of Position showing debt to Rural bank of $32M

  • April 14. Lietch Pastoral Group meat entities are placed in formal liquidation38
  • Both meatworks. Killarney and Pittsworth are listed for sale by tender38
  • Dudley Leitch also lists a farming property owned in the Killarney area is listed for sale38
    • Employees are resentful of the fact Dudley Leitch owns property in the area but isn’t forced to sell the land or personal home while employees had to wait until legal notice of formal liquidation to receive their access to funds and still wait 90 days for payment39

Leitch proprety groups. Mercury 31.10.2014

Source Mercury ‘Last of Leitch properties…’ 31/10/2014

Listing of properties held within the Leitch Pastoral Group portfolio

  • 3 of the 27 Trainees employed at Killarney have found work at other sites39
    • Yangan abattoir employed 2 fitter and turners to enable them to finish training39
    • Most would be forced to forget training and take work elsewhere where ever they could39
  • Big W distribution centre employed 20 former meatworks staff39
  • Oakey abattoir (John Dees) employed 10 former Killarney workers39
  • Some Killarney workers were able to relocate to find work at other centres39
  • May 21st. Formal tenders for the 2 abattoirs close at 5pm40.
    • Facilities were being offered as 2 separate entities40
  • Dudley Leitch rural enterprises are struggling operating on skeleton staff40.
    • Management team now consist of Dudley, his daughter and a lawyer40.
  • Business review had been conducted for Government by Grant Thornton for Jobs Assistance Intensive program41
    • Independent business review of Killarney abattoir
      • Authors Note – Date is not mentioned of when the review was actually conducted.
    • Report undertaking cost $88,771.9641
    • Report didn’t indicate Leitch Pastoral Group was insolvent.41
  • June. Pittsworth abattoir is under contract to overseas interests
    • Settlement to occur June 2842
      • Killing expected to begin within weeks of settlement42
  • Killarney operations has received interest from overseas and interstate buyers42
  • Dudley Leitch believes facilities could operate as service kill but not as wholesale operations42
    • Killarney may have the potential to export42
    • Made error in not bringing arms of Pittsworth and Killarney meat wholesale arms together – effectively they were in competition with each other42
    • Leitch groups still has a considerable debt42
    • Clean up work was being carried out at the Killarney site42.
  • August. Pittsworth abattoir re-opens under new ownership48
    • Pittsworth closes permanently April 8 201148
  • Dudley Leitch is included in QLD Top 100 List53.
    • Estimated worth of $81M ranked 9453.
      • 2009 ranking had been #80 at $109M53.
    • Dudley Leitch claims ‘net personal financial wealth’ is impossible to assess53.
      • His family are heavily burdened by debt53.
  • Creditors who are owed money by the Leitch groups are taking on extra overdraft to pay bills53.
  • December. Colliers International real estate sale agents list Killarney abattoir for sale43.
    • Property consisting of 32ha grazing land43
  • Dudley and Karen Leitch hold an online auction of 7,000 Dorper and Damara sheep from traprock country west of Warwick44
    • Karen Leitch is also selling a high-class artworks store as a closing down sale44
      • Artes de Mexico specialises in unique forms of handmade ceramics44
    • Dudley Leitch continues to run 60,000 head breeding sheep flock on his traprock country areas44.
    • Sale is not confirmed to meet requirements of creditors but for 16 workers on the properties44
  • Dudley Leitch vows to re-open his beef cattle feedlots at Millermerran and Cullendore within the next few months44
  • Court action is on-going against the Killarney and Pittsworth abattoirs 44
    • Killarney co-op lodged March 201044
      • Undisclosed amount was agreed on and would be paid44
    • Coomith Cattle Company of Meandarra, Perrett Cattle company of Injune (owed $61,000) and the Amber Downs Feedlot at Wandoan lodged May 3144
  • Overseas investor inspects the Killarney abattoir44
    • Local (NSW and QLD) has shown some interest in the facility45
  • Colliers International selling agents are confident Killarney abattoir will be sold46
    • 7 groups of people have inspected the facility46
      • A shortlist of the offers will now be done46
      • Some are looking to re-open the facility others to lease the property46

2011

  • February. 2 potential buyers are in talks with the sales agent47
    • Hopeful a result may have occurred mid January but local flooding had caused delays47
  • April. Pittsworth abattoir permanently closes48
  • Freestone Feedlot, 2,000 head capacity located north of Warwick remains under external administration54.
    • Feedlot stock numbers were down due to high cattle prices54.
    • Feedlot had service killed at Killarney54.
      • Carcases were processed at their own meat processing facility at Molendinar (QLD Gold Coast)54.
  • May. Equipment is removed from the site48
    • Rumours the facility will not re-open48
    • Scrap metal merchant was removing materials and gear48
  • Equipment from Killarney  is used to refurbish Forbes #656 NSW 69.
  • Previous offers and negotiations had fallen through48.
    • Rumours $1.3M had been rejected in the hope of achieving a $2M sale48.
  • Dudley Leitch and his wife are subject to supreme court action by the ATO49.
    • $600,000 in unpaid taxes49
      • Tax debt under the Leitch family trust49
    • Family home in Brisbane was auctioned in the last week selling for $696,00049
      •  Leitch’s plan to move to one of their livestock properties49
    • Leitch’s sell 102ha Beaudesert property $1.33M49
  • November. Dudley & Karen Leitch are formerly declared bankrupt50
  • Tenants on former Leitch properties are ordered to vacate the properties by the end of January 201250
  • Cattle suppliers who took Leitch to court have not received any payment of monies and expect legal costs to have doubled their losses.50
  • ATO launch a second legal case for further unpaid taxes and Superannuation Guarantee charges $998,589.07 plus interest and court costs50
  • December. Killarney abattoir remains in the hands of the creditors50
    • site is gradually being dismantled with numerous sheds and workshops already gone50

2012

  • June. Belvedere (Owned by Leitch Pastoral Group) is passed in at auction $1.7M55.
  • August. Killarney abattoir site (now stripped of some sheds and most equipment) is sold to Chris Shaw $167,00062
  • October. Rumours Killarney abattoir will be converted to a pig processing facility56
  • Swickers at Kingaroy is currently processing 2,000 pigs a day56

2013

  • February. Memorandum of understanding is announced to re-open Killarney abattoir57
    • Northern Co-Operative Meat Company (Casino NSW) and Killarney based business identity Chris Shaw of Canning Downs58
      • Co-op currently run pig plant at Booyong (Lismore)58
    • Abattoir (formerly beef and sheep) would need to be completely rebuilt and refurbished58
      • Initial phase will be a feasibility study58
      • Chris Shaw had been interested in buying the Killarney site and building a pig abattoir himself.58
      • A new pig facility would directly compete with Casino, Northern Co-op wanted to have some control of negotiations58
        • better enable Casino protection for its business and staff58
        • Killarney would have saved many producers transport costs58
  • Livestock producers who received payment of livestock prior to the Leitch groups being placed under administration will be forced to repay money as they should not have received preferential treatment to unsecured creditors59
    • First call on assets is owed to ATO59
      • 2nd secured creditors – Rural bank59
        • 3rd company employees59
          • owed approximately $1.5M60
    • Return of payment of money will place undue stress on suppliers who provided stock under contract and in good faith of payment59
    • Some were considering a joined legal action to keep the money59
  • Law: Corporations Act60
    • By Law, to recover an unfair preference, the liquidator must show that the transaction occurred at a time when the company was insolvent, that the transaction gave the creditor an advantage over other creditors(preferential treatment) and that the creditor suspected or should have suspected that the company was insolvent.60
  • October. Dudley Leitch is working as a part time consultant for a Chinese company mining copper61.
  • Dudley Leitch and his wife are still listed as owners of several properties at Gore, Stonehenge, Springdale and Terrica61
  • At this time creditors owed from the collapse of Killarney, Pittsworth and Condomine River meats have not been paid61
    • Neither has the ATO61
  • Some suppliers who were asked to return payments have to avoid court costs61

2014

  • March. Grant Thornton as liquidators role will end61.
  • Expectation winding up process of the collapsed Leitch groups to be formally finalised62
    • unlikely that local firms and suppliers will receive any monies owed62
  • Re-development of the Killarney site as a pig processing facility could take up to 2 years62
    • Chris Shaw has withdrawn from the project62
      • Owns the Killarney site62.
    • Northern Co-op was proceeding with due-diligence62
  • October. Leitch properties Enisclare and Stonehenge sell prior to auction63
  • Last of the Leitch Pastoral group holdings will be auctioned63.
    • Bodumba will be sold 31/10/201463
      • Final of more than 17 properties63
        • Including 2 abattoirs63
      • Started buying in 2005 and 2006 continuing through the property price highs of 200863
      • Accumulated a rural portfolio of $30M63
  • Collapse of Leitch groups affected local property markets63
    • Prices back 30-40% from 200863

 Sources

  1. https://en.wikipedia.org/wiki/Warwick,_Queensland Accessed 06/04/2017
  2. www.cattlefacts.com.au Work Recess Dates 2000-2001
  3. AMIEU – Ian McLauchlan. 2008. – note link not working
  4. ‘Killarney abattoir staff face reduced work hours’ Warwick Daily News 10.12.2004
  5. ‘Outlook murky for Killarney’s water supply’ Warwick Daily News 12.01.2006
  6. ‘Loch Lomond feedlot plan is in’ Warwick Daily News 11.02.2007
  7. ‘Feedlot plan on the nose’ Warwick Daily News 22.02.2007
  8. ‘Meatly deal snaps up abattoir and feedlot’ Warwick Daily News 24.01.2008
  9. ‘Upskilling benefits both staff and bosses’ Warwick Daily News 10.07.2009
  10. ‘Abattoir plan a first: Leitch’ Warwick Daily News 22.09.2009
  11. ‘Long-term investment needed in the region’ Warwick Daily News. Editor. 22.09.2009
  12. ‘Cattle supply impacts on meatworks’ Warwick Daily News 13.10.2009
  13. ‘Abattoir closure kills 200 jobs’ Warwick Daily News 27.10.2009
  14. ‘Leitch disputes rumours’ Warwick Daily News 05.12.2009
  15. ‘Abattoir workers stood down’ Warwick Daily News 08.02.2010
  16. ‘230 abattoir workers stood down’ Warwick Daily News 09.02.2010
  17.  ‘Leitch Pastoral Group closes’ Warwick Daily 09.02.2010
  18. ‘Abattoir suspends workers’ Warwick Daily News 09.02.2010
  19. ‘Abattoir future to be known today’ Warwick Daily News 12.02.2010
  20. ‘Leitch vows to re-open abattoir’ Warwick Daily News 12.02.2010
  21. QLD Government Media release. Mr Andrew Fraser. 12.02.2010
  22. ‘Leitch extends plant shutdown’ Warwick Daily News 13.02.2010
  23. ‘Abattoir workers’ future uncertain’ Warwick Daily News 16.02.2010
  24. ‘Employees missing super’ Warwick Daily News 19.02.2010
  25. ‘Meatworkers told their job’s safe’ Warwick Daily News 02.03.2010
  26. ‘Abattoir owners confirm closure’ The Chronicle 03.03.2010
  27. ‘Abattoir entities in receivership’ Warwick Daily News 03.03.2010
  28. Westpac Bank Media release. 03.03.2010
  29. ‘Thieves make a hit on abattoir plant’ Warwick Daily News 05.03.2010
  30. ‘Abattoirs will reopen: Leitch’ Warwick Daily News 05.03.2010
  31. ‘Show us the money, Dudley’ Warwick Daily News 05.03.2010
  32. ‘Leitch resigns from top job’ Warwick Daily News 06.03.2010
  33. ‘Bold bid to keep abattoir running’ Warwick Daily News 10.03.2010
  34. ‘Plan to reinvent abattoirs’ Warwick Daily News 11.03.2010
  35. ‘Leitch faces creditors’ Warwick Daily News 12.03.2010
  36. ‘Better news for abattoir workers’ Warwick Daily News 12.03.2010
  37. ‘Abattoir leaves $1M water bill’ Warwick Daily News 31.03.2010
  38. ‘Leitch now in liquidation’ Warwick Daily News 14.04.2010
  39. ‘Workers doing it tough’ Warwick Daily News 15.04.2010
  40. ‘Killarney abattoir’s future unsure’ Warwick Daily News 20.05.2010
  41. Parliamentary questions on notice. #697 13.04.2010. Mr Springborg.
  42. ‘Killarney is still a goer: Leitch’ Warwick Daily News 02.06.2010
  43. ‘Colliers lists Killarney’s idle abattoir’ Stock Journal 09.12.2010
  44. ‘No movement on Killarney abattoir’ Warwick Daily News 10.06.2010
  45. ‘Locals register abattoir interest’ Warwick Daily News 14.12.2010
  46. ‘Abattoir set to sell’ Warwick Daily News 23.12.2010
  47. ‘Two groups interested in abattoir’ Warwick Daily News 24.02.2011
  48. ‘Killarney abattoir’s future vague’ Warwick Daily News
  49. ‘Tax office chasing down Leitch’s’ Warwick Daily News 26.05.2011
  50. ‘Millions to mud: Leitch bankrupt’ Daily Mercury. 17.12.2011
  51. ‘Sheep Producers smiling as meat price on the increase’ Warwick Daily News 02.06.2009.. Via www.questia.com
  52. ‘Local meat jobs safe, Industry is uncertain’ Warwick Daily News 24.02.2010
  53. ‘Living off the fat of the Lamb? Former abattoir owner Leitch rejects papers rich list tag’ Warwick Daily News 17.08.2010. via www.questia.com
  54. ‘Freestone Group still in Limbo..’ Warwick Daily News 05.04.2011. via www.questia.com
  55. ‘Belvedere QLD passed in for $1.7M’ www.farmonline.com.au 29.06.2012
  56. ‘Is pig abattoir sale tale a lot of pork pies?’ Warwick Daily News 10.10.2012. via www.questia.com
  57. ‘Abattoir plan is exciting’ Warwick Daily News. Editor comments 23.02.2013. via www.questia.com
  58. ‘Talks ramped up on new abattoir hopes riding on new venture…..’ Warwick Daily News 23.02.2013. via www.questia.com
  59. ‘Producers’ nightmare as big funs demand cash’ Warwick Daily News 28.02.2013
  60. ‘Liquidator looks into money owed’ Warwick Daily News 28.02.2013. via www.questia.com
  61. ‘Dudley Leitch back in mining biz’ Warwick Daily News 29.10.2013
  62. ‘Two-year plan with set-up of pig plant’ Warwick Daily News 01.04.2014
  63. ‘Last of Leitch properties to be offered up for auction’ Daily Mercury 31.10.2014
  64. Aus-Meat Accredited Establishment List July 1997
  65. Aus-Meat Acc Listing 18.03.10
  66. gtal_2010_ka_operations_pty_ltd_second-report_to_creditors
  67. PPIP0079-Final-Report
  68. Aus-Meat Accredited Establishment List 18/07/2008
  69. ‘Three meat processing plants hit the market….’ Beef Central 14.09.2016

Rockhampton – Lakes Creek

There is a historical Lakes Creek abattoir and the current facility that Teys operate at Rockhampton. It is not clear if the two sites are the same location or one was dismantled and another built.

Other Names

  • Rockhampton abattoir – there is another facility in Rockhampton operated by JBS, Rockhampton (QLD – JBS)
  • Lakes Creek abattoir

Current Operation

  • Aus Meat Accreditation registration dated 29/12/2015 #7 – Teys Australia Meat Group Pty Ltd.45
    • registered as a Beef, Offal export facility.45
  • Direct employment enquiries to Teys Employment Information

Location   Owner

Teys Logo_edited-1Source www.teysaust.com.au. the Teys-Cargill Australia Logo

Operation

  • Teys operate 3 feedlots12
    • Jindalee (NSW)12
    • Condamine (QLD)12
    • Charlton (Vic)12
  • Hide Processing Facility in Murgon12
  • Value adding facilities12
    • Hemmant – Produces cooked deli smallgoods and convenience meals12
    • Wagga Wagga – produces case ready goods for retail12

For employment information go to  Teys Employment Information

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

Australian abattoirs inactive map

abattoirs_edited-1

 

History of Rockhampton – Lakes Creek #7

1871

  • The Lakes Creek abattoir was built.(Pg 261)15
    • Owned by an English company – Central Queensland Meat Export Company15
  • Operated as a cannery35
  • The plant was a dominent element in the regions economy40
    • at this time Lakes Creek was a company town40
    • meatworks built housing for its employees40

1872

  • Lakes Creek processes three quarters of all the sheep processed by Queensland canneries (Pg 39)35
  • Facility was heavily in debt due to mainly expenses associated with the Jone patent process (Pg 39)35
    • authors note – I have not found what this patent was but assume it was to do with the technology and process of canning meat.

1874

  • April. company was bankrupt35
  • Enforced closure of the facility due to the high price of cattle. (Pg 261)15
    • Remained idle until 187715

1877

  • Facility was purchased by liquidators of Whitehead & Co. (Pg 261)15
    • Proposal was to move boiling downs works that Whitehead’s owned from Laurel Bank to Lakes Creek.15
    • Whitehead & Co also owned a meatworks at Ramornie (NSW, near Grafton)15
    • Whitehead & Co had a contract to supply 2M lb of preserved meats to the French Government but had been unable to obtain sufficent cattle in NSW to fill the contract15

1880

  • Whitehead & co went into liquidation (Pg 261)15
    • closure was stated as not being the fault of the Lakes Creek operation itself15
  • A second Central QLD Meat Export Co. was formed and reopened the works (Pg 261)15

1883

  • A freezing plant was added (Pg 261)15
  • September this year the chambers were full of frozen meat for the pioneering enterprise of exporting frozen product on the Fiado. The Ship was late and a fire went through the facility15
    • Opportunity had been robbed of Lakes Creek the honour of sending the first consignment to Britian15
      • In 1884 the first cargo of frozen meat was loaded from Bowen but a cyclone stranded the vessel, destroyed the product and the Bowen works.(Pg 262)15
      • The first frozen consignments from Australia didn’t occur until 1896.15
    • 200 employees were out of work15

1884

  • Works resumed operations (Pg 261)15

1885

  • Company went into liquidation (Pg 261)15
    • Due mainly to the expense of rebuilding and installing imported plant equipment15

1886

  • Melbourne Syndicate took the facility over (Pg 261)15
    • Andrew Rowan, George Fairbairn and John Living15

1901

  • Facility was purchased by a company formed in London (Pg 261)15

1910’s

  • Tinned beef was a staple ration for war soldiers in WWI40
    • accompanied by hard tack biscuits40
    • Bully Beef – corruption of the French name “bouilli” meaning boiled or corned, referenced to small hard grains of salt used to preserve the meat40
  • Rockhampton produced various tinned labels – Herford, Devon (not the  pork based luncheon meat of that name) and Hamper40
    • including frozen sides meat for export and domestic butcher shops40
  • All parts of the animal were used40
    • what was not edible was processed into fertiliser and by-products40

1918

  • Major flood year

1928

  • Facility was idle due to the strain of the post war depression (Pg 261)15
    • meat market was very dull15
  • Facility then went to a syndicate headed by Sir William Angliss and FJ Walker (Pg 261)15
    • Operated under their control until 193415

1934

  • Vesteys, British based but international organisation purchased Lakes Creek. (Pg 261)15
  • Facility began to prosper due to the Empire preference granted under the Ottawa Agreement (pg 261)15
    • The Imperial Preference was a series of bilateral agreements of limited tarriffs within the British Empire but higher on goods from the rest of the world. Principal was based on “home producers first, empire producers second, and foreign producers last”16
  • Improved plant, chilling, freezing and processing facilities were established over the coming years.(Pg 261)15
  • By products were saved and processed(Pg 261)15

1938

  • Lakes Creek is paying 4/ per 100lb14
    • authors note – I think the / is shillings.
  • Northern Graziers are complaining of the high costs of freight and low price that Townsville abattoir is paying.14
    • They call for a public abattoir to be established and operated by the government in Townsville.1
      • To operated under the Abattoirs Bill that allowed government to acquire operate the Canon Hill facilities in Brisbane, enacted in 1934 (Pg 264)16

1946

  • Teys formed as a partnership of 4 brothers to process meat for wholesaling and retailing13

1949

  • Queensland herd was deminished due to demands of Australia feeding Allied forces in WWII40
  • Plans were being pushed to develope the channel country in the west and increase QLD’s beef-raising capacity40

1950’s

  • Canned meat, known as bully beef, tinned corn meat was being boxed and sealed on hands-on assembly lines40
    • refer Year 1910 for more info.

packing tinned meats._edited-1Source ‘Bully for our Beef exports’ The Courier Mail 17.07.2011 Workers packing corned beef into cartons at Lakes Creek meatworks

1954

  • February 3. Season commenced38
    • Ended December 1738
    • Flooding Between February 11 to 22 of Fitzroy river system38
    • Killing season 1954 constituted a record38
    • “Meat supplies were maintained but killing took place in the abattoir surrounded by water to a depth of 2 feet”41
  • Facility was undergoing extensive alterations and improvements to beef killing floor38
    • When completed the killing floor would be one of the most modern in Australia38
    • Handle greater throughput38
    • OH & S issues improved38
  • Pigs killed at the facility had also increased on 1953.38
  • Queensland cattle herds had recovered from dry conditions during most of 1951.38
    • Channel Country was underutilised due to lack of quick and commercial transport for cattle38
    • Cattle were grown out to large framed animals to withstand long walking distances38
      • These animals were not the preferred types for killing38
      • UL introduced – Baby Beef grade38
        • significantly effected  producers to turn off younger animals with lighter frame38

1958

  • Daily processing capacity 987 head of cattle. (Pg 261)15

1991

  • Major flood year

2001

  • Employed 1,350 people18
  • Currently the second largest abattoir in Australia18
  • December. CMG lock out workers to force them to accept wage cuts, a six day production schedule and unlimited overtime22
    • Meat workers were forced back to work under a federal award that was $320 in wage cut for some workers22

2002

  • January. Management refused to open works18
  • March 2. Protesters march through the CBD of Rockhampton in support of the 1350 workers who lost their jobs when the plant closed in mid January.24
    • AMIEU called for mass protest24
      • AMIEU demanding re-opening and reinstatement of the workers without massive cuts to pay and conditions.24
      • supported by the Construction, Mining & Energy , Forestry & Manufacturing workers  unions24
  • April. Lakes Creek abattoir is locked into a bitter dispute over pay and conditions between the now owner Consolidated Meat Group (Kerry Packer) and the Australasian Meat Industry Employees’ Association.17
  • Facility will not be re-opening as early as planned17
  • May. Facility reopened but cut the workforce back to 70018
  • June. Plant was planned to be shut down entirely18
  • July 11. Workers begin a 5 day strike and re-establish a picket line outside the plant22
    • Strike is about production levels in the boning room and is part of a ongoing dispute of conditions of new work agreement22
  • July 30. Facility is offically closed.25
  • August. Negotiation had been occuring for an Enterprise bargain agreement for the last 8 months18
  • Consolidated Meat had come to agreement on Terms with Teys $1.2B joint venture to operate, Naracoote (SA), Beenleigh, Biloela and Innisfail (QLD)18
    • Deal to take effect in October18
    • Company had promised full severence pay but it would be at the lowest agreed rates18
    • Consolidated Meat had been awarded with $20M US Beef Quotas18
    • Governments Scheme based on 2001 rates, 40,000t known as the “Packer clause”18
      • Lakes Creek only produced 3,000t since June 200218
      • 2001 they had produced 49,000t18
      • quota flows into the merger entity18
      • Consolidated Meat will receive same quota in 2003 even though plant would be close.18
  • Abattoir is closed at this point in time 20/08/200219
    • It did open for short periods but had ongoing industrial disputes with protected industrial action begin taken19
    • Variety of owners of Lakes Creek plant had been unprofitable over the last decade19
  • ACCC investigate if merger of CMG and Teys would lead to reduced competition in terms of prices for cattle20
    • ACCC decide not to interven in proposed merger20
  • November. Jim Downey is appointed general manager at the plant21
    • Had been plant manager at Biloela21
    • Plant was still closed but undergoing major installations21
  • Drought was the single biggest factor now determining Lakes Creek operation21

2004

  • July. After nearly 2 years of being closed Lakes Creek re-opens25
    • 160 workers will start when the first kill takes place25
    • boning room will then begin employee numbers to be more than 300 in total25
      • Intention is to start with small production, settle the plant and make sure problems can be solved23
      • $1M in pay cheques will be injected into the community each month from the start up.23
    • Facility will gradually build towards a kill capacity of 2,500 head and employ 1,000 people.25
  • 6 weeks prior to opening Teys had been finalising plans to re-open and purchasing stock25
  • Profit margins for the processing sector currently as high as $150 a head25
    • Fallen due to a stronger Aussie dollar and the falling price of Japanese full sets.25
  • Originally the plant had been planned to open later in the year but successful negotiations with the AMIEU helped to bring the opening forward to July25
  • Re-opening was said not to be influenced by the risk of losing US export licences25
  • Lakes Creek had applied and received $660,000 – Under Regional Partnership grant.26
    • Assisted the facility to go back into business26
    • Funds were used to upgrade computer system and plumbing26
    • 2 other meatworks in the region, and operating didn’t receive the grant26
    • Labor criticised the Government for providing taxpayers money to a commercial venture that could give an unfair advantage26

2005

  • A shortage of skilled workers in Australia forces the company to look overseas29
    • People had been lost to the meatworks who have gone to the mining industry29
    • 60 vietnamese begin working at Lakes Creek29
    • Joining the 97 Brazilians already there29

2006

  • CMG implemented industry award27
    • Required to cut it’s 1,300 workers wages by 30% to remain competitive in the tightening beef export market27
    • CMG attempted to draw up new rosters that included27
      • night time and Saturday shifts without penalty rates27
        • Exceeded 38 hour cap27
    • Union workers voted against the new proposal and would only return to work on genuine award conditions.27

2009

  • December. Facility is considering job cuts over the next few weeks42
  • General Manager – Wasantha Mudannayake42
    • Reason for need to reduce jobs was livestock numbers had dropped due to overseas exports42
  • Biloela abattoir (QLD) – also owned and operated by Teys announced cutting of 40 foreign workers jobs42

2010

  • February.Tom Macquire – General Manager of corporate affairs for Teys Bros28
  • Lakes reopened after being closed for a short period following heavy rain.28
  • Currently employing 760 people28
  • Between April 2010 to February 2012 – Teys Employ 480 humanitarian refugees29
    • “Without humanitarian and skilled migrants Teys would find it very hard to continue production at sustainable levels at some sites, particularly in Rockhampton and Biloela”29
  • Since 1982 approximately 31 abattoirs have closed across Queensland30
    • Slaughter capacity had increased by 50%30
    • QLD meat processors forefront in adopting improved practices and technologies30
  • Last 2-3 years30
    • competition has come from restockers and live cattle exporters30
    • Lower export beef prices as a result of higher Australian dollar30
    • Export abattoirs have reduced throughput and cut shifts and the number of killing days.30
  • Major flood year

2011

  • July. Australian Competition & Consumer Commission (ACCC) don’t oppose Teys Bros & Cargill Beef Australia Merger42
    • View that the proposed merger would be unlikely to substantially lesson competition in any of the markets examined42
      • ‘fat’ cattle ready for slaughter42
      • acquisition of ‘feeder’ cattle destined for feedlots42
      • supply of processed beef to retailers and wholesalers42
  • Teys CEO – Brad Teys – says been 30 years since he’s seen cattle supply so tight44
    • Producer’s aren’t selling cattle44
      • due to poor prices44
        • forced the company to reduce kill days44
      • Rocky is working on 3 days a week kill44
  • September. Teys forms partnership with Cargill37
  • Federal Government Carbon tax legislation36
    • Creates a 2 tier system with those who generate more than 25,000 t of carbon each year to pay more36
      • Basic  costs would be $4 per head for all facilities36
    • Lakes Creek exceeds 25,000 threshold – would be liable to pay higher permit costs36
      • extra $2 head, adding up to extra $7M across Teys/Cargil enterprise.36
    • Abattoirs are energy-intensive business, Trade exposed, with export constituting majority of total production, narrow profit margins36
      • Carbon tax would disadvantage Australian facilities36
    • Government indicated there would be assistance for to introduce measures to reduce emissions to assit processors36

2012

  • Between April 2010 to February 2012 – Teys Employed 480 humanitarian refugees29
    • By February 306 were still actively employed29
  • December. AMIEU was investigating reports of working conditions of 100 workers who were part of the humanitarian program29

2013

  • March. Lakes Creek facility receives a grant from the Federal Government $4.17 for operational upgrades.31
    • Governments Clean Technology Food and Foundaries Investment Program31
    • Will assist Teys to improve competitiveness, local economy and environment.31
  • Upgrades begin of the waste water treatment plant39
    • involve building a new waste water treatment lagoons and installing a biogas boiler and handling equipment39
    • Methane emitted during the waste water treatment will be used to generate steam used at the facility39
    • reduce the facilities coal consumption by 30%39
    • Upgrade set to be completed by June 201539
    • Cost $16M39
  • Lakes Creek facility receives the Ministers Enterprise Award as part of the QLD state government’s annual Multicultural Awards for cultutal diversity10
    • Award recognises work and and volunteering efforts that develop strong, culturally diverse communities and promote awareness of the benefits of the cultural diversity in the state.10
  • Teys employed 4,500 across Australia10
    • Simply not enough local workers to operate the plants10
    • International workers were needed to fill the spaces10
  • In Rockhampton the mining boom left plants wth an employment shortfall10
    • Lakes Creek employs more than 1,000 people of 29 different nationalities10
    • Employ a significant number of humanitarian refugees and supports induction and training practices that assist new workers10
    • partnerships with settlement service providers and other groups in the community to employ and assist the workers.10

2014

  • June. Teys lobby government to repeal the Carbon tax11 Teys Media Release to repeal carbon tax
    • Manufacturers are closing down across the country due to unnecessary costs and charges on business” Tom Maguire Teys general manager of corporate affairs.11
    • countries Australia competes against do not have the burden of the carbon tax11
    • there is a direct link between the Carbon tax and competitiveness in the market place11
  • July. Rockhampton meatworks in the area employ more than 2,000 people1
    • Added more than $600M into the community1
  • Teys don’t support establishment of a live cattle export port at Port Alma (Rockhampton)1
  • Would be better for politicians to look at transport costs within Australia1.
    • currently costs $14M a year to rail product from Rockhampton and Biloela to the Port of Brisbane1
    • Development of a port at Rockhampton and Gladstone for shipment of containers would be better.1

unions 2012_edited-2Source The Bulletin. 01.12.2012

The Lakes Creek abattoir, Rockhampton. Queensland

2014

  • Teys is inducted into QLD business leaders hall of fame.32
  • Teys currently process 32,000 cattle per week across Australia32
    • Generates a turnover of $2.5B annually32

2015

  • February. Newly elected QLD Agriculture Minister – Bill Byrne said he “supported the live cattle trade under appropriate circumstances, but it would likely threaten the viability of the processors and value-adding of the local meat processing industry2
  • Cyclone Marcia hits Rockhampton 20/02/2015.3
    • 47,000 homes with no electricity3
    • Damage to buildings, bridges, destruction of crops and fencing.3
    • Flood levels were already high in Callide Valley and exacerbated by release of water from Callide Dam3
  • Lakes Creek abattoir suffers some minor damage to the roofing of the head office building3
  • Facility closed and wouldn’t likely operate for the rest of that week3
    • Plant and Equipment are OK3
    • most significant impact is no power, sewerage and water3
    • Until those services are restored the plant can’t operate3
    • Temporary amenities facilities had to be installed because of damage to existing ones9
  • Chilled and Frozen product was being maintained by generators3
  • Number of animals at the facility were getting water and fodder to ensure their welfare3
  • No kill occured on the day of the cyclone 20/02/2015 and wouldn’t for the rest of that week.4
  • Any cattle that were meant to be processed at Lakes Creek that week would be diverted to Biloela or Beenleigh.4
  • Cattle that had been at the plant at the time of the cyclone were returned to some producers at Teys cost5
    • Half were moved to other plants5
    • If the animals were stressed they would have lost weight and cut darker therefore Teys paid  a flat rate to the producers5
    • Temperatures climbed to 38 degrees with high humidity following the cyclone and some cattle suffered heat stress5
    • Heat stressed animals were not transported to care for their welfare5
  • Teys anticipate they would not be in the market for cattle all that week for Lakes Creek or Biloela4
  • Combination of their buying power not present in markets for the 3 abattoirs affected by the cyclone – Lakes Creek, Biloela and Rockhampton (JBS) accounted for 2,000 head per day4
  • Teys advise the plant will be closed longer than anticipated5
    • Many of the employees at the plant were overseas workers and not entitled to any government support5
    • Asbestos in exposed building material had slowed repairs at the site7
      • Asbestos was commonly used in older facilities7
      • Specialised workers wore plastic suits in 40 degree heat9
  • Facility likely to open 09/03/2015.6
  • Longreach cattle market sales had been cancelled due to the disruptions at the meatworks6
  • Markets still strong but there was congestion of cattle in the market6
  • QLD’s kill retracted to 75,275 head, down 7% as a direct consequence of the first weeks closure8
  • Where possible Teys was making forward payments to producers for cattle held up by the event9
  • Teys to restart the kill floor 18/03/2015 killing 1,000 head to increase to 1,6009

Brands_edited-1Source www.teysaust.com.au Product brand that are produced by Teys.

Sources Rockhampton – Lakes Creek #7

  1. ‘We’re not against live export but….’ QLD Country Life 17.07.2014
  2. ‘MP wary of live cattle trade at meatworks’ expense’ The Bulletin 21.02.2015
  3. ‘Disaster declaration expected today as Cyclone Marcia farm damage bill grows’ ABC Rural 24.02.2015
  4. ‘Power outages, structural damage from cyclone knock-out CQ plants’ Beef Central 23.02.2015
  5. ‘Asbestos closes JBS plant indefinitely’ 26.02.2015
  6. ‘Central QLD abattoirs closed for second week following Cyclone Marcia’ ABC Rural 27.02.2015
  7. ‘Rockhampton processing delays longer than expected, in wake of Cyclone Marcia’ Beef Central 27.02.2015
  8. ‘Weekly Kill: Cyclone impact reflected in lower tally’ Beef Central 03.03.2015
  9. ‘First Rocky Plant back to work Tomorrow’ Beef Central 17.03.2015
  10. ‘Lakes Creek plant earns QLD multi-cultural award’ Beef Central 13.09.2013
  11. ‘Meat Processor calls on new seante to stop games and repeal carbon tax’ Teys Media Release 03.06.2014
  12. Teys Website-facilities
  13. http://www.teysaust.com.au/about/
  14. ‘Public Abattoir Needed’ Courier-Mail 27.08.1938
  15. ‘Triumph in the Tropics’ 1959 Queensland Government
  16. Empire preference Ottawa Agreement
  17. ‘Lakes Creek abattoir re-opening plans delayed’ www.justfood.com 25.04.2002
  18. ‘Government rewards Packer for meatworks closure’ the Guardian 07.08.2002
  19. Parliament Hansard – Meat Industry Consultive structure and quota allocation 20.08.2002
  20. ACCC – Consolidated Meat Group and Teys Bros merger proposal
  21. ‘Drought biggest driver of Lakes Creek Opening’ QLD CL 14.11.2002
  22. ‘Lakes Creek Workers continue dispute’ www.wsws.org 13.07.2002
  23. ‘Lakes Creek abattoir to reopen’ ABC rural 13.07.2004
  24. ‘Thousands march to support meatworkers’ Green left 13.03.2002
  25. ‘Lakes Creek reopens Monday’ QLD CL 15.07.2004
  26. ‘Packer Firm given grant for abattoir’ SMH 19.02.2005
  27. ‘Union Avoidance Strategies in the meat processing/packing industry in Australia and the USA compared’ Jerrard, O’Leary
  28. ‘Lakes Creek has few lifelines’ the Bulletin 11.02.2010
  29. ‘Union investigates raw deal for refugees at abattoir’ The Bulletin 01.12.2012
  30. QLD Beef Industry Beef situation analysis 2010
  31. ‘Meatworks gets Federal Government grant’ Daily Mercury 05.03.2013
  32. 2014 Inductee – QLD business Leaders Hall of Fame
  33. History
  34. Great Barrier Reef – Environmental History, Ben Daley
  35. ‘To Feed a Nation – A history of Australian food science and technology ‘ Kieth Farrer. 2005
  36. ‘Carbon tax could cost $19M year for big three processors’ Brahman News. 2011
  37. ”Cargill & Teys merger good for the beef industry’ Meat Trade Daily. 22.05.2011
  38. ‘Lakes Creek meatworks had record year’ CQ Herald 06.01.1955
  39. ‘Methane for power at Teys Australia Lakes Creek meatworks’ The Bulletin 19.03.2014
  40. ‘Bully for our beef exports’ Courier Mail 17.07.2011
  41. AMIC Prime Cuts Newsletter 11.01.2011
  42. ‘Meatworks jobs may get the chop’ The Morning Bulletin 11.12.2009
  43. ACCC will not oppose Teys Bros & Cargill Beef Australia proposed merger
  44. ‘Cattle supply chokes’ ABC Rural 14.07.2011
  45. AUS-MEAT Accreditation Listing 29.12.2015

`

Roma #2 (Proposed)

 

July 2014. Maronoa council is seeking $75,000 to conduct a feasibility study into the establishment of an abattoir to process beef, sheep and goats. Proposal is reliant on a new airport at Toowoomba currently being built, rail link improvements that are proposed to Miles and extension of the rail from there to Roma.

Other Names

Current Operation

  •  Proposal.

Location

Owner

Operation

History

2014

  • July. Maronoa Regional Council seeking funding of $75,000 from state and Federal government to budget for ‘high level feasibility’ study into establishment of a beef, sheep and game meat abattoir at Roma.1
  • Wellcamp Airport at Toowoomba is being constructed and could open new opportunities to Asia, Middle East.1
  • Proposed upgrades to inland rail infrastructure.1
    • Rail  improvments to finish at Miles1
  • some private sector interest had been shown from a delegation from Asia1
  • Not looking to compete with Charleville (QLD) goat abattoir.1
    • Charleville abattoir currently operating at capacity with 80% of the feral goats coming from Surat Basin area.1
  • Council looking for ways to soften downturn in the economy that is predicted to hit once  the resource boom subsides.1

Sources

  1. ‘Roma ramps up abattoir study’ QLD Country Life 31.07.2014

Caboolture

Located in Queensland, one of only 2 abattoirs in Australia accredited for export of horse meat.

Other Names

  • Meramist 1

Current Operation

  • Caboolture is operating as at 2014.2
  • AUS-MEAT accreditation #3416.2
    • Export beef accredited.2

 

Location   


 

Hema Maps – Australia Truckies atlas.

Owner

  • Meramist Pty Ltd1

Operation   

  • Peterborough (SA) and Caboolture (QLD) are Australia’s only licensed horse abattoirs able to export horse meat to European Union (EU) Countries.1

History

2012

  • Australian horse meat export industry strengthened and approved by the EU1

2014

  • June. Investigation launched by Department of Agriculture in to complaints that horse meat exported from Australian abattoirs for human consumption fails to meet strict EU standards.1
  • Complaint specifically relates to horses bought at Echuca (Victoria) saleyards, some which were sent to Peterborough (SA) abattoir
    • All horses processed came with Horse Vendor declarations1
      • Confirms treatment of the horses in previous 6 months1
  • Horse meat industry valued at $10M a year in the past decade1
    • Only 117 tonnes ($830,000 in value) exported to EU in past 12 months.1

 

Sources

  1. ‘Australian horse meat exports in doubt following standards complaint’ ABC News 21.06.2014
  2. AUS-MEAT Accreditation Listing. Current as at 01.01.2014

Queensland abattoirs listed – regions

North Queensland

Ayr abattoir (QLD)

Small processor located 90km south of Townsville, currently in operation

Biboohra abattoir (QLD)

Historical abattoir closed in 1927, Also known as Baron works, located near Mareeba.

Owned by MJ Munro, operated as a slaughterhouse in the early days and then a cannery.

Bowen abattoir (QLD)

Located 230km south of Townsville on the QLD coast.Was in operation at 1919, went through fires, labour disputes and temporary closures. Purchased by AMH, the final owners and permanently closed in 1997.

Cairns abattoir (QLD)

Cairns (more commonly known as Queerah meatworks) was located in far north QLD received cattle from mainly north Australia, often by Barge from the NT and Normanton that had travelled from the gulf of Carpentaria in the 1960’s to 1975. Began to export in 1950’s closed in 1989 as part of the AMH rationalisation strategy of its abattoir capacity through the 1980’s.

Camooweal abattoir (QLD)

Located 190km northwest of Mt Isa, small processor currently operating that supplies own butchery for retail.

Canon Vale (QLD)

A small local processor currently in operation, located 70 km south of Bowen between Townsville and Mackay.

Cape River abattoir (QLD)

Located  south west of Townsville. Closed in 1986 due to the AMH  rationalisation strategy of its abattoirs capacity through the 1980’s.

Pentland abattoir (QLD)

Built prior to WWII, At one stage was the 2nd largest meatworks in Queensland. Last owned by AMH consortium, closed in 1989

Ross River abattoir (QLD)

Built in 1882, QLD meat export agency formed supplied contracts for supply of product to England. Plagued by industrial action its whole operating life most notably in 19919 when a violent clash between the unions and police occurred. Been through ownership receiver, beef price crash, strikes, droughts and market changes. Smorgons meat processors, last owner collapses in 1994, facility closed in 1995. Site now developed as a residential site with only the chimney still remaining as a historic site.

Tolga abattoir (QLD)

Small processor currently operating near Cairns

Townsville – Stuart

Owned by JBS. Large beef processor located in far north QLD

Tully abattoir (QLD)

Small processor currently operating between Cairns and Townsville

Weipa abattoir (QLD)

Small local processor

Central Queensland

Charleville abattoir – goat processor (Central QLD)

A goat processing facility that is currently operating located in central QLD. This facility exports all its production. Has had past problems of securing visa workers to ensure ability to process production. Floods have affected operations and government costs while plant has been closed at different periods.

Clermont abattoir (QLD)

Small local processor

Cloncurry #1 abattoir (QLD)

Small local processor currently operating

Cloncurry #2, proposed abattoir (QLD)

Proposal sponsored by DAFF 2012. Consider establishment of an abattoir at Cloncurry to process cattle from north west QLD and NT. Based on processing 100,000 heavy cattle per year, costing $49M to build not including land or government services. Marginal return expected on investment.

El Arish abattoir (QLD)

Located near Innisfail, a small processor that is currently operating.

Giru abattoir (QLD)

Domestic abattoir currently operating south of Townsville

Innisfail abattoir (QLD)

Owned by CMG then Teys, Hit by cyclone Larry in 2006, never to be reopened, equipment scrapped and auctioned off in 2011.

Mt Isa abattoir (QLD)

Built in the war years and closed in 1986

Southern Queensland

Beenleigh abattoir (QLD)

Large facility owned by Teys, currently in operation located south of Brisbane.Recently had a number of wage disputes. Invests heavily in new technology to optimise labour efficencies, currently operating 2 shifts processing 1,300 cattle per day

Caboolture abattoir (QLD)

Located in Queensland, one of only 2 abattoirs in Australia accredited for export of horse meat.

Dinmore abattoir (QLD)

The largest meat processing plant in Australia, currently operating and owned by JBS Australia. Located near Brisbane QLD.

Kilcoy abattoir (QLD)

Located northwest of Brisbane and primarily processes grainfed cattle. 4th largest abattoir in Australia, currently operating.

Oakey abattoir (QLD)

Located near Toowoomba, a large processing facility of mainly grain-fed beef, owned by Nippon. Currently processing up to 1300 animals per day. Has undergone significant upgrades to enable traceability for organic certification and assurances, with current work being carried out on methane gas collection. Problems in the past have been market fluctuations, unions and costs of production

Surat abattoir – Kangaroo processor (QLD)

Games meat abattoir located south of Roma. Processes Kangaroo. Started in mid 1980’s, possibly now closed due to floods, debt and costs of services to operate.

Queensland abattoirs listed – A-Z

These are the abattoirs currently listed on this blog, it is not complete of all actual operations at this point in time

Ayr abattoir (Nth QLD)

Beenleigh abattoir (Sth QLD).

Biboohra abattoir (Nth QLD)

Bowen abattoir (Nth QLD)

Caboolture Abattoir (QLD). Owned by Meramist Pty Ltd. A beef and horse processing facility.

Cairns abattoir ( Nth QLD)

Camooweal abattoir (Nth QLD)

Canon Vale (Nth QLD)

Cape River abattoir (Nth QLD)

Charleville abattoir – goat processor (Central QLD)

Clermont abattoir (Central QLD)

Cloncurry abattoir #1 (Central QLD)

Cloncurry #2. proposed abattoir (Central QLD)

Dinmore abattoir (Sth QLD)

El Arish (Nth QLD)

Giru abattoir (Nth QLD)

Innisfail abattoir (Nth QLD)

Kilcoy currently in operation

Mt Isa Owned by AMH, closed in 1986

Oakey abattoir (Sth QLD). Owned by Nippon. Currently operating.

Pentland (Cape River). Built originally prior to WWII, Eventually owned by AMH, closed 1989

Rockhampton – Lakes Creek Owned by Teys Australia, currently in operation.

Roma #2 (Proposed) Maronoa council seeking funding to conduct a feasibility study in 2014

Ross River Built in 1882, transformed from boiling down works to cannery to abattoir and meat processor. Finally owned by Smorgons closed 1995, Now demolished.

Surat (Wild game – kangaroo) Kangaroo processing facility, was in operation as at 2013

Tolga abattoir (QLD) 

Townsville Stuart  Owned by JBS, Currently in operation

Tully abattoir (Nth QLD)

Weipa Was in operation as at 2012

 

 

 

 

 

Oakey

Located near Toowoomba, a large processing facility of mainly grain-fed beef, owned by NH Foods (Japanese origins). Currently processing up to 1300 animals per day. Has undergone significant upgrades to enable traceability for organic certification and assurances, with current work being carried out on methane gas collection. Problems in the past have been market fluctuations, unions and costs of production. Includes short history of early days of the Japanese/Australian meat trade markets and general QLD market conditions affecting processing

Other Names

  • Toowoomba abattoir
  • Nippon Meat Packers name changed to NH Foods Australia
  • Oakey abattoir
  • Oakey Beef Exports

Current Operation

  • Aus Meat Accreditation registration dated 29/12/2015 #558 – Oakey Beef Exports Pty Ltd.3
    • registered as a Beef, Offal export facility.3
  • Direct employment enquiries to www.nmpa.com.au

Location   

  • Located north west of Toowoomba on QLD Darling downs5

Australia Oakey

Oakey

Source Hema Maps – Australia Truckies atlas.

Owner

  • Nippon Meat Packers1
    • Subsidiary of a Japanese Multinational1
    • Nippon meat packers incorporated 19781

products_edited-1Source Nippon Meat Packers Australia interactive beef products

This is a great diagram that is able to be clicked on in the Nippon website and illustrates where the various cuts of beef and offal are located in the animals bodies

Operation 

  •  Nippon currently own 3 operating abattoirs in Australia,
  • Nippon owned Bowen (QLD) which they closed in 1997
  • Combined processing capacity 2,700 cattle day2.
    • also owns and operates a feedlot1  at Whyalla5 and
      • 3 beef farms1
        • At 2014 land in Texas QLD and Tasmania on King Island5
      • 3 tanneries1
        • Oakey Blue tan factory closed 20127
      • piggery1
        • Piggery assets sold off2
    • Processes predominently grain-fed cattle1
      • 100 to 300+ day5
      • Processing mainly British and European cross steers5
    • All plants are certified organic to process and slaughter.1
    • Sells product  under subsidiary company1
      • Beef Producers Australia Pty Ltd – Sells approximately 20% of Oakey product, marketed domestically1
      • Nippon Meat Packers Australia Ltd (Exporter)1
      • third of product is exported to Japan2
    • Sells products under labels1
      • Nippon1
      • Australian premium beef1
      • Wingham gold1
      • Borthwicks1
    • Vertically integrated supply chain that allows traceabilty from animal’s property of birth through to end user5
      • traceability includes details on animal, workers, defects, yield and volume data5
    • Fully integrated slaughtering, fabricating, chilling, freezing and rendering facility.5

picture_edited-1Source – ‘Productivity a bone of contention in abattoir strike’ ABC Rural. 01.05.2012.
Oakey abattoir facility

brands_edited-1brands #2_edited-1Source. www.nmpa.com.au
Various branded products sold from the Oakey facility

Historical and current meatworks, canneries and abattoirs located in Australia can be viewed at;

Australian abattoirs inactive map

abattoirs_edited-1

History of Oakey meat processing facility

Authors Note – As Nippon Meat Packers, now NH Foods is Japanese owned firm I have included some information that is in relation to Australia/Japanese Beef  early trading. I don’t know how directly relevant it would have been to the Oakey abattoir.

1956

  • Oakey Facility established.5

1968

  • Japanese Beef Trade
    • January. Trial shipment of chilled 1500lbs (680kg) meat vacuum packed by Borthwicks from the Murarrie plant on the Brisbane river shipped to Yokohama, Japan (Pg 72).28
      • Product arrived 3 weeks later(Pg 72)
    • Requirements by Japanese were placed on frozen beef, required frozen temperatures at all points of the supply chain, even to small retail outlets (Pg72)
      • Logisitically this was extremely difficult as frozen meat had to be defrosted in advance for retail sale (Pg 72)
      • Chilled beef was much easier to handle (Pg 72)

1969

  • Japanese Beef Trade
    • Market research conducted by Borthwicks identified consumer market preference (Pg73).28
      • 15% high quality meat
        • Significant opportunity for Australia to provide high quality meat
      • 40% middle class meat
      • 45% was low quality
        • Australian cattle were meeting this demand in canned meats, curries and low priced product
    • The First containerised vessels are used in Australia opening up new opportunities to send vaccum packed beef primals to Japan (Pg71).28
  • Growing feedlot industry was developing to cater for the Japanese trade (of which Japan interests had no equity) (Pg 81).28
  • Designated store project in Japan started to differentiate the Australian product at retail level (Pg 84).28
    • by 1971 Japan had 740 Australian meat designated stores.

1970

  • Japanese Beef Trade
    • First full container of cryovac packaged chilled beef primals is shipped to Japan from the Borthwicks Brooklyn plant in Victoria (Pg 72).28
      • One of the first containers of any export commodity to Japan from Australia
      • Initial shipments of the packaged meat was in high quality wooden boxes, with each lid having a printed message about the contents
        • Card that placed inside the box, was protected from moisture damage, also provided a great deal of factual information about the product, it’s shelf life and that it had been chilled, not frozen.
        • Japanese retailers valued the box, some for fuel but also as reliable evidence to customers that this was a superior product
        • Wooden boxes later replaced by reinforced cardboard
        • The boxes and presentation made an everlasting impression and established reputation as Australian beef being of the best quality

1970

  • Alot of work is done at Oakey with Lindgren packaging  to commercialise and develope meat vacuum packs (Pg 74).28
    • Australia world leader in this development

1971

  • Japanese Beef Trade
    • First QLD shipments of beef to Japan occur from QLD (Pg 74).28

1974

  • Oil Crisis occurs (Pg 74).28
    • Oil embargoes (restriction of supply) had occured in 1973 by members of OPEC (the organisation of Petroleum Exporting Countries)
      • economic fallout proved catestrophic for the red meat industry
      • Oil dependent economies feared the effects of the oil restriction and closed their countries to imported beef to protect their currency and own livestock growers (Pg 81)
  • Japanese beef markets are closed (Pg 74).28
    • Australia had a large beef herd at the time
      • Australia and the US sold off their beef herds
      • Prices plummeted from 1974 prices of $350/hd to $40/hd in 1976
      • Australia had limited export markets and therefore sold into the US, producers there were already liquidating
        • US beef and mutton prices crashed, taking the industry with them
        • European beef mountain was created – EU stockpiled beef which they later sold into the early 1980’s furthur supressing prices world wide
  • Australian red meat exports fell by 43% in 1973/74 (Pg 81).28

1975

  • Japanese beef markets re-open (Pg 74).28
    • Much of the investment in chilled technology and production systems had been lost
    • Frozen sector sales to Japan recovered better but chilled took much longer
  • Feedlots that had previously catered to Japanese markets had collapsed with big losses. This inhibited investment into the future due to mistrust of the stability of the market.(Pg 81).28
    • rebuilding of the trade was dependent on Japanese importers investing in the feedlots so that they shared some of the risk

1976

  • Australian National cattle herd reached an all time high of 33.4M head (Pg 81).28

1978

  • Australian slaughter peaks at 10.8M head (Pg 81).28
  • Most abattoirs, both domestic and export are running at capacity (Pg 81).28
    • not uncommon for cheaper cuts to be rendered rather than sold as meat
  • Company of Nippon Meat Packers Australia Pty Ltd is established.29

 

 1980’s

  • Australian cattle herd has fallen by 11M head (Pg 82).28
  • Australian Sheep herd dropped from 174M in 1970 to 135M in 1985 (Pg 82).28
  • Many abattoirs and meatworks couldn’t source enough cattle to remain viable (Pg 82).28
  • Japanese beef market.28
    • Prior to 1960’s Japan’s main source of animal protein was whale meat and the mainstay of school lunch program (Pg 84)
      • Whale meat accounted for 25% of Japanese meat consumption (Pg 84)
      • Japan enabled a number of sub quota’s for red meat industry into which Australia was able to provide product (Pg 84)
        • supplied various sectors and agencies
          • School lunch program
          • Hotal quota
          • airline quota

1981

  • August. ‘Meat substitution scandal’ occurs in Australia.(Pg 82).28
    • Pet food grade meats, donkey, kanagroo and others were found in shipments to the US. Meat was being transported from northern parts of Australia to southern Australia, reboxed and repackaged and exported.28
    • Leads to Royal commission in the Australian Meat Industry.28
    • Profoundly damages Australia’s meat export reputation.28
    • leads to the evolution of AUS-MEAT.28
      • costs of regulation closed many export abattoirs.28
      • The US significantly step up standards of requirements for meat into the US under the USDA.28

1987

  • Nippon purchase Oakey abattoir1
    • Nippon began in Japan in 1942, establishing the Tokushima meat processing factory, producing ham and sausages (Pg 86).28
      • when supplies of pork were scarce, would substitute other proteins.28
        • rabbit, whale.28
        • By 1960 mutton was found to be a good substitute, which it began to source from Australia.28
        • Company changed its name to Nippon meat packers in 1963 and entered into business with US Swift 1969.28
          • Swift already had connections in Australian meat processing at that time.28
        • Purchase of Oakey was in direct response to Japanese beef market liberalisation.28

1987 purchased Oakey_edited-1

Oakey abattoir. Source www.nipponham.co.jp

  • Japan beef markets are liberalised(Pg 82).28
    • Lead to removal of import quotas and reduction in import tariffs.28
    • Gave companies in Japan opportunity and incentive to expand into meat importation, some who had been restricted prior to the liberalisation (Pg 85).28
    • Previously tenders had protected certain trading houses.28
    • Significant investment had occured in fully integrated supply chains into Japan to realise market potential and commitment to the Japanese market irrespective of market conditions.28Japanese export markets 001

Source World on a Plate –  A history of meat processing in Australia. Stephen Martyn. (Pg 83)

  • US industry analysts thought the US would be the major benefactor of Japanese markets opening up (Pg 85).28
    • US underestimated Australia as it (Australia) had previously only supplied mainly meat from grassfed stock.28
    • Assumed Australia would be confined to commodity meat supplies rather than the premium markets.28
    • Authors note; Significant investment occurred in Australian feedlots at this time to enable grainfed custom feeding of animals suited to specific Japanese meat markets.28
  • Nippon purchase Whyalla feedlot near Texas, NSW.67
    • already a 3,000 head feedlot.67
      • extensively developed latter in 1990.67

1989

  • Nippon also purchase the AMH plants at.28
    • Mackay (QLD) and
    • Bowen (QLD).
      • closed 1996 as part of capacity rationalisation.28
    • Operated boning room through subsidiary Namoi Valley Beef
      • Gunnedah abattoir (NSW)
        • Council operated, service kill facility
        • Closed 1997
      • Mudgee abattoir (NSW)
      • At the time was operated by council as a service kill facility,
        • Had massive debt and went into receivership.28
        • Later purchased by Flectcher’s in 2003, still in operation
    • Nippon is sensitive to it’s position as a foreign owned, non-Anglo company in Australia (Pg 86).28
      • keeps a low profile.28
      • Makes most asset purchases as joint ventures.28

 

1990

  • Nippon develop the Whyalla feedlot – Oakeys Holdings.28
    • Nippon website says they purchased this site in 1988.29

1988 whyalla feedlot_edited-1

Whyalla Feedlot. Source www.nipponham.co.jp

  • Whyalla feedlot is developed to a unprecedented scale.67
    • previously been a 3,000 head feedlot.67
    • Now scaled to 50,000 head.67
      • Later extended to 56,000 head.67
    • largest Australian single feedlot site.67
      • led the way in ‘US scale commercial feedlot operations.67
    • Australia’s largest feedmilling infrastructure.67
      • 8  18 x 36 inch roller mills.67
      • feeding 750 tonnes  mostly barley based mix a day.67
      • 5 delivery trucks – 4 in use at any one time.67
      • yard can store 100,000t grain.67
      • silos can store 26,000t.67
      • most hay produced on farm.67
      • corn is contracted silage.67
    • Site is licencsed to 75,000 head.67
    • Holds 100% Nippon owned cattle.67
      • 50% straight Angus.67
    • Cattle sourced from QLD, NSW, Victoria, and Central Australia.67
    • Typically induct 3,000 head a week.67
      • similar numbers dispatched.67
      • animals pre-vaccinated before induction.67
      • animals monitored individually.67
    • Yards.67
      • every pen has shade.67
        • unique slattered shadecolth system.67
    • Initially feeding was focused on Japanese markets.67
      • mid to longfed progam out to 300 days.67
        • heavily reliant on marbling-oriented British breeds
      • Now feeds large variety.67
      • most cattle are 120 – 150 day.67
      • Change in feeding length changed annual turnover.67
        • 2014 calendar year turned out 132,000 head.67
        • 2003 turned out 93,000.67
    • Vertical integration of abattoir /feedlots. Not focused soley on Japanase markets and has been versatile in supply to international and domestic markets.67
  • ABARES report – Foreign Investment and Australian Agriculture

8. ABARES Nov 2011_edited-1

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

1991

  • 77 Beef export Abattoirs are in operation in Australia at this time.54
    • 27 have some level of foreign ownership.54
    • Ownership dominated by Japan, UK and the US.54

1993

  • Acquire Rochel feedlot in NSW (3000 head) to assist research into cattle performance.28

1994

  • Nippon purchase (Pg 86).28 Wingham (NSW)
    • Wingham is a major beef exports facility.28
    • Tomen sells it’s interest to Nippon.28
      • Major shareholder in Anvic Meat Exports Pty Ltd.28

1997

  • Nippon has invested $200M in abattoirs and feedlots over the previous decade(Pg 86).28
    • 3rd Largest meat processor in Australia.28
    • Exporting to 34 countries.28

NH foods Oakey export_edited-1

NH Foods holdings. Source www.nh-foods.com.au – General Information accessed 21/12/2015

1999

  • Spent $2M in marketing new Barley beef brand to Japanese customers1
  • Nominal capacity estimated at 50,000 head as per 50 weeks3

2001

  • Nippon establish leather wet blue tannery near abattoir to process Oakey hides and from other facilities, including competitors7
    • Prior to GFC hides are worth $110 each7

2003

  • July.Jondaryan Shire Council approve the project 08/07/2003.31
  • Started upgrades to plant and facilities, included new boning room, new slaughter room and a new traceability and control system1
    • Upgrade takes until about 20061
    • Slaughter capacity of approximately 1200 cattle per day1
    • Create 700 new jobs.31
      • Upgrade proposing to lift capacity to 2,000 head a day.31
      • Make Oakey the 2nd largest abattoir in QLD.31
      • Upgrades to take place over 5 years.31
  • $46M expansion using Marel meat equipment4,
    • New boning system includes 4 flowlines to take beef quarters to 96 individual workstations where beef is boned and trimmed before being vacuum packed for further processing in Japan4
    • Old system was meat was cut on tables now it is hanging in front of worker and is more efficent and easier4
    • created 500 new jobs4
    • make Oakey the 4th or 5th largest beef abattoir in Australia and 3rd largest in QLD4
    • New system expected to have effective life of 20 years with maintenance.4
    • key point of Marel system was the traceability, particularly important in latter years when BSE closed market access for US  to Japan and allowed access by Nippon to those markets4
  • “Marel traceability/accountability system …proved to be a magnificant investment, despite its detractors at the time” Pat Gleeson, Oakey general manager. 10.03.2014

2004

  • January. Construction offically begins at the abattoir for the upgrades.32
    • Workforce will lift from 500 to 1,100 workers.32
    • processing and export earnings capacity is to double.32
    • First stage of the project is expected to be completed by the end of 2004.32
  • Expansion of the meatworks will be ready when the industry turns around.32
  • “So even though times are tough at the moment, now is the right time to build rather than waiting until good times and then rushing around trying to build, so it’s a confidence thing at the moment” Jim Vick, Oakey Managing Director.32
  • September. Oakey Ergon Energy power substation causes black out 5.5 hrs, Caused shut down of the abattoir for that time.33
    • Third power failure in 3 weeks.33
    • New $7M power facility will be built.33
  • December. Abattoir extenstions $46M.34
    • Offically opened 03.12.2004.34
    • Facility will use NLIS, seen as controversial at the time.34
      • system guarantees quality, consistency and traceability.34
      • Ensures importers product is high-quality and disease free.34
    • Oakey expansion will mean 500 new jobs over the next 3 years
      • increase of capacity to 2,000 head a day by 2007.34

2005

  • Nippon form a strategic allience with OBE Beef – Australia’s largest supplier of certified organic meat1
    • Plan to export meat to UK and Central Europe under ‘Borthwicks’ organic brand1
  • Strong demand for export product key factor in gains in net profit after tax gains of 60%, with 2005/06 NPAT $21.5M from earnings of $875M (All Nippon meat Packers financial performance combined)1
  • Nippon upgrade hide tanning facility extensively to world-class quality – facility now has capacity to process 20,000 hides a week.7
  • Significant regions of drought across QLD.

QLD Drought 2003_2005_edited-1

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

2006

  • Sales revenue increased but net loss occured for year (Financial year ending June) $23.2M1
    • Large increase in administration costs of $30M1
    • Increase in wages due to increased employment1
  • Nippon Meat Packers Australia produce 5.9% of Australia’s red meat production in 2006.54
    • 3 abattoirs in operation.54

2007

  • Australian subsidiary earnings struggled in the first half of 2006/2007 due to higher cattle prices , low prices in Japan and high Australian dollar, earnings recovered in early part of 20071
  • Aim to increase profitability by processing more grain fed cattle1
  • Costs for raw materials increased for higher grain and oil prices1
  • May. Oakey shire water plant implement $6M upgrades to connect and treat bore water supplied to businesses in Oakey.35
    • Oakey residents, Oakey abattoir, Army Aviation centre, Jondaryan township.35
  • June. Abattoir is able to deliver system that is able to trace each piece of meat back to property of birth.36
    • system provides vital defect and yield feedback.36
  • Processing 1,000 cattle per shift.36
    • Mostly from the feedlot in Texas.36

2008

  • March.Queensland rail (QR) deem the rail siding west of the works requires upgrading and is currently unsafe.6
    • QR agree with Oakey management to run cattle train to Dalby, abattoir would pay for additional freight to Oakey.6
      • Allows Oakey to access and bid for cattle on Northern and Western district properties6
  • Sales revenue fallen by average of 1.2% in real terms, in contrast industry revenue estimated to have grown at marginal rates in real terms1
  • Nippon launches a large scale reform of Australian business to improve earnings in 2007/20081
    • Involved cutting costs in cattle feeding, processing plants and leather business1
    • potentially reorganising plants1
    • possible closure of piggery1
    • revenue affected by high Australian dollar and weak demand for beef in Japan1
  • Withdraws from restaurant operations and Hog production and sells idle farmland2
  • August. Sulphuric acid leak occurs from a tank, spilling 2,000 lt.37
    • no injuries occur.37
  • November. Nearly all 730 staff are stood down due to a shortage of cattle.38
    • One day, 11/11/2008, staff not paid.38
    • Management not alarmed.38
      • Couldn’t get enough stock for full weeks kill.38
      • Time of year was traditionally slower as was crop harvest period.38
  • Global finanical crisis is also causing a reduction in export sales.38
    • Korea and Russia slowed significantly.38
    • Difficult selling to those overseas countries where the money was difficult to obtain.38
    • Managing Director Howard Halter said Oakey was a lot better positioned to handle current climate than processors in Brisbane and North QLD.38

2009

  • Plans to double processing capacity to 2,000 cattle per day by moving to a two shift system1
    • Employing 750 people1
  • Plant certified for halal production and now exports to halal markets2
    • mostly Middle Eastern markets.30
  • Sluggish growth and weak export demand due to global economic downturn2
  • December. Queensland Rail (QR) informs Oakey they will not stop at Dalby, only unloading the cattle at ‘End of the line’ – Brisbane6
    • Oakey abattoir would have to truck cattle back from Brisbane 200km, from a tick zone and up the range to Oakey6
    • Dalby to Oakey is 50km6
    • Brisbane to Oakey is 200km6
  • Comparative road frieght to rail from Quilpie to Oakey6
    • Road $1.45/km 805km equals $1,167.25 /deck or $51,359 for 44 deck consignment6
    • Rail $1.03 /km 805km equals $829.15 /deck or $36,482.6o for 44 deck consignment6
      • Difference $14,876.40 over 44 decks6
      • QR were now making it uncompetitive if extra freight is incurred from Brisbane6
      • Situation of competitiveness would worsen if the abattoir can’t access channel country cattle.6

2007_2009_edited-1

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

2010

  • August. 2 employees  sacked for workplace bullying.39
    • Incident occured in July.39
    • Became a Fair Workplace Investigation.39
    • Worker bullied had supported speeding up the chain to 157 beasts, others wanted slowed to 155 beasts
  • October. Worker who claimed workplace bully and led to 3 people being sacked is now centre of a workplace bully allegation himself.40

IBIS Jun 2010_edited-1

Major Companies in the Australian Red meat processing industry

Source IBIS world June 2010

2011

  • January. Devastating floods across Central and southern QLD and large parts of NSW and Victoria.48
    • affected slaughter numbers to abattoirs.48
  • March. Pittsworth abattoir -Located 30km south of Oakey closes
    • Regional abattoir that did private kills for farmers and supplied local butchers.41
      • employed 35 people.41
      • Lack of available stock and persistent rain were the reasons for closure.41
  • June. 3 workers  in July 2010 incident reinstated.42
    • ‘Booing, mooing and barking” was part of the workplace’s culture.42
    • Video footage used as evidence.42
    • Oakey abattoir ordered to reinstate and pay undiclosed sum for renumeration to one man, another man had withdrawn unfair dismissal claim.42
  • July.National slaughter rates decline 5%.43
    • Australian currency pressures.43
      • A$ is now above US108c.43
      • economic news out of US could send currency even higher.43
      • higher A$ would cripple Australia’s already limited price competitiveness for beef in international markets.43
    • QLD which does approximately half of Australia’s processing capacity.43
      • Down 8% from the previous week.43
      • lowest kill recorded in QLD in July for past decade.43
      • Down 21% on same period last year.43
      • Significant number of QLD plants only killing 3-4 days.43
    • listless export beef demand.43
    • Meat processing and export is low-margin business due to.43
      • Import duties.43
        • Indonesia 9%.43
        • Korea 40%.43
        • Japan 38%.43
      • New AQIS charges on meat inspection would add millions to processor costs.43
    • Was currently a big build up of meat in cold stores due to difficulty in selling into sluggish markets, Japan and the US.43
  • August. Top chefs tour the abattoir as part of a south east QLD tour.44
  • Cattle are in short supply, 2008 & 2009 had been drought periods.45
    • with seasonal pressure lifting producers are retaining females for breeding.45
    • Period of drought that lasted 10 to 15 years.45
    • “We’re paying for the numbers of store cattle that were killed in the droughts up until 3 years ago” Kurt Wockner, Oakey Livestock manager.45
  • Expected diversion of northern cattle displaced by the Indonesia live export ban won’t come to the processors until April 2012.45
  • September. Oakey abattoir hold an open day for active suppliers.46
    • Inspection tour of the plant.46
    • Boning room – features four production lines.46
      • provides individual animal traceability from the animal to the vacuum -packed primals in cartons.46
      • Oakey processing 1,100 per day single shift.46
  • Change in production emphasis from primarily being dedicated grainfed plant to much broader range of cattle.46
    • grassfed export steers.46
    • grain and grassfed yearlings.46
    • bulls.46
    • cows and.46
    • high quality EU grain and grassfed.46
  • A$ now us103c.47
  • Some QLD southern plants operated only 6 shifts for the week down from 10.47
  • General shortage of killable cattle across Eastern Australia.47
    • AACo lifted 4,000 from Brunette downs and 2,000 from Anthony’s Lagoon to processors.47
    • Weights for cattle are expected to be heavier later in the spring and early summer 20-30kg above normal.47
  • November. ABARES foreign ownership 2011 report is released

7. ABARES Nov 2011_edited-1

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

2012

  • January. Nippon close down ‘New Wave Leather wet blue tannery’  located at Oakey site.7
    • High Australian dollar and increases in direct processing costs forced tannery to cease operations
    • facility had capacity to process 20,000 hides per week7
    • Employed 38 full time and 15 casual staff7
    • was leading blue tannery supplying value-added blued hides to the international market7
    • Nippon deny had tried to sell business outright and may reconsider re-opening.7
    • Hides from the Oakey abattoir would now be salted and exported raw to China, where labour and other input costs and regulatory pressures are low.7
    • Hides currently worth $457
      • Prior to GFC $1107
      • 2009 $10 and less7
  • Japan export market has stagnated and Nippon shift focus to emerging markets in Russia and the Middle East2
  • Strength of Australian dollar is declining and increased competition from US will make breaking into new markets more difficult2
    • also competition from Brazil increasing2
  • Oakey commence season after traditional Christmas/New year season in 2nd week of January.48
    • on a reduced kill.48
  • ABARES release a report into foreign ownership in the red meat processing sector See Nov 2011.49
    • report ‘underwhelming’ adding nothing to current industry knowledge.49
  • Australian dollar has continued to climb US106c.50
  • Export demand North Asia and Russia remains subdued.50
    • current state of export market ‘woful’.50
    • some strengthening in the grinding meat market.50
  • Beef stocks held by processors are starting to decline.50
  • Many QLD processors were forced to close due to rain,.50
    • record 24 hour and 48 hour rainfalls in parts of QLD.50
  • Oakey plan to close for 1 day 03/02/2012.50
  • April.
  • AMIEU give notice 19/04/2012 of 2 hour protected industrial action to occur on 27/04/20128
    • AMIEU gave notice 27/04/2012 to Oakey management work stoppage to occur 27/04/2012 ending Friday 04/05/20128
      • originally planned a 2 hour protective action for Friday only, “The company responded to that by progressively locking out workers indefinitely, workers responded with this week-long protected industrial action” Brian Crawford, AMIEU QLD branch secretary10
    • AMIEU advised  that further 24 hour stoppage to occur 04/05/2012, work to resume Tuesday 08/05/2012 as Monday was a public holiday8
    • 600 workers on strike, not to be paid during action9
    • Management response  cease processing Friday 27/04/2012.8
    • AMIEU refused to allow members to bone out Thursday 26/04/2012.8
      • management conducted process themselves8
      • May 7 article claims 400 carcases still hanging in chillers11
  • Oakey and Management been in negotiations since May to finalise new Enterprise bargaining Agreement8
    • Oakey require productivity offsets required for plant to remain competitive with domestic and internation markets, current unfavourable trading conditions particularly in grain-fed business could not be sustained.8
    • Members of AMIEU not happy about productivity push, which includes increasing the speed of the boning room chain9
    • Workers want compulsory Saturday work to be wiped from the contract10
    • AMIEU want 4% wage increase, but won’t accept staff work faster12
      • management want to increase chain speed in boning room by 15 minutes12
      • other places are working faster and they have agreements with AMIEU that are signed and certified12
  • Workforce would prolong strike if agreement was not reached10
  • The shutdown would hurt local businesses, retail had not been great in the region.51
  • May. Toowoomba’s Labour day celebrations, abattoir workers among meatworkers marching with signs that read “Scab labour will not be tolerated”, non-unionised salary workers would be bought in.11
  • AMIEU – Main issue is the chain speed in the boning room and complusory Saturday work.52
    • Workers walked off 27/04/2012.52
    • Scheduled to resume 03/05/2012.52
      • Now they won’t go back until 04/05/2012 (Saturday?).52
  • May 4. Protected action scheduled to finish today.53
    • AMIEU has not been told when operations can resume.53
  • AMIEU say will not return to work at earliest 08/05/2012 unless an agreement is reached.55
  • 10 day strike led by AMIEU ended midnight 9th May. Management had continued to lock workers out with the AMIEU waiting to be advised of how long it would continue13
  • May 11th AMIEU Brian Crawford currently in talks with Oakey management Pat Gleeson.14
  • Management continues to lock staff out, even though strike ended, will not open until an agreement is reached.56
  • May 20, Oakey management release statement “..the decision of the workers to continue to strike is regrettable, but the company intends to continue to  negotiate in good faith to bring about an acceptable outcome that addresses the fundamental issue of productivity with its workforce”16
  • May 21. Workers return to work, compromise on wage increase and chain speed reached.17
    • 4% pay increase.58
  • Members of Construction forestry Mining and Energy union from Acland Coal mine have encouraged and supported AMIEU workers since start of strike14
  • Local businessmen say protracted action at the abattoir has hurt local retail trading as they rely on everyday people to walk into stores.15
  • Businesses have felt the impact from the strike and will continue to for couple weeks after work restarts.57
  • EBA negotiations had been occurring for 18 months11

Industrial dispute Oakey. 2012_edited-1

Industrial Dispute Calendar – Oakey Beef Exports 2012.

  • current high Australian dollar is particularly damaging to manufacturers and exporters alike.8
  • Boning room supervisor Bob Costello wins prestigious manufacturing industry-wide award.59
    • Manufacturing Student of the year.59
    • Nominated by the employer.59
    • Diploma of meat processing course.59
    • Bob Costello made major contribution to improving plant efficiency.59
      • saved thousands of dollars worth in daily savings to the facility.59
      • based on preliminary work on the carcase while hot to improve yield and reduce waste.59
      • Worked in the industry for 28 years, working his way through different levels of processing.59
  • November. Major southeast QLD processor say they have ample cattle supply in coming weeks to meet current requirements and international demand.62
    • Seasonal conditions are deteriorating.62
    • Large areas have had bushfires.62
  • Superstorm – Hurricane Sandy hit the US east coast and affected some imports.62
    • damage to US processing facilities and infrastructure was significant.62
    • Port of Philiadelphia (largest port of entry for beef) is open.62

 Profit Margins_edited-1Nippon Meat Packers Revenue Source IBIS world 2010,2013

revenue_edited-1

Nippon Meat Packers Profit Earnings Source IBIS world 2010,2013

2013

  • March. AACo conduct service kills for it’s brand products of 1824 and Waygu beef are being conducted at Oakey and Toowoomba (QLD) JBS Beef city.63
    • AACo don’t harvest and retain all of the material from the animal.63
      • processor (Not AAC0)keeps red & white offals, blood products, meat and bonemeal and tallow.63
      • AACo are in direct competition with major processors JBS, Teys/Cargill and Nippon in brand products.63
      • AACo began building their abattoir near Darwin.63 Livingstone abattoir (NT)
  • September. Pasturefed Cattle Assurance System (PCAS) registration process has begun at Oakey plant with information for suppliers to follow to establish PCAS certified grassfed supply chain18
    • cost of audit was likely to be point of resistance early in PCAS development18
  • Companies industry related revenue estimated to have contracted by 1.7% due to Australian chilled beef prices remaining flat over 2008/09 and 2009/102
    • weak export demand due to global economic downturn2
  • Oakey plant had killed same number of cattle in 2013 as it did for entire period of 2012 season.19
    • Daily kill 1200-1300 head are 30% above last year at the same time19
    • Kill weights are reflected by the drought.19
      • Average carcase weights back 20-25kg compared to 2012, due to lighter average weight of steers and significantly higher proportion of female slaughter19
    • In general Eastern states kill tally recorded by the National Livestock reporting services up 15% on same week last year19
  • October. Queensland abattoirs being charged up to $27,000 a month through a religious levy on meat exports in Jakarta to raise money for Islamic schools and mosques20
    • Scandel has stopped QLD halal meat exports to Indonesia, abattoir operators boycott expensive Halal certifiers endorsed by the Indonesian council of Ulama (MUI)20
    • certifiers must donate a share of their revenue to mosques and Islamic schools.20
    • Australian Halal food services (AHFS)was charging quarter of other certified endorser – was suspended by MUI for engaging in unfair competition that could weaken halal certification20
    • DAFF have no control over approvals for religious certifiers.20
    • Oakey relied on AHFS for certification and were now unable to sell Halal meat in Indonesia21
      • Indonesia was an important market for Oakey product21

2014

  • Nippon Meat Packers Pty Ltd changes name to NH Foods.29

Logo NH oakey exports_edited-1

NH Foods Australia Logo Source  www.nh-foods.com.au

  • January. Lack of rain and failure of the northern monsoon has left many areas critically short of feed in western and southern QLD.64
    • Dry areas extending across northern NSW.64
    • critical decision time for drought impacted producers.64
    • One processor states its is the worst start-of-season outlook in 35 years of business.64
    • first quarter of 2014 looking to be period of extreme high cattle turnoff.64
    • Some large processors not booking prices only kill slots.64
      • due to uncertainty over cattle supply.64
      • high placement rate in feedlots late in 2013.64
      • catch up of grain-fed kills due to seasonal break.64
  • February. Forecast of very difficult next 12 months due to supply of animals if drought breaking rains received.24
    • Herds rebuild and producers retain cattle24
    • Plans are to maximise numbers of cattle on feed which will help to insulate from predicted shortages in 3 months.24
  • currently employing 700 people24
  • upgraded trucking and spelling facility at abattoir that can hold 1000 head on feed in seperate area from plant operations24
  • Installation of Covered high rate Anaerobic (COHRAL) lagoon to extract green energy biogas from waster water streams to replace millions of dollars worth of natural gas currently consumed22
    • Uses concentrated anaerobic bacteria to digest 70% of organic matter of high chemical oxygen demand to produce effluent of far higher quality than typical open lagoons22
      • collect 6000 cubic metres of methane each day, calculated to produce a saving of about 50,000 gigajoules of natural gas used in boilers each year23
      • methane will produce 1 mega watt electricity each day23
    • floating membrane will draw gas off as soon as produced and held in specific bladder tanks for use until required.23
      • methane is cooled before use, moisture and sulphides removed before being used in boilers.23

CST wastewater_edited-1Illustration of process of gas recovery of an Anaerobic lagoon
Source CST wastewater solutions

  • reduce plants carbon footprint22
  • reduce waste water22
    • noval distribution system along bottom of lagoon will allow water retention period lower from 25 days to 15.23
  • Plant expects to repay cost of construction within 5 years22
    • $5M – with return on investment in 4 years23
      • $4M in capital works alone
    • reduce annual gas bill by 42%23
  • after 5 years continue to deliver benefits and profitability virtually to perpetuity22
  • gaurd against future price rises in cost of energy and imposts such as carbon tax22
    • energy is a significant and rising component of operating, Diesel, electricity and gas23
  • Project is entirely self-funded and did not attract support under former Federal government carbon abatement grants23
  • Project research funding partially from Australian Meat Processor Corporation & MLA donar company as a Plant initiated Project26
    • If implemented the process can provide a number of direct and indirect economic, social and environmental benefits to abattoirs across Australia26
    • Funding is through private investment, matching governement dollars, and producer levies are used.26

Beef central 28.08.2014_edited-1Oakey abattoir Source Beef Central 28.08.2014

  • project should be finished by late 201523
  • Is the first to use covered lagoons, other installations use reactor tanks of cement or steel23
  • project may help to handle future expansion of plant23
    • vision that will process 1500 head per day using 6 day operation within 3 years23
      • depends on national herd recovery after the drought ends23
  • other plants at Mackay and Wingham will be considered for installation of COHRAL23
  • plant needs to have diligence of staff to ensure chemicals don’t affect bacterial action23
  • currently 750 people employed at Oakey22
  • March. Sod turning ceremony to begin biogas development.65
    • Oakey is sending 75% of its beef production to export.65
    • of the 1,000-1,300 head that go through each shift 500 come from the companies own feedlot.65
  • April Frozen beef shipments to Russia are temporarily suspended from 07/04/2014.81
    • A similar suspension occurred 31/03/2014 for chilled beef.81
    • Temporary suspension of beef offal imports occurred 27/01/2014.81
  • Oakey exports meat to Russia, along with another 29 Australian establishements.81
  • Russia placed new requirements of detection of Trenbolone.81
    • Australia placed additional requirements on its testing requirements.81
    • Russia detected Trenbolone 21/03/2014.81
    • Australian authorities held an immediate meeting with Russian counterparts.81
      • providing details of testing and invited Russia to inspect Australian meat establishments.81
      • Trenbolone is not produced from cattle treated with HGP’s.81
      • Russia has a zero tolerance, most countries have a maximum residue limit.81

 

  • Russia may consider Asia, Chinese port and Indian buffalo meat imports to replace decrease is supplies from the US, European union and Australia.81
  • Australia has been a traditional beef exporter to Russia since the 1970’s.81
    • To July 2012 – June 2013 exported 24,000 tonnes
    • To July 2013 – February 2014 20,000t
    • Trade is worth more than $170M a year
    • Russia is a declining market for Australian beef exports
    • Calendar year to date Russia taken only 1,221t beef
    • Full year exports 2010 and 2011 topped 60,000 tonnes

 

  • June. Currently killing to capacity on a single shift with overtime25
    • Looking to extend production hours in the coming year to service markets25
  • Currently killing 1,200 head per day25
    • 2014 has been a massive year for production25
    • record kill year to 12 months to March25
    • Female component of grasskill component has been close to double normal level in response to drought in supply area.25
      • Mt Isa, Julia Creek and Northern NSW25
    • Normally female kill of grassfed is 35-40% – has been 60-70%25
  • Big cattle numbers have impacted on prices to producers25
  • Oakey marketers able to keep product moving due mature and developing markets25
    • Big 3 – USA, Korea and Japan25
    • China has also been big markets25
  • Nippon Meats Whyalla feedlot account for approximately half of plant’s kill.25
    • Authors note – 600 / day on 5 day kill, 50 weeks operation = 150,000 head25
  • Oakey plant buy up to 95% of cattle on weight basis25
  • July. Oakey abattoir is 2nd only to the Australian Defence force when it comes to employment in the area.27
  • Currently employs 750 people27
    • 3 main catagories of employment27
      1. Administration & Management27
        • Production supervisors, export, shipping, quality assurance, livestock purchasing, export sales, marketing, micro-biology, accounting & environmental management, human resources, laboratory technicians & information technology27
      2. Production and Maintenance27
        • Meat processing roles – salughter, boning, slicing, packing, labour and cleaning.27
      3. Engineering27
    • Lifestyle benefits in meat processing.27
      • Most work start between 5-6.30am – end 2-3pm27
    • Processing facility operates year round except closure over Christmas and New Year27
  • Enterprise bargaining agreement was supported by employees27
    • In principle agreement was reached of EBA 16/07/2014.78
      • Explanatory document was given to employees, which they voted in a secret ballot within 10 days.78
  • $20M investment in infrastructure planned over the next 3 years27
  • Whyalla Beef  feedlot – has 50,000 head capacity supplies half to two thirds of cattle processed at Oakey.27
  • Oakey is currently processing 1,200 head per day for domestic and international markets.27
  • December. Biogas equipment is in the final stages of installation.66
    • 6,000 cubic metre capacity polyester flexible storage ‘balloon’ collects biogas from nearby covered lagoon.66

ABC rural 10.04.2015_edited-1

Oakey abattoir biogas ‘sphere’ Source  ABC Rural 10.04.2015

MLA case study. covered lagoon_edited-1

Covered Anaerobic lagoon that captures the biogas. Source MLA case study – May 2015

2015

  • January. MLA forecast.80
    • Australian cattle herd has gone from 35 year high (2013) to 20 year low (2015).80
    • Australian cattle herd slip to 26.8M head by June 2015.80
      • by 2016 expected decline to 26.5M head.80
      • by 2020 27.9M head.80
    • Adult cattle slaughter expected to slump 15% year on year.80
      • 2015 to 7.8M head.80
      • 2020 expected 7.9M slaughter.80
    • Long term Female average in 2014 52%.80
      • Normally female kill percentage 47%.80
      • Only in years 1977, 1998 & 2003 has female kill been above 50%.80
    • Beef exports record levels in 2014 1.39M tonnes shipped weight.80
      • Expected to drop 20% to 1.3M tonnes in 2015.80
  • February. Whyalla Beef Feedlot is ranked as 3rd largest in Australia according to Beef Central, one-time operating capacity.67
    • One-time operating capacity 56,000 head.67
    • Turnoff in 2014, 178,000 head.67
    • See Years 1988 & 1990 for details of holding capabilities
  • March. Cyclone Marcia cross the Capricornia Coast some plants were damaged.70
    • Supply is exceeding capacity in QLD at this point.70

Cyclone Marcia Feb 2015_edited-1

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

  • Oakey has re-activated Saturday boning shifts to keep up with high demand and rates of kill.70
  • April. Nippon have invested $100M in Oakey facility since taking ownership in 1987.68
    • Biogas will produce 183.3 gigajoules of energy per day.68
      • represents 40% of the current useage of natural gas.68
    • Annual production will lift from 298,000 to more than 560,000 head.68
    • Staff levels will rise from current 750 to 1,400.68
  • Increase in production proved the need to revitalise the western rail lines to towns such as Quilpie, Charleville, Morven & Roma.68
    • removing cattle trucks from the roads.68
      • easing up supply chain process.68
  • Funding that was applied for under the Gillard government was scrapped under Abbott in 2013.68
    • Project was built without any taxpayer funding.68
  • July. The following charts are from a submission by the Australian government Department of Agriculture to the Senate rural and regional affairs and transport references committee inquiry into Market consolidation and the red meat processing sector.

abattoir capacities dept ag sub consolidation_edited-1

Capacity of major beef abattoirs in QLD. Pg 15

T2 Throughput state beef_edited-1

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

T4 processing companies market share_edited-1

Major Processing companies by market share May 2015. Pg 16

M4 direct cattle movements NLIS QLD_edited-1

Cattle Movements to abattoirs. Pg 25

F12 hourly labour costs food manufacturing_edited-1

Hourly labour costs for food manufacturing industry Pg 30

  •  Oakey abattoir wants to access rail services to help increase through-put to 12,000 head a week.72
    • Rail is a critical part of strategy to double weekly kill.72
    • Current employees’s 730 people could be increased.
    • Rail line passes 300m from Oakey abattoir site.72
      • QLD rules don’t permit Oakey to receive cattle by train because there is no rail siding in place
    • Oakey are in advanced negotiations with QLD government to allow rail access
    • Oakey could utilise the rail for outgoing containers
      • currently delivers 100 containers of beef a week to Port of Brisbane
        • Many are underweight due to road limit restrictions
        • Many delivered by road could be moved by rail
  • QLD government currently subsidise Aurizon to provide rail services to rural and regional areas.72
    • restrictions had been placed on producers if they wanted to send cattle via rail they had to book the entire train – 800 hd.72
    • Last 4-5 years cattle rail service has virtually stopped.72
      • 12 years ago Quilpie would see 9 trains loaded a week.72
        • sending 100,000 head annually.72
      • Past 3 years only 5 trains have left Quilpie.72
        • 3 left in 2015.72
      • ‘ghost train’ Aurizon is funded to provide 27 cattle train services a year on the Western rail line
        • Only 7 ran last finanical year (2014/15)
        • Only 2 abattoirs are contracted to receive cattle from the rail JBS Dinmore (QLD) and Teys Beenleigh (QLD)
  • Lack of rail access  has seen large number of cattle drawn south towards abattoirs in Southern Australia.74
    • If rail enables cheaper freight those cattle could be coming back to QLD.74
  • New airport at Wellcamp has opened – 16km from Oakey facility.74
    • enable air-freight access to export customers, Asia & Middle East.74
      • United Arab Emirates is largest destination of air freight from Oakey.74
    • Increased opportunity to market shelf-ready portion controlled product.74
      • Particularly China – large potential growth area
  • Industrial relations progress.74
    • Old agreement meant 7.6hr shifts / 5 days a week with significant penalties for operating outside those restrictions.74
      • Could only operate the plant for 38 hours a week.74
    • New EBA 9.5hr shifts in the boning room and flexibility to move to 7 day operation.74
      • would allow plant capacity to increase to 1,650 per day over 7 days.74
      • length of employment of A grade Slaughterman in Australia was 25 years.74
  • Food safety and shelf life.74
    •  Americans sell their product 60-70 day shelf life.74
    • Australia sells it’s product 140 days.74
  • October. 10 mayors from Southern QLD form a mayoral group to act as a united lobby group for their region.76
  • represent 25% land area of QLD, quarter of QLD cattle and 75% of grain and crop production area.76
    • support the Oakey abattoir push for rail transport improvements.76
    • $2M in State and Federal funding is required to fund new rails sidings.76
      • Federal government feel that private investors should fund the improvements themselves.76
  • Oakey currently process 6,400 head a week.76
    • Announced plans to expand further but rely on the plant’s ability to source greater numbers of cattle.76
    • plans to increase to 11,500 head a week.76
      • add to processor competition in the area.76
    • Only 2 abattoirs are currently contracted to be supplied cattle on the Western line.76. JBS Dinmore (QLD) and Teys Beenleigh (QLD)
      • Oakey is to be added, starting January 2016.76
        • Contractually Oakey can recieve cattle but as they have no rail siding this is not physically possible.76
      • Oakey has to commit to transporting a minimum of 25,000 head per annum by year three.76
      • equates to 28 services per annum.76
        • increasing to 40,000 head after 3 years.76
  • December. ATO publishes tax data for agribusiness corporates.77
    • Data interpretation – Companies do not pay compay tax on revenue (total income) they pay on profits after paying all expenses, including wages, capital replacement, supplier costs and other operating expenses.77
    • Income tax information is for 2013/14.77
  • NH Foods produced Total Income $845,824.273.77
    • Nil taxable income and nil tax payable.77
  •  AACo have animals processed at Eastern abattoirs as service kill.63
  • See year 2013.63
  • Gross processing costs had increased in the 6 months to September 2015.63
    • $1.13 risen to $1.21/kg, 7% increase year on year HCW.63

 

2013_2015_edited-1

QLD Drought Situation 2013 – 2015 www.longpaddock.qld.gov.au

Sources – Oakey – Toowoomba. Nippon

  1. ‘Meat Processing in Australia’ IBIS World. June 2010
  2. ‘Meat Processing in Australia’ IBIS world. September 2013
  3. ‘Competition and Exit in meat processing’ Agribusiness review. Vol 7. 1999
  4. ‘… And the Beef goes on’ Marel meat news, undated
  5. www.nmpa.com.au
  6. ‘QR stops cattle trains to Oakey abattoir’ QLD Country life. 10.12.2009
  7. ‘Nippon’s hides processing plant closes it doors’ Beef Central 19.03.2012
  8. ‘Industrial action forces six-day Oakey closure’ Beef Central 30.04.2012
  9. ‘Productivity a bone of contention in abattoir strike’ ABC Rural. 01.05.2012
  10. ‘Strike action into 2nd week’ The Chronicle. 05.05.2012
  11. ‘Marchers send message’ Gympie Times. 07.05.2012
  12. ‘Oakey abattoir strike rolls on’ ABC rural 07.05.2012
  13. ‘Meatworkers left in limbo’ The Chronicle 10.05.2012
  14. ‘Meatworkers hope for answers’ Caboolture News 11.05.2012
  15. ‘Hope Oakey abattoir strike could end next week’ ABC rural. 11.05.2012
  16. ‘Fat lazy useless union bosses at it again’ Meat trade News Daily 20.05.2012
  17. ‘Abattoir workers return to work’ The Chronicle 21.05.2012
  18. ‘Critical mass shapes as next PCAS pasturefed program challenge’ www.certifiedpasturefed.com.au 05.09.2013
  19. ‘Weekly kill: Oakey figures highlight 2013’s drought impact’ Beef Central. 22.09.2013
  20. ‘Religious levy costs QLD abattoirs thousands each month’ The Courier mail. 20.10.2013
  21. ‘QLD abattoirs hit with thousands in Halal certification fees’ Food Magazine. 21.10.2013
  22. ‘Oakey abattoir’s world first’ QLD Country life. 07.03.2014
  23. ‘Self funded Oakey methane project looks to slash millions off energy bill’ Beef Central 10.03.2014
  24. ‘Nippon rides it out for long haul’ QLD Countrylife 13.02.2014
  25. ‘Oakey abattoir tips steady production’ QLD Country Life 26.06.2014
  26. ‘Environment: Processing waste water moves from problem to profit’ Beef Central. 28.08.2014
  27. ‘Oakey Beef Exports carves out many career options’ QLD Country Life 31.07.2014
  28. ‘World on a plate – A history of meat processing in Australia’ Stephen Martyn.2014
  29. NH Foods website & history
  30. NH foods OakeyBeef Exports
  31. ‘Abattoir revamp to boost job numbers’ ABC News 08.07.2003
  32. ‘Work begins on big meatworks revamp’ ABC News 16.01.2004
  33. ‘Oakey ire at power cut’ Caboolture News 11.09.2004
  34. ‘Beattie has a bone to pick with detractors’ Caboolture News 04.12.2004
  35. ‘Construction begins on Oakey water plant’ Caboolture News 17.05.2007
  36. ‘QLD smart award for abattoir’ ABC News 08.06.2007
  37. ‘Acid spill forces meatworks evacuation’ ABC News 12.08.2008
  38. ‘Cattle shortage cuts abattoir production’ Caboolture News 15.11.2008
  39. ‘Don’t say boo’ Caboolture News 14.08.2010
  40. ‘Victim faces claims of bullying’ Caboolture News 08.10.2010
  41. ‘Worrying time after abattoir shuts’ Caboolture News 31.03.2011
  42. ‘Booing meatworkers reinstated’ Caboolture News 28.06.2011
  43. ‘Caualties emerging as export kill pressure continues’ Beef Central 25.07.2011
  44. ‘Top chefs tour abattoir’ Caboolture News 05.08.2011
  45. ‘Where are all the cattle’ Beef Central 16.08.2011
  46. ‘Open day showcases Oakey facility’ Beef Central 31.08.2011
  47. ‘Kill rates edge upwards, despite flat meat demand’ Beef Central 12.09.2011
  48. ‘Slow season opening for processors’ Beef Central 11.01.2012
  49. ‘ABARES foreign owner processing assessment underwhelming’ Beef Central 20.01.2012
  50. ‘Weather disruptions unlikely to stimulate sustained price lift’ Beef Central 31.01.2012
  51. ‘Meatworkers stage walkout’ ABC News 30.04.2012
  52. ‘Striking meatworkers’ demand reasonable’ ABC News 01.05.2012
  53. ‘Uncertainty surrounds meatworkers’s return to work’ ABC News 04.05.2012
  54. ABARES foreign ownership 2011
  55. ‘Strike action into second week’ Caboolture News 05.05.2012
  56. ‘Meatworkers to decide on new enterprise deal’ ABC News 14.05.2012
  57. ‘Meatworkers return to work after pay deal struck’ ABC News 21.05.2012
  58. ‘Abattoir workers return to work’ Caboolture News 21.05.2012
  59. ‘Manufacturing skills award to Oakey staffmember’ Beef Central 23.05.2012
  60. ‘Award win a huge honour’ Caboolture News 24.05.2012
  61. ‘Oakey Abattoir’s world environmental initiative’ CST wastewater solutions
  62. ‘QLD kill eases 6%, but not for any supply reasons’ Beef Central 05.11.2012
  63. ‘AACo’s Darwin abattoir projected to be strong finanical performer’ Beef Central 18.03.2013
  64. ‘Dark clouds loom for start to 2014 slaughter season’ Beef Central 14.01.2014
  65. ‘Beef plant to halve energy costs by turning cattle waste into biogas’ The Courier-Mail 09.03.2014
  66. ‘Oakey’s biogas sphere delivers greener credentials, energy savings’ Beef Central 10.12.2014
  67. ‘Top 25 Lotfeeders: No 3 Whyalla Beef’ Beef Central 18.02.2015
  68. ‘Biogas plant fuels Oakey abattoir expansion’ Caboolture News 10.04.2015
  69. ‘The new biogas plant at Oakey Beef Exports in Oakey, Southern QLD’ ABC Rural 10.04.2015
  70. ‘Cyclone impact reflected in lower tally’ Beef Central 03.03.2015
  71. MLA case study – Waste to Energy technology May 2015
  72. ‘SW QLD abattoir pushes for more rail services for cattle’ ABC Rural 22.07.2015
  73. Dept Ag. Submission to Market consolidation and the red meat processing sector July 2015
  74. Oakey on track with rail, air plans’ Beef Central 04.09.2015
  75. ‘Agriculturally rich councils join to form lobby group’ Caboolture News 19.10.2015
  76. ‘$2M only barrier to better rail access for cattle’ Beef Central 20.10.2015
  77. ‘ATO publishes tax data for agribusiness corporates’ Beef Central 18.12.2015
  78. www.amieuqld.asn.au – negotiations oakey
  79. MLA Top 25 Red Meat Processors
  80. ‘MLA forecasts beef market adjustment’ The Land 27.01.2015
  81. ‘Update on Russia’s suspension on Australian beef’ Beef Central 03.04.2014
  82. AUS-MEAT Accreditation Listing 29.12.2015

Kilcoy

Other Names

Current Operation

  • Currently operating as at December 2013.

Location   

  • 120 km NW of Brisbane in Brisbane valley

Australia. Kilcoy

Kilcoy  001

Hema Maps – Australia Handy Map. 9th Edition

Owners

  • Kilcoy Pastoral company1
    • CEO – Tony Munns appointed 1999, succeeded by David Foote.1
  • Harmony Investment fund – Singapore based – Harmony Capital management3
    • Harmony purchased in 20074
  • Pacific Alliance Group (2012)3
  • New Hope Investment Fund – Chinese4

Operation   

  • Marketing strategy – Naturally Identified, Safe environment (NISE) Beef export program1
  • Dedicated grainfed, export focussed plant.3
  • Capacity to process 285,000 head per year3
  • Employed 750 staff (as at 2012)3

History

Year

1950’s

  • First established by Kennedy Family4

1999

  • Appointed new CEO – Tony Munns1

2002

  • Major improvements epected to provide 10% production boost and 50 full time jobs.2
  • Currently employing 340 people (plus the extra 50 to add)2

2003

  • Volume had increased through the plant by 35% to same period in previous year.2
  • Further Funding provided by Federal Government – Dairy Regional Assistance Program $880,0002
    • Further enhance production capacity and improve efficiency2
    • Improve primary freezer capacity, improve ability to process by products and improve the standard and quality of effluent disposal2
  • Previous 12 months had been difficult in world markets2
  • Target Pacific Rim countries in particular Japan and Korea2

2007

  • Harmony Capital Management’s Harmony Investment Fund4
  • Throughput for 2007 was 54,000t carcase weight, 160,000 cattle.5
    Note by author (Jo Bloomfield) if average yield is 337.5kg, estimate live weight processing 52% dressed Is approximately processing animals live weight 650kg.

2009

  • Australian Agriculture Co’s largest shareholder – IFFCo flag interest in purchasing abattoir5
    • Would be acquired by IFFCo under assigned put-and-call option – allows later transfer of ownership to AA Co5
    • IFFCo is large international red meat processor – killing 10,000 buffalo daily in India5
    • AA Co considering cost-benefit studies of owning meatworks as adjunct to branded beef business5
      • Currently utilises service kill at Grantham and occasionally at Casino5
  • Kilcoy provides strong marketplace competition against larger players Swift and Teys grainfed cattle processing5
  • Kilcoy is has current kill capacity 570 head a day, single shift, seven day operation5

2011

  • Processed 250,000 head, emplyed 750 staff.3

2012

  • Harmony Investment Fund – had owned a majority share of 80% sold to Pacific Alliance Group3

2013

  • Chinese investment fund – New Hope Investment fund purchase facility4
    • Purchase price about $80M6
    • one of the biggest operators of feedlots in China4
  • Kilcoy Abattoir is currently fourth largest abattoir in Australia4
  • Is currently processing 265,000 grain fed cattle a year4

2015

  • July. The following charts are from a submission by the Australian government Department of Agriculture to the Senate rural and regional affairs and transport references committee inquiry into Market consolidation and the red meat processing sector.
  • abattoir capacities dept ag sub consolidation_edited-1

    Capacity of major beef abattoirs in QLD. Pg 15

    T2 Throughput state beef_edited-1

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

    M4 direct cattle movements NLIS QLD_edited-1

    Cattle Movements to abattoirs. Pg 25

    F12 hourly labour costs food manufacturing_edited-1

    Hourly labour costs for food manufacturing industry Pg 30

 

Sources

  1. ‘New Heads for Kilcoy, ACC abattoirs’ QLD Countrylife 13.10.1999
  2. ‘Kilcoy abattoir upgrade’ QLD Countrylife 29.05.2003
  3. ‘Harmony sells stake in Kilcoy, Harvey Beef’ Beef Central 06.12.2012
  4. ‘Kilcoy abattoir sold to Chinese Investment Fund’ The Australian 06.12.2013
  5. ‘IFFCo eyes Kilcoy abattoir in AAco deal’ Stockjournal 18.06.2009
  6. ‘Stations now in hot demand’ Nth QLD Register 10.07.2014
  7. Dept Ag. Submission to Market consolidation and the red meat processing sector July 2015

Casino. #239. NSW

Casino is more commonly known as the Northern Co-operative Meat Company

Casino is an Export accredited facility processing beef and offal. It is the only Co-operative owned meat business in Australia.

Other Names

  • Northern Co-operative Meat Company

 

Current Operation

  • Aus-meat registration #02394.
    • Aus-meat listing accessed 02/10/2017
    • Export accredited facility
  • Casino is the only producer Co-operative owned meat processing business in Australia16
  • NCMC also operate a pig processing operation at Booyong20

Source http://ncmc-co.com.au/. Accessed 28.08.2017

Location   

Australia. Casino

Casino

Hema Maps – Australia Truckies atlas.

Owner

  • Northern co-operative meat company – Only farmer co-operative owned beef abattoir in Australia1
    • Chief Executive Simon Stahl1

Operation  

  • Service kill to customers involving up to 20 operators1
  • Specialised Wagyu processing plant – six regular kill customers provide 10% weekly beef throughput – 4000 head1
  • Direct incentive program offered to co-op members – paid $450,000 in incentive payments 80,000 slaughtered head.1
  • Membership is about 1500 members, both cattle and pork, including 1350 as ‘active’1
  • Members not required to gaurantee of livestock supply and competes with other processors3
  • Operates two floors – Capacity 12,500 a week, Beef floor over 150kg, veal floor under 150kg3
  • As a Cooperative is required to publicly disclose its end-of-year results unlike most other meat processors1
  • Also own Pig processing plant – Booyong, Casino Hide traders.3

Source Beef Central 05.11.2014. Logo

Source Beef Central 08.06.2017

History

1933

  • Northern Co-Operative Meat Co is established as a farmer owner processing business16
    • Service export and domestic beef and pork markets16

1933 – 1939

  • Founders for the first 6 years processed cattle in their own right36

1975

  • Casino Hide Tanners is established16
    • One of the first tanneries in Australia dedicated to the tanning of cattle hides for export16

2000

  • South Burnett meatworks at Murgon close.27
    • Leaves Casino as the only producer owned processing co operative remaining in operation in Australia27

2010

  • 2009/2010 financial year after tax profit $1.025M3

2011

  • March. Northern Co-operative say jobs will go if the Richmond Valley Council goes ahead with planned changes to its water charges14
  • May. Questions asked in legislative council in regards to general information of abattoirs in operation in NSW at the time that employ 50 full time equivalent staff or more.12
    • Casino Northern co-Operative Meat Co Ltd is included in list.12
      • Licensee –  Fung Lea Food Pty Ltd12
  • 2010/2011 financial year after tax loss $1.03M – impacted by climate conditions on cattle availability3
    • Start of 2011 was extremely wet19
    • High Australian dollar19
      • Escalated 26c19
    • Climate conditions had placed significant pressure on business in the January to March Period19
      • Peak production period is normally January to June19
    • Meat processing industry profitability isn’t constant19
      • Fixed costs are very high19
      • Lack of stock can create significant challenges19
        • Supplies predominantly come from independent parties for service kills19
        • When trading conditions become difficult they slow their production particularly when competition or prices of livestock increases19
  • Current CEO at this time is Gary Burridge19
    • Intends to stand down in April 2012
    • Mr Burridge had worked 18 years in this one position19
      • Will move to a new position with T & R Pastoral group20.
      • Will continue to hold Chairman position with Australian Meat Industry Council.20
  • Casino Co-op is currently owned by 1650 members who are predominantly cattle and pig producers19
    • No guarantee of livestock numbers from members19
    • Facility competes with other processors for throughput19
  • NSW Adult Cattle Slaughter throughput – www.mla.com.au
    • Statistics only for the State of NSW financial years.
    • Comparing monthly slaughter for entire state of NSW.

2012

  • Jan.Northern Coopertive Meat co takes on controlling interest in Ramsey meats business3
  • Acquired Ramsey Meats business (Grafton) and now closed.1
    • Ramsey – located Grafton closed operations 14.11.10, shifting business to Casino2
    • Legal representative – Move from Grafton regretted and not the companies preferred option, it appeared inevitable certain Government departments were “single minded in their efforts to achieve the closing of the abattoir business”2
    • Ramsey meats were heavily focused on veal production and had been shifted a service kill arrangement to NCMC since its closure20
  • February. New CEO is appointed. Simon Stahl21
  • Currently operates from Nippon Meat Packers Australia head office in Sydney21
    • Manager of innovation and regulatory oversight21
    • Joined Nippon in 1992, initially working at Oakey (QLD)21
    • Spent 7 (1995 – 2012) years as managing director at Nippons Mackay (QLD) plant21
  • June. 2011 / 2012 Financial year Profit $826,00022
  • Additional plant throughput (due to Ramsey Meat acquisition) had helped trading.22
    • Veal numbers up 73% on previous year22
      • Utilisation operating at 40% capacity in 10/11 now operating at 95%22
    • Beef throughput up 3% on previous year22
      • Beef floor currently operating at 100% capacity22
        • Yearly cycle is 90%22
  • Specialised Wagyu processing  a significant part of the Casino business22
  • Direct consignment incentive to co-op members on 80,000 head was $318,00022
    • Incentive is paid to co-op members by a custom kill operator committed to processing at Casino22
    • Currently 1550 members22
  • NSW Adult Cattle Slaughter throughput – www.mla.com.au
    • Statistics only for the State of NSW financial years.
    • Comparing monthly slaughter for entire state of NSW.

  • Casino is hopeful of being re-listed to supply Russia
    • Plant with 6 others was de-listed earlier in the year.
  • May. NSW unveils regulations to ensure wellbeing and welfare of animals.13
    • Regulations require a designated Animal Welfare Officer (AWO) to oversee and be accountable for the welfare of animals processed at each abattoir facility.
    • AWO’s will undergo specific training that will make them eligible for the position only if that training is completed.
    • All domestic abattoirs in NSW will be required to also have an AWO by 01/01/2013
  • June to December – processing period hard.1

2013

  • Jan – June.  – shift in momentum of processing numbers due to drought.1
  • Hitting weekly records and working extra shift1
  • Not so much extra animals due to drought but abundance due to supply from Northern properties, larger Southeast QLD processors  didn’t have to come south to source kill supply1
  • Plants beef throughput up 7%, to end of financial year veal floor utilisation up to 85%, beef floor – currently 100%, yearly cycle 90%1
  • NSW Adult Cattle Slaughter throughput – www.mla.com.au
    • Statistics only for the State of NSW financial years.
    • Comparing monthly slaughter for entire state of NSW.

 

  • August. Licence agreement is obtained to allow the Casino plant to process PCAS (Pasturefed Cattle Assurance System) on behalf of it’s customers-operators23
  • NCMC record a before tax profit $3.9M for the 2013 /2013 financial year.24
    • Driven by sharp rise in throughput in Jan – June due to effects of drought24
    • Veal numbers increased due to first full year of operations since acquisition of Ramsey meats24
      • up 25% on previous year24
      • Veal floor had been operating at 40% before Ramsey Meats purchase24
        • Now operating close to 85%24
    • Beef throughput was up 7%24
      • Beef floor operating at 100%, yearly cycle average 90%24
      • Processing 4,000 head a week24
        • Wagyu kill for six regular customers makes up 10% of beef throughput24
          • Challenging processing Wagyu because of customers requirement of different cutting lines for global customers and different branding and packaging24
    • Not a 12 month period record of throughput24
      • last quarter, weekly records of throughput were being achieved24
        • Saturday shifts being worked24
          • Possibly the first time the plant has operated on Saturdays24
  • Direct Consignment incentive $450,000 for about 80,000 head24
    • Achieving a new record level in  12/1324
  • Currently approximately 1500 members, cattle and pork producers24
    • 1350 regarded as active.24
  • NCMC Chairman at this time – John Seccombe24
  • Nov. Before tax profit -$3.9M for 2012/2012, up from $839,000 for 2011/20121
  • Passed Russian regulatory audit in November 2012, restoring full access to emerging market there1
  • Offering livestock suppliers a 20c/kg carcase weight premium on vealers meeting Pasturefed Cattle assurance system (PCAS)5.
    • Veal cattle 70-150kg5
    • have identified a large international customer who is keen to adopt PCAS as part of brand story5
  • Livestock suppliers under PCAS are receiving 20c / kg carcase weight premium for vealers25
    • A large international customer is keen to adopt program as part of its brand story25
    • 20c /kg is twice amount offered for PCAS on the beef floor.25
  • Veal throughput had increased 25% since the 18 months acquisition of Ramsey meats.25
    • Veal carcase around 120kg25
    • Vealers can range from 70 – 150kg25
  • Australian processors face higher costs of production, PCAS offers a way to differentiate their brand25
  • NCMC purchase Manning Foods36

2014

  • June. End of year profit for 2013 / 2014 $25.9M. Year ending 30/06/201416
    • High rates of slaughter due to drought
  • In general profitability across Australian export processing industry if high27
    • high export demand27
    • Abundance of relatively cheap cattle caused by drought27
      • Producers are receiving poor livestock prices27
  • NSW Adult Cattle Slaughter throughput – www.mla.com.au
    • Statistics only for the State of NSW financial years.
    • Comparing monthly slaughter for entire state of NSW.

  • September. Beef and Sheepmeat processors feature predominantly among Australia’s largest 500 privately owned companies.26

Source. Beef Central. 24.09.2014

  • Red meat sector presence in the top 500 listing is important26
    • 14 businesses listed were associated with the Meat and Livestock industry26
      • 12 were either processors or non-packer exporters26
    • Reflects the broad business activity of the red meat industry across the nation26
    • Most beef businesses are located in rural areas. Significant employers in those areas26
      • Top 4 red meat entries supporting close to 9,000 regional full time staff.26
    • All the red meat companies showed increased turnover in last financial year26
      • Once in a generation business opportunity driven by abundance of slaughter stock at cheap prices due to widespread drought26
        • particularly those plants with access to international markets.26
      • Normally abattoirs high volume, low margin enterprises26
        • this year high volume, high margin26

2015

  • March. Northern Co-Op export licence isn’t locked into the service of its foreign owner
    • Duopoly squeeze on producers causes pressure on prices and price signals producers do/don’t receive.15
      • Duopoly pressure is supermarkets in the domestic market that buy 60-65% of the domestic market and foreign ownerships hold on the export markets15
      • Australian beef processing is effectively owned by its major export market15
        • United States – in the form of Teys and Cargill15
        • Brazil – JBS15
    • Minimal opportunity for independent operator / producers to gain processing space to export Tier 1 to China or other Asian destinations15
    • Efficiencies coming onstream in abattoir technology mean that a small southern works might be constructed for half the price of AACo’s operation at Livingstone, Darwin” Mr Burton Taylor, former chairman of AACo.15
    • Processor ‘gouging’ over the past 2 years of drought induced turnoff has occured15
  • June. Casino, Northern Co-Operative Meat Co posts a $23M profit before tax for 2015/2015, year ended 30/06/201515
    • Turnover of $301M, Net profit after tax of $17.9M38
    • Total assets of $134.4M 38
    • Result due to a number of factors15
      • record cattle throughput for the year15
        • Many stock turned off to slaughtered due to drought conditions15
    • Second years profit represents 2 of the best back-to-back years in the business’s 82 year history16
      • Bonus incentives to members totalling $3M16
      • Shareholders to receive dividend payments 12% of share capital value16
        • in addition to livestock supply incentive payments16
  • NSW Adult Cattle Slaughter throughput – www.mla.com.au
    • Statistics only for the State of NSW financial years.
    • Comparing monthly slaughter for entire state of NSW.

  • November. Significant capital projects to be undertaken include16
    • upgrading cold storage with the installation of plate freezing technology16
    • automated robotic system in the cold storage area16
    • upgrades to the beef floor16
      • Modification to the twin lead up races to knocking box16
        • replacement of conventional box with rotary box with the addition of accumulator chain16
    • new boilers16
    • waste management treatment facility at the tannery16
  • New capital projects planned to be commissioned in 201616
  • Outlook for 2016 was that stock prices would remain at or near historical highs16
    • Expectation that 10-15% reduction in cattle numbers being processed than previous financial year16
      • As per Meat and Livestock Australia predictions16
  • Service kill partners currently using the plant total approximately 16016
    • 20 core larger clients16
    • Others are smaller butchers or wholesale operators16
  • Facility has capability to kill 8,000 cattle per week on two separate processing floors16
    • One floor processes stock over 150kg16
    • Veal floor processed lighter stock16
  • Provides customers with world-class facility to process beef, veal or pork16
  • Accreditation as an approved processor for16
    • EU (European Union)
    • US (United States)
    • Japan
    • China
    • Korea
    • Halal
    • Organic and biodynamic markets
  • Operates and maintains a secure segregation system for carcases intended for separate markets16

Source http://ncmc-co.com.au. 23.08.2017

  • Largest component of business is Casino Service Processing (CSP) business division16
    • Operated in conjunction with Casino Hide Tanners16
      • Capacity to process more than 900,000 cattle hides per year16
        • Processes hides from green through to wet blue leather.16
  • NCMC independently operate their own marketing range of brand lines16
  • Casino will close one of it’s two beef chains for the season on 20/11/201528
    • inevitable undersupply of stock has caused the early closure28
    • Veal chain will be close 13/11/201528
      • Veal will be shifted to single chain until proposed final closure date of 16/12/201528
    • 150 casual staff will be put-off early28
    • Permanent staff will not be re-trenched or otherwise affected28
  • Had been a stock throughput decline of 30% recently28
    • Adult cattle numbers had declined 20%28
    • Veal numbers were back 70%28
      • Impossible to maintain both chains later into the season28

 

  • “Australian beef industry has gone from a 35 year high in beef herd size, to a 20 year low in the space of just 2 years” Simon Stahl, CEO, NCMC28

 

  • “Australian processors have been operating 30% above normal capacity for the last 2 years as producers responded to drought conditions by turning in their cattle for processing” Simon Stahl, CEO NCMC28

 

  • Subject to rain Casino plans to re-open its beef chain after a 3 week break on 11/01/201628
  • JBS Australia Townsville and Teys Australia announce early closures for the season due to cattle availability28
  • December.

Source. Beef Central 29.12.2015

2016

  • January. Infrastructure improvements are installed29
    • Upgrades will cost approximately $40M33
      • Tannery improvements costing $7M33
  • February. Meat and Livestock Australia 2016 industry projections predict a likely fall in the number of slaughtered cattle for 201634

Source Beef Central 27.01.2016

  • 2016 Beef kill Australia wide expected to be 7.6M head34
    • 18% decline from high point in 201434
    • 2017 is expected that kill numbers will be 7M head34
      • Lowest number since 199534
  • Live exporters are mounting increasing pressure against beef processors in Australia34
    • ‘Traditional’ processors areas of procurement for cattle are being entered by exporters to fill live boat orders.34
      • The separation that once existed in terms of live weight between boat (live export) and processed cattle appears to be breaking down.34
  • International markets are currently in a poor state34
    • Australian meat processors in general are making losses on almost all lines of slaughter cattle being processed.34
    • Producers previously had to wait long periods for kill space to sell stock to slaughter now those wait times have lessened34
  • Casino plant had cut back on the veal processing chain last year has resumed to processing on the chain of 50%34
  • Casino beef chain is currently operating at 70%34
  • March. Wiley undertakes major infrastructure improvements at Casino29
  • 4 Projects29
    1. New Cold chain management facility29
      • reduction in product movement and multiple handlings29
      • Implementing ASRS (Automated storage and retrieval system)29
        • 1st in a frozen environment in Australia29
        • 2nd installation in the world29
      • Capacity of 4840 cartons, throughput of 14,000 cartons per day29
        • Dematic smart sort carton system – European product33
        • Improvements in efficiency and traceability29
        • Increased storage capacity 33
        • Reduced manual handling and forklift movements33
      • Plate freezing capacity, blast chill tunnel 30
        • All product will be able to be frozen and chilled onsite33
      • loading dock cold chain compliant30
        • Ability to handle shipping containers and pantech trucks30
          • Trucks reverse into ‘igloo’ and seal encloses around the access point30
            • This will soon be a standard feature in the industry30
      •  
      • Completion is expected Mid 2016

 

Source Wiley 20.09.2016

  1. Design and construct knocking box and race system29
    • over 100 operators that use the facilities29
      • Require efficient facilities with a highly trained workforce29
    • Design principles based on Temple Grandin methods29

 Source Wiley 19.03.2016

  • Twin rotary knocking boxes30
    • design modification allows operator to change unit to suit the beast being slaughtered30
    • operates 30% faster than previous system33
    • Suits a larger range of animals30
    • Reduces stress on animal30
    • Longer than standard units30
  • Pivotal part of the abattoir process, setting rhythm for rest of facility29
  • Equipment was fitted offsite and installed in January29
  • Veal race was also re-directed.29

Source Wiley 20.09.2016

    1. Supply and relocated steam services29
      • Installed in January29
      • Utilises compressed air and hot water29
      • Previous existing structures were unable to support the loads and new gantries had to be made29

 

  1. Upgrade to waste water treatment at the Tannery29
    • Work at the Tannery will begin in June 201629
      • Costing $7M33
    • Upgrade existing chrome precipitation plant30
      • Improvements to waste stream segregation30
      • Additional hair removal with new hair savers30
    • Upgrades allow for marketing of hides to higher value markets30
  • Casino is approved for export to the USA, Japan, Korea and EU.29
    • Holding certification or organic and Halal processing29
    • Facility can process 12,500 cattle per week29
  • Improvements occurred while the plant was still in operation29
    • On- site access was limited29
    • Important not to interrupt production output being conducted29
      • Often work was conducted outside normal operating hours and at night29
  • May. Australia’s top 100 food and drink companies identifies 16 closely aligned with red meat processing, further processing or value adding sectors35
    • 2014 and 2015 delivered record processing thoughputs of livestock across Australia35

Source Beef Central 12.05.2016

  • June. ACCC (Australian Consumer and Competition Commission) hear from a local producer claiming that the region has suffered in recent years due to the changing dynamics of the local processing sector.36
    • Casino purchasing Ramsey Meats (2011) and Manning Foods (2013)36
      • Reduced the number of buyers operating on vealers in the local market from 3 to 1.36
      • Once the Co-Operative began to process it’s own cattle it impacted negatively on producer returns36
      • Traditionally Casino plant had paid a significant premium to the EYCI (Eastern Young Cattle Indicator), in the past few years this had been reversed.36
        • In 2010 Casino paid 27c/kg above EYCI36
        • In 2011 Casino paid 42c/kg above EYCI36
        • In 2012 Casino paid 30c/kg above EYCI36
        • Once Casino took over Ramsey meats in 2012 result was negative 2c/kg36
        • In 2014 Casino paid 20c /kg less than EYCI36
        • In 2015 Casino paid 31c /kg less than EYCI36
  • Casino plant had been operating at 30% capacity prior to the decision to operate as a veal processor in its own right36
  • CEO Simon Stahl refuted claims “EYCI was not a vealer based pricing indicator and was irrelevant in comparing against vealer prices”36
    • NCMC represented only 1% of young cattle traded.36
  • Operating as a service kill operator has some advantages but also weaknesses36
    • If individual operators start to lose money or they have a better option they go elsewhere36
    • Beef floor continues to operate predominantly as a service kill36
  • 2015 / 2016 financial year Casino makes a $1.57M profit before tax.37
    • Result would have been worse had it not been for the high level of throughput in the July to December 2015 period37
      • Numbers dropped significantly across Australia for all processors in January to June 2016 period37
    • NCMC had lost some of its service kill customers in the last 12 37
      • Specialised Wagyu sector was still a major part of the plants throughput37
        • 5 or 6 of Australia’s largest Wagyu  supply chains conduct service kills at Casino37
          • 20% of the plants throughput37
    • Beef chain numbers had been down 37% on the previous year
      • 2015 / 2016 was the lowest throughput for the last 15 years37
    • A significant loss in trading is expected in 2016 / 2017 due to the downturn in numbers37
  • NSW Adult Cattle Slaughter throughput – www.mla.com.au
    • Statistics only for the State of NSW financial years.
    • Comparing monthly slaughter for entire state of NSW.

  • Top 100 Australian food and beverage companies list

Source Beef Central 27.02.2016

  • September. Tannery Infrastructure improvement work has been completed30
    • Cold chain work expected to be completed October – November 2016.30
  • October.Casino for the first time has adopted service kill of manufacturing types (Cows and Bulls) to underpin rates of throughput37
  • Casino is currently killing 3 or 4 days a week on both beef and veal chain37
    • Processing 500 – 800 cattle per day37
  • Pork Processing business of NCMC is an important strategic diversification for the co-op37
  • Co-operative CEO at this time John Seccombe37
  • Casino General Manager Simon Stahl37
  • November.Top 100 list is released of Australian Business Council of Co-operatives and Mutuals (BCCC)38
    • Looks at Co-operatives and mutual enterprises in Australia38
    • Agriculture is relatively poorly represented in the list.38
    • Casino plant operated by NCMC ranked 27th on the list.38

2017

  • Facility can process 12,500 bovines per week17
  • Accreditations and Licences are available for viewing at this site NCMC

Source http://ncmc-co.com.au. accessed 23.08.2017

  • March. Chinese Premier visits Australia may yield significant trade access improvements for Australian beef and sheepmeat40
  • Trade access reform talks with China focus on key areas40
    • Removing current restrictions in chilled meat that only currently allow 12 Australian establishments to export chilled meat to China40
    • Opening up access to all Australian export eligible meat40
      • Currently access is limited by licence40
        • 15 red beef plants looking to export to China that don’t hold a licence40
        • With up to 60 beef and sheepmeat plants seeking to achieve access to China40
  • Approval is given to some beef and lamb processors in Australia to export chilled meat to China42
  • June. Casino plant is fined $15,000 from the NSW Environment Protection Agency (EPA)41
    • EPA claim Casino failed to meet the requirements of a Pollution reduction program at the abattoir and tannery41
    • NCMC rejects allegations saying the breach refers to a report submitted by NCMC41
    • IN early 2016 NCMC was required to develop a plan that demonstrated sustainable wastewater management at the premises by 30/12/201841
      • required a report to be submitted to the EPA setting out a program and measures41
      • EPA claim the report failed to address key issues41
      • Pollution reduction programs are included in the licensing environment protection licences and are legally binding41
    • NCMC have invested $10M on improvements to waste water management over the last 5 years41
  • Since 1990, more than 90 abattoirs across Australia have closed.41
    • Mostly in regional areas41
  • NCMC currently employ about 1,000 employees across 5 core business divisions41
  • 140,000 people employed in the red meat processing sector across Australia41
  • Cost pressures on manufacturing in Australia were real.41
    • if all stakeholders didn’t address the issues the red meat processing industry will move off shore.41
      • Like the steel and automotive industry have already done.41
  • NSW Adult Cattle Slaughter throughput – www.mla.com.au
    • Statistics only for the State of NSW financial years.
    • Comparing monthly slaughter for entire state of NSW.

  • July 26. China temporarily bans beef imports from six Australian meatworks due to concerns about labelling non-compliance.42
    • No suggestions of health or food safety42
    • Issues concerned multiple breaches to do with inner and outer labelling, on a small number of cartons 45
    • Chinese labelling requirements may seem pedantic but product substitution in China is very common45
      • Particularly through the grey trade routes45
    • 6 plants had been reported as suspended on the Administration of Quality supervision, Inspection and Quarantine of China website (AQSIQ)42
      • Australian beef exports worth more than $600M last year42
        • China is the 4th largest market42
        • 2015 /16 exports to China of beef and sheep meats $970M (160,000 tonnes)45
    • Australian abattoirs affected are42
      • NSW
        • Casino (Northern cooperative Meat Co)42
        • Scone (Primo – JBS)45
      • QLD
        • Canon Hill (Australian Country Choice)42
        • Kilcoy (Kilcoy Pastoral Co)42
        • Rockhampton (Beef City – JBS)45
      • SA
        • Murray Bridge (Thomas Foods International – Murray Bridge)45
    • Shipments of meat were currently on the water42
      • Shipments were allowed to enter 28/07/2017 if they had already been dispatched prior to 24/07/201744
    • Need to resolve any labelling issues and AQSIQ and restore normal trade for the 6 affected plants425
    • US beef imports begin into China4
      • Direct competition against Australian products42
      • First time for 13 years USA have exported to China42
  • Australian government officials were working with industry and Chinese authorities to resolve the Chinese ban issue urgently.43
    • Australian and China have a strong bilateral trade relationship43
    • An audit was conducted of Australian facilities affected44
    • Beef industry commentators were mindful of any opinions that may cause negative implications to the talks and meetings to resolve the issue43
  • July 28. Chinese meat import ban is lifted.
    • Inability of Australian processors to access the market caused a combined market loss of $1M per day48
  • China had imposed a surprise blanket ban on chilled beef 3 years ago45
    • 1,000 containers of product had been affected at that time45
      • New Zealand had been imposed with 2013 ban and approached negotiations over re-entry with an assertive style45
        • It was in-effective with New Zealand only regaining access to China markets in the last few weeks45
    • Much less product was in transit with this current ban45
      • If the ban wasn’t resolved quickly the chilled meat may to be frozen down to preserve it45
        • Freezing the meat would lessen its value considerably45
      • If the containers in transit hadn’t been allowed in they may have had to have been re-exported to other markets at a lower value and frozen.45
  • August. Claims made in Federal Parliament that containers of Australian beef are about to be stranded on Chinese wharves are false46

Source Beef Central 15.08.2017

  • Australian red meat processing industry’s peak industry council call on all levels of government to recognise the impact that record input costs, regulatory burden and encumbered market access is having on the industry48
    • An axis of issues impact profitability and growth48
  • Churchill abattoir at Ipswich recently closed, leaving 500 staff out of work48
  • Meat processing industry is currently operating in the midst of the worst terms of trade in its history48
    • Record high livestock prices48
    • Livestock supply constraints48
    • Increasing input costs, including energy48
    • unfavourable exchange rate48
    • Burdensome and duplicative government oversight48
    • uncertain export trading environment, including technical market access difficulties48

Sources. Casino

  1. ‘Casino records $3.9M profit, driven by drought-induced throughput’ Beef Central 06.11.13
  2. ‘South Grafton plant to close’ Beef central 24.10.11
  3. ‘Casino takes big stake in Ramsey meats’ Beef Central 06.11.13
  4. Aus-meat Accreditation listing as at 14.01.2013
  5. ‘Casino’s new PCAS veal program to offer 20c/kg premium’ Beef central 06.11.13
  6. www.ncmc-co.com.au
  7. ‘Tender for Casino abattoir upgrades’ www.ncmc-co.au
  8. NSW Parliament 26.10.1999
  9. ‘Casino Abattoir Takes Up Ramsey Operations’ www.themeatsite.com 25.10.2011
  10. ‘Strong turnaround in profit for Casino’ Beef Central 08.11.2012
  11. ‘Bobby calf comeback at Casino with new veal export market on the cards’ ABC Rural 04.02.2015
  12. www.parliament.nsw.gov.au. Questions on notice in parliament dated 31.05.2011
  13. ‘New regulations to ensure welfare of animals in NSW abattoirs’ Foodmagazine. 18.05.2012
  14. ‘Northern Co-Operative Meat company says jobs will go’ www.abc.net.au. 15.03.2011
  15. ‘Supply chokeholds ‘strangle producers’ www.farmonline.com.au 17.03.2015
  16. ‘$23M profit for Casino’s NCMC plant, after record throughput year’ Beef Central 02.11.2015
  17. Casino Service Processing. http://ncmc-co.com.au. Sourced 23.08.2017
  18. ‘Supply, $A behind Casino Meat Cooperative loss’ Beef Central 09.11.2011
  19. ‘Casino takes big stake in Ramsey Meats’ Beef Central 11.01.2012
  20. ‘New CEO for Casino plant’ Beef Central 15.02.2012
  21. ‘Strong turnaround in profit for Casino’ Beef Central 07.11.2012
  22. ‘Supplier opportunity emerges as PCAS momentum grows at Casino’ Beef Central 13.08.2013
  23. ‘Casino records $3.9M profit, driven by drought-induced throughput’ Beef Central 04.11.2013
  24. ‘Casino’s new PCAS veal program to offer 20c/kg premium’ Beef Central 05.11.2013
  25. ‘Processors feature prominently among Australia’s 500 largest private companies’ Beef Central 24.09.2014
  26. ‘Bitter-sweet result, as Casino lodges record $25M pre-tax profit’ Beef Central 05.11.2014
  27. ‘Casino joins list of early beef plant closures’ www.beefcentral.com. 13.11.2015
  28. https://www.wiley.com.au/news-events/ncmc-amn-article/
  29. https://www.wiley.com.au/blog/ncmc-upgrade-update-sept/
  30. $30M project will help transform Casino’s Northern Co-op beef plant’ Beef Central 29.12.2015
  31. ”Full steam ahead’ Wiley 18.12.2015
  32. ‘Casino processor pumps profits back into productivity’ The Land 19.01.2016
  33. ‘Weekly kill: More cracks starting to show, as plants succumb…’ Beef Central 09.02.2016
  34. ‘Red meat processors feature prominently among Australia’s top 100 food companies’ Beef Central 12.05.2016
  35. ‘ACCC forum: Changing cattle market dynamics at Casino’ Beef Central 14.06.2016
  36. ‘Dramatic year on year contrast…..’ Beef Central 24.10.2016
  37. ”Red meat sector poorly-represented in cooperative business structures’ Beef Central 21.11.2016
  38. ‘Red meat processors feature prominently in Top 100 food….’ Beef Central 27.12.2016
  39. ‘Beef exporters confident of China access breakthrough during premier’s visit’ Beef Central 20.03.2017
  40. ‘Casino beef plant rejects $15,000 EPA fine’ Beef Central 08.06.2017
  41. ‘China orders halt to red meat imports from several Australian meatworks’ ABC Rural News 26.07.2017
  42. ‘China suspends six Australian beef business’s’ www.farmonline.com.au 26.07.2017
  43. ‘Breakthrough in Australia’s beef with China over meat exports’ ABC News 28.07.2017
  44. ‘What yesterday’s China processing suspension mean for Australian meat exports’ Beef Central 27.07.2017
  45. ‘Nothing behind Labor’s claims of beef access blockages in China, AMIC says’ Beef Central 15.08.2017
  46. ‘MLA Projections: Tightening supply set to further increase competition….’ Beef Central 27.01.2016
  47. ‘Abattoir closures must force recognition of…….’ Beef Central 30/8/2017
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