Australian Abattoirs

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 #0239^4.
  • 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   

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. http://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’ http://www.abc.net.au. 15.03.2011
15. ‘Supply chokeholds ‘strangle producers’ http://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
19. ‘Supply, $A behind Casino Meat Cooperative loss’ Beef Central 09.11.2011
20. ‘Casino takes big stake in Ramsey Meats’ Beef Central 11.01.2012
21. ‘New CEO for Casino plant’ Beef Central 15.02.2012
22. ‘Strong turnaround in profit for Casino’ Beef Central 07.11.2012
23. ‘Supplier opportunity emerges as PCAS momentum grows at Casino’ Beef Central 13.08.2013
24. ‘Casino records $3.9M profit, driven by drought-induced throughput’ Beef Central 04.11.2013
25. ‘Casino’s new PCAS veal program to offer 20c/kg premium’ Beef Central 05.11.2013
26. ‘Processors feature prominently among Australia’s 500 largest private companies’ Beef Central 24.09.2014
27. ‘Bitter-sweet result, as Casino lodges record $25M pre-tax profit’ Beef Central 05.11.2014
28. ‘Casino joins list of early beef plant closures’ http://www.beefcentral.com. 13.11.2015
29. https://www.wiley.com.au/news-events/ncmc-amn-article/
30. https://www.wiley.com.au/blog/ncmc-upgrade-update-sept/
31. ‘$30M project will help transform Casino’s Northern Co-op beef plant’ Beef Central 29.12.2015
32. ”Full steam ahead’ Wiley 18.12.2015
33. ‘Casino processor pumps profits back into productivity’ The Land 19.01.2016
34. ‘Weekly kill: More cracks starting to show, as plants succumb…’ Beef Central 09.02.2016
35. ‘Red meat processors feature prominently among Australia’s top 100 food companies’ Beef Central 12.05.2016
36. ‘ACCC forum: Changing cattle market dynamics at Casino’ Beef Central 14.06.2016
37. ‘Dramatic year on year contrast…..’ Beef Central 24.10.2016
38. ”Red meat sector poorly-represented in cooperative business structures’ Beef Central 21.11.2016
39. ‘Red meat processors feature prominently in Top 100 food….’ Beef Central 27.12.2016
40. ‘Beef exporters confident of China access breakthrough during premier’s visit’ Beef Central 20.03.2017
41. ‘Casino beef plant rejects $15,000 EPA fine’ Beef Central 08.06.2017
42. ‘China orders halt to red meat imports from several Australian meatworks’ ABC Rural News 26.07.2017
43. ‘China suspends six Australian beef business’s’ http://www.farmonline.com.au 26.07.2017
44. ‘Breakthrough in Australia’s beef with China over meat exports’ ABC News 28.07.2017
45. ‘What yesterday’s China processing suspension mean for Australian meat exports’ Beef Central 27.07.2017
46. ‘Nothing behind Labor’s claims of beef access blockages in China, AMIC says’ Beef Central 15.08.2017
47. ‘MLA Projections: Tightening supply set to further increase competition….’ Beef Central 27.01.2016
48. ‘Abattoir closures must force recognition of…….’ Beef Central 30/8/2017