Category Archives: Tasmania

Flinders Is. #? Tas.

(this will appear on description)

Short paragraph describing facility (Export / domestic), purpose (Livestock slaughtered and location.
Significant issues

Other Names

  • Operating business name1
  • Common name used

Current Operation

  • Is the facility currently in operation
  • Aus meat Accreditation number
  • Operator website links
    • Contact for employment
    • Contact for sales.

Location

  • Description of physical location in relation to main town and state
    • distance to main urban areas or export sites of that state

Insert – Australia map. location of approximate town site.

(Make Australia map default picture for site.)

Insert – Locality map of more localised area of site

Other abattoirs in Australia

Go to this link to view Location of Australian Abattoirs

abattoirs_edited-1   

Owner

  • Owners names and approximate time period of operation

Operation

  • Aus-meat accreditation dates.
  • Website link to owner of facility
    • Employment link to operator of facility
    • Sale enquiries
  • Type of facility and accreditations for livestock types1

 

History

Year

2015

  • April. Current manager – David Madden4
  • Facility is currently processing stock and supplying local butcher outlet and Victorian distribution hub4
  • Current 20 workers at the facility4
  • Lambs are processed as 24kg carcases4
    • Costing $30 per lamb to freight to the Australian mainland4.

2017

  • Cressy #19. Tas has received some of the Flinders Island workers5
  • Cressy also takes on some of the service kills once processed at Flinders5.

Sources

  1. ‘World on a plate. A history of meat processing in Australia’ Stephen Martyn
  2. Ausmeat Accreditation list – Date
  3. Facility website
  4. http://www.abc.net.au/news/rural/2015-04-13/flinders-island-abattoir-demand-increases-lamb/6388736
  5. http://www.abc.net.au/radio/programs/tas-country-hour/tqm-lamb/9268476
  6. http://www.weeklytimesnow.com.au/property/abattoir-and-butchery-at-flinders-island-for-sale-lackrana-rd-lady-barron/news-story/7e2a6c75da82debea903a7d26ec82f7e

Australian Abattoir Locations

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.

https://www.google.com/maps/d/edit?mid=zg2q19Y75dIo.k9ID5cjkgPd0

abattoirs_edited-1

The Layers are

Closed prior to 1970

Closed after 1970

2014 Domestic Meat processors in current operation – as per the Ausmeat listing 16/07/2014

2014 Export Meat processors in current operation – as per the Ausmeat listing 16/07/2014

1963 Export meatworks  – as per  list of Meat export works in Australia as at February 1963 from the book ‘World on a plate – A history of meat processing in Australia’ Stephen Martyn. 2013.

Other abattoirs currently in operation

These are abattoirs located in some states that I am aware of

Abattoirs under construction

      These are abattoirs I am aware of.

Australian Abattoir and Meat Processor Locations

Cygnet

Other Names

  • Cradoc Hill
  • Cradoc Blue Hill abattoir

Current Operation

  • Currently operating at time of writing 03.01.2014

Location   

  • Cradoc Hill is located approximately 10km north west of Cygnet. Cygnet is located approximately 70km by road south west of Hobart in southern Tasmania

Australia. Cygnet

CygnetHema Maps – Australia Truckies atlas.

Owner

  • Dave, Rita Stephens and Michael Munnings8
  • James Lord (2011)1

Operation   

  • Cygnet is only major abattoir south of Cressy abattoir (Tas) in the northern Midlands.4
  • A small service kill abattoir for the use of local producers who may only have one or low number of animals to process.3
  • Some product is now commercially being sold to retailers under brand names7
  • Producers may retain ownership of product and use for their own purposes or value add and further sell to retail.7
  • Process large animals cattle7
  • Process small animals calves, sheep, lambs, deer, rabbits, poultry and pigs.2

History

2009

  • Cygnet is featured in the ‘Gourmet Farmer’ SBS series with local producer Mathew Evans3
  • In reference to Cygnet abattoir and  taking two of his pigs to be slaughtered there3

” ..is run by people who want to help smallholders. Who understand you may only have one sheep, one pig to kill at at time. They make it easier for people who want to rear their own meat, to get it killed legally and affordably. If there’s one thing I’m happy about with the death of my pigs, it’s that the abattoir at Cradoc hill will do the right thing by them” Mathew Evans3

2011

  • June. Dave and Rita Stephens had operated the abattoir for a number of years and wished to retire.1
    • Possible a consortium of interested parties may pool resources to buy the freehold and operate the business1
  • Loss of this abattoir to the community would have been a severe blow to the local producers small and large.2
    • Important to know the animals are free-range and killed humanely with many producers following their animal through process of delivery to final product of meat cuts.2
    • some producers larger animals sheep and cattle while others have pigs, goats, rabbits.2
    • Some are niche market meats and by-products2
    • Economies of the dairy and fleece buisinesses would be marginal or impossible without access to an abattoir, local market for vealers and wethers2
    • Producers would be forced to send stock to northern processing works – some over 4 hours drive from Cygnet3
    • Products also sourced for bone, pig ears for pets, blood and bone for gardens, organs for university and forensic research2
  • July. Abattoir closes for two weeks when new buyer moves in.2
  • James Lord purchases Cygnet facility2

2013

  • Development of two meat brand logos7
    • Blue Logos – Cradoc Hill meat – targets premium interstate markets7

logo _edited-1Source – Cradoc Hill website – Logo used to promote products to Interstate markets.

meat selections _edited-1Source – Cradoc Hill website – Example of meat cuts offered in a box sale being offered direct to door of customers through website sales.

meat selections _edited-2Source – Cradoc Hill website – Example of meat cuts offered in a box sale

    • Green Logo- Huon Valley meats – targets the Hobart market and surrounds.7

Huon valley logo _edited-1Source – Huon Valley Meats website – Logo used to promote products local markets.

“We source our produce from farmers we know and trust, We are particular in who we work with, seeking out growers who genuinely enjoy raising their stock and who take pride in growing the highest quality produce” James Lord

  • Cygnet now processing 20-30 cattle, 100 lambs and 20-30 pigs a week.7
    • employs 8 people, 4 permanent and 4 casual7

Sources

  1. www.theviewfrommyporch.blogspot.com.au
  2. ‘Save Cradoc Hill Abattoir’ Tasmanian Times 14.06.2011
  3. ‘Killing the pigs’ Gourmet Farmer. SBS. 18.12.2009
  4. ‘James meats his destiny’ The Mercury. 29.07.2011
  5. Huon Valley Meats website
  6. Cradoc Hill website
  7. ‘Huon meat goes for fine dining’ The Mercury. 20.12.2013
  8. www.buffaloaustralia.org

Cooee

Cooee was a very small service kill abattoir located Tasmania, fire caused its closure in 2012 affecting many small producers who would follow the complete process of their animals treatment through to packing.

Other Names

  • Cooee Point

Current Operation

  • Closed – fire burnt processing and packing facility in 20121

Location   

  • Cooee is on the western end of the north coast of Tasmania.1

Australia. Cooee

CooeeHema Maps – Australia Truckies atlas.

Owner

  • Wendy Gee1

Operation   

  • A small service kill and processing, packing facility for local producers1
  • Processed pigs, lambs and cattle1
  • Employed 6 people1

History

1992

  • facility had been in operation before this time1

2012

  • January. Extensive fire damage to facility occured.1
  • 90% of the commercial cattle in the area were processed at Devonport abattoir (Tas) but Cooee had a solid local following1
    • facility is used by smaller producers to kill, butcher and pack their meat.2
    • Producers were able to watch the animal processed right throughout2
  • Fire thought to be suspicious1
  • June. Wendy Gee will offer services at a butchery in Terrylands, Animals are killed at Devonport abattoir (Tas) approximately 50km away, then transferred to Terrylands for processing.3

Sources

  1. ‘Fire razes North-west abattoir’ The Examiner 22.01.2012
  2. ‘Cooee abattoir fire forces producers to assess their options’ ABC Country Hour. 23.01.2012
  3. ‘Abattoir owner back in business’ The Advocate. 17.06.2012

Devonport

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

Other Names

  • North West Rendering8
  • Devonport City abattoir.

Current Operation

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

Location   

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

Australia. Devonport

DevonportHema Maps – Australia Truckies atlas.

Owner

Operation 

  • Multi species abattoir located ajacent to Devonport saleyards1

    • Processes beef, sheep and pork1
    • Capacity 150 beef daily and 1,200 Smallstock daily (Lamb, mutton, Veal and Pork)1
  • Employs 150 people1

History

1977

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

1980

  • Meatworks operation began9

1995

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

1997

  • Expanded rendering works.5

2000

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

2001

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

2002

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

2003

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

2004

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

2005

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

2006

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

2008

  • JBS purchased as part of Tasman group when entered Australia with acquitsition of AMH3
  • Tasman Group consists of abattoirs in Tasmania – Longford, Devonport and King Island14
    • Tasman group 3 abattoirs in Tasmania including King Island and 3 in Victoria.14
    • JBS paid $US150M14
  • JBS also purchased Smithfield Group $US565M14
    • Has four abattoirs14
  • JB also purchase National Beef $US560M14
    • Has three abattoirs14
    • 2 meat processing facilities14

2011

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

2012

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

2013

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

Beef central 27.09.2013 logo

Great Southern Logo. Source Beef Central 27.09.2013

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

2014

  • April. Devonport currently employ 150 people.19
  • July. JBS Australia across all facilities in operation kills daily.15
    • 8,500 cattle,15
    • 24,000 smalls – which includes lambs15
    • Employs more than 8,000 people15
  • December.
    • JBS currently operate 12 meat processing plants across 5 Australian states16
      • Wages & local procurement $730M (Excluding livestock purchases)16
      • Employs 8,500 people at the facilities16
        • Employs 12,000 people in Australia16
      • Total revenue of $6.5B16

    JBS plants 2014_edited-1

    JBS processing plants in Australia

    Source JBS submission #50 Market Consolidation.

    • JBS estimates its current share of four eastern states beef kill – 20% (excludes service kill)16
      • JBS share of Australian beef production 16%16
      • Market share of national small (lamb, mutton & goat) 16%
    • JBS spent $2.4M on halal certification costs of approved religious certifiers in 201416

    2015

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

 

Sources Devonport Tas. JBS

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

Cressy. #19. Tas.

Cressy abattoir is better known as TQM. Located in Tasmania and processing sheep and lambs for export markets.

Other Names

  • Tasmanian Quality Meats

Current Operation

  • Currently operating at time of writing December 2013.

Location   

  • Cressy is located on the Mainland of Tasmania approximately 50km south of Launceston

Australia. Cressy

CressyHema Maps – Australia Truckies atlas.

Owner

  • Tasmanian Quality Meats (TQM)1
    • Co-Owners – Brian Oliver & John Talbot4
    • Managing director – Brian Oliver1

Operation

  • Processes and send lambs to export3

ABC rural sheep photo_edited-1Source ABC Rural ‘ Stopping Sheep disease..” 16.09.2013

  • Skins salted and sold3

School Salted skins_edited-1Source – Agricultural studies school visit abattoir. – Salted skins being packed.

  • non-meat body parts processed into fertiliser3
  • Employs 70 people3

Other abattoirs in Australia

Go to this link to view Location of Australian Abattoirs

abattoirs_edited-1   

History of Cressy #19.

1997

  • Established business2
    • Plant previously used to process small numbers of wallbies and venison4
  • Cressy processed 100-120 smallstock a day6
    • 12 staff6
    • battled with this processing level for 3 years as stabilised business6
    • Selling into the domestic market

2001

  • Blue Ribbon Smithton abattoir (Tas) – Tasmania’s largest processor went into receivership6
  • Coles asked Cressy to process and distribute beef, sheep and pork to its Tasmanian stores6
  • Cressy leased and operated Smithton site processing 500 units a day and 52 staff.6
    • as production increased so did costs6
  • Cressy developed new beef processing floor, beef chiller and larger smallstock chiller6

2003

  • Built meat processing floor providing a service kill for veal and lamb for butchers and wholesalers throughout Tasmania and mainland Australia

2004

  • Expansion of facilities at Cressy should be finished by April – allow for processor to explore new export market opportunities.1

2010

  • Tasmania  required a small stock export plant
  • Cressy start work on a new state-of-the-art processing floor

2011

  • January. Processing 4,000 units per week6
  • August. Cressy abattoir achieved export certification5
  • September.Processing floor developed in 2010 commissioned – achieving Tier 1 Export registration

2012

  • January. Processing 5,500 units per week6
  • Since export accreditation sent 86,000 lambs to Middle east and killed 75,000 for domestic market.5
    • Once Halal slaughter introduced stopped production of pigs immediately on religious grounds6
  • May. Ceased beef kill operations – only killing 50 head a week and return was unviable6
  • Further expansion of slaughter line occured6
  • October. Cressy announce significant expansion at their meatworks2
    • grant $250,000- Tasmanian Government Innovation and Investment Fund2
      • total cost is $538,000 TQM invest $288,0002
      • One of five companies to receive grant5
    • Convert old beef floor into 500 unit lamb/mutton chiller2
    • Need for greater chiller space due to market availabilty fluctuations of supply5
    • Lift processing to 10,000 lambs a week5
    • Focus is to build export markets for local product2
    • Since establishment has undergone 4 major upgrades2
    • currently employing 17 FTE, 41 casuals.2
    • 12-15 new full time and part time jobs will be created with expansion2
    • allow TQM to ship direct to markets on Australian mainland and key overseas export markets2
      • switch to exports incurred additional costs due to shipping.4
      • Shipping to Melbourne can be as costly as sending produce on from Melbourne to Southeast Asia4
  • Productivity increase – by 25% to 2000 units a day2
    • decreasing fixed costs and improving efficencies2

2013

  • January. Processing 9,000 units per week6
    • processing all of Tasmania’s bobby calf production6
    • 1,000 lambs processed and shipped to Brisbane under Royal Reserve brand6

    ABC rural photo carcases_edited-1Source – ABC Rural ‘Stopping sheep…’ 16.09.2013

  • Tasmania had good competition and processing for beef but large portion of sheep and lamb was being shipped live to Victoria for processing6
  • Tier 1 Export Licenced audited by AQIS6
    • restricted export opportunities to 22 countires6
    • 2nd Tier requires outsourcing to Victorian abattoir to meet freezing, packing and cutting requirements of markets6
      • double handling and extra costs
      • When sent then has Victorian stamp  when its actually Tasmanian product6
      • Plans to build blast freezer  with extra boning  and cutting room renovations to aim for Tier 2 application.6
  • Pre stuns sheep prior to slaughter4
  • Cressy is Halal accredited – Customers Dubai, Jordan, Bahrain, Kuwait and Vietnam4
    • also sending to Qatar5
  • Currently processing 2,000 animals a day4
  • Local market is shrinking due to undercutting by giant supermarkets4
    • Cressy weren’t competitive, their domestic market small and export opportunities limited4
    • Changed focus direction, invested and innovated around the problems of high Australian dollar – now supplying halal meats in a growing number of international markets.4
    • Cressy is tapping into growing markets and air-freighting product4
    • preferable to exporting of live animals according to owners of abattoir4
      • Lamb killed at TQM Monday can be at Customer Middle East Wednesday.4
      • Tasmania is only state prohibiting use of HGP’s4
  • Employing 80 people4
  • Cressy recently named regional exporter of the year.4
  • September. Have an open door policy to suppliers to observe, learn and improve7
    • Quality assurance manager – Chris Cocker – selected as a finalist for biosecurity Farmer of the year.7
    • Animal health workshops to assist farmers to identify, educate, knowledge and combat diseases.7
    • More than 120 producers have taken opportunity to see their own stock processed7
      • liver fluke, cheesy gland, sheep measles and Ovine Johnes disease7
      • Sarcocysts comes from cats and is a problem due to feral cats7
      • Producers wear cost of disease due to downgrades in carcase7
      • Cressy supply a feedback sheet to producers – giving percentagaes of diseases or what processor has found.7
      • Carcase costs $8-$10 per animal to process if it is condemned to meat meal, producer receives nothing.7
  • November. Tasmania Quality Meats  – Announced as winner of Regional Exporter of the year category at 51st Australian Export Awards.8
    • “The company’s change in direction to becoming a direct exporter is a major milestone, and is to be congratulated” Award Judges.8
    • No direct export sales in 2011 financial year to $12M in export sales 20138
    • Last few years from 20 staff have now employed 75.8
    • Produce certified Hala and HGP free chilled and frozen whole -carcase veal as well as 6-way boxed veal.8
    • Products including frozen veal, mutton, lamb and offal processed in accordance with Halal requirements and sol as Halel in  markets such as Bahrain, Jordan, Qatar and the United Arab Emirates.8

Logo_edited-1Source:‘National Exporter award to Tasmania Quality Meats’ Beef Central 27.11.2013
Tasmania Quality meats Logo.

2017

  • This year has been very difficult due to10;
    • high stock prices10
    • Shortage of workers10
      • Had gained some workers from other abattoirs that have closed Flinders Is and Longford #195. Tas.10
  • Currently processing 1,700 livestock a day10
    • Using 65-70 workers10.
  • Flinders Island facility moved some of its service kill process to Cressy10
  • Current Manager – Ralph Jak10
  • Cressy is currently operating service kill and own branded products10
    • Diversification allows better adaptability to current market conditions10
      • Trade lamb products10
      • Mutton  in 3 or 6 way cuts to the Middle East10

 

Sources

  1. ‘Cressy abattoir upgrade’ The Examiner 08.03.2004
  2. ‘Further investment in Tasmanian Livestock Industry’ 11.10.2012
  3. Agricultural studies visit Tasmanian Quality Meats
  4. Reuters Market Analyst – Clyde Russell 18.12.2013
  5. ‘Middle east demand spurs Tasmanian lamb abattoir upgrade’ ABC rural. 15.10.2012
  6. ‘What’s in store: Big steps in small stock’ Stock and Land. 22.04.2013
  7. ‘Stopping the spread of sheep diseases a winner’ ABC rural. 16.09.2013
  8. ‘National Exporter award to Tasmania Quality Meats’ Beef Central 27.11.2013
  9. ‘Tas Quality meats back on track after a tough year’ ABC rural. 18/12/2017. Audio

Smithton

Other Names

  • HS Greenham’s
  • Greenham’s
  • Blue Ribbon

Current Operation

  • Operating as at 2013.

Location

Australia. Smithton

Map Smithton 001Source – Hema maps. Australia Truckies Atlas

Owner

  • Blue Ribbon – established3
  • Ian Paterson 20015
  • Greenhams – 20024
    • Plant Manager Jack Erichson4
    • Greenham also own Tongala Abattoir (Vic)
      • have been operating in Victoria since 1860’s
    • Greenham’s is a family-run and operated business

Operation

  • Premium quality beef to USA. Japan, buying dairy cos, bulls, heavy beef cows, Jap Ox, calves and yearlings7
  • Greenham’s supply 2 annual burseries $10,000 to young people in Vic and Tasmania further their careers in dairy or beef industry7
  • Process 10,000 t beef annually
  • supplier catchment of 3,000 properties over Tasmania and King Island

History

Some articles are in reference to the meat industry in Tasmania in general and not just specifically the Smithton works

1941

  • Meeting held at town hall to discuss proposal of establishment of abattoir and saleyards at Smithton2
    • At the time 17 slaughtering places existed in Circular head municipality2
      • hygiene and disease of serious concern due to lack of inspections and disposal of offal unsatisfactory with dogs and pigs having access.2
      • water availability  was inadequate for some with poor drainage2
    • New facility main purpose was to ensure clean, wholesome product assuring meat production under hygienic conditions.2
    • Paddocks to be provided for grazing free of charge some distance from abattoir so animals only walked to facility once a fortnight2

    1958

  • Josef Chromy – a Czechoslovakian who fled to Tasmania in 1950 after WWII.3
    • started a butcher shop in Bernie 19573
    • Changed the butcher shop name to ‘Blue Ribbon Meat Products in 19583
    • Initial turnover of $160,000 pa, 5 employees, over 20 years developed the company, acquiring farms, 18 butcher shops, piggeries, distribution centres, factories and abattoirs.3

1972

  • Blue Ribbon aims to establish export standard abattoir3
    • sell to overseas markets premium lamb and beef cuts from Tasmania3

1979

  • Blue Ribbon now operates Smithton, Camdale, Launceston and Hobart abattoirs.3

1985

  • Red meat industry wide rationalisation Chromy sells all operations to RMI Group, in exchange for shares3

1986

  • Rationalisation falls over and shares are rendered worthless3
  • Chromy rebuilt businesses.3

1992

  • Blue Ribbon employ 540 people, annual sales of $75M3
  • Blue ribbon is floated on ASX.3

1994

  • Blue Ribbon win Austrade Agricultural products category at the Australian export awards.3

2000

  • Blue Ribbon post a loss of $3.18M18
    • esculated debts to $6M owed to Commonwealth bank and $4M to suppliers18
    • Company shares trading suspended at $0.13 down from 1993 price $1.6018
      • Peak operation annual turnover AUS$75M and18
      • processed 50% of states livestock18
      • Exports worth AUS$28M18

2001

  • July. Blue Ribbon turn down a refinancing offer from a Melbourne based syndicate18
    • Announce company is put into voluntary administration18
    • Decision chosen as alternative to receivorship and allows 3 months of trading life18
  • Nov. Ian Paterson purchases Blue Ribbon5
    • Federal court hearing – collapse of Tasmainian meat works say Paterson ignore everyones warnings, including Blue Ribbons chief financial officer that the the company was insolvent, ignored repeated advice that works needed $2M in capital injection to function5
    • Paterson misled buisness partners and Blue ribbon administrators pretending he had backing from a group of investors when he was operating entirely on his own.5
    • Former Blue ribbon CEO Ray Joy was part of investment group4
  • Dec. Blue Ribbon go into recievership and close.4

2002

  • Blue Ribbon sold to HS Greenhams.4
    • Employs 100 people7
    • Refurbish the plant to international export standards9
  • Greenhams (new owners of Smithton) develop marketing strategy and sourcing program to help secure cattle for the meat processing plant21
    • included better information to producers about types of animals suitable21
    • information feedback to producers about their animals.21
    • set up scholarships to reinforce commitment to area21
      • result – enough cattle secured for production to peak within weeks of plant opening21
  • Mar. To start production again, processing 100 cattle per day to build up to 200 head a day4
    • Processing capacity of plant 300 per day26
  • June. Smithton retrench 21 workers7

2003

  • When original company went into receivorship employees fired from full-time positions19
    • rehired latter by a labour hire firm on 12-month traineeships19
      • Hire firmis a split company from Blue Ribbon called Newemploy20
      • meant to re-employ 300 workers20
      • Only employed 95 at beginning of dispute20
    • after traineeship period then offered independent contracts for $120 a day without sick leave or holiday pay19
    • Abattoir citing needs flexibility in employment structure19
  • August. Longest lockout in Tasmania’s history enters 21st week.20
    • In dispute – 23 workers locked out, 40 have left, 10 sacked in previous week20
    • sacked workers jobs outsourced20

2004

  • Smithton set up buying centre for cattle in Devonport17
    • Producers take animals direct to site, weighed and paid on delivery.17
    • Acts as direct sale to abattoir with no agents17
    • Abattoir pays for freight to abattoir from selling centre17
    • Estimated to save producer $39 per animal in cartage.17
    • Authors Note – Normally when a producer sells at a point that is closer to property of origin the sale price of animal is reduced, therefore I question if producer in this case would actually get a saving of $39. Saving would be due to no third parties. Jo. 29.12.2013.
    • Devonport is the 6th selling centre established  by the Smithton abattoir since take over in 2002.17
  • HW Greenham and Sons Pty ltd is ranked 13th in top 25 Processors in Australia28
    • Statistics include abattoirs Smithton and Tongala abattoir (Vic)28
    • 2004 End of Dec. Throughput 52,500 ETCW (Estimated tonnes carcase weight) 2003 51,000 ETCW28
    • Kill share 2%28
    • Turnover 2004/2005 $230M (2003/2004 $200M)28
    • Employees 47028
    • Production 95% export – 5% domestic28
    • Major export markets USA, Japan, Korea, Canada, Taiwan28

2008

  • Jan. Smithton (Greenhams) dismiss 6 workers before christmas after losing a key Asian customer6
    • Unfair dismissal case lodged with Australian Industrial relations commission (AIRC)6
      • AIRC found wages and other legal entitlements were paid but had no jurisdiction to determine if dismissal unfair or harsh.6
  • Jul. Signs a exclusive deal with large Korean retail group – Lotte Mart.8
    • Smithton facilities need expansion in boning room, if not undertaken run the risk of losing export opportunities8
  • Oct. Propose to install a coal briquette-fired boiler to replace the existing boiler that is currently fired by tallow and fuel oil.9
    • Rendering process converts by-products into value added products – tallow, meatmeal & bloodmeal9
    • Rendering uses large volumes of steam to cook the materials.9
      • Edible – frying fats, shortening, oils, bakery products, confectionary and industrial margarine9
      • Inedible – soap, cosmetics, lubricants, leather dressings, candles and tallow for tanning leather.9
    • Refurbished 10MW briquett-fired boiler – consume 1.2 t coal /hr at full production9
      • working on 5 day week basis, 10 hours a day – use 1,800 t a year, coal soarced from Victoria.9
      • Ash production 3,600kg pa9
  • Smithton express interest in upgrading port facilities at Stanley to allow King Island cattle imports25

2011

  • Jul. Government – Federal and state supply $1.1M, North-West and Northern Tasmania Innovation and Investment (NWNTIIF)24
    • NWNTIIF created to assist manufacturing businesses, a number of which have closed in area due to GFC24
    • Greenhams contribute $3.3M to upgrade facilities10. –
      • build and fit out new enlarged boning room, freezing area and slaughter floor10
      • upgrade plants rendering facilities22
      • development of new value adding processing facility22
      • increase capacity from 320 head a day to 380, potential up to 45010
      • created 20 jobs with a further 7 likely10
        • other articles say 2422 jobs, and 1723 jobs.
        • upgrade created 17 jobs to date and will provide another 7 by December24
      • Deminished waiting time for producers in summer when larger number of cattle available10
      • Expansion 4 years in negotiations10
      • improvement in technologies increases efficencies22
  • August – Smithton again consider assisting with financial support to upgrade Stanley wharf – deep water24
    • Stanley is deepest port in Tasmania25
    • Would allow King Island cattle access, King Island abattoir (Tas) closed in 201224
    • Other ports are Devonport24 and Burnie26
  • December – Smithton and Tasport upgrade port facilities at Stanley to reintroduce shipping to the area25


2013

  • Jan. MSA grading of meat cuts (had been implemented for a number of years)27
    • Smithton work closely with producers providing feedback on haveing cattle eligible for meat brands.27
    • certain cuts suite certain markets.27

MSA grading _edited-1Source – Peter Greenham Managing Director of Greeham Tasmania. 31.12.2013.
Cattle in MSA program are assessed for eating quality and marketed under particular brands.

  • Apr. American buyers looking to expand purchases of beef from $80,000 per week to $800,00011
    • Grass fed beef.11
    • Tasmania is the only Australian state to ban the use of HGP, therefore all stock are guaranteed 100% HGP free12
    • lot more market potential to be realised yet11
  • July. Cattle unloaded at Stanley port, utilising the port for the first time in 20 years.26
    • Use of Stanley port takes 5 hours off sea trip compared to Burnie and improved animal welfare26
    • Expect about 240 head each sailing26
    • 12,000 – 13,000 head from King Island each year26
      • similar to amount sourced from Island for last 5 years.26

    source animals _edited-1Source – Peter Greenham, Managing Director Greenham Tasmania.

Smithton abattoir sourcing of cattle for processing. They process approximately 500 animals per day which is about 112,000 cattle per year, currently employing 200 Full time staff plus casuals.26

  • Oct. Workers strike for higher wages.13
    • 160 beef processing workers set up picket line – 25.10.2013 with ongoing ban on overtime13
    • 115 of 160 workers belong to AMIEU14
    • previous work agreement had been made in 201014
    • Workers want 4% pay rise – Greenhams offered 2.5% over 4 years & cut of $200 a week to new employees13
    • Negotiations have been going for 6 months.13
    • AMIEU figures say production has increased 25% of number of stock being processed.13
    • Union requested figures to substantiate processing from Greenham, Greendhams declined to supply figures.14
    • Smithton processes 40 to 44 cattle per man per day, elsewhere in Australia averages between 20-2414
    • Longford abattoir (Tasmania – owned by JBS) get over tally for 24 head a man, effectively getting paid time and a half for anything over 24 head.14
  • Nov. Company re-negotiated offer15
    • Raising the pay increase but not wage structure.15
    • Greenham’s showed AMIEU union rep Troy Baker figures to suggest business would not be viable in long term unless new employees paid less “..sat back and looked at it with a percentage rises on top, over time it would have made the company hard to be viable in another 4 years time” Trot Baker – AMIEU15
    • with original offer 2.5% across the board, also accepted 2.5% increase in pay with a $750 sign on bonus for the first 2 years, which will increase to 3% increase in payfor last 2 years of an agreement15

Sources

  1. ‘Support for KI meatworks’ The Mercury. 18.06.13
  2. Public Opinion article. Advocate. 24.09.1941
  3. ‘Josef Chromy : an expert vintage’ www.dynamicexport.com.au. 30.07.2009
  4. ‘Australia: Smithton abattoir to reopen tomorrow’ Just foods. 04.03.2002
  5. ‘Blue Ribbon owner criticised over abattoir collapse’ ABC rural. 22.03.2002
  6. ‘Meatworkers dispute taken to federal IR commission’ ABC news. 07.01.08
  7. Company profile. www.greenham.com.au Accessed 13.11.2013
  8. ‘Delay in works at Tongala abattoir’ www.greenham.com.au 01.07.2008
  9. ‘Smithton abattoir coal fired boiler – development proposal and environmental management plan’ Ecowise. Oct 2008
  10. ‘A meaty boost to efficency at Smithton abattoir’ The Advocate 19.07.11
  11. ‘Tassie beef industry industry impresses US buyers’ The Advocate 12.04.2013
  12. ‘Our plants – Longford’ www.jbsswift.com Accessed 13.11.13
  13. ‘Meat workers to strike for higher wages’ ABC news 23.10.2013
  14. ‘Industrial action hits Greenham’ The Advocate 25.10.2013
  15. ‘Industrial action ended at Tasmanian meatworks’ ABC rural. 12.11.2013
  16. ‘Devonport City abattoir doing well’ ABC rural 26.06.2002
  17. ‘Liveweight cattle buying centre opens in Devonport’ www.greenham.com.au
  18. ‘Australia: Blue Ribbon meats to go into voluntary administration’ www.just-food.com 19.07.2001
  19. ‘Welcome to the revolution’ AMIEU 11.06.2003
  20. ‘Tasmania’s longest lock out enters 21st week’ Green left. 20.08.2003
  21. www.lib.uts.edu.au
  22. ’24 new jobs as Tasmania meat processor expands’ Manufacturers monthly 19.07.11
  23. ‘North west coast prospects beefed up by expansion’ Bavid O’Byrne MP. 19.07.2011
  24. ‘Stanley wharf left to rot’ The Examiner. 20.08.2011
  25. www.shipspotting.com – dated 30.12.11.
  26. ‘Port of Stanley ready to receive cattle ships’ The Advocate 04.07.2013
  27. ‘Red Meat Updates’ Tasmania. MLA 20.06.2013
  28. Feedback’s top 25 processors for 2004 MLA. oct 2005

Longford

Updated 28.12.2013. Longford abattoir is located on the North east side of Tasmania mainland, South of Launceston. Owned by JBS the abattoir is a multi species abattoir currently operating.

Other Names

  • Longford JBS
  • Number 195.18

Current Operation

  • Aus Meat Accreditation registration dated 29/12/2015 #195 – JBS Australia Pty Ltd (Longford).17
    • registered as a Beef, Sheep, Offal export facility.17
  • Direct employment enquiries to www.jbssa.com.au

Location

Australia. Longford

Map. LongfordSource – Hema Maps – Australia Truckies Atlas. 

Owner

  • Gilbertson family
  • SBA foods (Sumikan)- 1996
  • Tasman Group7
    • Used to operate under name – Belandra Pty Ltd
    • Victorian based operation7
    • General Manager Fracnk Orovec7
    • Chairman Giuseppe Catalfamo7
  • JBS Swift1

Operation Of Longford.

  • Multi species processing abattoir2
    • Multi species abattoirs notoriously difficult and complex to manage5
    • Longford is Australia’s most flexible and diverse red meat processing site5
  • Capacity to process 450 beef a day, 1,600 Small stock such as Lamb, mutton and veal1
    • With beef operation also kills 1800 lambs and sheep a day, plus bobby calves and veal.5
  • Full Halal kill to key Muslim markets – Malaysia, Indonesia and Middle East.5
  • Full License access for beef and lamb export to China and Russia5
  • Carries out EU grassfed supply – MSA backed grassfed Natural beef program5
  • Longford carries out most of weekly grainfed kill on contract for Japanese owned Feedlot located in Tasmania5
  • Emphasis is directing sheep and beef meat to branded programs instead of selling product as a commodity meat.5

History Of Longford

2002

  • SBA Foods sell to Tasman Group Services – $25M9
    • Includes King Island9
    • Altona abattoir – Melbourne (currently mothballed) – been closed for last 2 years9
      • Past 4 years had $10M spent on improving beef slaughter chain, chiller and boning facilities9
    • Yambinya feedlot – Wakool, Deniliquin.9
    • Tasman Group already owned – Brooklyn abattoir – gutted by fire June 2001 and still closed in 2002.9

2003

  • Abattoir closed -part of union agreement workers to paid full entitlements7
    • Rescue package offered by Government7
    • More optimistic about workers future with package announced7
  • Abattoir had applied for new rendering plant7
    • $5M plant had already been built but formal application still required approval.7
  • 600 Tasmanian feedlot cattle went to King Island abattoir for processing.7

2006

  • Tasman Group Chairman – Giuseppe Catalfamo brided Cole’s head of supermarket merchadising Peter Scott (Coles fired Scott in 2007).6
    • Scott had acquired million dollar bayside apartment from Catalfamo6
    • Considered a breach of retailers code of conduct – Tasman group main supplier of beef in Victoria and Tasmania6
    • Catalfamo been caught bribing and meat substitution in past – horse-meat substitution scandel that threatened Australia’s export industry 20 years ago, fined and banned from exporting to the USA for 10 years.6
  • Devonport abattoir provides Woolworths with fresh sausages for 29 Tasmanian stores6
  • Tasman Group – report ending 20056
    • sales had increased 30% but profit halved to $6.3M6
    • Company borrowings total nearly $62M6
      • Main creditors – National Australia Bank, ANZ and Japanese meat company Hannan Corporation6

2008

  • JBS purchased as part of Tasman group when entered Australia with acquitsition of AMH5
    • Tasman Group consists of abattoirs in Tasmania – Longford, Devonport and King Island8
      • Tasman group 3 abattoirs in Tasmania including King Island and 3 in Victoria.8
      • JBS paid $US150M8
    • JBS also purchased Smithfield Group $US565M8
      • Has four abattoirs8
    • JB also purchase National Beef $US560M8
      • Has three abattoirs8
      • 2 meat processing facilities8

2009

  • March. JBS lockout company -Cuthbertson Brothers10
    • Cutherbertson process sheep and lamb skins supply footwear trade.10
      • 150 year old company – established by Blundstone11
      • Purchase 80% of Tasmanian production of sheep and lamb skins11
      • Processing plant at Launceston11
        • supply exclusively to Manufacturer Melbourne – Dynasty11
        • Dynasty is agent for Henan Prosper – worlds largest tannery located in China11
      • Employ 20 people11
    • Cutherbertson call on ACCC to launch formal investigation as breach of Trade Practices Act, JBS have misused market power to push players out of the sheep and lambskin market.11
    • JBS refuse to allow Australian Lamb Company to process animals at Longford11
      • Australian Lamb Company is major exporter11
      • Processed 1000 heavy lambs  per week.12
      • Loss of buisiness caused producers $7-$10 per head.11
        • Australian Lamb company forced to send stock to Melbourne for processing11
      • At 2009 – Longford is the only supplier of export grade sheep and lamb produce in Tasmania11
    • JBS is dealing direct with producers , by passing stock agents.11
    • JBS continued pattern of activities designed to force Cuthbertson Brothers out of market by approaching Cuthbertson’s major clients.11
  • Sheepskin tender lockout has caused producers receive 50% less for skins11
    • $3-$4 per skin11
  • ACCC are investigating the matter but JBS refusing to discuss with ACCC.11

2010

  • JBS lay off 90 workers13

2012

  • JBS Australia split into two operating entities to make Northern and Southern regions in relation to abattoirs and feedlots within those areas14.
    • South – Victoria, South Australia and Tasmania14
    • North – NSW and QLD.14

2013

  • JBS threaten closure of Longford if another abattoir is established on King Island abattoir (Tas)3
    • JBS say – not receiving cattle from King Island would hurt Longford operations3
    • JBS (at June 2013) still owned the closed King Island plant. It was not leased or for sale3
  • Longford Plant – Boning room to be reconfigured for great throughput to increase efficency5
    • Long term strategy to optimise production efficency5
    • Lift beef throughput by 50%, increasing beef killed from 300 currently to around 475 head5
      • Majority of cattle sourced – well grown Angus from Tasmania’s NE and NW regions5
      • Islands – King Island and Flinders can account for anything from 200-450 head a week, higher in the spring run.5
      • 80-90% of slaughter cattle are sourced direct from vendors5
    • More productive work hours – 4 day weekly roster, based on four 9.5 hour working days5
    • New technologies – X-ray fat analysis equipment to determine Chemical lean (CL) content5
      • Note – Chemical lean is fat/marbling amount through the meat, the higher the number the less fat content. 90CL very lean, 80CL has high marbling.
    • New technologies – metal fragment contamination screening5
  • Since purchase of facility – considerable infrastructure development, modern blast freezer facility5
  • Focus on growing a range of beef and lamb brands for both key domestic and international customers5
    • 75% of currently weekly kill is MSA accredited at slaughter5
  • Value add at facility – Supplies supermarkets and key customers5
    • Sausages, corned beef, marinated products, dicing, shanks5
    • conventionally packed or MAP5
    • sold under supermarket label.5
  • September. JBS launch brand launch.20

Beef central 27.09.2013 logo

 Great Southern Logo. Source Beef Central 27.9.2013

  • Great Southern grassfed beef and lamb.20
    • Products first of their type in Australia.20
    • third party audited program JAS/ANZ ISO.20
    • 65 accredited farm quality assurance programs backing the brand.20
    • huge demand in domestic and global customers for traceable fresh grassfed meat.20
      • supplied by best practice producers with better livestock genetics.20
      • MSA graded for eating quality.20
      • Farmers would receive premium prices.20
        • 10c/kg premium applied to grid for UK.20
        • 650 farmers through NSW, Vic & Tasmania accredited to supply the program.20
        • Audit costs (for farmers) are paid by JBS.20
          • Audits conducted by AsureQuality.20
        • Animals are consigned driect to JBS.20
        • forward pricing.20
        • Animals consigned through saleyards would not be eligible.20
  • “Today the margins are so tight that if you want a point of difference and that premium or no discount, you have got to be involved with quality assurance” Jeremy Upton, Producer.20
  • November. JBS Swift Australia install closed-circuit television camera’s (CCTV) in it’s Australian meatworks.19
    • For the purpose of animal welfare and meatworker safety issues.19
    • CCTV for internal use by only JBS, with no plans to allow outsiders to view the footage.19
  • JBS’s US beef division (which includes Australia) delivered drop in net sales and earnings in it’s third quarter financial results.22
    • Australia’s division performance and overall contribution to the overall result is impossible to distinguish due to inclusion with US and Canadian beef processing results.21
    • Earnings before tax $134M,.21
      • Down by 22.5% on previous quarter.21
      • Down by 28.4% on third quarter last year.21
    • result reflection of domestic North American markets.21
      • Improved performance had occured in Australian.21
        • Demand had increased in Chinese markets.21

2014

  • April. Longford is the only multi species processing plant in Tasmania at this point
  • Integration of the King Island beef kill into the Longford business has delivered better effiecncies and success at the plant with economies of scale not previously available.18
    • Longford is a more robust business than prior to integration.18
    • Longford now hs the ability and consistency to supply key markets.18
      • China, European union, US, Japan, Korea, Malaysia, Indonesia and Russia.18
    • Production has increased to 500 beef and 1,700 small-stock being processed a day.18
  • Grading quality of Tasmanian livestock is high quality, non HGP, non GMO.18
  • Beef sales, focused on direct sales to export and retail.18
  • Lamb sales focus on supply of domestic, retail and food service.18
    • including commodity lamb and mutton into China.18
  • Everything that can be value-added in the form of meat and byproducts at Longford is processed on site.18
  • All of the plant’s kill and much of the lamb production is boned, sliced and packed in 2 fabrication room.18
  • JBS no longer required to send animals for processing to the mainland.18
    • sausage making plant.18
    • packaged corn beef and lamb shanks for retail.18
    • By products rendering plant makes 25t tallow a day.18
    • lamb skins are graded and salted for weekly tender.18
    • cattle hides are sold green (unprocessed) to a local hide merchant.18
  • 300 producers support the Great Southern Farm assurance production program.18
  • Staff numbers at the plant had reached 450 employees.18
    • Devonport (domestically licensed) employing 150.18
    • Work was less seasonal and had better security.18
    • Future leaders program pathway available – Career Leadership Opportunities.18
  • July. JBS Australia across all facilities in operation kills daily14
    • 8,500 cattle,14
    • 24,000 smalls – which includes lambs14
    • Employs more than 8,000 people14
  • December. JBS currently operate 12 meat processing plants across 5 Australian states15
    • Wages & local procurement $730M (Excluding livestock purchases)15
    • Employs 8,500 people at the facilities15
      • Employs 12,000 people in Australia15
    • Total revenue of $6.5B15
  • JBS plants 2014_edited-1

    JBS processing plants in Australia

    Source JBS submission #50 Market Consolidation.

    • JBS estimates its current share of four eastern states beef kill – 20% (excludes service kill)15
      • JBS share of Australian beef production 16%15
      • Market share of national small (lamb, mutton & goat) 16%
    • JBS spent $2.4M on halal certification costs of approved religious certifiers in 201415

    2015

    • June. Cost of processing in Australia 1.5-3 times the cost of processing animals in another country15
    • cost of processing grain-fed cattle in Australia is twice of the USA15
      • lower levels of productivity in Australia in regards to kg per unit of labour15
      • 2 major differences between Australia and the USA15
        1. Government regulation
          • $10 a head more in Australia15
          • Dept. of Australian Agriculture fully recover costs of meat export inspection and certification15
            • Australia wide DAFF costs $80M15
            • JBS contribute $14.5M15
          • Export plants don’t use DAFF but use approved employees, which plants fully cover costs15
            • JBS estimate an additional $30M at Export level15
          • USA & Brazil governments provide services at no or minimal costs to processors15
        2. Energy Costs
          • $15 a head more in Australia15
      • Technical barriers to trade (TBT’s)- Total value in Australia estimated at $1.25B as identified costs15
        • 261 TBT’s in 40 key markets15
          • 136 have significant trade distortion impacts15

 

Sources Longford Tas. JBS

  1. ‘Support for KI meatworks’ The Mercury 18.06.13
  2. ‘Abattoir closure claims unfounded’ The Stock and Land. 27.06.13
  3. ‘Abattoir closure warning’ www.mercury.com.au 26.06.2013
  4. www.jbsswift.com.au
  5. ‘Expansion plans ahead for JBS Longford – one of Australia’s most versatile meat plants’ Beef Central 21.10.2013
  6. ‘Woolies sticks by kickback butcher’ SMH 15.01.2007
  7. ‘Tasman Services fulfil final payouts’ The Examiner 23.10.2003
  8. ‘Big Beef producer cuts deal with Tasman Group’ The Age. 06.03.2008
  9. ‘SBA foods sell to Tasman Group Services’  Stock & Land 19.03.2002
  10. ‘End of the Tasmanian Ugg Boot’ The Examiner 03.03.2009
  11. ‘Submission to Select committee on Agriultural and related Industries – Inquiry into food production in Australian’
  12. ‘Abattoir cutback inconveniences lamb company’ ABC rural. 26.02.2009
  13. ‘Australia: Union shuts down picket of locked out meatworkers’ www.wsws.org 29.12.2010
  14. ‘The next Swift Shift’ The Weekly Times 30.07.2014
  15. sub50_JBS Inquiry into the effect of market consolidation on the red meat processing sector
  16. ‘ATO publishes tax data for agribusiness corporates’ Beef Central 18.12.2015
  17. AUS-MEAT Accreditation Listing 29.12.2015
  18. ‘JBS expands its books’ Stock & Land 24.04.2014
  19. ‘Swift CCTV camera action’ Weekly Times 13.11.2013
  20. ‘JBS unveils new QA driven southern grassfed brand program’ Beef Central 27.09.2013
  21. ‘JBS delivers lower third quarter beef sales, revenue’ Beef Central 14.11.2013

King Island

Updated 28th Dec. 2013. King Island is located in Bass Strait off the North western tip of Tasmania, midway between Tasmania and Victoria. It is approximately an area of 1098km2. Abattoir is currently closed

Current Operation

  • Closed September 20121

Location

     Australia. King Island 

Map - King Island 001 Source – Hema Maps. Australia Truckies Atlas     

Owner

  • JBS (Australian subsidiary)(2008), operates 11 facilities in Australia, world’s biggest meat producer – chief Executive Andre Nogueira4
    • JBS operates another plant on Tasmania mainland – Longford abattoir (Tas)9
    • also own and operate Devonport (Tas)20.( not yet added to blog)

 Operation

  • 70workers2
  • 100 Workers1
  • 105 workers, Island only has population less than 20004
  • Could process 800 head a week7
  • JBS Australia’s facility is the only meat processing plant on the island and production is only limited by the availability of animals” JBS website accessed 13.11.2013.13
  • Daily processing capacity – 180 head13

 abattoir - ABC. photo_edited-1Source – Tasmania Times Article ‘States $12M fails to save abattoir’ 10.09.2012
King Island abattoir facilities – photo 2012.

History

2002

  • SBA Foods sell to Tasman Group Services – $25M34
    • Includes King Island34
    • Altona abattoir – Melbourne (currently mothballed) – been closed for last 2 years34
      • Past 4 years had $10M spent on improving beef slaughter chain, chiller and boning facilities34
    • Yambinya feedlot – Wakool, Deniliquin.34
    • Tasman Group already owned – Brooklyn abattoir – gutted by fire June 2001 and still closed in 2002.34

2003

  • October. King Island receive 600 head from Tasmanian feedlot32
    • King Island currently only operating 3 days week32

2005

  • King Island Industrial agreement 2005 registered (T12142 of 2005)38
    • AMIEU Tasmania branch/Tasman Group Services trading as King Island abattoir compass recruitment38

2007

  • AC Nielson Poll showed King Island brand logo was the most recognised beef brand in Australia15

logo _edited-1Source – www.kingisland.net.au. Logo as used currently, sourced 28.12.13.

2008

  • JBS Purchase7
    • Asset purchase included brand identity ‘King Island beef’15
  • JBS purchased as part of Tasman group when entered Australia with acquitsition of AMH19
    • Tasman Group consists of abattoirs in Tasmania – Longford, Devonport and King Island33
      • Tasman group 3 abattoirs in Tasmania including King Island and 3 in Victoria.33
      • JBS paid $US150M33
    • JBS also purchased Smithfield Group $US565M33
      • Has four abattoirs33
    • JB also purchase National Beef $US560M33
      • Has three abattoirs33
      • 2 meat processing facilities33

2009

  • April.Closed for one week, 100 workers stood down without pay5
    • Producers not informed of closure until it actually happened35
      • Some producers had only ever sold every animal they produced to abattoir for last 20 years35
      • some producers selling culls to abattoir but better quality to competitors – Some received $180 more delivered at feedlot on mainland Tasmania than at abattoir on King Island35
      • King Island abattoir wasn’t always getting premium meat going through35
      • Competition from buyers supports prices but too many cattle leaving island undermines abattoir.35
  • JBS citing structural issues with factory and yield issues35
    • Power on King Island is twice price as mainland Tasmania and 3 times price in Melbourne35
      • Power was costing 25c/kw hour37
      • Government had installed renewable energy project on King Island $45M – covered two thirds of Islands power needs.37
    • Effluent disposal needs to be improved35
      • King Island is only recouping $35 per head offal, other plants $70-$8035
    • freight subsidy given to producers for live animals leaving the island made JBS uncompetitive in cattle purchasing.35
      • Federal subsidy doesn’t cover exports – offal and hides is exports35
  • Govt negotiated with JBS to reopen plant5
    • Government agreed to underwrite company losses for couple of months35
  • Govt will reimburse the company for losses it may incur over the review period (8 weeks)as a direct result of reopening the facility, JBS Swift undertake a review of their operations and cost structures during that time5
    • all employees reinstated on full pay23
  • December.$12M – 15 year loan from Gov to JBS, to facilitate significant capital investment program by JBS6
  • Loan to support  capital investment program worth $14M, allow company to upgrade facilities and improve operational efficiency6

 This money will secure the establishment of a world-class processing facility in King Island and ensure its ongoing viability” Tasmanian Premier John Bartlett6

  • Loan was repaid in full22
    • Government have first option to buy because of loan22
    • loan repaid in full days before decision was made to permanently shut the business down
  • Producers set up fighting fund to protect industry brand  – padi $1 a head levy cattle processed at island’s abattoir to ensure only beef produced and processed locally was branded ‘King Island Beef’15

2012  

  • July. Livestock ship Mathew Flinders runs aground with 300 cattle on board.36
    • allegations meat workers tampered with propellor36
  • September.Despite investing millions of dollars into upgrading, the Tasmanian abattoir has never been profitable since his company purchased it’ John Berry CEO JBS.2
  • JBS has cited high freight and operating costs and variable livestock supply as reasons for the closure and is in talks with the 70 employees of the abattoir about redeployment2
    • Cited number of reasons of closure including power and energy costs20
    • Costs in terms of utilities and domestic and export freight costs as key reasons21
    • Increase in Australian dollar21
    • leakage of cattle to processing plants in northern Tasmania28
      • local price often less than other works – producers shipped stock live to mainland Tasmania28
      • King Island abattoir only had capacity to process two thirds of animals produced each year35
      • JBS can process 900 King Island cattle in Melbourne in less than one day at fraction of cost of processing in King Island35
      • Smithton abattoir (Tas) alway sourced 12,000 – 13,000 head of cattle from King Island and had done each year 2008-201331
  • Closure was total surprise to producers who had supplied and working with management to improve efficencies14
    • Livestock immediately devalued by $100 per head.28
  • JBS has welcomed producers processing animals at their Longford abattoir (Tas)14
  • Additional costs to transport to Longford is expected to be $70/hd14
  • TFGA (Tasmanian producer organisation) urgently calling on government to address red and green tape which is making business in Tasmania and Bass Strait so costly, including crippling costs of freight14
  • October.JBS refuse to sell or lease the vacant facility3.
  • Tasmanian government pledges $80,000 to determine whether a new abattoir on the island would be feasible3
  • Costs producers $10 head to transport to abattoir on the Island, will cost $110 to transport to Longford, on mainland Tasmania, South of Launceston3
  • JBS offer a community development scheme – $60,000 – $80,000 a year.24
    • JBS want to retain 50% of Islands annual beef turnoff to continue production of King Island beef brand24
    • Scheme administered by a local committee and JBS staff – $3 per head sold to Devonport or Longford plants on mainland Tasmania24
    • Scheme will be paid on a monthly basis.24
  • JBS had injected $100M into King Island economy during 4 year ownership of abattoir24
  • JBS met with community for protecting and continued use of King Island beef brand from other abattoirs24
    • farm assurance scheme – involves segregation of livestock in transit24

2013 

  • February. Formally Closed. Not opening after regular 6 week break. Closed without warning.8
  • Citing – high cost of doing business on a remote island, rising power prices, uncertainty of cattle numbers and transport logistics. More expensive to export box of beef to mainland than to overseas8
    • 80 jobs lost
    • Worth about $3.5M in wages to local economy28
    • Employed four out of 5 islanders29
  • Half of labour, employed seasonal Korean students and NZ workers as only operated a few days a week and locals shunned irregular part-time work8
  • May. Effect on community29
    • Businesses suffered downturn of 5% up to 50% in sales29
    • Multi-species abattoir committee29
      • look at processing bobby calves, sheep.29
      • Local consumption use of product29
      • Wallabies are major problem on King Island – look into processing them29
      • seeking a government grant of $400,000 to put towards small multi species abattoir on island29
  • June. Feasibility study released and found that a new abattoir could be built on King Island for $30M8.
    • Tasmanian Government commissioned report in Sept. 2012.8
    • $48,000 study conducted by Felix Domus consulting.9
    • Report says abattoir capable of processing 40,000 head, cattle.8
    • Most of Island producers would need to fully commit to supplying the abattoir to succeed.8
    • 75% of King Island producers would need to commit, with a reliable supply of 39,000 head a year10
    • 31,400 cattle processed would cover costs and make 6% profit of $840,000 per year25
    • 39,000 cattle would enable profit $1.9M25
    • prior to closure 800 young cattle were being processed a week, remaining 12,000 shipped to Longford abattoir (Tas), Devonport abattoir, Smithton abattoir (Tas)25
      • Average King Island abattoir throughput was 28,000 head annually28
    • King Island beef needs to be better marketed – especially to high end retailers and restaurants10
  • Feasibility study of King Island abattoir proposal attached
  • Another processor located on Tasmania mainland at Smithton abattoir (Tas), operated by Greenhams, Producers are paying $112 per head to send cattle from King Island to mainland9
  • The associated brand new multi-million dollar producer and taxpayer funded effluent plant remains unavailable for use” Tasmanian Greens MP. Paul O’Halloran11
  • JBS, who own Longford abattoir (Tas) on the mainland threaten to close it down if another abattoir is built on KI. Saying that not receiving cattle from KI would hurt its business at Longford12
    • JBS – John Berry denied making this claim, saying Tasmanian Greens MP Paul O’Halloran had raised it as a possibility in State parliament11
  • July. ACCC had considered investigating why JBS refused to sell King Island – ACCC won’t carry out investigation as “The act does not apply to a company that merely holds an asset and takes no action in relation to that asset” ACCC statement26
  • September. Subsidy is offered by government for frieght of live cattle to Tasmania.16
    • King Island package – $1.246M for 12 months, one-off short term response to significant shock experienced due to abattoir closure17

    Package is intended to assist producers to transition to a new model that involves off-island transport to mainland Tasmanian processors for slaughter” Minister Bryan Green – Tasmanian Primary Industries minister.17

    • Sole freight service for King Island – Searoad Shipping and Logistics – do a triangular service from Melbourne, Devonport and then Port of Grassy (King Island)25
    • Current vessel Mersey capacity of 4000t could be put out of commission for newer larger vessels.25
    • Larger vessels can’t dock at Port Grassy25
    • King island import all fuel and would require export beef.25

    boat for transport #3_edited-1Source – ABC Rural ‘ King Island freight Subsidy’ 17.09.2013Barge that transports cattle from King Island to mainland Tasmania

boat for transport #2_edited-1Source ABC Rural ‘King Island freight subsidy’ 17.09.2013

Open deck of barge used to transport King Island cattle to mainland

  • Problems with shipping on Bass strait due to severe wind conditions29
    • If the swell is large the ship can damage the wharf.29
    • Situations when cattle are waiting to be loaded but had to be taken back to properties due to dangerous swell.29
  • Freight subsidy covers only one third cost of freight16
    • Equivalent to $30 per head transported17
    • King Island local producers are struggling after abattoir shut down.16
    • Flinders Island has no freight subsidy – boat ride from Flinders Island to mainland Tasmania – 8 hours, costs $65 after Tasmanian Freight Equalisation scheme17
  • Freight subsidy could be sliding scale – $26 into Stanley, $30 into Devonport27
    • would act as disincentive to increase freight efficency27
  • Actual costing of freight30
    • King Island to Tasmania – $154.30/head30
    • Tasmania to Victoria – $111.5530
      • Authors note – these costings were done May 2008.
    • Difference $42.75 – Victorian abattoirs on occasion have processed King Island cattle.30
  • $300,000 public wharf upgrade was funded by Tas Ports, LD shipping and Smithton abattoir (Tas) operated by Greenhams.27
  • New operation has saved 7 hours off transport time for King Island cattle to Smithton abattoir (Tas) abattoirs. (Compared to delivery to Devonport)27
  • Port Stanley upgrades completed, closest port to Smithton travel by ship takes 7 hours.31
    • King Island to Bernie port delivery takes 12 hours.31
    • Stanley port upgraded due to investment by Smithton31
      • Smithton will source 12,000 -13,000 King Island cattle each year31
      • Ships travelling 3-4 times a week, carrying 240 head each sail.31
  • JBS “Company is still pleased with its decision to close (King Island)” John Berry. JBS director16
    • Islands King Island and Flinders supply 200-450 head cattle a week, higher in spring run.19
      • King Island supplies 20% of the States beef herd29
      • Some producers sending cattle at 300kg on boat to feedlots in Tasmania to grow animals out to 600kg.28
      • 1,000 – 1,500 animals can’t be shipped – will be shot on island28
      • Bobby/Veal calves can’t be sent as too young,29
    • Longford process 450 cattle a day – 4 day week roster.19
  • November. ACCC charge a Victorian Butcher, Hooker Meats Pty Ltd $50,000 for using King Island logo15
    • King Island 140 beef farmers fought many years to protect regional brand reputation.15
    • There are manufacturers of King Island rabbit – King Island has no rabbits35
    • There are manufacturers of King Island wine – King Island has no vineyards.35
    • National food do producer and market King Island cheese.35
  • December. Tasmania to receive Farm Finance Package18
    • Last state to do so and halved from original allocation to reallocate funds to drought stricken QLD producers18
    • Funding $15M, Loans up to $650,000, interest rate initially at 4.5% and interest only payments for up to 5 years18
    • Available for debt restructuring and mitigate impact of tough seasonal conditions.18
    • Producers not happy with allocation – “It’s become difficult to farm over here during the past 20 years” David Amos. Swansea sheep producer.18

 

Sources

  1. ‘King Island mounts facebook defence’ Weekly Times 10.10.12
  2. ‘King Island Abattoir to close’ ABC rural. 10.09.12
  3. ‘King Island abattoir plan’ Weekly Times 30.10.13
  4. ‘Famed beef producer King Island has closed its only abattoir’ Meat Trade News daily 13.09.12
  5. ‘Swift’s King Island abattoir reopens’AFN  03.04.09
  6. ‘King Island Beef brand to live in with abattoir rescue package’ AFN 23.12.09
  7. ‘King hit to abattoir leaves island in shock’ The Australian 23.02.13
  8. ‘Study finds new King Island abattoir viable’ ABC News 18.06.13.
  9. ‘Support for KI meatworks’ The Mercury. 18.06.13.
  10. http://www.kingisland.tas.gov.au/webdata/resources/files/KIAFSG%20final%20report%2017%20Jun.pdf
  11. ‘Abattoir closure claims unfounded’ The Land. 27.06.13
  12. ‘Abattoir closure warning’ www.themercury.com.au  26.06.2013
  13. www.jbsswift.com.au
  14. ‘Abattoir closure devastates King Island farmers’ www.tfga.com.au
  15. ‘ACCC swoops on King Island beef brand claims’ Beef Central 13.11.2013
  16. ‘Abattoir closure continues to bite’ ABC News 14.09.13.
  17. ‘Flinders farmers seek gaurantee’ Stock and Land. 21.11.2013
  18. ‘Reduced Farm finance share open for Tas” Stock and Land 20.12.13
  19. ‘Expansion plans ahead for JBS Longford – One of Australia’s most versatile meat plants’ Beef Central 18.10.13.
  20. ‘States $12M fails to save abattoir’ Tasmanian Times 10.09.12
  21. Parliment Hansard. Richard Colbeck. 10.09.2012
  22. ‘Jobs in balance as abattoir closes’ ABC News. 11.09.12
  23. ‘King Island abattoir set to reopen’ Stockjournal 27.05.2009
  24. ‘Australia – JBS Australia abattoir on the King Island’ Meat trade News daily. 14.10.2012
  25. ‘Tasmania looks into new abattoir for King Island’ www.fullyloaded.com.au 18.06.2013
  26. ‘ACCC says no to King Island abattoir inquiry’ ABC news. 13.07.2013.
  27. ‘King Island freight subsidy fight’ ABC rural. 17.09.2013
  28. ‘Cattle Stranded’ ABC Landline 18.11.2012
  29. ‘King Island Beef farmers battle their own live export crisis’ The world today 31.05.2013
  30. ‘Tasmania Freight subsidy reforms’ Letter Grant Ryan. 01.05.2008
  31. ‘Port of Stanley ready to receive cattle ships’ The Advocate. 04.07.2013.
  32. ‘Tasman services fulfill final payouts’ The Examiner 23.10.2003
  33. ‘Big beef producer cuts deal with Tasman Group’ The Age 06.03.2008
  34. ‘SBA foods sell to Tasman Group Services’ Stock and Land 19.03.2002
  35. ‘Long Live the King’ ABC Landline 11.05.2009
  36. ‘King Island meat company’ AMIEU Tasmania 09.07.2012
  37. ‘Power costs short circuited JBS’ Nth QLD register. 11.09.2012
  38. www.tic.tas.gov.au. 04.07.2005
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