Category Archives: Beef processing abattoir

Deniliquin. #2123. NSW

Australian Abattoirs, Beef processing abattoir, Deniliquin, Goat processor, New South Wales, Sheep processing abattoir 12/11/2013 Leave a comment

Deniliquin was an export abattoir accredited to process beef, sheep, goat and offal.

Deniliquin temporarily closed in 2007 due to drought with plans to re-open. It was re-opened in 2014 after it changed hands and was refurbished with the assistance of government funding. It closed again in 2017.

Last registered Aus meat export October 2017. Site was visited in March 2020, it was derelict and undergoing demolition.

Current Operation

  • Currently undergoing upgrades to reopen.6
  • Aus-Meat Registration as at 02/10/2017 #2123

Location   

  • Deniliquin is located South west of NSW about 75km from the NSW/Victoria border and city of Echuca in Victoria.
  • 285km north of Melbourne, 723km south west of Sydney3

Australia. Deniliquin 16.06.13

Deniliquin

Hema Maps – Australia Handy Map. 9th edition

Owner

  • Klastin (2007) – Managing director – Tony Karuse1
  • Famicorp – Owned by Farouk Fami, inherited from the Estate of Nordon Becker3
  • Global Crown9
  • Tasman Group – Managing director Joe Catalfamo

Outside building _edited-1Source – Steers Auctioneers – Meat Processing Plant Deniliqiun, 28.08.2007

Operation 

  •  Halal and HACCP accredited5
  • Small stock abattoir – sheep, small calves,lamb and goats.3
  • Uses an inverted chain system3
  • Processing capacity 3500 sheep/lambs per day5
  • 8 hanging carcase chillers – 5 carton blast freezers5
  • Export registered – Japan, Egypt, Korea, Taiwan, Indonesia, Russia, South Africa, Mexico5
  • modern Ammonia refrigeration plant5

Inside #2 _edited-1Source – Steers Auctioneers – Meat processing plant – Deniliquin 28.08.2007

Inside #2 _edited-1Source – Steers Auctioneers. Meat Processing plant. 28.08.2007

Yards #1_edited-1Source – Steers Auctioneers – Meat processing plant. Deniliquin 28.08.2007

History

Deni_edited-1Source History of Frozen Meat. Undated.
Historical picture of the Deniliquin freezing works – known then as the Riverina Freezing works

  • Authors note. The original freezing works I guess would have been situated near a main water source, in Deniliquin that would have been the Edward river a tributary of the Murray River. I don’t think the original Freezing works owned by the Riverina Freezing Company would have been where the current meat works is.

1990

  • Halal certified3

2002

  • Closed – reasons cited due to drought and limited numbers of livestock2
    • Employed 120 people on kill days, mainly casuals.2

2003

  • Meat processors hard pressed meeting their requirements because of major shortage of lambs bought on by the drought9
  • Prices as high as $158 a head, five years ago was $80 a head at Deniliquin9
  • Meat processors forced to pay high prices for good quality lambs to keep thier abattoirs operating and to retain market share9

2006

  • Begun to employ overseas workers to fill vacant meatworker positions1
    • 6 workers through a Vietnamese employment agency1
    • Advertising in Australia failed to fill postions1
    • If had not got Vietnamese workers the plant would not be operating1
  • Abattoir is closed at some period during this year18

 

2007

  • Klanstin with drew from the facility – closure5
    • Was only meant to be a temporary closure
    • Operated with Halal accreditation from 1990 to closure in 2007 due to drought
  • Issues with market and meat industy had forced temporary closure4
  • Closure due to issues of sourcing quality stock13

2011

    • Deniliquin has faced a gradual but sustained and significant reduction in population over the past 15 years.2
      • Centralisation of policies of both state and commonwealth governments2
        • RTA divisonal headquarters closed9
        • Department of education – regional headquarters9
        • Murray Health headquarters9
      • prolong drought that have prevailed in much of last decade.2
    • If MDBP implemented2
      • result in 58% reduction in the amount of water available to irrigated agricultural activities.2
      • Deniliquin is heavily reliant on irrigated agriculture for its ongoing survival.2
      • If MDBP implemented would jeopardise abattoir and rice mill re-opening due to reduction of water available.2
    • Current circumstances in Deniliquin2
      • Deniliquin abattoir currently closed2
      • Negotiations currently underway for the abattoir to be sold and re-opened given improved rainfall and forecast availability.2Deniliquin council write a submission  to the inquiry into the impact of the Murray Darling basin plan (MDBP) guide in Regional Australia.2
  • Region has suffered a decade long drought26
  • Abattoirs in operation in NSW with more than 50 full-time equivalent (FTE) staff – 477
    • Includes meat processors, poultry and pigs.
  • Meat processing facilities closed in NSW since 2000 with more than 50 FTE – 97
    • Includes meat processors, poultry and pigs
  • November. facilities advertised for sale, land, equipment, structures and fittings3
  • Attorney for the Estate under instructions to liquidate all assets3

2012

  • December. Abattoir sold to Global Crown9.
  • Chief executive of Global Crown – John Wynan
    • Facility could reopen 20139
      • Would focus solely on sheep, production runs 1,000 sheep a day9
      • Goal to increase production to 3,500 sheep a day9
      • Halal certified with full accreditations for export9
    • create up to 100 jobs9

2013

  • January. Global Crown Pty Ltd – John Wynan negotiation for sale, settlement delayed due to ‘legal issues’4
  • Proposes to open abattoir this year4
  • November. Abattoir has been purchased and is expected to reopen
  • Tasman Group purchase9
    • estimate to employ 80 people9
    • Upgrades to some facilities is required.9
    • would continue as Halal slaughterhouse – for which it was fully accredited9
    • would focus solely on sheep, production starting at 1000 head a day to process building up to 3500 head.9
  • Australian Meat Group Pty Ltd (Formerly known as Tasman Group)13
    • Tasman group previously operated abattoirs at31

2014

  • March. Joe Catalfamo is confirmed as purchaser of Deniliquin11.
    • Has also purchased Dandenong #3085. Vic11.
      • Dandenong is focused on cattle processing11.
    • Plans to create state of the art processing sites at each facility11
  • Seasonal conditions at the time have decimated livestock numbers in QLD and NSW11
  • August. Deniliquin abattoir is still not in operation10.
  • Plan for the facility to be refurbished10
    • Facility has now been out of operation for 7 years10
  • NSW government will provide support to the Australian Meat Group to re-open the plant10
  • Facility is anticipated to employ up to 130 full time jobs in the first year10
    • After 5 years expected to increase to 460 full time equivalent positions10
  • NSW government pledge to provide $1M to upgrades for the facility13
    • Upgrades will allow facility to meet best practice standards13
    • Improve efficiency and provide full range of meat cuts13
  • Total cost of upgrades wasn’t able to be confirmed13
  • Australian Meat Group Pty Ltd (Formerly known as Tasman Group) have purchased the facility13
    • Managing director Gilbert Cabreal13
  • Detailed Environment Impact Statement is yet to be completed13
  • Preparatory work has begun at the facility13
  • Pending development application for facility improvements13
    • upgrades to the kill floor, receiving yard and amenities13
  • Plans for a new boning room, rendering plant and cold storage facility13
  • November. Property investment in the Deniliquin area has increased in recent weeks due to the abattoir plans to re-open15
  • Facility will be opening Mid December or early January 201515.
  • 50 staff have already been appointed15
  • Kill trials are expected to start in November16
  • Deniliquin plant manager – David Bridge from Gundagai16
  • Deniliquin Operations manager – Bernie Cabral16
  • Opening is expected to be early February 201516.
  • Audit has been completed but some refurbishment still needs to be continued16
  • Submission has been sent for new plant, with construction hoped to begin February16
    • Current facility would be suitable for another 2-3 years20
    • Plans to a new state of the art facility in the process of approval20
  • Deniliquin is in a strong growth phase with the opening of the Rice Mills also occurring16

2015

  • November. Deniliquin abattoir is the 10th abattoir that Joe Catalfamo has remodelled29
    • Deniliquin proposal is construct a new plant on vacant land next to the existing facility29
  • Deniliquin plant is now officially US licensed30.
    • This will allow the company to further develop and expand its product range when the new facility is built next door30.
  • Currently processing 2,200 – 2,500 small stock units per day30
  • Australian Meat Group Livestock Manager – Ben Davies30
  • Location of Deniliquin abattoir is very good because it is centre of Australia’s most heavily populated sheep production area30.
    • Southern most export plant that has road train access30
  • Growing global markets  that can be harnessed for mutton, lamb, goats and bobby calves30
  • December. Deniliquin abattoir is recommissioned and is again in operation17
  • $5M were spent on refurbishments17
  • During the commissioning phase the facility will process 1,000 sheep a day17
    • Working up to 3,000 a day at full capacity17
  • 70 people are now employed17
  • Second stage of production will employ a further 250 people17
    • Accommodation and houses are yet to be available to accommodate some workers17.
  • Abattoir production will be both domestic and export17
  • Exported meat will go to;17
    • Japan, Middle East, Vietnam17
    • Plans to secure a US export licence soon17

Source ‘Renovated Riverina abattoir re-opens driving property boom’ ABC Rural 14.01.2015

2017

  • February. Meat processors are finding conditions very difficult with livestock prices increasing for both beef and lamb99
    • Prices to consumers expected for meat to increase by at least $1 per kg19
  • Lambs at some saleyards are selling for 750c per kg99
  • Also a shortage of lamb supplies19
  • Numbers for kills is expected to be less by 1M head across Australia19
  • March 17. Deniliquin abattoir operations are temporarily halted20
    • due to unsustainable lamb market20
    • Complete shutdown is hoped to only last 2-3 weeks20
    • Return to operation depending on market conditions20
      • Australian dollar was currently very high21
  • Currently 180 workers were employed at the site20
  • Have been operating the facility for 2-3 days a week due to stock prices20
  • Focus on markets is currently into South America20
    • Current stock values were at $6 /kg carcase weight20
      • To be competitive the abattoir needs the value to be $5/kg or less20
  • Company had decided not to pursue further infrastructure developments at the site20.
  • April. Other abattoir closures are occurring around Australia due to stock availability and prices24
  • Some facilities that have significantly reduced operations24
  • Over-capacity in the lamb processing industry relative to supply pool is exasperated by the expansion of formerly only domestic plants now being export accredited and having export market access24
    • Export markets are unwilling or unable to pay more for Australian meat24.
  • Reports equipment from the Deniliquin facility is being removed25
  • Operations and Managing directors aren’t responding to calls95.
  • Employees under 457 visa’s have been sent home25
  • Lamb prices have actually risen higher to $6.60 /kg25
    • Indications are that the lamb prices will stay relatively strong25
  • Prices hit 700c /kg proving to be a breaking point for some abattoir operations
    • Total setback of 6 closures (not including Esperance) in eastern Australia will result in 50,000 less lambs processed in Victoria and NSW27
  • September. “With a high currency, low numbers, and high cost of production and processing in Australia, we are a little bit like the Murray Goulburn of the beef industry” – Australia’s red meat processing sector is in crisis. MLA CEO Richard Norton26

2020

  • March. Author visited this site, property and buildings were derelict and obviously not used for some time.
    • scrap metal workers actively removing equipment and items
    • All stock yards and infrastructure around the facility was removed.

Sources  – Deniliquin #2488

  1. ‘Deniliquin abattoir defends hiring overseas workers’ ABC News. 11.09.2006
  2. Deniliquin shire council submission to senate inquiry, Murray Darling basin plan. 22.01.2011.
  3. ‘Deniliquin abattoirs – For sale’ http://www.famicorp.com.au 04.11.2012
  4. ‘Deniliquin abattoir sale stalls’ http://www.mmg.com.au 08.11.2013
  5. ‘Meat Processing plant – Deniliquin NSW’ Steers Auctioneers 28.08.2007
  6. ‘Deniliquin abattoir to reopen’ The Pastoral times. 05.11.13
  7. Mr Buckingham questioning Minister of roads and ports. http://www.parliament.nsw 31.05.11
  8. ‘Lamb prices soar as suppliers struggle to meet demand’ Sydney morning herald. 14.09.2003
  9. ‘Sale deal close on abattoirs’ The Border mail. 19.12.2012
  10. rel_stoner_20140820_deniliquin-abattoir
  11. ‘Abattoir plans for Deni’ The Land 20.03.2014.
  12. ‘New life for old export abattoir’ Liberal Party of Australia 21.08.2014
  13. ‘Cash for abs’ http://www.mmg.com.au. 22.08.2014
  14. ‘Deniliquins abattoir to reopen with investment from NSW Government’ The Weekly Times 26.08.2014
  15. ‘Meat money flows’ http://www.mmg.com.au. 25.11.2014
  16. ‘Abs trial’ http://www.mmg.com.au 25.11.2014
  17. ‘Renovated Riverina abattoir re-opens driving property boom’ ABC Rural 14.01.2015
  18. https://www.ipart.nsw.gov.au/files/6feefd0b-6076-4cce-b3e6-8b0d06615116/Council_Improvement_Proposal.pdf
  19. ‘Record lamb prices killing off country abattoirs’ ABC News 24.02.2017
  20. ‘Abs work halted’ Shepparton News 17.03.2017
  21. ‘Meat Commitment – Administrator to meet with abattoir executives’ Shepparton News 21.03.2017
  22. ‘Sawmill could fill lost jobs’ Shepparton News 24.03.2017
  23. ‘Statement of temporary closure of Deniliquin abattoir’ Edward River council 17.03.2017.
  24. ‘Indefinite closures for JBS lamb plants, as supply challenge reaches critical point’ Beef Central 20.04.2017
  25. ‘Fears for abattoir’s future’ Deniliquin Pastoral Times 11.04.2017
  26. Deniliquin council submission to inquiry into the impact of the Murray Darling basin plan. 22.01.2011
  27. ‘Door shuts on sixth abattoir’ QLD country life. 11.05.2017
  28. ‘Red meat crisis the new MG says MLA boss’ The Weekly times. 27.09.2017 27.09.2017
  29. ‘Catalfamo’s abattoir industry return’ The Stock and Land 11.11.2015
  30. ‘Deniliquin: sheep, lambs, goats, calves’ Stock and Land 11.11.2015
  31. ‘What’s iin store: pointy end of the year’ Stock and Land 09.11.2013

Casino. #239. NSW

Australian Abattoirs, Beef processing abattoir, Casino, New South Wales 05/11/2013 1 Comment

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

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

Other Names

  • Northern Co-operative Meat Company

 

Current Operation

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

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

Location   

Australia. Casino

Casino

Hema Maps – Australia Truckies atlas.

Owner

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

Operation  

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

Source Beef Central 05.11.2014. Logo

Source Beef Central 08.06.2017

History

1933

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

1933 – 1939

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

1975

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

2000

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

2010

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

2011

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

2012

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

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

2013

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

 

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

2014

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

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

Source. Beef Central. 24.09.2014

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

2015

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

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

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

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

 

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

 

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

 

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

Source. Beef Central 29.12.2015

2016

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

Source Beef Central 27.01.2016

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

 

Source Wiley 20.09.2016

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

 Source Wiley 19.03.2016

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

Source Wiley 20.09.2016

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

 

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

Source Beef Central 12.05.2016

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

  • Top 100 Australian food and beverage companies list

Source Beef Central 27.02.2016

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

2017

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

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

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

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

Source Beef Central 15.08.2017

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

Sources. Casino

  1. ‘Casino records $3.9M profit, driven by drought-induced throughput’ Beef Central 06.11.13
  2. ‘South Grafton plant to close’ Beef central 24.10.11
  3. ‘Casino takes big stake in Ramsey meats’ Beef Central 06.11.13
  4. Aus-meat Accreditation listing as at 14.01.2013
  5. ‘Casino’s new PCAS veal program to offer 20c/kg premium’ Beef central 06.11.13
  6. www.ncmc-co.com.au
  7. ‘Tender for Casino abattoir upgrades’ www.ncmc-co.au
  8. NSW Parliament 26.10.1999
  9. ‘Casino Abattoir Takes Up Ramsey Operations’ www.themeatsite.com 25.10.2011
  10. ‘Strong turnaround in profit for Casino’ Beef Central 08.11.2012
  11. ‘Bobby calf comeback at Casino with new veal export market on the cards’ ABC Rural 04.02.2015
  12. 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

Longford

Australian Abattoirs, Beef processing abattoir, Longford, Mainland, Tasmania 18/06/2013 Leave a comment

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’ http://www.mercury.com.au 26.06.2013
  4. http://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’ http://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

Ross River

Australian Abattoirs, Beef processing abattoir, Northern QLD, Queensland, Ross River, Townsville 18/06/2013 Leave a comment

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

Other names

  • Ross River meatworks

Current Operation

  • Closed 19951

 Location             

   Australia. Ross River         

            

Owner                 

  • Built by QLD meat export and Agency (QME) – Principal Sir Thomas Mcllwraith, QLD Premier2
    • QME was a government operated organisation
  • Vesteys purchased 19556
  • Smorgons6

Operation

  • Export
  • Nominal Capacity 120,000hd per 50 weeks1

Other abattoirs in the region

Pentland (QLD)

Townsville – Stuart (QLD

 

 

History of Ross River abattoir               

  • Initially was a major exporter for Townsville region
  • Meatworks chimney still stands today, restored

1866

  • Boiling works began operation 1 kilometre downstream from latter site of Ross River meatworks5
    • Boiled down tallow was selling in Sydney 46 shillings cwt, hides 16 shillings5
    • Gold discoveries forced works to close due to lack of stock supply5
    • closed 18705
  • Initial workforce of 7006

1882

  • Built and cost to build £75,0004
  • June. Started operation.5
  • Processing 80 head cattle day
  • used gravitational system, animal killed on one floor and then meat processed in others4
  • Wharf couldn’t handle the ships to transport frozen meat and a coastal steamer had to be modified to convey meat from wharf to ship.5
  • Operating company of meatworks imposed strict conditions on delivery of cattle, requiring animals to be delivered on particular days or suffer5

1890

  • QLD meat export and Agency co formed(Pg 47)8
    • Sir Thomas Milwraith & John Cooke, floated company with 1M pound8
    • Agents in London – Messrs. W Weddel and Co8
    • 5 year freight contract with Houlder Bros & co, for conveyance of 1200t meat per month8
    • Company formed to give graziers markets in the Old World (England) for their suplus cattle8
  • Plans submitted to build meatworks in Brisbane & Townsville.5

1891

  • Construction began – 6 acres freehold5
  • Was considered one of the best factories of the time with freezers and used electricity for lighting (Townsvilled didn’t have household electricity until 1923)5
  • When designed used a system of dry air compression, this was replaced with ammonia compression and air circulating batteries a few years latter (Pg 49)8
  • First industrial dispute before even began work5
    • Contractor (McCallum Park) v’s carpenters  – McCallums only wanted to pay 10 shillings a day, 2 shillings below going rate5
  • Industrial disputes would mark next 100 years of operation5

1897

  • Was receiving complaints about the effluent being pumped into the river after relocation of manure shed, rudimentary digestors installed that produced fertiliser and sold to locals5

1900’s

  • Mr Charles Harford – In charge at the time over a period of 13 years – Ross River abattoir was the most up to date abattoir he had seen4.
  • In reference to Ross River “In order to combat the exorbitant demands of labour it was necessary to use as much labour-saving machinery as possible”4
  • Costs – Total cost for yarding, killing and other handling as well as dealing with offal and by products was £1/3p per head for cattle and £18 per 100 sheep. Quoted in 1914 “..but the work could not be done at that price now”4
  • “One man knocked down 520 cattle in a day of eight hours”4
  • Difficulties arose in meat marketing – with competition form

site _edited-1Source – ‘A history of the frozen meat trade’. Critchell & Raymond. 1912.
Photo is undated Titled. QLD meat export and Agency company Limited. Ross River works Townsville.

1903

  • Cyclone Leonta hit Townsville on 9th March 1903. Causing widespread devastation. Many buildings at the Ross River meatworks were unroofed or demilished15

1910

  • Half of Freezing capacity was fitted with direct expansion piping, so effective the remaining freezing block was outfitted the following season as large expenditure (Pg 49)8

Prior to 1912 report

  • Manager Robert Stewart (Pg 48)8
  • A controlling holding in the company was purchased by G.S Yuill & co (London based)8
  • Ross River (then known as Ross Creek works) had recent upgrades and refitting.(Pg 48)8
    • Made the works the most up-to-date freezing works in the existance in either hemisphere (pg 48)8
    • Original freezing machinery plant ( air circulating batteries) and other equipment discarded.(Pg 48)8
    • New freezing and electric plant being erected with new steam engines, both for electric and freezing services – supply 220 lbs pressure through triple expansion, supplied by mechanically fired boilers and coal supply .(Pg 48)8
  • Ross River works, coal was expensive, water supply limited and drainage difficult – improvements now made the render at the works second to none for economy and convenience in working (pg 49)8

1917

  • Companies who operated meatworks asked Arbitration court to regulate wages and conditions in the industry to replace direct bargaining with the unions7

1919

  • company had won an court order in previous year to delete ‘union preference clause’ from the award wages system6
    • Clause had been in effect since 19117
  • February – More than 700 meatworkders resolved to declare works black6
    • AMIEU membership was 2442,largest branch at Ross River of 756 members7
    • 500 cattle released from stockyard and water posioned6
      • Cattle deliberatly released by protestors, ring leaders arrested. Supporters after speeches and drinking broke into a gunshop before marching on the watch house9
      • Violent clash between police and unionists. Trouble stemmed from long standing industrial unrest  between meat companies and AMIEU19.
        • Area was besiged by unemployment and economic depression19
        • Unrest degenerated into a riot with shots fired – 9 people injured, seven as a result of police bullets19
        • Townsville remained in a state of siege for weeks19
  • June – strike declared “Only meatworkers responded; all other unions voted to stay on the job. When the strike began about 80 ‘scabs’ were employed. By mid-August more than 300 were working, including AMIEU members who had dribbled back to work”7

1921

  • Export beef trade collapsed6

1953

  • Kenneth Woodhead Moore became manager of the Ross River meatworks14
    • Moore was manager until 1956.14

1955

  • QME – disclosed an overdraft of $2,392,954, at the time estimated cost of replacement of the works was $800,0006
  • November – offer from Vestey’s (British) accepted $1,575,000
    • Subsidiary company W.Weddel & Co – purchased Angliss meat interests in 1934.6
    • 1961 QME had entered into partnership with 11 other companies – Angliss Group6

old photo_edited-1Source – Wikipedia. Photo public property. Undated

holding yards_edited-1Source – This is Australia Oswald L Ziegler, Dated 1956.
Looking over holding yards of Ross River meatworks outside city of Townsville

1960’s

  • Extensive upgrades including a kill chain6
  • Women allowed to work on the killing floor6
  • Chilled beef shipments had resumed from Townsville for the first time since WWI6
  • QLD government resumed land for realignment of major raods Townsville to Ayr6

1975

  • QME submitted application to sub divide holding paddocks for residential blocks6
  • Australia was in a severe economic crisis.17
    • Most severe since the Great Depression.17
    • Profits slumped and mass sackings followed with general manufacturing factory closure occurring.17
      • Unemployment in Australia reached 5%.17
    • Whitlam Labour government at the time, economic policy swung from expansion to reining in the ballooning deficit.17
      • government felt key to recovery was ‘healthy profits’.17
        • attacked dole bludgers, wage rises and militant unions.17
      • large scale protests occurred across Australia.17
      • Townsville 3 meatworks stopped work for the day October 24.17

1992

  • Smorgon Consolidated industries purchased6

1993

  • Type 1 road trains – truck with dog trailer allowed access directly to meatworks3.

1994

  • Smorgon meat processing company suffer huge company collapse in early 1994

1995 

  • American markets opened for poorer quality meats and resulted in death knell of canning operations.6
  • February. closed5
    • closure announced by Smorgons on 27th Feb, 199510
  • A seasonlly operated plant that worked 9 months of the year, employed about 380 people, many long term employed at the facility10
  • previous year facility had processed 86,000 head of cattle10
    • projections that Live export would reach 390,000 in 1995 concerned union10
    • Australia’s total live cattle export for 1994/95 402,120 head and 1995/96 649,715 head11
  • Union and animal welfare group met and formed a group CALE (Committee Against Live Export)10
    • Tony Clunies-Ross as secretary10
    • CALE spearheads struggle to protect jobs and ease the suffering of animals10
    • Initive spread with CALE groups in Victoria and Western Australia10
  • 400 people lost jobs5

1997

  • Land purchased by a developer of Fairfield Waters12
  • Developer had originally planned to keep the chimney and three gable buildings near it to turn into a public monument and a brewery12
    • Never allowed as reports showed all structures structurally damaged and should be demolished12
    • Buildings were demolished12

1999

  • Buildings demolished leaving only brick chimney12

Chimney_edited-1Source – http://www.panoramio.com/photo/12516926, Tim Dickson, Not dated.
Remaining chimney of the Ross River meatworks

2007

  • Developer Lancicn planned to demolish chimney to build a resort.12
    • Engineering report commissioned by Lancini found chimney was too unstable and old to preserve12
    • Residents complained and ordered a professional report into stacks structural integrity12
      • report said chimney could stay12
  • Government then fought over who should pay for repairs12
  • Chimney was heritage listed12
    • repairs cost $200,000
  • Chimney is now surrounded by Lancini’s Springbank urban village.12
    • Claims of ghostly figures appearing by the chimney as dark outlines, thought to be the ghost of a man named Crawford who died at the works in 1901 after he fell into a vat of boiling fat.13

Sources

  1. Competition & Exit in Meat Processing. Agribusiness review Vol 7 1999
  2. ‘100 years of northern beef production’Nth QLD Register 22.11.12
  3. ‘Trucking Industry moves ahead’ Nth QLD Register 11.04.13
  4. ‘The abattoirs – Evidence before the commission’ The Adelaide Advertiser. 30.01.1914.
  5. ‘Ross River Meatworks, Part I’ Nth QLD Register 18.07.13
  6. ‘Ross River meatworks, Part 2’ Nth QLD Register 25.07.13
  7. ‘100 years of struggle and change’ AMIEU History. Claude Jones
  8. ‘A history of the frozen meat trade’ Troubridge & Raymond. 1912
  9. http://www.jculibrarynews.blogspot.com.au
  10. ‘Meatworkers and animal libbers form alliance’ Green Left Weekly. 30.08.95
  11. ‘The Australian livestock export trade’ Nigel Austin. 2011
  12. http://www.wikipedia.org/wiki/Ross_River_Meatworks_Chimney
  13. http://www.paranormal.com.au
  14. Australian Dictionary of Biography. Moore (1917-1990) Vol 18, 2012
  15. http://www.northqueenslandhistory.blogspot.com.au
  16. ‘Barricades & Batons: An historical perspective of the policing of major industrial disorder in Australia’ D. Baker. 1999
  17. anu.edu.au-Whitlam sacking 1975