Australian Abattoirs

Current Operation

• Currently Operating – currently accredited # 399 AUS-MEAT 14.01.13¹   
• Employment contacts www.teysaust.com.au/employment                

Location             

Source – Hema maps. Australia Truckies atlas       

Owner                 

• Teys Bros     http://www.teysaust.com.au
• Abattoirs owned by Teys in Queensland
  • Beenleigh (QLD)
  • Rockhampton (QLD)
  • Biloela (QLD)
• Abattoirs owned by Teys in NSW
  • Tamworth (NSW)
  • Naracoorte (NSW)
  • Wagga (NSW)

Source Logo http://www.teysaust.com.au

Operation          

• Export, Beef and Offal
• Teys also own North Rockhampton – 2009 calendar year Teys produced 15% less volume than in 2005 and 2006, with “a lot of days off” (Brad Teys)²

History                

1956

• Facility was built¹³

1999 

• Owned at 1999 by Teys³
• Has a reported capacity 137,000 head per 50 weeks operation cycle³

2005

• Biloela moves to hire refugees
  • Booming mining sector meant unemployment rates in the region 1.9%
  • Plant was unable to fulfil production demands due to unfilled job positions
    • Plant was only operating at 80% capacity
    • Foreign labour meant it could operate at 100%

2006

• Teys utilise migrant workers at Biloela and Rockhampton – Lakes Creek abattoir (QLD).⁴
  • Workers are employed on 457 visas (Pg 17)⁴
  • Hired through a labour hire company AWX Pty Ltd⁴
    • Teys don’t directly employ the workers⁴
    • Workers were hired as casuals and paid a flat rate that was $2 /hr less than permanent Teys Bros employees⁴
  • Created a two-tiered workforce⁴
    • discriminatory against foreign workers⁴
    • reduced the labour costs.⁴
    • moved to a new agreement in 2013⁴

2009

• October. Teys announce a reduction of days working at Biloela⁵
  • blaming global financial crisis⁵ and
  • State government’s policy favouring of live export⁵
• December. 40 foreign workers are cut⁵
  • Afternoon boning shift component of workforce⁵
  • Some are Korean, holders of working holiday visas⁵
  • Existing 350 workers – Australian and long stay visa holders will remain⁵
    • Most long stay visa holders were Vietnamese⁵
• Teys consider job cuts at the Rockhampton – Lakes Creek (QLD)
• Plant closes for seasonal break 11/12/2009⁵
  • will resume in the New Year⁵
  • operating a 5 day single shift⁵
    • Processing 554 head⁵
    • single boning shift⁵
• Gloomy outlook is reason for shift being closed⁵
  • Forecasts of dramatic reduction in available cattle in 2010⁵
    • similar to the last quarter of 2009⁵
    • Conditions expected to persist to 2011⁵
  • Poor seasons⁵
  • Floods⁵
  • Large number of stock being live exported from QLD⁵
    • tilted playing field favours live export⁵
  • High Australian dollar⁵
  • Weak demand in export markets⁵

2010  

• Kill to drop from 750hd day to 550hd

2011

• July. Australian Competition & Consumer Commission (ACCC) don’t oppose Teys Bros & Cargill Beef Australia Merger⁷
  • View that the proposed merger would be unlikely to substantially lesson competition in any of the markets examined⁷
    • ‘fat’ cattle ready for slaughter⁷
    • acquisition of ‘feeder’ cattle destined for feedlots⁷
    • supply of processed beef to retailers and wholesalers⁷
• Foreign labour in Australian beef processing⁸
  • Most people employed in meatworks and related industries are Australian citizens⁸
    • Depending on categories factored there are 35,000 – 50,000 employees in meat processing and handling businesses.⁸
    • Is a change of cultures, many have strong ethnic origins⁸
    • 457 Visa holders 5-10% of all food processing and manufacturing employees in Australia⁸
  • In 2010/11  there were 4,730 QLD 457 Visa’s granted⁸
    • 130 were skilled meatworkers (1.5%)⁸
    • Nationwide total 457 Visas issued to the entire Agriculture, forestry & fishing category is only 2.5%⁸
  • There is a labour shortage at all levels⁸
    • Competition from the mining sector⁸
    • labour force tends to be transient⁸
      • meat industry may source more foreign labour than other industries⁸
  • Other heavy users of 457 Visa’s⁸
    • Health Industry
    • Many hospitals unable to function without nursing support of imported labour⁸
• Cattle supply is very tight²³
  • Producer’s aren’t selling cattle due to poor prices²³
  • Company (Teys) forced to reduce kill days²³
    • for week beginning 18/07/2011 don’t even have one days kill organised as at 14/07/2011²³
  • CEO Teys Brad Teys, says been 30 years since he’s seen the supply of cattle so tight²³

2012

• Pacific Island Workers Scheme is working well⁹
  • Seasonal worker program is a scheme for the Agriculture and accomodation industries to employ people from overseas for short periods. Seasonal Worker program
• “..the Biloela meatworks have always said that there would be no foreign workers in the meatworks while there was an Australian without work” MP Ken O’Dowd⁹

2013

• Migrant workers that had previously worked under Work Choices now moved to a Meat Industry Award Agreement 2010. (Pg 17)⁴
  • Now received penalty rates for overtime, public holidays & shift allowances⁴
• July. Beenleigh abattoir (QLD) wage dispute will not effect job security at other sites operated by Teys¹⁰
  • Beenleigh plant had much higer operation costs than Biloela or Rockhampton abattoir (QLD)¹⁰
    • Beenleigh only delivering 1% profit in the past four years¹⁰
• If the meat processing industry is to avoid the path of the car manufacturing industry it needed to change¹⁰
  • “What we did in the 1970’s we can’t do now” Tom Maguire Teys’s general manager of corporate affairs¹⁰

2014

• Free Trade agreement with China is being negotiated.¹¹
  • Possibility of 1M head of cattle a year to be exported to China¹¹
  • AMIEU QLD Industrial officer Lee Norris says the deal would lead to thousands of lost jobs.¹¹
  • Central QLD university professor or regional economic development John Rolfe – hugh economic boost to cattle producers and would lead to a more robust industry¹¹
  • QLD Premier Campbell Newman supports China deal – it was critically important for agricultural industries¹¹
  • “They’ve been doing it tough in the west and northwest for quite some time now with the drought, and at least this gives people hope that when conditions return to normal that they actually have some real opportunities in the future” – Campbell Newman¹¹

2015

• February. Tropical cylcone Marcia swept over the QLD coast on 20/02/2015¹²
  • Category 5, 300km/hr winds came across the Capricorn coast¹³
• Significant structural damage has occured to¹²
  • JBS Rockhampton (Beef city)¹²
  • Teys Australia Rockhampton (Lakes Creek) abattoir (QLD)¹²
  • Biloela plant has not suffered damage but will lose time due to power supply problems¹²
  •  3 plants together account for 2,500 head a day slaughter capacity¹²
• Biloela plant
  • Localised flooding¹²
    • Plant itself was not flooded¹³
  • Currently employs 400 people¹³
  • Currently processing 700 cattle a day¹³
  • did conduct half a days kill on day of the cyclone¹²
    • cyclone caused loss of only a single slaughter shift¹³
  • No Kill conducted following Monday 23/02/2015¹²
    • boning shift is being conducted on 23/02/2015¹²
  • Cattle at Lakes creek abattoir are either transported back to properties or origin (at Teys expense) or being sent to Biloela and Beenleigh abattoir (QLD) for processing¹²
• Teys suffered cyclone damage to its Innisfail abattoir (QLD) in 2011. It was mothballed at the time but never reopened.¹²
• Category C Emergency relief needs to be announced by Federal Government as soon as possible¹³
  • enables grants of $25,000 to eligible businesses and farms¹³
• March. Cyclone damage to the two larger meat processors in Rockhampton will see JBS Rockhampton closed for at least a month and Teys Australia Rockhampton (Lakes Creek) QLD closed for atleast another week¹⁴
• Seasonal stock work was complicating the matter with normal turnoff¹⁴
  • Producers having to send stock to other plants will incure greater freight costs¹⁴
  • Earliest stock were able to be slaughtered at Biloela was in April.¹⁴
• Damage to the meat processing facilities renews debate of introduction of live export in the region¹⁴
  • Authors note – I think this in reference to using Port Alma (Rockhampton) to export live animals¹⁴
  • “We need diversity in any business and live export is part of that” Cattle Council of Australia president Howard Smith¹⁴
• Teys Australia submission in regards to Australian workplace relations system¹⁵
  • Authors note – some links may not function as blogs are not yet published.
  • Biloela employs 450¹⁵
  • Rockhampton (Lakes Creek) (QLD) employs 900¹⁵
  • Beenleigh (QLD) employs 790¹⁵
  • Wagga Wagga (NSW) Employs 850¹⁵
  • Naracoorte (SA) Employs 420¹⁵
  • Tamworth (NSW) employs 380¹⁵
• September. Biloela plant is recognised at National level at Australian Migration and Settlement Awards – winning Business Inclusion award¹⁶
  • Foreign labour represents 70% of the plants 470 strong workforce¹⁶
  • Enabled operating capacity 100% since 2005¹⁶
  • Biloela plant rates in the top 10% of the national industry¹⁶
    • due to newly skilled workforce¹⁶
    • Had to attract people to the town with a strategy as there weren’t many unemployed¹⁶
  • “The fact they could get a job and they were self-sufficent and they were contributing was the big reward” Duncan Downie – General manager of operations at Biloela¹⁶
• November.Plant shuts down for two days in week due to lack of cattle¹⁷
  • Did not operate 02/11/2015 & 09/11/2015¹⁷
  • Gone through an extended dry period¹⁷
    • Producers are holding onto cattle¹⁷
    • Cattle herd deminishing for 4-5 years due to drought¹⁷
    • When it does rain, shortage of cattle supply¹⁷
      • Don’t have the numbers to process at the facility¹⁷
  • Aim to operate 2 shifts 5 days a week, killing 710 head a day¹⁷
    • cut back operations due to shortage of cattle¹⁷
    • When graziers rebuild (if it rains) processing numbers will at normal targets¹⁷
    • Live export competition was having an impact but was not the major contributing factor¹⁷
    • “I don’t know what impact the live export trade will have. It is a long way to bring the ships down to Port Alma and the cattle they get in this areaare different to the cattle they get up north” D Downie.¹⁷
  • Plant normally sources cattle within 350km of the facility¹⁷
    • recently has had to purchase from Victoria, Longreach, Charters Towers and further north.¹⁷
• Investment to occur at Biloela plant $10M over the next 6 months¹⁷
  • Work will begin in annual shutdown period¹⁷
    • Annual preventative maintenance program¹⁷
    • $2.7M upgrade boning room¹⁷
    • Installation of new vacuum pack machine and conveyor system¹⁷
    • In January plans to install new coal-fired boiler¹⁷
  • Seasonal closure is planned to begin 10/12/2015¹⁷
• Plant will conduct last kill 26/11/2015¹⁸
  • final boning shift will happen 27/11/2015¹⁸
  • Staff told 11/11/2015¹⁸
  • Extended 7 week summer-season for the plant¹⁸
    • Normal schedule is 4 weeks¹⁸
      • Staff usually take 4 weeks of annual leave¹⁹
      • extra 3 weeks will be leave without pay¹⁹
    • Original target was to close 10/12/2015, reopen 08/01/2016¹⁸
  • Cattle supply circumstances have dramatically changed¹⁸
    • shortage of cattle¹⁸
      • sustained records of slaughter across Eastern Australia¹⁸
        • Destocking from Western Areas¹⁹
        • high prices for cattle¹⁹
      • record live exports of cattle¹⁸
      • National herd level was on a 35 year high, to a 20 year low over the last 2 years.¹⁸
  • “This is a once-in-a-generation decline, but unfortunately  we can expect herd numbers to stay significantly low for at least the next two years as cattle producers rebuild their stock” Tom Maguire²²
    • Rockhampton (Lakes Ck) (QLD) and Beenleigh (QLD) along with Biloela operating on a 3 day roster¹⁸
  • Biloela is a specialist grassfed plant, processing 700 head a day on single shift, employing 440 staff¹⁸
  • Intend to re-open 18/01/2016¹⁸
  • Previous year (2014) had killed close to christmas¹⁸

Biloela meat processing complex. Source ABC Rural 12.11.2015

• Early and extended shut down of the abattoirs due to lack of supply of cattle is affecting local butchers²¹
  • 2014 300g steak $7-$8 retail²¹
  • Now $9.60²¹
    • pricing is affecting the consumers ability and desire to pay for the product²¹
• Early closure of Biloela would affect every little butcher across QLD²¹
  • Main problem is the drought²¹
  • Problem will continue when processors come back on line due to wholesalers buying aswel²¹
• Agforce president Leo Neill Ballantine²¹
  • cattle shortage was a problem that wasn’t going to go away²¹
  • regardless of rain, will always be problesm with existing conditions²¹
    • vacuums are created in the market if producers can’t get assurances from processors²¹
    • producers need to be brought more into the supply chain²¹
      • enables cattle to be ready ahead of time²¹

Sources – #399 Biloela – Teys Australia (QLD)

1. AUS-MEAT accreditation list 14.01.13
2. ‘Abattoirs under stress’ Beef Central 22.02.13
3. Competition and Exit in Meat Processing Agribusiness Review Vol 7 1999
4. ‘Union Avoidance Strategies in the meat processing/packing industry in Australia and the USA compared’ A Jerrard & P O’Leary
5. ‘Aussie workers safe in Teys cuts’ Central Telegraph 11.12.09
6. ‘Meatworks jobs may get the chop’ The Morning Bulletin 11.12.2009
7. ACCC will not oppose Teys Bros & Cargill Beef Australia proposed merger’ 06.07.2011
8. ‘Processors raise hackles over ‘foreign labour’ claim’ Beef Central 21.07.2011
   • ‘RCS: Beefing about Beef’ Beef Central 15.07.2011
9. Statement by member Ken O’Dowd. Parliament
10. ‘Workers safe at Rockhampton and Biloela’s abattoirs’ The Morning Bulletin 14.07.2013
11. ‘Cattle export deal with China raises fears for abattoir workers’ jobs’ Couriermail 07.11.2014
12. ‘Power outages, structural damage from cyclone….’Beef Central 23.02.2015
13. ‘CQ meatworks back in action’ QLD country Life 26.02.2015
14. ‘Shutdown highlights market concerns’ www.farmweekly.com.au 02.03.2015
15. Teys submission to Australian Productivity commission into workplace relations system. March 2015
16. ‘Refugees save Meatworks’ Central Telegraph 04.09.2015
17. ‘Teys Bros invest $10M in to Biloela plant’ Central Telegraph 09.11.2015
18. ‘Teys Biloela joins list of ‘extended shutdown’ beef plants, as herd contraction bites hard’ Beef Central 11.11.2015
19. ‘Teys abattoir shuts early due to lack of supply’ ABC Rural 12.11.2015
20. ‘Cattle shortage forces extended closure at Teys Biloela’ The Morning Bulletin 12.11.2015
21. ‘QLD’s rib eye price is sky high says butcher’ Observer 17.11.2015
22. ‘Cattle shortage hits Teys’ www.farmonline.com.au 18.11.2015
23. ‘Cattle supply chokes’ ABC Rural 14.07.2011