Milestones in the Australian Meat Industry

1860’s 

  • Outbreak of pleuropneumonia – decimated herds in NSW4

1861 

  • 1st Freezer works invented – Darling Harbour8

1870   

  • Tick introduced on imported stock from Dutch Bativia4

1896  

  • Tick Plague bought red water fever – killed many cattle, some pastoralists abandoned properties4

1910   

  • 3 Zebu bulls introduced to QLD4

1948   

  • 15 year contract with Australia – UK purchased all exportable beef surpluses8

1950’s   

  • Large numbers of imports of Zebu to QLD4
  • Refrigeration for long haul transports improved in efficiency and financially8
  • Sheep prices soared £1 head – during Korean war10

1954-60 

  • Britain won contracts in previous Australian export markets. USA developed ‘grinder beef’ allowed new markets for North Australia4
  • Global demand for beef, boom lead to record cattle numbers in Australia8

1959

  • USA Lean beef market development8

1960     

  • Australian Sheep herd 155M10
  • Petrodollars Money – Middle East had significant discoveries of oil and lifted living standards in those countries, created a building boom, workers mainly from 3rd world muslim countries10             pg 28
  • 1st shipment to Middle East. 2500 Australian sheep £6, 14 shillings and 4 pence a head including fodder for voyage10Pg 28

1967    

  • UK – had outbreak of FMD8

1970’s 

  • BTEC began – stopped 1989. Cost $800M
  • Large cattle numbers and slaughter rates in 1970’s prompted significant expansion in processing capacity in QLD, with an increase in capacity of 32% between 1975 – 1982 (Rolfe 1988). The plants then faced work practices characterised by single shifts and a tight tally’s system. Most of the expansion met through construction of new plant, which was also needed to meet export standards in many of the overseas markets3
  • Sheep live exports significant – Middle east, Cattle SE Asia8
  • Economic downturn in the 70’s led to drops in global beef demand8
  • 4 out of 5 meatworks in North Australia had their export licences withdrawn –
  • “inability to fullfill obligations under the meat board diversification scheme in Australia”8
  • Australian sheep herd 180M10Pg 37

1973 

  • Australian sheep herd 142.3M10Pg 37

1974     

  • Beef Crash – caused by major loss of markets USA & Japan, severe drought started. Cattle prices plunged to lowest level in 30 years.4
  • Herd shrank by more than 60%5
  • Oil prices crisis triggered global collapse4

1975     

  • LE to SE Asia re-emerge on a small scale after years of inactivity5
  • LE mainly to Malaysia, Philippines and then in early 90’s to Indonesia8
  • National Beef herd 32.8M10Pg 42
  • National Sheep herd 127.5M10 Pg 42

1978  

  • AMIEU – picket line 4 weeks, prevented sheep being loaded onto ship, Feedlot Adelaide Virginia 90,000hd sheep. Were losing sheep due to rain and cold weather, Waterside workers unions also striked in support.Unions lead by Bob Hawke. Public rally supported by Farmers 10,000 against the union 4th April 1978. Operation Sheeplift – loaded at Wallaroo.10Pg 43
  • Meat Processing in trouble – didn’t have enough outlets for all the meat it was processing, yet LE was thriving at significantly higher prices, LE was shipping aged merinos, not suitable to slaughter in Aust, AMIEU still picketed10Pg 49

 1980’s  

  • Cyclical downturn in slaughter numbers occurred in the early 1980’s, rationalisation was required. Industry commission inquiry in 1983 recommended market forces rather than government intervention be allowed to drive the changes.3
  • Plant closures of the late 1980’s was in response to rationalisation pressures. Most plants that were closed were the older, inefficient plants that reached the end of their operating life(Reynolds and Sangster 1998b).3

1984

  • Australian Meat Holdings (AMH) formed – was pivotal in rationalising the meat processing sector in QLD– consortium of 4 meat processing companies, Including Elders (who bought other partners out in 1988) who then sold to USA processor (ConAgra)1993-1996.

1984 – 1986 

  • AMH closed 5 plants of the initial 11 owned by the consortium – utilisation rates had fallen to 32%

1989   

  • BTEC finalised4.

1990’s 

  • By the 1990’s, plant closures tended to be forced by financial losses rather than operating inefficiencies3
  • USA market health regulations forced many abattoirs across Australia to shut down8

(Not sure when actually occurred – ????????)

1993   

  • Live cattle exports to Asia and Middle East 147,000hd1

1994  

  • Live cattle exports to Asia and Middle east 290,000hd1

1993 

  • Beginning of Enterprise Bargaining Agreements (EBA)

1994    

  • disputes and lock out at Rockhampton AMH abattoir

1996  

  • EBA’s introduced – Previously tally system has set rates of pay and also rate of productivity. Any new investment in efficiency meant workers just reached minimum tally in a shorter time. Tally system removed, increased production levels3.
  • EBA allowed multiple shifts,reduced penalties and shift loads, longer working days and increased pay rates. 30-40% increase in effective capacity. Lead to 40% reduction in unit costs3.
  • AMH if gained a 4% efficiency achieved a net gain of $62M over 10 years, industry wide net gain would yield $404 net gain3

2006

  • Innisfail Meatworks closed leaving Townsville as only Northern abattoir in QLD5.

2010 

“Last weeks QLD cattle kill of 43,700 hd was 40% below the same week last year, The extreme low rates of kill are also reflected in industry statistics showing that for the 3 months ended January 30, Australian beef exports to the US reached just 38,000t a far cry from the same period in 08/09 of 70,000t2

2011

  • Live Export ban to Indonesia.

2012  

  • Carbon tax introduction – $23/t for over 25,000t of greenhouse emissions.Europe payint $9.80/t6
  • Australian Export Meat Inspection System (AEMIS) introduced7
  • “AEMIS  utilises the presence of full-time government  veterinarian assessing the incoming stock and oversighting the production and inspection process, and a full time government food safety meat assessor inspecting”7
  • “The system is subject to external audits from senior Australian government veterinarians and by foreign officials representing many of our major trading partners”7
  • One processor says will add $100,000 in costs over next 12 months7
  • May. JBS arrived in Australia 2007, “despite $500m investment on improvements and upgrades, the cost of production of beef relative to major international competitors has actually worsened” JBS CEO Andre Nofueira12

2013  

  • February. QLD cattlemarket indicator (QCMI) 1985 $70.80 buy the same amount of goods in todays $ would cost $180.70 – prices are 30% lower in real terms than what they were in 859
  • March. Near record weekly kill tally – 81601, close to all time record July 200111
  • Young cattle indicator slipped 12c/kg, some grids back by 20c/kg
  •  

Sources

  1. ‘The past is before us’, The Australian Society for the Study of Labour History. Undated

www.historycooperative.org/proceedings/asslh/index.html

  1. ‘Abattoirs under stress’Beef Central 22.02.10
  2. Competition and Exit in Meat Processing:A QLD Case Study. Agribusiness review 1999

References with their articles (Rolfe 1988),(Reynolds and Sangster 1998b)

  1. ‘North’s Beef Powerhouse’ Nth QLD Register 22.11.12
  2. ‘100 years of Northern Beef Production’ Nth QLD Register 22.11.12
  3. ‘Processors beef with carbon tax’ Nth QLD Register 06.09.12
  4. ‘Exporters query E.coli blow-up’ QLD Country Life 31.05.12
  5. ‘Sailing ahead’ Annabelle Coppin 2009
  6. ‘Beef Prices at historic lows necessitates focus on cost of production’ Beef Central 18.02.13
  7. ‘The Australian Livestock Export trade’ Nigel Austin 2011
  8. ‘Record QLD kill reflects ‘avalanche’ or dry weather cattle’ Beef Central 19.03.13
  9. ‘JBS heads calls for industry-wide focus on competitiveness’ Beef Central 17.05.12

Dinmore

Current Operation

  • Aus Meat Accreditation registration dated 29/12/2015 #235 – JBS Australia Pty Ltd (Dinmore).13
    • registered as a Beef, Offal export facility.13
  • Direct employment enquiries to www.jbssa.com.au  

Location              

  • South east QLD
  • 40 km west of Brisbane. 9km east of Ipswich

 Owner

  • AMH (1999)4
    JBS Australia

Operation          

  • Export – Beef, Offal1
  • (1999) Nominal capacity 625,000hd per 50 weeks4
  • Slaughtering, boning, packaging, by-products rendering and hide processing
  • Spent 10’s Millions $ over past 10 years on environmental/sustainability projects, in areas like water treatment, establishing excellent performance creditials in the environmental area2
  • “Site operates with arguably the most stringent environmental license conditions on waste water management, motor and other noise abatement of any meat plant in Australia”2.

Dinmore photo. _edited-1Source 2007 Feedback MLA

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

Australian abattoirs inactive map

abattoirs_edited-1

History of Dinmore #235

1990

8. ABARES Nov 2011_edited-1

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

1991

  • 77 Beef export Abattoirs are in operation in Australia at this time.19
    • 27 have some level of foreign ownership.19
    • Ownership dominated by Japan, UK and the US.19

1996

  • AMH intend to spend $50M upgrading Dinmore as part of $90M capital investment program across six Australian operations6
    • AMH controlled by big US rural commodities trader – ConAgra, a major exporter from North America6
    • AMH accounts for 16.5% of Australia’s beef kill.6
      • currently owns another 8 facilities but will be consolidating to 5 and closing Beaudesert (QLD), Guyra and Portland (Vic)7
        • others owned Dinmore, Townsville, Rockhampton and Aberdeen6
            • Author note – not sure of 8th.
        • Intended that 300 jobs would be replaced at Dinmore when expansion completed there6

1999 

  • AMH owned at this point4
  • Is the largest plant in QLD at this point.

2005

  • Significant regions of drought across QLD.

QLD Drought 2003_2005_edited-1

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

2007_2009_edited-1

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

2010  

  • Will drop from 11 to 9 shifts over a 5 day week this year in light of the livestock supply and demand challenges3
  • Between Townsville and Dinmore plant 430 people laid off.8
  • Dinmore current operating capacity 3,300 head a day.10
    • Mainly to Export 75% – Japan, US, Korea, Taiwan and Indonesia.10
  • Dinmore employs approximately 2,000 workers.10
    • About 1,700 work in production roles across 2 shifts Monday to Friday.10
    • The remainder are cleaning, maintenance and head office functions.10
    • Most Employees are male 70% employed and full-time casuals.10
    • Around 20% are from overseas – 457 Visa’s China and Brazil.10
    • 5 year EBA is currently in place, no piecework incentives provided.10
    • most workers said to be be union members.10
      • walking delegate employed on site.10
    • Company has strong internal promotion culture aimed at increasing retention.10

IBIS Jun 2010_edited-1

Major Companies in the Australian Red meat processing industry

Source IBIS world June 2010

2011

  • January. Devastating floods across Central and southern QLD and large parts of NSW and Victoria.21
    • affected slaughter numbers to abattoirs.21
  • July.National slaughter rates decline 5%.22
    • Australian currency pressures.22
      • A$ is now above US108c.22
      • economic news out of US could send currency even higher.22
      • higher A$ would cripple Australia’s already limited price competitiveness for beef in international markets.22
    • QLD which does approximately half of Australia’s processing capacity.22
      • Down 8% from the previous week.22
      • lowest kill recorded in QLD in July for past decade.22
      • Down 21% on same period last year.22
      • Significant number of QLD plants only killing 3-4 days.22
    • listless export beef demand.22
    • Meat processing and export is low-margin business due to.22
      • Import duties.22
        • Indonesia 9%.22
        • Korea 40%.22
        • Japan 38%.22
      • New AQIS charges on meat inspection would add millions to processor costs.22
    • Is currently a big build up of meat in cold stores due to difficulty in selling into sluggish markets, Japan and the US.22

7. ABARES Nov 2011_edited-1

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

2012  

  • Govt. grant $4.4M with JBS own $4.4M upgrade its waste water treatment system, installing new pre-treatment equipment and covered anaerobic lagoon technology2.
  • Company’s carbon tax liability was expected to cost $3.5M yr,($23/t) project will save $1M in energy costs and cut liability each year by $790,000.
  • Still doesn’t place Dinmore plant below 25,000t threshold, to get below that would cost a further $16M.

2013

  • “JBS is in the process of supporting the transition of it’s 457 workforce to permanent residency”5
  • 457’s residency requires certain level of english speaking, International English language testing system level 5. – often above the level meat workers most parts of world can reach5
  • Recently completed a $50M upgrade employing most modern techonology available to ensure maximum efficency and consistency of the quality of the product9
  • Employees 235 people9
  • Daily processing 3,350 beef or 1,675 head per shift9
  • November. JBS Swift Australia install closed-circuit television camera’s (CCTV) in it’s Australian meatworks.16
    • For the purpose of animal welfare and meatworker safety issues.16
    • CCTV for internal use by only JBS, with no plans to allow outsiders to view the footage.16
  • JBS’s US beef division (which includes Australia) delivered drop in net sales and earnings in it’s third quarter financial results.17
    • 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.17
    • Earnings before tax $134M,.17
      • Down by 22.5% on previous quarter.17
      • Down by 28.4% on third quarter last year.17
    • result reflection of domestic North American markets.17
      • Improved performance had occured in Australian.17
        • Demand had increased in Chinese markets.17

2014

 

  • July. JBS Australia purchase majority shareholding in NSW based Andrew Meat.15
    • specialise in high quality, portion cutting and further processing of meats for domestic and international restaurant and foodservice customers.15
    • produce ready-cooked meals.15
    • company banner Creative Food Solutions.15
    • Andrew Meat will allow JBS expansion into high growth retail and value-adding segments.15
  • Expansion of the Andrew Meats business will start in November .18
    • JBS global strategy to expand into value added meat protein – opportunity to expand margins.18
    • JBS have an existing value-added division – Food Partners.18
      • supplies food service customers like Pizza Hut and Domino’s with toppings.18
    • Andrew Meats focus will be produce ready meals.18
      • ‘grab & go’ beef roasts, designed to compete head on with hot cabinet roast chickens sold in supermarkets.18
      • Domestic markets were very immature but also with significant growth potential.18
  • At this time JBS operate.15
    • 10 processing facilities.15
      • Daily processing capacity of more than 8,000 cattle and 21,000 small stock.15
    • 5 feedlots.15
  • December. JBS currently operate 12 meat processing plants across 5 Australian states11
    • Wages & local procurement $730M (Excluding livestock purchases)11
    • Employs 8,500 people at the facilities11
      • Employs 12,000 people in Australia11
    • Total revenue of $6.5B11
  • 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)11
      • JBS share of Australian beef production 16%11
      • Market share of national small (lamb, mutton & goat) 16%
    • JBS spent $2.4M on halal certification costs of approved religious certifiers in 20142

    2015

    • January. MLA forecast.20
      • Australian cattle herd has gone from 35 year high (2013) to 20 year low (2015).20
      • Australian cattle herd slip to 26.8M head by June 2015.20
        • by 2016 expected decline to 26.5M head.20
        • by 2020 27.9M head.20
      • Adult cattle slaughter expected to slump 15% year on year.20
        • 2015 to 7.8M head.20
        • 2020 expected 7.9M slaughter.20
      • Long term Female average in 2014 52%.20
        • Normally female kill percentage 47%.20
        • Only in years 1977, 1998 & 2003 has female kill been above 50%.20
      • Beef exports record levels in 2014 1.39M tonnes shipped weight.20
        • Expected to drop 20% to 1.3M tonnes in 2015.20
    • March. Foreign ownership of Australian red meat processing facilities
    • Nippon share_edited-1

      Share of Australian red meat processing

      Source The Stock Standard. VFF March 2015

 

  • March. Cyclone Marcia cross the Capricornia Coast some plants were damaged.70
    • Supply is exceeding capacity in QLD at this point.70

Cyclone Marcia Feb 2015_edited-1

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

  • June. Cost of processing in Australia 1.5-3 times the cost of processing animals in another country11
  • cost of processing grain-fed cattle in Australia is twice of the USA11
    • lower levels of productivity in Australia in regards to kg per unit of labour11
    • 2 major differences between Australia and the USA11
      1. Government regulation
        • $10 a head more in Australia11
        • Dept. of Australian Agriculture fully recover costs of meat export inspection and certification11
          • Australia wide DAFF costs $80M11
          • JBS contribute $14.5M11
        • Export plants don’t use DAFF but use approved employees, which plants fully cover costs11
          • JBS estimate an additional $30M at Export level11
        • USA & Brazil governments provide services at no or minimal costs to processors11
      2. Energy Costs
        • $15 a head more in Australia11
    • Technical barriers to trade (TBT’s)- Total value in Australia estimated at $1.25B as identified costs11
      • 261 TBT’s in 40 key markets11
        • 136 have significant trade distortion impacts11
  • July. The following charts are from a submission by the Australian government Department of Agriculture to the Senate rural and regional affairs and transport references committee inquiry into Market consolidation and the red meat processing sector.
  • abattoir capacities dept ag sub consolidation_edited-1
    • Capacity of major beef abattoirs in QLD. Pg 15

      T2 Throughput state beef_edited-1

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

      T4 processing companies market share_edited-1

      Major Processing companies by market share May 2015. Pg 16

      M4 direct cattle movements NLIS QLD_edited-1

      Cattle Movements to abattoirs. Pg 25

      F12 hourly labour costs food manufacturing_edited-1

      Hourly labour costs for food manufacturing industry Pg 30

October. 10 mayors from Southern QLD form a mayoral group to act as a united lobby group for their region.24

  • represent 25% land area of QLD, quarter of QLD cattle and 75% of grain and crop production area24
    • support the Oakey abattoir push for rail transport improvements.24
    • $2M in State and Federal funding is required to fund new rails sidings.24
      • Federal government feel that private investors should fund the improvements themselves.24
      • will add to processor competition in the area.24
  • Only 2 abattoirs are currently contracted to be supplied cattle on the Western line.24 JBS Dinmore (QLD) and Teys Beenleigh (QLD)
    • Oakey is to be added, starting January 2016.24
      • Contractually Oakey can recieve cattle but as they have no rail siding this is not physically possible.24

 

  • AACo have animals processed at Eastern abattoirs as service kill.23
    • See year 2013.23
    • Gross processing costs had increased in the 6 months to September 2015.23
      • $1.13 risen to $1.21/kg, 7% increase year on year HCW.23

 

 

  • December. ATO publishes tax data for agribusiness corporates.12
    • 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.12
    • Income tax information is for 2013/14.12
    • JBS Holdco Australia Pty Ltd produced Total Income $4,040,948,610.12
      • Taxable Income $419,882,525.12
        • Tax Payable $44,809,334.12

2013_2015_edited-1

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

 

Sources for Dinmore QLD. JBS

  1. AUS-MEAT Accreditation list 14.01.13
  2. ‘JBS offered $4.4M grant for Dinmore carbon abatement project’ Beef Central 04.02.13
  3. ‘Abattoirs under stress’ Beef Central 22.02.10
  4. Competition and exit in Meat Processing Agribusiness review Vol 7 1999
  5. ‘JBS to help 457 workers to Aussie residency’ Ipswich QLD 02.03.13
  6. ‘US beef exporters force three abattoirs to close’ SMH 15.05.1996
  7. ‘Guyra abattoir closure’ Mr Raymond Chappell 15.05.96 http://www.parliment.nsw.gov
  8. ‘Australia: Union shuts down picket of locked out meatworkers’ http://www.wsws.org. 28.12.2010
  9. http://www.jbsswift.com.au. Accessed 13.11.2013
  10. Work-skills-and-training-2301-1
  11. sub50_JBS Inquiry into the effect of market consolidation on the red meat processing sector
  12. ‘ATO publishes tax data for agribusiness corporates’ Beef Central 18.12.2015
  13. AUS-MEAT Accreditation Listing 29.12.2015
  14. ‘Big Beef producer cuts deal with Tasman group’ The Age 06.03.2008
  15. ‘JBS takes stake in Andrews Meat’ www.farmonline.com.au 09.07.2014
  16. ‘Swift CCTV camera action’ Weekly Times 13.11.2013
  17. ‘JBS delivers lower third quarter beef sales, revenue’ Beef Central 14.11.2013
  18. ‘What’s behind JBS taking a big stake in Andrews Meat Value adding Businnes? Beef Central 10.07.2014
  19. ABARES foreign ownership 2011
  20. ‘MLA forecasts beef market adjustment’ The Land 27.01.2015
  21. ‘Slow season opening for processors’ Beef Central 11.01.2012
  22. ‘Caualties emerging as export kill pressure continues’ Beef Central 25.07.2011
  23. ‘AACo’s Darwin abattoir projected to be strong finanical performer’ Beef Central 18.03.2013
  24. ‘$2M only barrier to better rail access for cattle’ Beef Central 20.10.2015

Beenleigh

Large processing facility operated by Teys with Cargill. Recently had a number of wage disputes. Has recently invesed heavily in new technology, currently operating 2 shifts processing 1,300 cattle per day

Current Operation

  • Currently in operation as at 2015.

Location             

                   Australia. Beenleigh

Map Beenleigh 001

Owner                 

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

Australian abattoirs inactive map

abattoirs_edited-1

Operation          

  • Export
  • Nominal capacity 200,000hd as per 50 weeks(as at 1999)1
  • 800 staff2

History of the Beenleigh meat processing facility              

2010

  • Partnership between Teys and Meat Livestock Australia (MLA) develop the semi automated ‘Beef Pullers’ – Collaborative Innovation Strategies (CIS) program20
    • five units now installed by Teys and other processors20
    • technology is designed to overcome some physical and OH & S challenges of the boning line20
      • MLA don’t fund but provide support to assist to access commonwealth research grants 50:50 basis20
  • Beef Pullers – assist in removal of bones and knuckle – recognised as two most physically demanding tasks20
    • Cost/benefit shown increased profit margin $3.50 – $4.65 per carcase20
    • Pay back period 5 months or less.20
  • Beenleigh currently employs 800 workers.37
    • Up to 50% of skilled staff mostly from Brazil and Vietnam.37
    • Most workers are union members.37
    • With a union representative in every department.37
    • Joint consultative committee.37
    • An EBA is currently in place.37
      • skilled staff receive payments above the award.37
      • slicers and boners recieve tally (piecework) payments.37

2011

  • July. CEO – Brad Teys “..it’s been about 30 years since he had seen the supply of cattle so tight”9
  • producers not selling cattle due to poor prices and company forced to reduce kill days at Beenleigh to 3 days a week, Biloela 1 day, Rocky 3 days and Naracoorte was shut down temporarily9

2012

  • March. Petition started to close abattoir due to dust and health risks from cattle yards11
  • June. Rockhampton – Lakes Creek abattoir Labour hire employees (mainly humanitarian entrants) are renumerated under a WorkChoices agreement that pays a flat rate of pay26
    • without penalties for overtime or shift allowance26
    • Previously the workers had been paid at enterprise agreement rates26
    • AMIEU campaigned enterprise agreement be reinstated26
      • AMIEU claim Teys no longer allowed access to facilities due to this incident26
  • August. Carbon tax said to impact in costs of $2M- unless takes drastic action to reduce its emissions – a plan that would involve a temporary shut down2
  • Key competitors don’t face carbon tax3

2013

  • February. Clean technology allocations – $2.83M, project $6M. Install 34ML covered anaerobic lagoon and basin to capture biogas for use on site. Reduce emissions by 85% saving $1.3M energy costs and $380,000 carbon price per year4
  • March. AMIEU lodge an application for rights of entry order to the plant26
    • Teys provided a room to which employees could see their representative if they wished26
      • AMIEU claim room was too small, only able to hold 50 people, with sometimes 130 union members in attendance26
      • EBA used the room when AMIEU made a protected action ballot to be conducted26
      • AMIEU claim then due to the number of people Teys were unable to supply a room suitable26
        • Oztrail outdoor gazebo with a table and 2 chairs. “It was located immediately adjacent to a truck marshalling area, with the attendant flies, stock manure and noise”26
        • AMIEU made another application26
          • allowed to use the lunchroom26
  • May. Workers Dispute.

Teys Australia CEO Brad Teys

A number of companies that specialise in higher quality grain fed beef have been forced to close, merge or restructure over the past decade due to uncompetitive workplace arrangements”2

We are dealing with a union stuck in the 70’s, that still believes in unfettered union power2

  • 24th May – 4 hour stoppage. AMIEU strike.5
  • 24 hour strike by AMIEU for 31st May – 2nd in a week5
  • Teys saying what AMIEU want
    • 50% leave loading5
    • penalty rates within ordinary hours5
    • forced payment for idle time5
    • increased Workers compensation benefits above that prescribed by legislation5
  • Teys say – Many of staff are not union members, Only 28% of workforce voted in favour of strike5
  • AMIEU say – 80% are members, 75% supported action of stopwork6
  • What union say is happening at plant
    • Beenleigh operations made $38M in after tax profits, 9 years to 10/11, during same period paid $33M in dividends6
    • Teys want to cut wages by 20%, increase workload by 30%. Large part of workforce have lifted productivity by 18% since 1998, yet real wages declined by 11%6
  • Tey’s are in process of negotiating new workplace agreement2
  • Wages $40M each year2
  • June. Processing in Australia costs $300 a beast, USA $150 Brazil $1117
  • Boner in Australia earns $30/hr, in USA $12/hr10
  • 2012/2013 study – International Labour Organisation rates countries per highest hourly wage in manufacturing10.
    1. Denmark
    2. Switzerland
    3. Australia
    • 11th USA
    • 17th New Zealand
    • 28th Brazil.
  • Wage structures require more flexibility for seasonal harvesting, peak times in Agriculture which change employment demands and short term staff requirements10
  • AMIEU spokesperson Matt Journeaux. said members oppose to cuts up to 18.3% of current earnings for 30.5% more work. For a slicer meant a loss of $8448/yr12
  • Staff tell Teys CEO “they have had a gutful” of continued industrial action – Brad Teys – Teys CEO17
  • Negotiations continue17

The only way we will reach agreement is for the AMIEU to negotiate with an enterprise and productivity focus. They still don’t understand the need for change” – Brad Teys – Teys CEO17

  • Teys Australia currently operate 6 plants in 3 states with 5,000 employees10
  • July. AMIEU and employee representatives refused to allow a new wages and bonus offer be put to secret ballot to members13
    • Staff wanted performance bonuses removed, Teys did and replaced with 3% wage increase13
    • Cash bonus make up lost time during dispute13
  • Negotiations on Enterprise bargaining agreement ended13
  • Beenleigh plant operated on a 1% return on asset base for past 4 years13
  • Teys considered closing the plant after eight months of negotiations28
    • following 4 years of low returns28
  • 300 signatures of staff calling for a ballot, less than 50% voted for industrial action AMIEU rejected secret ballot forcing company (Teys) to terminate negotiations and explore options which included closure of plant14
  • Teys put forward 5 proposals, all rejected by AMIEU and committee14
  • Plant employs 800 staff, responsible for 4000 flow on local jobs and $250M into local economy14
  • Oct. Fair Work Commission approve the Enterprise bargaining agreement passed in employee secret ballot, to commence October 4.Follow 10 month industrial dispute with AMIEU
    • Victory of common sense and a final rejection of obstructionist union tactics” Tom Maguire (Teys’)15
    • Its a real stunner that Australia’s 2nd largest meat processing company with net equity of over $200M and $2.19B in revenue wants to pay people below award rates and conditions” AMIEU15
  • Teys’ offer unprecedented, a profit- sharing incentive for staff in EBA, is unique in meat processing and manufacture industry, 5-7% on top of normal earnings if reaches set profit targets.16
    • “company and its workforce has to work together to lift productivity in what is a highly competitive global meat processing environment”, “Manufacturing must reform to remain competitive”16 Tom Maquire (Teys’)
    • “From the outset, only a minority of workers wanted to take industrial action. Then a majority voted to approve the new EBA. Yet the union persisted to drag this out only to achieve was was agreed in the first place” Tom Maguire (Teys)18
    • AMIEU, QLD Industrial Officer Lee Norris – serious doubts Teys would deliver on its commitments16
  • During Federal election in 2013 period – Beenleigh EBA came under national spotlight when opposition leader – Tony Abbott questioned by the Fair work commission would not endorse a workplace agreeement supported by most of the staff31

2014

  • March.Currently processing 1,300 prime cattle per day19
    • Operating two shifts, one in afternoon and one in day.19
  • Fair Work Commission (FWC) throw out the EBA following an appeal by AMIEU30
    • EBA will now need to go back to FWC for approval30
    • 500 employees will immediately have weekly pays cut $25-3030
    • majority of employees on site will actually owe Teys up to $900 each30
  • Teys Australia – a Cargill Joint Venture have plants in QLD, NSW & SA19
  • Fair work commission throw out Enterprise Bargaining Agreement (EBA) following appeal by AMIEU21
    • Conditions employed under since October 201321
    • Employees voted in favor of EBA April 201321
    • If EBA dismantled some 500 employees could have weekly pay packet reduced by $25-$3021
      • Majority of employees would find they owe company as much as $900 each21
    • AMIEU claim voting was “ballott rigged” Brian Crawford, AMIEU branch secretary22
      • allowing trainee supervisors to vote.22
    • Teys deny rigging23
      • vote administered by Australian electoral commission not by Teys23
      • Trainee supervisors been included in last 6 EBA’s since 201223
      • some trainee supervisors are union members23
      • AMIEU have long been aware of inclusion of trainee supervisors23
    • Types of reforms acheived in 2013 EBA vital for the survival of the meat processing company23

    “We must continue to manage rising manufacturing costs or processing will go the way of the car industry and other manufacturers” Tom Macquire. Teys corporate affairs manager.23

  • Workplace relations inquiry submission by Teys, John Salter – General manager of workplace relations26
    • Teys Australia is Australia’s second largest beef processor & exporter26
      • annual turnover $3B26
      • Operating in QLD, Vic, NSW & SA26
        • 9 locations26
    • Employs close to 4,500 people26
      • often the largest employer in various regional centres26
      • Annual payroll in excess of $350M26
      • People costs represent 62% of operating expenses26
    • Teys is party to 21 FWC approved Enterprise agreements26
    • Beenleigh site agreement was reached with employees in 201326
      • approval has been mired by litigious complexity which the Fair Work Act of 2009 has exacerbated, rather than neutralised26
      • Agreement subject to interlocutory stay of FWC full bench order26
      • First EBA approval September 201326
        • FWC Deputy President at the time. Ingrid Asbury.31
      • First FWC full bench appeal – December 201326
      • Second EBA approval – April 201426
        • FWC Deputy President at the time. Ingrid Asbury31
      • Second FWC full bench appeal – September 201426
      • First Federal court hearing June 201526
      • Second Federal court hearing scheduled for May 201526
    • Beenleigh current operations two shift basis Monday – Friday26
      • some employees on site 24/726
      • Employee figures fluctuate but some 24 periods 850 employees to meet production schedules26
    • 2010 EBA had significant inflexibilities threatening the viability of the plant26
      • operational and cost base challenges,26
        • which other competitors (within Teys incl) don’t face26
          • cost of environmental compliance due where plant is located in a heavily populated area26
    • 2013 EBA allowed increased productivity26
    • If forced to go back to 2010 EBA some job losses may occur as production costs are reassessed26
    • Changes considered are:26
      • lowering throughput of cattle to 1,200 head a day26
      • Changing boning & load out departments to 5 day 8 hour roster26 (40 hours)
        • currently working on a 4 day by 9.5 hour roster26 (38 hours)
        • 5×8 roster could result in 20% redundancies26
          • 40 permanent staff in load out and boning rooms26
          • 3-4 in the cleaning26
          • others in salary staff, management and supervisory areas26
      • 2010 EBA doesn’t accomodate taking of annual leave but is featured in the 2013 EBA26
        • if annual close down resumes under 2010 EBA reduction in 5% staff to cover for annual leave if had been taken in 2013 EBA26
        • these staff would now be surplus to requirements under 2010 EBA26
      • Teys invested $20M in the 2014/2015 year26.
        • this increased job creation26
      • Payroll system CHRIS in a retro perspective to accomodate reversion to payment of skilled workers would cost $500,000 to implement26
  • July. Teys currently employ 4,500 people in QLD, NSW and SA.24
  • Workers at the Beenleigh plant had voted to approve a work place agreement in 2013 but AMIEU had obstructed the deal and mounted continuous appeals.24

“..the business environment in Australia, especially industrial relations, was not conducive to manufacturing, and the sector could not compete internationally” Tom Maquire24

  • Teys say reform of the labour arrangements, greater market access and a reduction in costs and charges on companies were key ares that needed to be pursued by the government.24

“We must remove the ability by third parties – namely unions – to interfere with the relationships companies have with employees, allowing them to hold up and counter legitimate agreements” Tom Maquire24

  • Federal Government must tackle industrial relations reform or risk the closure of more manufacturing industries33
  • New EBA – Teys Australia will include productivity-based profit sharing34
    • as well as annual wage increases34
    • Is an industry first inititive
    • Bonus cheque $2000 – $600034
    • AMIEU oppose the the bonus34
  • September. Profit sharing bonus’s were paid this week25
    • represents pay-out of about $1.2M25
    • Paid the bonus’s inspite of union opposition and will not be asking workers for a refund25

2015

  • February. Federal Court ruled that controversial enterprise agreement approved by workers in 2013 was invalid27
  • 35 jobs created under the new EBA35
    • jobs are now directly threatened35
  • An independent economic report estimated the Beenleigh plant flow effects;35
    • contributes more than $360M in GDP to Brisbane region35
    • underpins more than 1800 full time equivalent jobs35
  • Teys Australia Beenleigh Ltd v’s AMIEU 2015
    • News article cites 600 workers to affected27
    • AMIEU claim 300 workers will have ‘fatter’ pay packets27
      • argued a ballot to pass the EBA included people who were ineligible to vote27
    • Federal court rule that company must return to 2010 agreement27
      • Higher skilled workers are paid more27
        • boners, slicers & slaughtermen27
          • payment is based on weight of cattle processed27
        • lower skilled workers would be worse off27
          • lower skilled will have a lighter workload27
      • 2013 agreement was to pay on hourly rate irrespective of how many animals processed27
      • AMIEU claimed Teys told workers they wanted a 20% increase in productivity without increasing pay27
        • Teys deny claim27
          • Tom Maquire – said the company can’t compete with overseas rivals unless it cuts labour costs and increases productivity27
  • Unions would now meet with Teys to negotiate new agreements.27
  • Decision in regards to the future of the Beenleigh plant was approaching31
    • Cattle herds were falling31
    • Tougher international competition from US and Brazil expected31
      • Australian Cost of Production (COP) $300 a head31
      • US & Brazil COP $16531
  • August. EBA dispute has been ongoing since 201332
    • Federal Court ruled that Fair work commission had made a wrong decision to back the union, it was entitled to make wrong decisions32
    • Means the 2014 EBA is now void32
      • 500 workers wouldn’t receive bonus of $4,500.32
      • Similar bonus’s in 2015 would also be lost32
      • Scheduled wage increases for the next 2 years are gone32
    • Now operation will be under the 2010 EBA where32;
      • current hourly rate will decrease32
      • every worker will be worse off by 12%32
    • Teys were working on a new plan to secure rises and bonus’s32

Sources

  1. Competition & Exit in Meat Processing. Agribusiness review Vol 7 1999
  2. ‘Gillard great carbon tax backdown – Off the Hook’ QLD Country Life 02.08.12
  3. ‘Processors ‘beef’ with carbon tax’ Nth QLD Register 06.9.12
  4. ‘Teys, T & R latest round of carbon abatement grants’ Beef Central 18.02.13
  5. ‘Teys wants union to ‘get real’ and negotiate to protect 800 jobs’ Beef Central 31.05.13
  6. ‘On the brink: Teys warns “reform, or more jobs will be lost’ Beef Central 31.05.13
  7. ‘Teys hold talks with AMIEU, as workers call for close to dispute’ Beef Central 12.06.13
  8. ‘Manufacturing on the brink’ Teys Media Release 29.05.13.
  9. ‘Cattle supply chokes’ NT Country hour. 14.07.11
  10. ‘Food processing labours under high wages’ ABC rural 07.06.13
  11. ‘Shut down Teys Beenleigh’ Petition. http://www.activism.com
  12. ‘Strike action taken by workers at Teys Bros abattoir in Beenleigh over wages’ Courier mail. 04.06.13
  13. ‘Teys: 800 jobs at risk as union rejects wages offer’ Beef Central 12.07.13
  14. ‘Teys’ Beenleigh workers petition directly for secret Ballot’ Beef Central. 22.07.13
  15. ‘Warning to Government and unions to enter “New age of Industrial relations” 09.10.13
  16. ‘Beenleigh profit sharing incentives blazes trail for meat industry EBA’s’ Beef Central 09.10.13
  17. ‘Teys: Workers want end to ongoing industrial dispute’ QLD Country life 13.06.2013
  18. ‘End to Teys dispute in sight’ Nth QLD Register 03.10.2013
  19. Job advertisement for 2 workers. Teys. 03.03.2014
  20. ‘Research partnership delivers new commercial technologies’ Feedback. March 2010
  21. 800 Beenleigh workers face pay cuts under AMIEU action. Beef Central. 07.03.2014
  22. ‘Union tells Teys to put-up or shut-up’. Beef Central 11.03.2014
  23. ‘Teys rejects union claim of EBA vote-rigging’. Beef Central 12.03.2014
  24. ‘Teys:Govt must take action’ Nth QLD Register 10.07.2014
  25. ‘Industrial relations: Beenleigh staff paid ‘ground breaking’ profit share cash bonuses’ Beef Central 04.09.2014
  26. AMIEU ‘The National Meatworker’ August 2013
  27. ‘Ruling finds controversial enterprise agreement approved by workers in 2013 was invalid’ The Courier-mail 12.02.2015
  28. ‘Teys Clashes with union over enterprise dispute’ The Bulletin 06.08.2015
  29. sub0095-workplace-relations
  30. ‘Fight over Teys EBA continues’ www.Farmonline.com.au. 07.03.2014
  31. ‘Teys looks at closing abattoirs’ www.farmonline.com.au 17.02.2015
  32. ‘IR system fails 800 Beenleigh meatworkers, says Teys’ Beefcentral 03.08.2015
  33. ‘Teys calls for greater IR reform’ www.farmonline.com.au 08.07.2014
  34. ‘Teys says AMIEU opposes its employee bonus plan’ Beef Central 25.07.2014
  35. ‘IR system “needs urgent overhaul” as court……” Beef Central 13.02.2015
  36. ‘Workers safe at Rockhampton and Biloela’s abattoirs’ The Morning Bulletin 14.07.2013
  37. Work-skills-and-training-2301-1

Mt Isa

Current Operation

  • Closed 19862                                       

Location             

  Australia. Mt Isa jpg          

Owner                 

  • AMH

Operation

  • QLD Meat Industry board operated and was responsible for co ordination of wartime meat production
  • Export2
  • Nominal Capacity 56,000hd per 50 weeks2

History                

1942  

  • Mt Isa Meatworks and cold storage facilities  built

1980

  • Over capacity of the meat processing sector had always been a chronic problem, but where previously it was due to seasonal factors now the problem was a direct result of management decisions during the late 1970’s (Pg 85, thesis)3

    • Chronic over capacity, undersupply of cattle and oversupply of labour requirements (Pg 117, thesis)3
    • Processing sector shed 15,000 jobs between 1980-1984 (Pg 117, thesis)3
      Entire export sector was regulated by the speed and skill of the production process (The chain and CanPak killing systems), bureaucratic control systems regulated the substantive and procedural rules (The tally and awards)(Pg 120, thesis)3
    • the only way forward for employers was rationalisation of the production capacity (Pg 120, thesis)3

1986

  • Australian Meat Holdings (AMH) – Four largest meat processors in Australia had decided to combine their resources(Pg 126, thesis)3
    • FJ Walkers (Wholly owned by Elders)3
    • Metro Meat Industries3
    • Smorgon Consolidated Industries3
    • Tancred Brothers3
      • combined assets $90M (Pg 127, thesis)3
      • Plan was to combine resources of QLD meat processing facilities, take over Mackay (then owned by Borthwicks) and Bowen plants. Establish the most suitable operating capacity for the new entity and then rationalise the remaining excess capacity (Pg 126 thesis)3
      • Borthwicks latter withdrew from talks but was latter taken over by AMH in 1987 (Pg 128, thesis)3
  • AMH principal objective was to rationalise capacity of its 9 abattoirs, so the remaining plants would operate near full capacity (Pg 128, thesis)3
    • two older plants immediately decomissioned (Pg 128, thesis)3
      • Authors note – think Cairns Abattoir ( QLD)  and Cape River were two of these plants.
      • By 1996 AMH had closed 5 of the 9 plants.(Pg 128, thesis)3

2011

  • July. NorthBeef Group formed to start feasibility study to investigate the availability of establishment of new processing works in western QLD4
    • Enormous swathe of Australian cattle country isn’t served by local meat processing facilities4
    • abattoir built locally could reduce trucking cattle long distances and provide alternative markets4
  • Past operations suffered due to inability to secure year-round supplies to maintain viable business4
  • High Australian dollar currently reducing price competitiveness of Australian boxed beef in key export markets4
  • Abattoirs closed in last 25-30 years – Pentland, Mt Isa and Cloncurry4
  • Wait time to have cattle processed in Townsville currently 4-6 weeks4
  • New operation
    • Need to process 500 head a day4
    • Possibly ship from Townsville4
    • Look at using 457 visas, fly in/fly out employees.4

Sources

  1. Competition & Exit in Meat Processing. Agribusiness review Vol 7 1999
  2. Employers & Industrial Relations in the Australian Meat processing Industry. P. O’Leary 2008
  3. ‘Producers examine northern meatworks concept’ Bee Central. 07.03.2014

Pentland

More commonly known as Cape River meatworks this facility was originally built by the army and developed into the 2nd largest meatworks in QLD in its prime. This plant at various times processed beef, sheep and horses. Finally owned by AMH, closed in 1989.

Other names

  • Cape River Meatworks3

Current Operation

  • Closed 19893

Location             

                   Australia. Pentland

 

Map -Pentland

Owner                 

  • Built by the USA Army  to supply canned beef1
  • Tancards (1945)1
  • AMH (1986)5         

Operation          

  • Was the 2nd largest meatworks in QLD1
  • Nominal Capacity 112,000 head per 50 weeks4

Pentland kill seasons 76-89_edited-1Adapted from chart – Kills and seasons from 1976.
Source Cape River Meatworks – Robyn Muller
Shaded area showing the period of operation of Pentland for each year.

chart, kills._edited-1Adapted from chart – Kills and seasons from 1976.
Source Cape River Meatworks – Robyn Muller
Slaughter rates while in operation of Pentland.

 

Other Abattoirs in operation in the region

Townsville -Stuart (QLD)

 

History of Pentland Abattoir               

1942

  • Captain Paul Gregory of the Australian Army was appointed officer in charge of the 2nd/1st Field Butchery. His role was to organise beef to be sent to the troops overseas.(Pg 3)5
    • Was instructed to find a suitable location for an abattoir in North Queensland.(Pg 3)5
    • Previously domestic slaughter was conducted at Charters Towers but the facilities there were unable to cope with the extra requirements of the army (Pg 5)5
  • Pentlands site on the Cape River was chosen due to abundance of high quality and volume of water.(Pg 2)5
    • Required rail and road access (Pg 5)5
    • Safe distance from the coast (Pg 5)5
    • Another site near Hughenden on the Flinders River had been considered (Pg 5)5
  • Army had a convalescent hospital in Pentland, allowed them to use the capable patients for light duties.(Pg7)5
  • Cattle supplying properties were able to keep the transport costs at a minimum as most animals were walked to the site for delivery (Pg 7)5
  • Building of the works site area began late in 1942 (Pg 5)5
  • Site was resumed from the “Thyra” property with no advance notice or compensation to the then owners of the area Alma and Harry Bode (Pg 5)5
  • 50,000 pounds was spent on the plant to date.(Pg 5)5

1943

  • February. Building of the actual works facilities begins (Pg 7)5
    • Facility was operational after only 4 months of construction (Pg 15)5
    • Was built with 2 ramps to accomodate sheep and cattle (Pg 14)5

Pentland 006_edited-1Source – Cape River Meatworks – Robyn Muller
Construction of the slaughter floor.

  • Freezer rooms first buildings to be erected with the bricks made on site.(Pg 7)5
  • Water – supplied by a piston pump in a concrete box under the sand in the Cape River (Pg 10)5
    • Storage of water was in 10 elevated iron 2,000 gallon tanks (Pg 10)5
  • Steam Power – Boiler room, built in 1910 came from a sawmill in Warwick (pg 10)5
    • Had 48 watertubes for heating (Pg 10)5
    • Fired by 6′ lengths of wood – called ‘cordwood’ (Pg 10)5
    • Used 7 tonnes of wood a day (Pg 10)5
  • Ice works – Water filled canisters that were immersed into tubs of brine and frozen overnight5
    • Able to produce several tonnes of ice daily5
    • Cannisters were 3′ X 2′ – weighed 100 pounds when frozen5
    • Ice was packed into the sides and ends of insulated rail cars5

Pentland 001

Source – Cape River Meatworks – Robyn Muller
Engineers store, workshop and ice works. Rail wagon and loop on the right

  • Digester was a single system (pg 57)5
  • Rail loop was built from the main line so wagons could be shunted off for loading.
    • Loading platform extended from the freezing rooms, 60 yards along the line.(Pg 11)5
  • Defence foodstuffs – Dept of Supply and Shipping. Issued a memeorandum to have the Cape River meatworks in operation by July 1943 (Pg 4)5
  • Townsville and district are finding the Armies drawing on food reserves extremely difficult.(Pg 4)5
    • Army required food supply, ice, water, electricity and firewood(Pg 4)5
    • Luxuries like lollies, softdrink, baby powder were virtually unobtainable (pg 4)5
    • Issue of meat was strictly controlled by coupons. (Pg4)5
  • Chronic shortage of domestic meat by 1943 had reached crisis point (Pg 5)5
  • Military call ups of young meat-workers caused a serious shortage of skilled labour (Pg 5)5
    • Exemptions and releases were allowed from the armed forces to increase production (Pg 5)5
  • May. Works facilities are completed (Pg 7)5
  • Initial engine installed, Crossley, was unable to supply sufficent needs (Pg 9)5
  • Ruston Engine was installed, Hornsby Diesel, Class5 VERE 275 KVA (Pg 9)5
  • Sept. 27th. The meatworks is officially commissioned by the Army (Pg 6)5
    • Operating unit is the 2/1 Australian Fd Butchering Coy. (Pg 6)5
  • From 20/08/1943 – 30/06/1944. Plant averaged 70 head per day.(Pg 9)5
    • 3 fifths were frozen for long distance (Pg 9)5
    • About 1,600 head, 262,590 pounds of meat in one month (Pg 9)5
    • Facility produced 339,685 KWH of power, used 33,127 gallons of fuel, 3,639 of oil and 440 tonnes of cord wood.(Pg 9)5

1944

  • May. Going rate for ‘fats’ 38 shillings per hundred – approximately 10-12 pounds per head (Pg 15)5
  • Cattle delivered on the hoof or by train (Pg 15)5
  • Processing procedure (Pg 15)5
    • Animal was stunned with a hammer in the knocking box5
    • Hind legs shackled and the throat cut, body hung to bleed.5
    • Body put back on the floor5
    • Body was marked down the neck, brisket, front legs, back legs and then the side5
    • Hide removed with a knife5
    • Body hung again to be fronted out (guts dropped)5
    • Hand saws were used to cut down the backbone of each body.5
      • Electric saws were not installed at this time5
    • Beef moved to chillers or freezer5
      • At this time all beef was sent  as bone in quarters5
      • If it was to be transported within a 700 miles radius the beef was chilled5
      • If it was to travel outside 1000 miles and onto ships it was frozen5
    • By products were all used (pg 16)5
      • Blood, bone and wastes were cooked and dried then supplied to Army vegetable farms5
      • Tripe was sent to hospitals in New Guinea where wood for cooking was scarce5
      • Hides were sent to Brisbane to be made into leather goods for the army5
    • Plant was used as a training centre to qualify slaughtermen to then be sent to other operational areas. (Pg 16)5
  • 20,000 pounds a year was spent on research of Buffalo fly.(Pg 16)5
    • Buffalo fly caused considerable damage to hides and affected the animals health (Pg 16)5
  • Pentland was only handling a minimal amount of beef. (Pg 16)5

1945 

  • August. Armistice was announced (Pg16)5
  • Shed was at very low production (Pg 16)5
  • Army had no further use for the facility and left it to the care of a caretaker.(Pg 16)5

1947

  • John Kelly  purchased the facility for 10,000 pounds. (Pg 18)5
    • Kelly was a sheep and cattle dealer.5
    • Established himself as a wholesale butcher who moved into meat export5
    • Largest exporter of beef after Vestey’s and Swift’s at the time5
  • Kelly also purchased the cold stores at Aitkenvale in Townsville. (Pg 18)5
  • There was a shortage of 44 gallon drums. Kelly purchased all the empty drums of petrol and avgas, numbering in the thousands from the wartime airstrips and used these to ship the tallow (Pg 18)5
  • Average kill was 80 head a day.5
  • Production was overseen by a Commonwealth meat inspector paid by the government (pg 19)5
  • Butchers, skinners and saw men were on contract (Pg 19)5
  • All other labourers were paid on tally (Pg 19)5
    • I was paid a wage of 6.96 pence per head. On a good week I could earn up to 10 pounds take home pay after tax” Jack Everett. (Pg 19)5
  • A Riverstone saw for cutting bodies was installed. (Pg19)5
  • All beef was processed to boneless quarters, placed in net stockings and then heshion bags. (Pg 19)5
    • The bags were sewn with twine to fit around the quarter5
    • Each quarter was marked as fore or hind and stencilled with the owners name5
    • Meat was stored in the Pentland freezers in stacks, then loaded to rail wagons and transported to Kelly’s coldstores in Townsville5
    • From Townsville to the port for export.5
    • Double handling was expensive and the season ended as an unprofitable operation.5

1948

  • New yards and crush for horse processing were built (Pg 19)5
  • Horses were slaughtered for pet food, fertiliser, hair, oil and hides. (Pg 19)5
  • Attempt to obtain an licence to export horse meat for human consumption. Was rejected. (Pg 19)5
  • Horses were being replaced by machinery. Heavy horses, donkey and brumby’s were processed.(Pg 19)5
  • Horse meat dressed was priced at 1 pound seventeen and 6 pence.(Pg 19)5
  • Processing and slaughter was carried out at ground level. (Pg 20)5
    • Carcasses were chopped into chunks, all meat, offal, bone and waste was dumped into a skip and taken to the digester (cookers)5
    • Dead horses from the yard and foals were also put into the digester5
  • Smell of the digester was terrible  and was even smelt in Pentland township 10 kms away.(pg 20)5
  • Cookers cooked overnight and the next morning water pumped into the bottom so the contents would rise (Pg 20)5
    • Horse oil (Neatsfoot oil) was pumped into 44 gallon drums.5
    • Remains in the digester were taken out, crushed and dried and bagged.5
      • some used as poultry supplement, most was fertilizer5
  • Hides were salted and stacked (Pg 20)5
  • Horse tail hair was tied in bolts and packaged.(Pg 20)5
  • Processing of the horses was not continuous and breaks frequently occured due to supply and weather. (Pg 20)5

1949

  • Liberal Government won office.(Pg 20)5
  • Kelly reapplied for an export licence for horse meat, was successful.(Pg 20)5
  • Meat works required a comeplete overhaul to restore it to export condition5
    • Refrigeration system was completely replaced.(Pg 21)5
  • Horses were shot in the crush before hoisting (Pg 23)5
  • New method of hide removal was used. (Pg 23)5
    • Bodies were anchored to the floor and the hide pulled upwards.5
  • Slaughtered approximately 80 per day (Pg 23)5
  • Bodies were cut into quarters and bagged (Pg 23)5
  • Horse meat went to London, Tokyo, The Hague and Europe.(Pg 20)5
    • Most meat went to Smithton in London and then resold to other countries.5
  • All orders and correspondence was placed and received via telegram (Pg 23)5
  • Friday was pay day, bankroll paid in cash. Approximate wage was 22 pounds per week (Pg 23)5
    • Board and keep were removed from wages5
  • AMIEU represented all workers.(Pg 24)5
    • Union ticket was 4 pounds per year5
  • Union ruling that one beast had to be killed after afternoon smoko to keep the ‘Tally’ artificially low and generate overtime payments (Pg 24)5
    • Ruling was not enforced Fridays. When worked always finished 1pm.5

1959

  • Rail bridge washed away in wet season (Pg 24)5
  • Pentland processes horses until this period (Pg 24)5

1960

  • New rail way bridge was built (Pg 24)5
  • Facility is not used for one year to avoid tetanus contamination from the horses (Pg 24)5

1961

  • Several graziers are convinced to submit large contributions to form a co-op to buy the facility by developers – This was revealed as a scam and it is unknown if the scammers were charged (Pg 24)5
  • Commences to kill cattle again (pg 24)5
  • Cattle prices were high and coupled with increased killing costs made the production uneconomical and killing ceased (Pg 24)5
  • Facility is offered for sale (Pg 24)5

1960

  • Tancreds inspect the Pentland facility5
  • Site was in a neglected state.5
  • Regarded as a superior site to another meatworks Tancred’s owned in Winton (Mainly a sheep processing facility (Pg 27)5

1962

  • Kelly sells Pentland (Pg 18)5
  • Tancreds purchase for 25,000 pounds. (Pg 27)5
  • Much of the Winton facility is demolished and transported to Pentland for refurbishment (pg 27)5

1963

  • May First kill occured.(pg 30)5
  • 29 head processed (pg 30)5
  • Slaughter area was same as when the army  and horses were processed.(Pg 30)5
    • Shoulder high cement enclosure with no gauze5
    • Stunning was still with a hammer5

Pentland 001Source – Cape River Meatworks – Robyn Muller

Slaughter floor in 1963.

Pentland 007_edited-1Source – Cape River Meatworks – Robyn Muller

Boning Room in 1963

  • Slaughter process (Pgs 30 & 32)5
    • Beast was stunned in knocking box5
    • Shackled and bled5
    • Bodies dressed by knives5
      • Gut was slashed and rinsed5
      • Offal packed and frozen5
    • Brains retrieved, used in the canteen5
    • Beef was hung in halves and sent to the 1st chiller overnight5
      • Seperation of Bull, Ox and Cow rails.5
    • Day after killed, sides quartered at the 3rd rib5
    • Quarter beef was table boned.5
      • Cuts went to slicers5
      • bones and scraps went into barrows to go to by-products5
      • slicers trimmed and shaped the meat into specialised cuts5
    • Women packers were behind the slicers.5
      • cleaned and stamped the meat with the shed stamp TANCRED 2235
      • Specialised cuts were boxed5
      • loose meat, shin beef was packed in specific boxes of 60 pounds.5
    • wiring machine wired the boxes with metal wire.5
    • Meat was graded. boxes labeled.
      • Blue – Oz – 1st grade5
      • Red – Cow – 2nd grade5
      • Black – Bull of mixed – 3rd grade5
    • Workers had to wash the boards and benches themselves and wash their own clothes.5
    • boning rooms were not air conditioned5
  • Boners were paid a tally on 52 quarters (Pg 34)5
  • All other labourers were paid wages (Pg 34)5
  • Managers residence was completed (Pg 35)5
  • Tancreds had a company truck they used to transport the cartons to the wharf from Pentland, in preference to using the rail wagons (pg 48)5
    • Tarpaulin was laid on the truck and cartons stacked, then covered with another tarp (pg 48)5
  • DPI office was a brick and concrete building (Pg 51)5
    • One state DPI was in attenance at all times.5
    • Duties was to oversee local affairs and stock inspections (Pg 51)5
  • Vets Office was located next to the DPI’s (Pg 52)5
    • American vet inspections visited annually and had very strict quarantine requirements (pg 52)5
  • Commonwealth meat inspectors attended to export affairs (pg 51)5
    • Inspectors travelled from Brisbane, 6 or 7 at a time to do 3 or 6 month stints (Pg 51)5
  • First aid officer was a worker in the offal room5

1964

  • Road Bridge over the Pentland river is constructed (Pg 15)5
  • Power lines were connected to Pentland in time for the beef season (Pg 34)5
  • Meatworks constructed a Hostel, Kitchen / Dining room facilities on site (Pg 36)5
    • Barracks could accomodate 50 men5
      • 2 man bedrooms5
      • Serviced daily5
    • Food and board was removed from wages5
      • average cost was 7 quid5
  • Boning & Brisket room could now be cooled to 50 degrees F with power connected (Pg 42)5
  • Quarters tables had 9 boners and 11 slicers (Pg 42)5
  • Women were employed more in packing sections (Pg 42)5
  • Refrigeration cooling system was direct expansion (Pg 45)5
    • Direct expansion cooling is a method using refrigerant gases, compressors and coils by pressurizing the contents reactions of hot and cold transfers can be utilised.5

 

1965

  • Eric Musk becomes part time manager of meatworks for Tancreds (pg 37)5
  • Slaughter floor almost completely rebuilt (Pg 39)5
  • Method of dressing the beef was changed.(Pg 39)5
    • still a straight rail system5
    • Bodies were hung for bleeding and stayed on the rail5
    • Stands were erected at different levels using air knives5
  • Still less than 100 head a day being processed (Pg 42)5
  • Boiler was converted to run on furnace oil.(Pg 45)5
    • Firebox was fitted with jets and blowers with electric connections.5
  • Vet employed full time at the meatworks (Pg 52)5

1966

  • Different wage system introduced – Everyone was paid tally and waiting time (pg 34)5
  • 20 commission homes were erected for familie of workers in Pentland.(pg 35)5
  • Full board at the Barracks cost $20 for one week (Pg 36)5
  • Sheep floor was built, Mainly equipment from Bourke (Pg 41)5
    • Tancred’s were accessing an Arab market (Pg 41)5
  • 2nd Boiler was installed, 72 watertube boiler that had been built in 1909 (Pg 46)5
  • Road transport was the preferred method of transport, Rail loop was pulled up (Pg 48)5
  • Laundry was built, prior to it being built and serviced the workers washed their own clothes (Pg 50)5

1967

  • Meatworks establish a recreation room that contained a darts and hooky board (Pg 36)5
    • In the 1970’s this room had to be converted to barracks to house extra employees (Pg 36)5
  • Eric Musk becomes full time manager for Tancreds (Pg 37)5
  • First sheep kill occured (Pg 41)5
  • Sheep slaughter process (Pg 41)5
    • Sheep slaughtered 10 at a time and hung on a ring frame on a rollar to be chilled overnight.5
    • For boning the sheep were taken off the ring, placed in pairs on another5
    • Sheep processed on a moving chain5
    • Boned out and bulk packed, then frozen5
    • Up to 2,000 sheep a day were slaughtered5
    • Pelts dried but had problems with contamination by flies5
  • Beef was still being processed. Sheep and Beef kill would occur on alternate days. (Pg 41)5
  • Beef processed still using the tables (Pg 41)5
  • Brisket room was converted to a load out area.(Pg 45)5
  • No. 3 Chiller was built (Pg 45)5
  • Slaughter floor efficency increased but the boning room couldn’t process all the beef (Pg 47)5
    • Tancreds purchased one third of the load out area at the Suter Pier and built a boning room (Pg 47)5
    • All bones and waste products were transported back to Pentland for processing through the By products (pg 47)5

1968

  • Sheep only processed for 2 seasons (Pg 41)5
  • Processing sheep wasn’t successful due to location and problems with excessive nodules in meat due to speargrass (Pg 41)5
  • No. 5 Freezer was extended and converted into 3 freezers (Pg 45)5
  • Water supply from bores had reached crisis point5
    • 2 new bores were drilled and 2 new concrete 10,000 litre tanks constructed (pg 49)5
  • First Aid room was built (Pg 50)5

Late 60’s

  • Cultivation paddocks were established beside and behind the meatworks for experimental strains of grasses (pg 47)5
    • Paddocks were flooded with waste water but the fat content was too high for the plants to survive5
  • Settling ponds were built to allow the fat to float to the top and the water to be pumped from underneath was purer for irrigation.(Pg 47)5
    • Dams on fire – fat was burned from the top of the dam5

1970

  • Mutton floor converted to ‘top boning room’.(Pg 42)5
  • Moving mutton chain converted to a side bonign chain which extended from the original lower boning room up a slope (Pg 42)5
  • Boning team was now 14 men, with 15 slicers, 15 labourers (Including 4 learners), 16 packers and 7 juniors who attending stamping and cartons (pg 42)5
  • Boning rooms now required by DPI standards to be a constant 10 degrees Celsius (pg 45)5
  • Ruston engine was still used as back up on occassion as the connected power was unreliable and blackouts could last for more than 24 hours. (Pg 45)5
  • By this time Tancreds had built no less than 25 butcher shops in and around QLD. (Pg 47)5
  • At this time 12 Commonwealth Meat Inspectors manned the shed (pg 51)5
    • Maintaining staff was difficult and locals were trained and passed Inspector exams (Pg 51)5

1972

  • 5 more homes were built in Pentland (Pg 35)
  • 2 Policemen stationed at Pentland to cater for influx of people (Pg 35)5
  • Cryovac machine was installed in the lower boning room for choice cuts (Pg 43)5

1973

  • A new boiler was installed, 5,000 KW (Pg 46)5

1974

  • First aid room is relocated  to a room under the boning room near the gut box (pg 52)5
    • room also served as the labaratory  for the fat content testing (pg 52)5
  • Slaughter floor extensively renovated – Moving chain was installed(Pg 39)5
    • Beaudesert had a similar installation5
  • Modernisation enabled women to be employed in boning room, trimming and ‘C’ grade positions (Pg 40)5

1975

  • Eric Tusk transfers to Townsville to manage the cold stores (Pg 37)5
    • Longest serving manager for Tancreds (Pg 37)5
  • Abbey Day becomes manager (Pg 38)
  • Freezer now handle 2,000 bodies a day with a 48 hour freezing duration to minus 10 degrees (Pg 45)5
  • Shortage of skilled boning room staff (Pg 55)5
  • Constructed a ‘learner boning room’ ready for the 1976 season (Pg 55)5
  • Hopper or fat and bone bin was installed5
  • Australia was in a severe economic crisis.6
    • Most severe since the Great Depression.6
    • Profits slumped and mass sackings followed with general manufacturing factory closure occurring.6
      • Unemployment in Australia reached 5%.6
    • Whitlam Labour government at the time, economic policy swung from expansion to reining in the ballooning deficit.6
      • government felt key to recovery was ‘healthy profits’.6
        • attacked dole bludgers, wage rises and militant unions.6
      • large scale protests occurred across Australia.6
      • Townsville 3 meatworks stopped work for the day October 24.6

1976

  • Boning room received newer and more modern machines as technology upgrades occured (Pg 43)5

1977

  • During peak operating season a severe water shortage occured due to a very dry year (Pg 49)5
    • September, rain and the river run, replenishing the bores.5
  • Pentland township also expericenced water shortages. (Pg 49)5
  • Council sunk a new bore south of the Cape River, this supplied the meatworks and the township (Pg 49)5
  • Two large Southern Cross tanks were built within the meatworks compounds.(Pg 49)5
  • Council paid $1M to install the bore, tanks and pipelines.(Pg 49)5
  • New storeroom and laundry were built (Pg 51)5
  • Old canteen, women’s amenities and first aid room became the DPI offices5

1978

  • Slaughter floor now operating a 22 man team, most of the time was 18 men operation (Pg 40)5
  • Record kill for one shift was broken within 24 hours 2 times (Pg 44)5
    • Rockland Downs  Cracker Cows 700 head slaughtered in one shift (Pg 44)5
    • Next day by lunchtime 444 head had been knocked and by end of shift 701 slaughtered, Cracker cows again from Rockland Downs. (Pg 44)Pentland 004Source – Cape River Meatworks – Robyn Muller

The ‘Knocking box’, Using a hammer to stun the beast. The man who did the knocking was so proficent he was called ‘One shot Huxley’ (Pg 30)5

  •  Government built a house for the state DPI
  • Commonwealth meat inspectors were housed in 2 homes allocated for their use (Pg 35)5
  • Another Boiler installed, 6,000 KW (pg 46)5
  • December. Abbey Day leaves position of manager (Pg 38)5
  • John Crawford takes over as manager (Pg 38)5
    • Had originally been a tally clerk and trained as a boning room foreman at the facility (pg 38)5
  • First aid room is moved (Pg 52)5
  • During the peak seasons loaded 3 containers and 3 trucks a day (Pg 52)5
    • 3,500 cartons.5
    • Capacity of each load up to 17,000kg5

1979

  • During the 70’s the township propered as a result of the meatworks (Pg 35)5
    • 30 new privately owned houses had been built in Pentland township5
    • Another 10 in Homestead township
    • Caravan park had 30 powered sites and 4 units, all were full.5
    • Caravan park was built near the facility and it was full to capacity5
    • State school enrolements was 74 children5
    • Local Swimming school was built5
    • Towns only hotel was renovated and thriving.5
    • 2 service stations operated5
    • Golf club and sports associations were established5
    • 4 race meetings were held each year5
    • Sutherland Park Rodeo was built and held an annual event5
    • in the early 70’s 2 grocery stores operated5
  • During the slack season of 79/80, 1,000 horses slaughtered (Pg 54)5
    • Bulk pack order going to Belgium for human consumption5
    • Order was completed in 6 weeks5
    • New sterilising and wash down equipment allowed the order to be processed without tetanus complications5
    • 2 scientists attended to take blood samples to study research into cancer5

Source – Cape River Meatworks – Robyn Muller

1980

  • Over capacity of the meat processing sector had always been a chronic problem, but where previously it was due to seasonal factors now the problem was a direct result of management decisions during the late 1970’s (Pg 85, thesis)2
  • Chronic over capacity, undersupply of cattle and oversupply of labour requirements (Pg 117, thesis)2
  • Processing sector shed 15,000 jobs between 1980-1984 (Pg 117, thesis)2
    Entire export sector was regulated by the speed and skill of the production process (The chain and CanPak killing systems), bureaucratic control systems regulated the substantive and procedural rules (The tally and awards)(Pg 120, thesis)2
  • the only way forward for employers was rationalisation of the production capacity (Pg 120, thesis)2
  • Charlie Ulett becomes manager of the meatworks (Pg 38)5
    • Had originally worked in the maintenance and freezers, moving on to become a quality control officer (Pg 38)5
  • 6 Rabbi’s came to Australia to oversee an order for a Jewish Kosher order (Pg 53)5
    • One lived in a home in Pentland to conduct the order5
    • They attended every beast themselves with a clean cut to the throat with a special knife from a packed case.5
    • Knife was cleaned and sharpened after every operation5
    • No shadow could fall on the beast which had to be slaughtered before midday5
    • Only bullocks or female forequarters were used.5
  • Suspected Tuberculosis and Brucellosis cattle were processed from the NT in 1981 & 1982 (Pg 54)5
    • Had been industrial stife in Katherine and the cattle were unable to be processed there.5
    • Those cattle tested positive to TB went down the hogger (Hammer and Mill that crushed bones)5
    • approximately 5% of the cattle were put through the hogger.5

Pentland 002Source – Cape River Meatworks – Robyn Muller

Pentland Meatworks (1980)
Far left, undercover stock yards, Main processing taller mid section leading to the freezers and loading docks. Far right is the laundry and storeroom

1982

  • Fewer than 15 men were using the hostel facilities at the meatworks (Pg 36)5
  • Many of the buildings were removed and relocated for private dwellings (Pg 36)5
  • Paul Herrod becomes manager of the meatworks (pg 38)5
    • Previously been a labourer then a foreman of the slaughter floor5
    • Herrod set a precedent in that he was not only the manager but also purchased the stock.5
      • set a patturn for future of how some of the Tancred meatworks operated in the future. (Pg 38)5
  • Format of the packing was changed (Pg 43)5
    • All rooms designed with all meat after leaving the slicer were placed on a moving belt5
    • Speicalised cuts retrieved and placed in cryovac bags5
    • Remainder of meat stayed on the belt to go to downstairs packers.5
  • DPI had very strict stipulations regarding the touching of meat and cartons.(Pg 43)5

1984

  • State school enrolments had risen to 84 children (Pg 35)5

1986

  • sold to AMH Kill cut back to 300 day AMH owned Stuart meatworks Townsville and Dinmore, cut back at Cape river to save freight to others.2
  • Paul Herrod remains as manager until end of the season (Pg 38)5
  • Australian Meat Holdings (AMH) – Four largest meat processors in Australia had decided to combine their resources(Pg 126, thesis)2
    • FJ Walkers (Wholly owned by Elders)2
    • Metro Meat Industries2
    • Smorgon Consolidated Industries2
    • Tancred Brothers2
      • combined assets $90M (Pg 127, thesis)2
      • Plan was to combine resources of QLD meat processing facilities, take over Mackay (then owned by Borthwicks) and Bowen plants. Establish the most suitable operating capacity for the new entity and then rationalise the remaining excess capacity (Pg 126 thesis)2
      • Borthwicks latter withdrew from talks but was latter taken over by AMH in 1987 (Pg 128, thesis)2
  • AMH principal objective was to rationalise capacity of its 9 abattoirs, so the remaining plants would operate near full capacity (Pg 128, thesis)2
    • two older plants immediately decomissioned (Pg 128, thesis)2
      • By 1996 AMH had closed 5 of the 9 plants.(Pg 128, thesis)2
  • Geof Tancred was elected as inaugural Chairman but by the end of 1986 withdrew and had no further involvement with the new company (Pg 63)5
  • AMIEU argued against the amalgamation, saying it gave the company unfair monopoly (Pg 61)5
  • AMH argued the downturn in markets made it a practical consortium (Pg 61)5
  • Downturn in overseas markets, American dollar, coupled with rise of interest rates many meat companies struggled to keep afloat (Pg 63)5

1987

  • Ken Johnson takes over managers position (Pg 38)5
    • Previously been a slicer, tally clerk, quality control officer and office manager.5
  • Slaughter floor mainly 12-14 men working on a daily kill of 250 head (Pg 40)5

1988

Pentland 001Source – Cape River Meatworks – Robyn Muller

Lower moving Belt, dated 1988

1989 

  • Last kill (Pg 38)5
    • 4 month season, only 22,694 head processed.5
    • Mainly American beef5
  • At time of closure all refrigeration relied on electricity and all heating was generated by furnace oil (Pg 46)5
  • Union membership ticket now costs $140 per year (pg 44)5
  • Ken Johnson transfers to AMH Stuart meatworks (Pg 38)5
  • September. Closed 22nd. (Pg 61)5
    • Lowest annual kill and shortest season in 20 years5
  • Long running battle between AMIEU and AMH begun (Pg 61)5
  • November. All maintenance staff had been paid off and only a caretaker remained.5

1990

  • Uncertainty if Pentland was going to reopen.(Pg 61)5
  • Public meetings engaged in heated debate regarding the shed future (Pg 61)5
    • AMH’s general manager, John Gunthorpe stated that at the time no decision had been made to close the works (Pg 61)5
    • People were told to prepare for the inevitable that it would close5
    • Petition was drawn up and placed at various businesses calling for government pressure to ensure the facility reopened (Pg 61)5
  • AMH and AMIEU urged state government and DPI to process Northern Territory cattle from BTEC to be processed at Pentland (Pg 62)5
    • letter published in the newspapers from AMH to NT Minister stating5
      • Offering Pentland facility to the NT to process NT cattle.5
      • 300 head to be processed a day5
      • resources from markets to go to the NT5
      • currently a heavy drought and acute cattle number shortages were occuring5
      • Without the NT cattle the Pentland abattoir would close.5
      • Would directly impact 400 people and 1,000 indirectly5
  • Survey of the area showed that 5,000 head were within 100km and readily available for slaughter (pg 62)5
  • April. Public meeting an announcement was made that Pentland would not reopen for the 1990 season. (Pg 62)5
    • reason given that there was not enough cattle available to process5
  • 20,000 head of cattle were entering QLD to be processed.5
    • DPI could not give preferential treament to Pentland to receive the cattle as other sheds had bid for the animals (Pg 62)5
    • AMH said that it’s Townsville shed had to be operating at maximum daily kill (650 hd) before they could consider re-opening Pentland (Pg 62)5

1996

  • Auctioneers were commissioned to inspect and catalogue the plant (Pg 64)5
  • March. 2 day auction, unreserved prices (Pg 64)5
    • Rumoured to have netted only $360,000 (Pg 64)5
  • Demolition company was commissioned to demolish the remaining buildings and plant.(Pg 64)5

 2014

17.10.2014 164_edited-1Photo – Jo Bloomfield October 2014
Pentland meatworks. The ramps leading to where the slaughter area would have been.

17.10.2014 165_edited-1Photo Jo Bloomfield October 2014
Pentland. The initial slaughter area floor with stock ramps to the left and frezer and processing rooms to the right

17.10.2014 172_edited-1Photo – Jo Bloomfield October 2014
Pentland. Inside the rooms that were directly placed after the slaughter area

17.10.2014 167_edited-1Photo Jo Bloomfield October 2014
The Freezer rooms and truck loading platforms.

17.10.2014 173_edited-1Photo Jo Bloomfield October 2014
Pentland. Looking from the Hides area to the main processing areas of the meatworks from the opposite sides of the building to previous photographs.
The Main ramp leads to the top level, of now removed structures. The ramp I am standing on leads to rooms for initial processing of carcase. Main boning and processing to the left out of picture

17.10.2014 168_edited-2Photo Jo Bloomfield October 2014
furtherest from the picture is the top level of where the cattle would have been slaughtered and undergone initial processing. The level I am standing on to take the photo is the where the boning and cutting facilities would have been. Freezers and chillers are located directly to the left.

17.10.2014 169_edited-1Photo Jo Bloomfield October 2014
Pentland. Inside one of the Freezer / chiller rooms. Large open doors at each end. Processed carcases came from the right. Loading docks to trucks were outside on the left.

Sources

  1. ‘North’s beef powerhouse’ Nth QLD Register. 22.11.12
  2. Employers & Industrial Relations in the Australian Meat processing Industry. P. O’Leary 2008
  3. ‘Cape River Meatworks, From Go to Woe 1942 -1989’ Robyn Muller
  4. Competition and Exit in Meat Processing. Agribusiness review Vol 7 1999
  5. ‘Cape River Meatworks – From Go to Woe 1942 -1989, and 10 years on’ Roby Muller.1999
  6. anu.edu.au-Whitlam sacking 1975

Cairns

Cairns (more commonly known as Queerah meatworks) was located in far north QLD received cattle from mainly north Australia, often by Barge from the NT and Normanton that had travelled from the gulf of Carpentaria. Began to export in 1950’s closing in 1989

Number of photographs kindly supplied by the Cairns Historical Society, a museum and library operated by volunteers.

Other names

  •  Queerah

Current Operation

  • Closed 19861
  • Others say 19894

P08210 (2)Source – Cairns Historical Society, 1952. Photo PO8210
The Cairns Meatworks

Location             

  • Skelton Creek, Cairns

Australia. Cairns. jpg

Map. Cairns 001Source – Hema Maps. Australia Truckies Atlas.

Owner                 

  • Amagraze. Director Fred Beaver (1962)3
  • AMH

Operation          

  • Export1
  • Nominal Capacity 110,000hd per 50 weeks1

History                

 1950

Queerah 1950.Source Cairns Regional Council. Dated 1950

Queerah Meatworks

  • Begun to export early 1950’s4

 1960’s 

  • 1st loading 6th June 1960.Ships – Irene Clauser ,  Inger Clausen – coasters – length of 50m, shallow draft, carry 200-250hd1
  • Clara Clauser – specifically built for Gulf trade, larger but shallower draft of only 1.8m, carry 800-1000hd1
  • Involved in shipping cattle Gulf of Carpentaria around Cape to Cairns, otherwise cattle had to be walked 3500km to east coast, ships took 5 days1
  • Burketown, Karumba & Normanton – shipping from these regions to Bowen and Cairns. Govt paid a 3 pound freight subsidy3
  • Earlier service operated by barge Wewak, owned by Marine contracting and towing company1pg 72

p04059 (2)Source – Cairns Historical society. 1963. PO4059
Winners of the Queerah meatwoeks carcass competition Cairns Show

1962 

  • Isla Clauser – replaced Inger Clauser  and Irene Clauser, to be replaced by Ida Clauser3
  • At this time Cairns (Queerah) was most modern meatworks in the southern hemisphere5
    • Had first continuous chain – carcase kept moving along the line, once it started5
  • July. Meatworkers strike5
    • 13 boners including union president had been sacked for go-slow5
    • Industrial commission and Conciliation commission directed men’s re-employment as boners – they were but with union predisent as a trimmer, reducing wage by half5
    • Company refused to give preference to union workers of  AMIEU5
    • Union called stop work. – 41 employees including union president dismissed5
  • 100 graziers moved in to keep works operating – came from Cape York, Gulf, Hughenden, Alpha and Warwick5
    • mainly used to bone due to backlog of meat5
  • Boners earning 60-65 pounds a week, strike wanted 5 more5
  • Strike went for about 10 days5

1970’s

  • Cairns Harbour board Installed large Freezers at the Number 1 wharf to store meat in cartons for direct loading to the ship4

p04048 (2)Source – Cairns Historical Society. c1970

Loading export meat from the Queerah meatworks at Cairns wharf

1975

  • Ida Clauser supported Gulf trade to about this year3
  • Clara Clauser – larger, shallow draft built specifically to navigate shallow north Australian rivers3.

1980

  • Over capacity of the meat processing sector had always been a chronic problem, but where previously it was due to seasonal factors now the problem was a direct result of management decisions during the late 1970’s (Pg 85, thesis)5

    • Chronic over capacity, undersupply of cattle and oversupply of labour requirements (Pg 117, thesis)5
    • Processing sector shed 15,000 jobs between 1980-1984 (Pg 117, thesis)5
      Entire export sector was regulated by the speed and skill of the production process (The chain and CanPak killing systems), bureaucratic control systems regulated the substantive and procedural rules (The tally and awards)(Pg 120, thesis)5
    • the only way forward for employers was rationalisation of the production capacity (Pg 120, thesis)5

1986

  • Australian Meat Holdings (AMH) – Four largest meat processors in Australia had decided to combine their resources(Pg 126, thesis)5
    • FJ Walkers (Wholly owned by Elders)5
    • Metro Meat Industries5
    • Smorgon Consolidated Industries5
    • Tancred Brothers5
      • combined assets $90M (Pg 127, thesis)5
      • Plan was to combine resources of QLD meat processing facilities, take over Mackay (then owned by Borthwicks) and Bowen plants. Establish the most suitable operating capacity for the new entity and then rationalise the remaining excess capacity (Pg 126 thesis)5
      • Borthwicks latter withdrew from talks but was latter taken over by AMH in 1987 (Pg 128, thesis)5
  • AMH principal objective was to rationalise capacity of its 9 abattoirs, so the remaining plants would operate near full capacity (Pg 128, thesis)5
    • two older plants immediately decomissioned (Pg 128, thesis)5
      • Authors note – think Cairns  and Cape River abattoir (QLD) were two of these plants.
      • By 1996 AMH had closed 5 of the 9 plants.(Pg 128, thesis)5

1989

  • Closed4

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. ‘The Australian Live Export Trade’ Nigel Austin.
  4. Cairns Historical Society.
  5. Employers & Industrial Relations in the Australian Meat processing Industry. P. O’Leary 2008
  6. ‘Queerah Meatworks strike’ North QLD register 17.10.2013

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’ http://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. http://www.greenham.com.au Accessed 13.11.2013
  8. ‘Delay in works at Tongala abattoir’ http://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’ http://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’ http://www.greenham.com.au
  18. ‘Australia: Blue Ribbon meats to go into voluntary administration’ http://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. http://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. http://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’ 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

Information Source

Photographs

Photographs are all labeled as to original source and ownership.

Reuse of the photos from National and state libraries must be sought from the respective institutions.

Photos that are watermarked http://www.cattleproducer.wordpress.com must not be reused unless prior permission is sought. All these photographs are digimarced with electronic signature and are encryped.

 

Maps

All Road maps are copied from the following

Hema Maps – Australia Truckies Atlas. Most have been resized and do not have relevant scale attached.

 

Newspaper articles

If you wish to follow up further information on these articles a google search using the name of the article and source should enable a retrieval of the information through the internet.

Ross River

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