Cygnet

Australian Abattoirs, Beef processing abattoir, Cygnet, Goat processor, Sheep processing abattoir, Small species abattoir, Tasmania 04/01/2014 Leave a comment

Other Names

  • Cradoc Hill
  • Cradoc Blue Hill abattoir

Current Operation

  • Currently operating at time of writing 03.01.2014

Location   

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

Australia. Cygnet

CygnetHema Maps – Australia Truckies atlas.

Owner

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

Operation   

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

History

2009

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

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

2011

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

2013

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

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

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

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

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

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

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

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

Sources

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

Cooee

Australian Abattoirs, Cooee, Tasmania 29/12/2013 Leave a comment

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

Other Names

  • Cooee Point

Current Operation

  • Closed – fire burnt processing and packing facility in 20121

Location   

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

Australia. Cooee

CooeeHema Maps – Australia Truckies atlas.

Owner

  • Wendy Gee1

Operation   

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

History

1992

  • facility had been in operation before this time1

2012

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

Sources

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

Devonport

Australian Abattoirs, Beef processing abattoir, Devonport, Sheep processing abattoir, Tasmania 29/12/2013 Leave a comment

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

Other Names

  • North West Rendering8
  • Devonport City abattoir.

Current Operation

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

Location   

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

Australia. Devonport

DevonportHema Maps – Australia Truckies atlas.

Owner

Operation 

  • Multi species abattoir located ajacent to Devonport saleyards1

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

History

1977

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

1980

  • Meatworks operation began9

1995

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

1997

  • Expanded rendering works.5

2000

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

2001

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

2002

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

2003

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

2004

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

2005

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

2006

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

2008

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

2011

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

2012

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

2013

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

Beef central 27.09.2013 logo

Great Southern Logo. Source Beef Central 27.09.2013

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

2014

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

    JBS plants 2014_edited-1

    JBS processing plants in Australia

    Source JBS submission #50 Market Consolidation.

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

    2015

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

 

Sources Devonport Tas. JBS

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

Cressy. #19. Tas.

Australian Abattoirs, Beef processing abattoir, Cressy, Halal export accredited, Sheep processing abattoir, Tasmania 28/12/2013 Leave a comment

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

Other Names

  • Tasmanian Quality Meats

Current Operation

  • Currently operating at time of writing December 2013.

Location   

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

Australia. Cressy

CressyHema Maps – Australia Truckies atlas.

Owner

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

Operation

  • Processes and send lambs to export3

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

  • Skins salted and sold3

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

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

Other abattoirs in Australia

Go to this link to view Location of Australian Abattoirs

abattoirs_edited-1   

History of Cressy #19.

1997

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

2001

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

2003

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

2004

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

2010

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

2011

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

2012

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

2013

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

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

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

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

2017

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

 

Sources

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

Cowra

Australian Abattoirs, Cowra, New South Wales 27/12/2013 Leave a comment

Cowra abattoir is located about 250km west of Sydney, it is currently operating but not export registered. It was export registered in 1997 as a pig processing facility only.

Other Names

Current Operation

  • Is currently operating at time of writing 27.12.2013.

Location   

  • Cowra is located approximately 250km west of Sydney

Australia. Cowra

CowraSource – Hema Maps – Australia Truckies atlas.

Owner

  • David Mulligan – Up to late 20063
    • sole director
  • Chris Cummins ( 2007)

Operation   

History

1928

  • Discussion in town to establish abattoir

1966

  • Public meeting was held to discuss abattoir establishment. 250 people attended.
    • Decision to form company
    • 50% capital raised locally rest from Sydney company

1970

  • Abattoir commenced operation

2006

  • April. Workchoices legislation came into effect March 27th – Abattoir wanted to shed 29 workers, on the promise of taking back 20 under the federal award1
    • 16 beef and 13 pig slaughtermen told to finish up May 51
      • Managers Letter to workers1
        “We deeply regret this situation: however, given the current economic conditions we must take this action to ensure the ongoing viability of the abattoir” Ray Petterson Cowra abattoir manager.1
      • Abattoir wanted to amalgamate it’s pig and cow processing teams – reason gave for sackings.8
    • One slaughterman quoted his wages prior were $880 per week Federal award would be $580.1
    • had been prior enterprise agreements in place – it was being removed 12 months ahead of schedule.1
    • 22 workers offered jobs – would be paid less than before dispute but more than initially offered by abattoir, remaining workers offered redundancies.8
  • July. Federal Government workplace watchdog found – “Employers can sack workers and rehire them on lower pay and conditions in order to secure their company’s financial viability” Nicholas Wilson – Office of Workplace services director2
  • Abattoir backed down and took back the workers on the same original pay3
  • August Business was shut down and administrator appointed3
    • 200 workers told there was no money to pay their entitlements3
      • workers owed $2.8M – annual leave, long service leave4
    • Collapse of sale negotiations worth $8M3
  • September – Investigation into transfer of $2M moved between companies uncovered by administrator4
    • David Mulligan transferred $1.7M to another of his companies PD Mulligan Holdings4
    • last transaction nearly $1M transferred only weeks before closure4
    • Company had entered into uncommerical transaction aware that PD Mulligan my not have been able to repay4
    • Company may have also traded while insolvent4
    • Creditor – National Australia bank – owed $1M4
      • Liquidator – Frasers Insolvency said PD Mulligan a guarantor of the NAB loan, had discharged the abattoirs debt to NAB and now held the mortgage over the abattoir7
      • Instead of NAB being 1st mortgagee, now PD Mulligan was,7
      • Bank was charging 18% interest, PD Mulligan was charging 8%7
      • The bank charge was enforcable but before employee entitlements7
        • AMIEU advising members to vote against proposal of Frasers to take over administration of PD Mulliagan as there would be a conflict of interest – firm acting as liquidator of abattoir and administrator of priority creditor7
  • December – Liquidators announced they entered into agreement for facility to be sold $2M and reopen early 20073
  • Local businessmen behind purchase – Stock buyer Chris Cummins and local businessman George Kollas.
  • Possibly able to offer 120 jobs if re-open in February 20075
  • Plan to slaughter sheep, lambs, cattle and pigs at the plant and supply meat locally and to Sydney, Canberra, Southern Highlands, South Coast and Newcastle markets5
  • Other buyers had been considered but primarily interested in selling off abattoirs assets5

2012

  • June. upgraded facilities to improve animal welfare6
  • Installed surveillance cameras – $15,0006
  • Installed a head restraint to assist when stunning cattle with bolt stunner.  cost $150,0006
  • Pigs are gassed using carbon monoxide6
  • Operator of the facility at this time – Chris Cummins6
  • Chris Cummins wants animal welfare rules in Australia to go further to make it harder for the meat works with low standards (to operate)6
  • Cowra abattoir supplies 300 restaurants and butchers making it the largest domestic meat wholesaler in the state.6
  • July – Carbon tax starts – will make kill fees 5-6% greater9
    • Independent pricing and regulatory Tribunal (IPART) says electricity prices could rise by 18%, hald of rise attributable to the carbon tax.9

    Chris Cummins comments 25.12.13._edited-1Source NSW Business Chamber Comments by Chris Cummins

2015

  • February. National Sheep health monitoring project is begun
    • Provide information on diseases and conditions detected on the slaughter floor of abattoirs
    • Provide sheep producers with feedback
      • Provide information on conditions such as grass seeds, pleurisy, arthritis and sheep measles
      • Conditions requiring trimming at the abattoir include sarcocystis, rib fractures, cheesy gland and vaccine lesions

Sources Cowra. #3173

  1. ‘A lot of beef about for abattoir workers’ SMH 04.04.2006
  2. ‘Watchdog clears Cowra abattoir over sackings’ The Age 08.07.2006
  3. ‘Cowra abattoir set to re-open’ http://www.news.com.
  4. ‘Cowra abattoir owner faces investigation’ ABC Online 11.09.2006
  5. ‘Locals to save Cowra abattoir’ The Land 28.12.2006
  6. ‘inside the kill room at the Cowra meat works’ http://www.abc.net.au. 11.06.2012.
  7. ‘Abattoir boss in dash for cash’ The Telegraph 04.10.2006
  8. ‘Jobs on lower pay for Cowra workers’ The Advertiser 15.06.2006
  9. ‘Chris Cummins on Cowra abattoir on the carbon tax debarcle’ Meat trade News daily. 07.07.2012
  10. ‘Politics in Place- Social power relations in an Australian country town’ Ian Gray. Pg 38
  11. http://www.theland.com.au/story/3381290/thinking-outside-the-slaughter-box/?cs=4963#!. 10.11.2014. See Cootamundra
  12. http://www.farmonline.com.au/story/3380028/abattoir-surveillance-lifts-sheep-health-profits/. 24.02.2015
  13. http://www.farmonline.com.au/story/3376282/bush-towns-welcome-syrian-refugees/. 24.09.2015
  14. http://www.theland.com.au/story/4924111/passing-of-meat-industry-identity/. 15.11.2016
  15. http://www.theland.com.au/story/4924111/passing-of-meat-industry-identity/. 15.09.2017

Guyra

Australian Abattoirs, Guyra, New South Wales 24/12/2013 Leave a comment

Other Names

Current Operation

Location   

  • Guyra is located 35km North of Armidale in NSW. Armidale is approximately 460 km North of Sydney

Australia. Guyra

GuyraHema Maps – Australia Truckies atlas.

Owner

  • DR Johnston Group Pty Limitied1
    • Other articles say DA Johnston Pty Limited4
  • Australian Meat Holdings4

Operation   

History

1960

  • NSW government closed all government owned small slaughterhouse facilities that didn’t meet hygiene and inspections standards.3

1965

  • NSW Government built Guyra abattoir as a central facility for the areas meat processing needs3
    • Operated as New England Abattoir Council4
    • Finance was entirely from loan funds $1.83M3
    • abattoir didn’t trade in meat on its own behalf but service kill – cattle, sheep, pigs3

1971

  • Estimated cost of processing one head of cattle is equivalent to 8.3 sheep or lambs or 6.9 pigs.3

1977 – 1981

  • Meat and Live-stock Corporation estimate that between 1977-19813
    • Cattle capacity utlisation declined from 84% to 60% nationally3
    • Declined cattle capacity utilisation in NSW alone 92% to 58%3
    • Sheep capacity declined from 83% to 66% nationally3
    • Declined sheep capacity utilisation in NSW alone 86% to 77%3
    • Between 1977 – mid 1981 22 abattoirs ceased operations.3

1981

  • Following several months unprofitable operations the abattoir was ‘mothballed’3
    • mothballed is term used to keep maintenance and requirements on repairs on facility up to date but not actually processing any animals.
  • Ceased trading in February due to drought4
  • 150 people lost jobs caused Guyra unemployment to go from 0% to 13.3% by July4

1983

  • Guyra unemployment by March 27.4% – highest unemployment figure for a NSW country town4

1985

  • State government waived about $6M of the debt accumulated (Total debt was nearly $7M at the time of sale) – on condition that licence to slaughter was surrendered.3
  • Abattoir was sold to new owners for $0.8M3
  • Purchased by AMH, abattoir was export registered at the time (Pg 126)
  • Private ownership – abattoir reopened – again as a service facility3
  • March – Abattoir re-opened DA Johnston Pty Limited4

1988

  • Previous 3 years – plant had substantial investment of capital (Pg 126)
  • AMH approached their banker – Hong Kong Banking Corporation for a partner (Pg 126)
  • AMH entered into 50/50 partnership with DR Johnston to operate the abattoir (Pg 126)
    • DR Johnston were a trading house that ran grain, stockfeed, protein meals & fishmeal, aswel as 5 different meat trading businesses

1991

  • Note – Article cites that Guyra came to AMH in 1991 from ConAgra (Pg 130)

1993

  • abattoir closed for its annual Christmas close-down1

1994

  • workers meant to resume work in January but unavailability of stock led to period extension 1 week.1
  • February. 25th – further shortage of stock and a close-down for six weeks until re-opening 14th April 19941
    • Employees remained on the books but didn’t receive pay.1
    • Some workers seeked employment elsewhere while abattoir closed1
  • June. 9th 220 people stood down1
    • accepted that period of this closure – 17 weeks between June 94 and October 94 was a seasonal closure in respect of the meat industry arising out of a shortage of stock1
  • October. 10th. plant reopened but on a reduced scale slaughtering beef1
    • Half of dismissed employees offered re-employment1
      • 27 didn’t accept1
  • AMH frustrated by what it saw as unproductive and inefficent industrial practices, began a process to change the working arrangements in its plants (Pg 128)
    • Restricted production to minium tally and temporily closed some plants – Guyra was the 1st (Pg 128)
    • AMH said to have budgeted $30M to ‘break’ the unions, by 1996 the estimated cost was $70M (Pg 126)

1995

  • Guyra abattoir taken to Industrial relations commission of NSW by AMIEU1
    • dispute over severence pay and entitlements to people who didn’t take up employment when plant reopened. October 19941
  • House prices in Guyra dropped $15,000 day of abattoir closure, some brick homes were being sold for under $30,0009

1996

  • Guyra as considered a marginal operation, it was closed.(Pg 126)
    • Killed only 21,427 for the year. Never worked again after this (Pg 130)
  • Australian Meat holdings now owned Guyra4
    • AMH controlled by big US rural commodities trader – ConAgra, a major exporter from North America10
    • AMH accounts for 16.5% of Australia’s beef kill.10
    • currently owns another 8 facilities but will be consolidating to 5 and closing Beaudesert (QLD), Guyra and Portland (Vic)4
      • others owned Dinmore, Townsville, Rockhampton and Aberdeen10
          • Author note – not sure of 8th.
      • Intended that 300 jobs would be replaced at Dinmore when expansion completed there10
    • AMH intend to invest in larger more efficent plant – Aberdeen abattoir (NSW)
      • Aberdeen closed in 1999 – reasons cited as stock shortages5
        • AMH closed Aberdeen to send all cattle to Dinmore abattoir (QLD) – Even with added cost of cartage costs of processing were still $14 per head/cattle cheaper processed in QLD than NSW6
  • Guyra – Early in 1996 enterprise agreement was reached – first of its kind in Australia4
    • strenuously opposed by AMIEU and employees from other abattoirs4
    • Guyra employees entered agreement to protect jobs and allow abattoir to be viable4
  • AMH had fought intense battles with meat industry unions to introduce workplace agreements warning that AMH “..had long warned the Australian meat processing industry needed to significantly increase it’s international competitiveness”  Kieth Lawson AMH CEO.10
  • Up to half the states (NSW) 56 abattoirs could close with the loss of up to 5,000 jobs in country NSW due to industry rationalisation.2
    • outdated and inefficent abattoirs could follow Guyra2
    • Industry observers say beef export abattoirs – Wingham, Mudgee, Gunnedah and possibly Inverell are most at risk2
    • Administrators had been appointed at Blayney abattoir (NSW)2
      • Blayney closed 1998 – stock shortages cited but observers say economic factors7
    • Newer and efficent plants expected to survive – Young, Gundagai, Calcairn, Cootamundra and Harden2
    • Others that had recent capital investment should survive – Goulburn, Dubbo2
      • these had provided benchmark for state beef processing of efficency gains necessary2
      • Niche market suppliers would likely survive – Casino abattoir (QLD). Lismore2
    • Industries fundamental problem – lack of plant investment due to price wars2
    • USA had taken Australian market share Japan, Korea and Taiwan2
      • Cattle prices had slumped in the last six months (First half of 1996)
    • Live export was sending 500,000 cattle to Indonesia and Philippines2
    • Gunnedah abattoir was receiving stamp duty concessions that no other plants were getting.2

2001

  • Guyra abattoir site being developed for rabbit farming enterprise8

Sources

  1. DR Johnston Group Pty Ltd (Guyra abattoir) and W Archer & 219 Ors (1995) NSWIRComm 172 (31st August 1995)
  2. ‘5000 jobs at risk: abattoirs facing closure SMH 21.05.1996. www.abattoirs.com.au
  3. ‘Short run costs and throughput variability of a NSW abattoir’ Piggott, Small 1987
  4. ‘Guyra abattoir closure’ Mr Raymond Chappell 15.05.96 http://www.parliment.nsw.gov
  5. http://www.parliament.nsw.gov.au/prod/parlment/hansart.nsf/V3Key/LA20020314031
  6. ‘State rules shut abattoir’ The Land 06.07.00
  7. ‘600 sacked workers given just a weeks pay’ Sydney morning herald. 10.03.1998. http://www.abattoirs.com.au
  8. ‘Guyra man killed in forklift accident on abattoir site’ Northern daily. 07.06.2011.
  9. ‘Guyra’s comeback faces further hurdles’ Landline 12.10.2003
  10. ‘US Beef exporters force three abattoirs to close’ SMH 15.05.1996

Cranbourne

Australian Abattoirs, Cranbourne, Victoria 23/12/2013 Leave a comment

Cranbourne abattoir (Wagstaff) is located SW of Melbourn, extensively damaged by fire in 2013, multi species plant employing 250 people.

Other Names

  • Ralph’s Family abattoir2
  • Wagstaff abattoir2

Current Operation

  • fire extensively damaged the facility March 2013 – Not sure of current operation.

Location   

  • Cranbourne is a south western suburb of Melbourne, approximately 35km from the CBD.

Australia. Cranbourne

Cranbourne

Hema Maps – Australia Truckies atlas.

Owner

  • Ralph founding family members.2

Operation  

  • Two tier export licensed plant2
  • Has capacity to process 300 cattle and 2500-3000 sheep a day2
  • Employed 250 people2
  • provided service kill and boning program for local producers and suppliers.2
  • Multi species processing abattoir2

History

1908

  • Established to service the growing population of Melbourne.2

2006

  • Chronic labour shortage in meat industry and meat processors are accussed of using 457 temporary visa programs to bring in skilled labour but underpaying and using the people for other work positions.1
    • Visas granted to industries nationwide (not only meat processors) jumped 40% from previous year.1
    • Freeze was placed on 457 Visa applications to meatworks by Government over concerns of breachs of conditions. – Delays are said to be hampering meatwork operations1
      • lack of employees have some processors throwing product away rather than be processed due to lack of labour and is causing missed opportunities in export markets1
    • 457 Visa means worker must stay with employer for 4 years, Meant to meet criteria of skilled slaughtermen and only used for that position, not as unskilled labourers, boners.1
    • Recruitment companies find the workers and match to employer, usually the employer finds accommodation and deducts rent and travel from workers salaries – AMIEU claim exorbitant rents are being charged1
    • Union complaining that 457 Visas workers. “Workers who are being brough into Australia are in many cased being exploited.are being abused , and not being paid correctly and being misued at work” Graham Bird AMIEU1
    • Cranbourne employ 20 Chinese workers – they are bussed to the abattoir from homes rented by the company, all 457 visas. – Cranbourne say its operations all above board1
    • Murray Bridge abattoir (SA) subject of Government investigation of if 457 Visa holders are doing other jobs.1
    • Western Australia had 36 Investigations, 80% of employers found to be in breach of conditions and WA department of employment protection recovered $200,000 in underpayment of wages (Authors note – article didn’t specify if across all industries or only meat processing)1

2008

  • Operations changed and Ralph’s Meat company spilt – one extension taking over Cranbourne facility (Operates as Wagstaff)  and the original company operating a another abattoir at Seymour (Operates Ralph Meat Co)2

2013

  • March. Fire caused extensive damage to approximately 60% of the building2
    • Thought to have begun as an electrical fire in the roof.2
    • Insulation used in refrigertion make abattoir fires notoriously hard to control2
    • Sheep and cattle  were penned in close proximity to the building on fire, they were able to be moved but 2 sheep died from stress.2

Sources

  1. ‘Meat Industry accused of exploiting foreign workers’ ABC 7.30 report 31.07.2006
  2. ‘Fire guts Victoria’s Cranbourne meatworks’ Beef Central 25.03.13

Pakenham

Australian Abattoirs, Pakenham, Victoria 23/12/2013 Leave a comment

Pakenham abattoir is located in Southern Victoria and is the one of the largest export abattoirs in Southern Australia. Processing high quality grass and grainfed beef.

Other Names

  • G & K O’Connor’s

Current Operation

  • Operational – As at time of writing. 23.12.13.

Location   

  • Pakenhan is a south eastern suburb of Melbourne

Australia. Pakenham

Pakenham

Hema Maps – Australia Truckies atlas.

Owner

  • G & K O’Connors1
    • partially Japanese shareholding1

Operation   

  • One of the largest export abattoirs in Southern Australia1
  • Employs 300 people1
  • Processes high quality grass and grainfed beef1
  • exports approximately 70% of production1
  • supplies to markets Halal, EU, China and Japan1
  • Sells product under number of brand names including O’Connor1
  • Sources majority of supply from Gippsland region, east and north of Melbourne.1

History

1977

  • Established1

2013

  • Amendment C176 to the Cardinia Planning Scheme allow future expansion of the abattoirs site and security due to other infrastructure planned by govenernment including roads and access.

Sources

  1. ‘O’Conner gets land use approval for future development’ Beef Central 23.12.13.
  2. ‘$315 million boost for Pakenham abattoir’ Edward Donohue. Member for eastern Victoria. 25.02.13.

Kilcoy

Australian Abattoirs, Kilcoy, Queensland, Southern QLD 06/12/2013 Leave a comment

Other Names

Current Operation

  • Currently operating as at December 2013.

Location   

  • 120 km NW of Brisbane in Brisbane valley

Australia. Kilcoy

Kilcoy 001

Hema Maps – Australia Handy Map. 9th Edition

Owners

  • Kilcoy Pastoral company1
    • CEO – Tony Munns appointed 1999, succeeded by David Foote.1
  • Harmony Investment fund – Singapore based – Harmony Capital management3
    • Harmony purchased in 20074
  • Pacific Alliance Group (2012)3
  • New Hope Investment Fund – Chinese4

Operation   

  • Marketing strategy – Naturally Identified, Safe environment (NISE) Beef export program1
  • Dedicated grainfed, export focussed plant.3
  • Capacity to process 285,000 head per year3
  • Employed 750 staff (as at 2012)3

History

Year

1950’s

  • First established by Kennedy Family4

1999

  • Appointed new CEO – Tony Munns1

2002

  • Major improvements epected to provide 10% production boost and 50 full time jobs.2
  • Currently employing 340 people (plus the extra 50 to add)2

2003

  • Volume had increased through the plant by 35% to same period in previous year.2
  • Further Funding provided by Federal Government – Dairy Regional Assistance Program $880,0002
    • Further enhance production capacity and improve efficiency2
    • Improve primary freezer capacity, improve ability to process by products and improve the standard and quality of effluent disposal2
  • Previous 12 months had been difficult in world markets2
  • Target Pacific Rim countries in particular Japan and Korea2

2007

  • Harmony Capital Management’s Harmony Investment Fund4
  • Throughput for 2007 was 54,000t carcase weight, 160,000 cattle.5
    Note by author (Jo Bloomfield) if average yield is 337.5kg, estimate live weight processing 52% dressed Is approximately processing animals live weight 650kg.

2009

  • Australian Agriculture Co’s largest shareholder – IFFCo flag interest in purchasing abattoir5
    • Would be acquired by IFFCo under assigned put-and-call option – allows later transfer of ownership to AA Co5
    • IFFCo is large international red meat processor – killing 10,000 buffalo daily in India5
    • AA Co considering cost-benefit studies of owning meatworks as adjunct to branded beef business5
      • Currently utilises service kill at Grantham and occasionally at Casino5
  • Kilcoy provides strong marketplace competition against larger players Swift and Teys grainfed cattle processing5
  • Kilcoy is has current kill capacity 570 head a day, single shift, seven day operation5

2011

  • Processed 250,000 head, emplyed 750 staff.3

2012

  • Harmony Investment Fund – had owned a majority share of 80% sold to Pacific Alliance Group3

2013

  • Chinese investment fund – New Hope Investment fund purchase facility4
    • Purchase price about $80M6
    • one of the biggest operators of feedlots in China4
  • Kilcoy Abattoir is currently fourth largest abattoir in Australia4
  • Is currently processing 265,000 grain fed cattle a year4

2015

  • 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

    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

 

Sources

  1. ‘New Heads for Kilcoy, ACC abattoirs’ QLD Countrylife 13.10.1999
  2. ‘Kilcoy abattoir upgrade’ QLD Countrylife 29.05.2003
  3. ‘Harmony sells stake in Kilcoy, Harvey Beef’ Beef Central 06.12.2012
  4. ‘Kilcoy abattoir sold to Chinese Investment Fund’ The Australian 06.12.2013
  5. ‘IFFCo eyes Kilcoy abattoir in AAco deal’ Stockjournal 18.06.2009
  6. ‘Stations now in hot demand’ Nth QLD Register 10.07.2014
  7. Dept Ag. Submission to Market consolidation and the red meat processing sector July 2015

Bordertown

Australian Abattoirs, South Australia 19/11/2013 Leave a comment

Other Names

 

Current Operation

  • Aus Meat Accreditation registration dated 29/12/2015 #1614 – JBS Australia Pty Ltd (Bordertown).8
    • registered as a Sheep export facility.8
  • Direct employment enquiries to www.jbssa.com.au

Location   

  • Bordertown is located 270km south east of Adelaide in South Australia

Hema Maps – Australia Truckies atlas.

Owner

Operation   

  • Establishment # 1614
  • Lamb, Hoggets and mutton1
  • Employs 4001
  • Daily capacity 5,200 head1

History

2009

  • JBS buy plant operations2
  • Invested $6.5M on robotic technology on the kill floor2

2012

  • JBS Australia split into two operating entities to make Northern and Southern regions in relation to abattoirs and feedlots within those areas5.
    • South – Victoria, South Australia and Tasmania5
    • North – NSW and QLD.5

2013

  • Sept. Launches own brand – Great Southern2
  • Oct. Will introduce a second shift of operation2
    • increasing throughput from 4000 to 8000 sheep and lambs a day2
      • current livestock purchases are $140M per year3
      • Utilites including power and water currently $3.1M per year3
    • employing 150- 180 more permanent staff2
      • Wages budget is $25.2M3
      • Extra shift will increase wages by 40%3
      • Extra shift  and business decisions will provide continuity of employment through the year3
    • needed due to improved access to China and increasing demand for high value chilled and frozen lamb in European Union and USA2
    • Looking for financial supportfor on-site cold storage – project costing $12M3
  • Local town looking to improve its houseing and infrastructure to support new workers2
    • Priority to Migrant support servicesand re-opening of Migrant resource centre2
  • “High cost of meat processing in Australia was a constant challenge – at about 2.5 times the cost of the US” – and while technology and training added to efficencies, the state and Federal governments need to provide direct financial support to investments such as JBS are making” John Berry ( JBS director)2
  • “..with a high percentage of our product destined for hihgly competitive international markets and competing against animal proteins from around the world” John Berry (JBS)2
  • Installation of automated prcessing technology3
    • $6.5M – x-ray primal saw machine in boning room3
      • determines dimensions of major bones before moving along the chain past rotating blades, cuts the carcase into forequarter, middle, loin and leg sections3
      • Process up to 10 lambs a minute3
      • cutting tolerance of 5mm3
      • is just one of two machines in Australia3
  • Middle machine will be first of its kind in Australia when installed.3
  • November. JBS Swift Australia install closed-circuit television camera’s (CCTV) in it’s Australian meatworks.10
    • For the purpose of animal welfare and meatworker safety issues.10
    • CCTV for internal use by only JBS, with no plans to allow outsiders to view the footage.10
  • JBS’s US beef division (which includes Australia) delivered drop in net sales and earnings in it’s third quarter financial results.10
    • 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.10
    • Earnings before tax $134M,.10
      • Down by 22.5% on previous quarter.10
      • Down by 28.4% on third quarter last year.10
    • result reflection of domestic North American markets.10
      • Improved performance had occured in Australian.10
        • Demand had increased in Chinese markets.10

2014

  • July. Expected to replace two dimensional x-ray imagery with Dual Energy Xray Absorption (DEXA)4
    • Will find the skeleton but at the same time produces a lean meat yeild estimate4
  • July. JBS Australia across all facilities in operation kills daily5
    • 8,500 cattle,5
    • 24,000 smalls – which includes lambs5
    • Employs more than 8,000 people5
  • July. JBS Australia purchase majority shareholding in NSW based Andrew Meat.11
    • specialise in high quality, portion cutting and further processing of meats for domestic and international restaurant and foodservice customers.11
    • produce ready-cooked meals.11
    • company banner Creative Food Solutions.11
    • Andrew Meat will allow JBS expansion into high growth retail and value-adding segments.11
  • Expansion of the Andrew Meats business will start in November .12
    • JBS global strategy to expand into value added meat protein – opportunity to expand margins.12
    • JBS have an existing value-added division – Food Partners.12
      • supplies food service customers like Pizza Hut and Domino’s with toppings.12
    • Andrew Meats focus will be produce ready meals.12
      • ‘grab & go’ beef roasts, designed to compete head on with hot cabinet roast chickens sold in supermarkets.38
      • Domestic markets were very immature but also with significant growth potential.12
  • At this time JBS operate.11
    • 10 processing facilities.11
      • Daily processing capacity of more than 8,000 cattle and 21,000 small stock.11
    • 5 feedlots.11
  • December. JBS currently operate 12 meat processing plants across 5 Australian states6
    • Wages & local procurement $730M (Excluding livestock purchases)6
    • Employs 8,500 people at the facilities6
      • Employs 12,000 people in Australia6
    • Total revenue of $6.5B6
  • 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)6
      • JBS share of Australian beef production 16%6
      • Market share of national small (lamb, mutton & goat) 16%
    • JBS spent $2.4M on halal certification costs of approved religious certifiers in 20146

    2015

    • June. Cost of processing in Australia 1.5-3 times the cost of processing animals in another country6
    • cost of processing grain-fed cattle in Australia is twice of the USA6
      • lower levels of productivity in Australia in regards to kg per unit of labour6
      • 2 major differences between Australia and the USA6
        1. Government regulation
          • $10 a head more in Australia6
          • Dept. of Australian Agriculture fully recover costs of meat export inspection and certification6
            • Australia wide DAFF costs $80M6
            • JBS contribute $14.5M6
          • Export plants don’t use DAFF but use approved employees, which plants fully cover costs6
            • JBS estimate an additional $30M at Export level6
          • USA & Brazil governments provide services at no or minimal costs to processors6
        2. Energy Costs
          • $15 a head more in Australia6
      • Technical barriers to trade (TBT’s)- Total value in Australia estimated at $1.25B as identified costs6
        • 261 TBT’s in 40 key markets6
          • 136 have significant trade distortion impacts6
  • 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.

  • 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

  • December. ATO publishes tax data for agribusiness corporates.7
    • 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.7
    • Income tax information is for 2013/14.7
    • JBS Holdco Australia Pty Ltd produced Total Income $4,040,948,610.7
      • Taxable Income $419,882,525.7
        • Tax Payable $44,809,334.7

Sources Bordertown – SA. JBS

  1. ‘Our plants – Bordertown’ http://www.jbsswift.com.au Accessed 13.11.2013
  2. ‘Second shift at JBS meatworks’ Stock Journal 03.10.2013
  3. ‘Robot Revolution’ Stock Journal 17.10.2013
  4. ‘Technologies take quantum leap’ The Land 24.07.2014
  5. ‘The next Swift Shift’ Weekly Times 30.07.2014
  6. sub50_JBS Inquiry into the effect of market consolidation on the red meat processing sector
  7. ‘ATO publishes tax data for agribusiness corporates’ Beef Central 18.12.2015
  8. AUS-MEAT Accreditation Listing 29.12.2015
  9. ‘Swift CCTV camera action’ Weekly Times 13.11.2013
  10. ‘JBS delivers lower third quarter beef sales, revenue’ Beef Central 14.11.2013
  11. ‘JBS takes stake in Andrews Meat’ www.farmonline.com.au 09.07.2014
  12. ‘What’s behind JBS taking a big stake in Andrews Meat Value adding Businnes? Beef Central 10.07.2014