Tag Archives: abattoirs operating timelines

Montejinni

Other Names

Current Operation

Location   


Hema Maps – Australia Truckies atlas.

Owner

  • Bill and Brian Crowson1

Operation   

History

1960’s

  • Small abattoir built approximately 1 mile from homestead(Pg 26)1
  • Only operational for a year due to several reasons1
    • Health department requirements of cartage and storage of boxes of beef. Dept wouldn’t accept their method of loading the beef into 20′ cold room on a truck and transported 300km to be loaded in to another cold store.(Pg 27)1

     

abattoir books 011#1. Source. ‘The privileged few’ Jeff Hill. Pg 26
Small meatworks at Montejinni station, built by Bill Crowson in the 1960’s

1973

  • Abattoir had lain idle since 1960’s.(Pg 27)1
  • dismantled to open up space for light aircraft.(pg 27)1
    • Cold room taken to Uralla meats in Katherine – an abattoir Lyn Hayes and Ernie Raynor were establishing between Katherine and Tindal Airbase.(pg 27)1
    • Note I can’t info on this abattoir – though a pet food meat processor named Uralla is mentioned in some articles.

Sources

  1. ‘The privileged few’ Jeff Hill. 2008

Woy Woy

Other Names

Current Operation

  • Closed

Location   

  • Woy Woy is located approximately 60km directly north of Sydney

 

Hema Maps – Australia Truckies atlas.

Owner

  • A1

Operation   

History

Picture #2_edited-1Source ‘Abattoirs in disastrous state’ ABC rural 16.02.2010

The Orange abattoir

2004

 

Sources

  1. ‘Abattoir cuts 150 jobs’ AMIEU Archives. 05.07.2004

Young

Other Names

Current Operation

Location   

  • Young is located about 70km south of Cowra, which is approximately 210 km west of Sydney

 

Hema Maps – Australia Truckies atlas.

Owner

  • A1

Operation   

History

1996

 

Sources

  1. ‘5,000 jobs at risk: abattoirs facing closure’ Sydney Morning Herald. 21.05.1996

Macksville

Other Names

Current Operation

Location   

  • Macksville is located on the NSW coast, Midway between Port Macquarie and Coffs Harbour

 

Hema Maps – Australia Truckies atlas.

Owner

  • Mitsubishi Midco1

Operation   

  • Has integrated market link to proprietors Japanese home market1

History

1996

 

Sources

  1. ‘5,000 jobs at risk:Abattoirs facing closure’ Sydney Morning Herald 21.05.1996

Roma

Other Names

  • Ladbrooks1

Current Operation

Location   

  • Roma is located in Central Queensland approximately 470km west of Brisbane.

 

Hema Maps – Australia Truckies atlas.

Owner

  • George & Alanah Ladbrook1

Operation   

History

2002

  • Abattoir purchased by Ladbrooks.1

2014

  • Was killing 40 head of cattle and 200 lambs a week.1
  • Sold abattoir due to difficulty in operating two businesses of the abattoir and a butcher shop1

 

Sources

  1. ‘George on the job 20 years’ QLD Country Life 03.07.2014

Wallangarra (Is actually Tamworth1.)

Other Names

Current Operation

Location

Owner

  • Teys

Operation

 

  • T & R is the largest family-owned multi species export processor, with 120,000 sheep and lambs + 5000 cattle processed across 3 states each week1
  • Also own abattoirs Murray Bridge (SA), Tamworth (NSW), Lobethal (SA)1
  • T & R is biggest lotfeeder in SA – 6500 cattle on-feed Wanderribby Feedlot, Meningie1
  • Headquarters based at Murray Bridge1
  • Purchased 50% share of diversified wholesaler/distributor Holco meat2
  • Turnover of $1.3B, is nations largest lamb and mutton exporter and significant beef, exports 80% to more than 80 countries2

 

History

2014

  • July. Thomas foods encouraging adoption of Individual Electronic identification (IED) of sheep3
  • Note NLIS is compolsory for cattle in Australia but currently mob identification is acceptable for sheep.3
  • Sheep IED costly, $0.83 per head in Victoria – where it is subsidised but $1.10 per tag in other states.3
  • European Union alread do IED, could force onto Australian producers3
    • highly likely in the next 3-5 years3

Sources  Wallangarra (Is actually Tamoworth 1 #394)

  1. ‘SA processor T & R beefs up its business’ Beef Central 13.02.13
  2. ‘T & R takes 50pc stake in Holco business’ Beef Central 19.10.12
  3. ‘EID drives repeat lamb market sales’ Stock Journal 17.07.2014

Murgon

Other Names

  • South Burnett meatworks

Current Operation

  • Closed 20001

Location   


Hema Maps – Australia Truckies atlas.

Owner

Operation   

History

2000

  • Murgon plant closes after sudden collapse2
    • Leaves Casino  as the only plant in Australia that is a producer-owned co-operative remaining in operation.2

Prior to 2007 Bindaree Beef had received millions of dollars in support of environment projects from the QLD and Federal Government1

2007

  • Closed suddenly1

Sources

  1. ‘Bindaree Beef scores unprecedented $23M grant for carbon project’ Beef Central 03.07.2013
  2. ‘Bitter-sweet result, as Casino lodges record $25M pre-tax profit’ Beef Central 05.11.2014

Scone

Scone was recently purchased by JBS in their acquisition of Primo small goods. Scone is a beef and sheep export accredited plant, currently in operation.

Other Names

  • Scone Primo
  • Scone JBS

Current Operation

  • Aus Meat Accreditation registration dated 29/12/2015 #0262 – JBS Australia Pty Ltd (Scone).1
    • registered as a Beef and sheep, Offal export facility.1

Direct employment enquiries to www.jbssa.com.au

Location   

  • Scone is located in eastern NSW. Approximately 150km north west of Newcastle

Aust. Scone

scone 2

Hema Maps – Australia Truckies atlas.

Owner/s

  • Primo smallgoods.2
    • P & M Quality Small goods Pty Ltd (Primo).8
    • Purchased Scone site in 2000.2
      • sold in 2015 to JBS
  • JBS Australia – purchased 2015

Beef central 27.11.2014.b

JBS logo. Source Beef Central 27.11.2014

Operation   

  • Scone is currently an export accredited facility that processes only cattle.

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

Australian abattoirs inactive map

abattoirs_edited-1

History of  Scone Establisment # 262

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.77
    • 27 have some level of foreign ownership.77
    • Ownership dominated by Japan, UK and the US.77

1996

1999

  • May. Aberdeen abattoir (NSW) closes employed 400 people, Owned by AMH.81
  • More Hunter abattoirs could be threatened in a meat industry shake-up.81
  • State government are negotiating with AMH  to persuade the company to re-open Aberdeen.81

2000

  • Primo Small goods purchase the Scone abattoir site.2
  • Scone was previously only a domestic registered site, after Primo acquisition it was export accredited.8
    • Prior to Primo purchase the abattoir had been a multi species processing facility supplying mainly Hunter and Sydney butchers, It was converted to only beef for export accreditation.40
    • Primo smallgoods already established company that specialise in premium quality deli meats.2
      • Primo was established in 1985, originally at Homebush, Sydney.3
    • Have a manufacturing plant at Chullora, Sydney.2
      • Purchased Port Wakefield Abattoir in SA in 1999, pig processing plant with capacity to process 10,000 pigs per week.2
  • Scone abattoir, single species plant (beef).3
    • Central point of Primo meats production of increasing fresh meat business.3

2001

  • Primo purchase a Melbourne distribution facility to support expanding growth in Victoria.2

2002

  • Scone abattoir under goes a $15M expansion.82
  • August. Primo has turned to Hunter Institute of TAFE for its training needs.82
    • TAFE will train 150 employess under existing traineeships.82
    • 50 new entrants later.82
    • main objective is that training will comply with requirements of the export licence.82
    • Training to be conducted in the workplace, onsite and at the TAFE.82
  • Scone facility expected to require more than 300 employees by the end of the year.82

2003

  • April. Scone Abattoir is set to double its staff numbers.83
    • currently employs 190.83
    • following expansion will employ 350-400 over the next 12 months.83
  • Area was currently in drought and the extra jobs would give the region a boost.83
  • Further expansion is planned with a development application before the Scone Council for a small-stock boning room and packing room.83
  • The plant mainly kills and debones but recently has started value adding services for direct sale from supermarket shelves.83
  • Parkville Piggery near Scone went into voluntary administration.83
    • owned by Taiwanese-Indonesian interests.83
    • Looking for a buyer for the facility.83
    • Owe $2.5M. Employ 30 people.83
  • December. An Engineer who was burnt by ammonia is expected to lose his sight.6

2004

  • Scone abattoir could face major stock shortages if one of its main suppliers are forced to close.84
    • Killara feedlot, near Quirindi supplies 80% of Scones slaughtering stock.84
    • Lack of water could force it to close within 18 months.84
    • Feedlot’s application for 15,000 ML water could be cut by 70%.84
      • New State Governments water sharing plan for the Namoi Valley.84

2007

  • Port Wakefield plant is guttered by fire (Owned by Primo).9
    • Caused $15M damage, started by an electrical fault.9
    • no people or animals injured.9
    • Employed 368 employees and up to 100 other contractors.9
      • including 10 skilled Chinese migrants.9
      • redundancies not been ruled out.9
    • Primo had plans for further investment and doubling of the workforce.9
    • Had been processing 11,000 pigs each week.9

2006

  • Primo acquire the Mayfair brand and a manufacturing plant in Greenacre.2
  • Closure of the export abattoir at Aberdeen abattoir (NSW) had significant effects on the livestock sale methods in the region.7
    • Saleyard inputs significantly increased.7
      • Many saleyard opportunities meant greater journeys.7
      • affected animal welfare and operation costs.7
      • many producers had to form marketing groups to make up enough numbers to sell for viable transport.7
  • Small domestic facilities in the area.7
    • Woy Woy (NSW) now closed, Kurri and Scone (domestic  license before export accreditation in 1999.8) catered to the local trade markets of Newcastle and Sydney.7
      • positive impact on production of vealers, yearling steers and heifers.7
        • paid a lesser price per kilogram.7
  • Export licensed facilities in the area.7
    •  Ipswich (QLD), Singleton (NSW), Wingham (NSW) then owned by Nippon.7
      • Continue to source large number of stock from the region.7
      • require heavier than 240kg carcase weight (480kg LW).7
    • Tamworth (NSW) then owned by Cargill tends to kill lighter cattle for supermarkets.7
    • Scone (Primo) kills mainly domestic cattle, with small numbers of stock for the smallgoods sector.7
  • Primo Australia Scone abattoir is ranked equal 25 of the top 25 red meat processors in Australia.8
    • Throughput in 2006 32,000 estimated tonnes carcase weight.8
      • Includes tonnage of Port Wakefield plant
    • Kill share percentage of 1.1% (across Australia).8
    • Employs 360 people.8
  • Scone plant has been upgraded in the last 5 years.8
    • New slaughter floor, export boning room, chiller and freezer facilities.8
    • improvements to rendering and environmental structures.8
  • Scone plant is currently operated/owned by P & M Smallgoods Pty Ltd (Primo).8
  • Currently processing 600 head cattle a day.8
    • one shift.8
    • processing grassfed and grainfed yearling prime cattle, as well as export steer and cows.8
    • Most livestock sourced from Hunter region, Eastern NSW.8
  • Primo’s major export markets are Korea, USA, Japan, Canada and Taiwan
    • Exports 40%.8
    • Domestic supply 60%.8

2007

  • Primo Australia Scone abattoir is ranked equal 21 of the top 25 red meat processors in Australia.10
  • Throughput in 2007 35,000 estimated tonnes carcase weight.10
    • Port Wakefield not in operation at this time.
  • Kill share percentage of 1.22% (across Australia).10
  • Employees 360 people.10
  • Primo have begun re-construction of Port Wakefield site following devastating fire in 2007.10
    • re commissioning expected to be September 2008.10
  • Primo’s major export markets are Korea, USA, Japan, Canada and Taiwan.10
    • Exports 50%.10
    • Domestic supply 50%.10
  • Scone facility is currently processing 600 head per day.10
    • Largest employer in the region.10
    • Has capacity to process 35,000 ETCW.10
  • Primo major brands are.10
    • Hunter Gold, Primo and Milton Farm.10
  • St Heliers Correctional Centre commence a work release program with Primo meats at Scone.12

2008

  • Primo acquire cold storage facility.2
    • Included equipment at a Blackwater manufacturing facility.3
  • Februrary. Primo could face fines of up to $275,000 if found guilty of labelling foreign pork as local product.85
  • Primo is under investigation for meat imported from Denmark & Canada.85
    • Primo have voluntarily withdrawn some products.86
    • Meat in question is a very small volume of the companies total business.86
  • Currently 70% of the manufactured pork market in Australia (hams, bacon and smallgoods) is made up of product sourced from highly subsidised countries such as Denmark, lesser extent Canada and the US.85
  • December. St Heliers Correctional Centre has had 30 inmates progress through their work release program with Scone abattoir.12
    • 6 workers have secured permanent employment with the facility.12
    • When prisoners have been involved with work experience their liklihood of reoffending reduces.12

2009

  • Primo acquire the entire business operations of a former competitor – Hans Continential smallgoods.2
    • Improved overall Primo efficiencies.2

Beef central 27.11.2014

Primo Logo Source Beef Central 27.11.2014

2010

  • February. Contractor suffered serious burns when he cut a gas pipe and it ignited.19
  • Work is scheduled to occur on fire damaged portion of abattoir.11

IBIS Jun 2010_edited-1

Major Companies in the Australian Red meat processing industry

Source IBIS world June 2010

  • September. Primo Australia Scone abattoir certifies that the establishment has a HACCP based food safety program.13
    • Australian Quarantine Inspection Service (AQIS) is responsible for auditing.13
    • HACCP plan is re-assesd annually or when ever there are alterations or additions to the process.13
    • Part of the HACCP requirement is microbiological testing of carcases during processing and further testing of manufactured meat destined for grinding.13

2011

 

  • January. Devastating floods across Central and southern QLD and large parts of NSW and Victoria.79
    • affected slaughter numbers to abattoirs.79
  • April. Worker is killed when the roof of a freezer collapses on him.14
    • Taiwanese national was trapped under rubble and fallen ice.14
    • 290 workers were evacuated.14
  • Blast freezer wall 5m high collapsed.15
    • four other blast freezers similar to the one that collapsed were adjacent to it.15
    • All were shut down.15
    • build up of ice had contributed to the collapse.15
  • Other freezers in other parts of the facility were in operation.15
  • Workers were back in the job, day after the collapse.15
  • Scone currently had 25 Taiwanese nationals working at the site.15
    • as well as 100 Chinese nationals.15
  • Work scheduled in shut down period (Chrismas) to occur on rendering shed.11
  • 7. ABARES Nov 2011_edited-1

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

  • October. Affinity Equity Partners become a major shareholder of Primo.2
    • Acquire 70.1% of the Primo group.2
    • reported $900M.22

 

2012

  • Primo open a $200M factory in Wacol, QLD.2
  • Primo group are currently Australia’s largest Ham, Bacon, Salami and Deli meats manufacturer.2
    • supply nations major retail groups.2
  • September 12. Registration of trademark name Hunter Valley Quality Meats Est No 262.16
    • Trademark number 1513894.16
  • November. Coonabarabran abatttoir (NSW) Bunganbah Meats closed November 2.17
    • 30 people out of work.17
    • Was the only facility 3 species abattoir west of the Great Dividing range in NSW that provided a service kill for local butchers.17
    • None of the larger abattoirs serviced small scale butchers.17

2013

  • October. Scone abattoir is fined $110,000 after a contractor suffered serious burns when he cut a gas pipe and it ignited Feburary 2010.19
  • December. EBA negotiations had been going for 7 months.21
    • 150 union members would take part in a strike action.21
    • day shift and afternoon shift would each strike for 2 hours.21
      • with an indefinite overtime ban to follow.21
    • Fair work commission had approved further strike action.21
  • Primo managing director Paul Lederer.21
    • Primo started in 1985 with 38 people.21
    • Now employed 4,000 .21
    • Turned over $1.3B a year.21
  • AMIEU Grant Courtney – changed conditions at the abattoir meant Primo expected meatworkers to process 20% more animal carcasses a day.21
    • workers wanted productivity payments.21
    • Company wouldn’t consider.21
  • AMIEU claim that Primo were  employing another 300 or so people through labour hire firms.21
    • local people were being knocked back for jobs.21
    • Company was employing back-packers and foreign nationals.21

2014

  • January. Union members went on strike twice before christmas over EBA.22
  • Paul Lederer published an advertisement in the local paper as an open letter to the Scone community.22
    • described the strike action as irrational and ridiculous..22
    • “Union demands are totally unreasonable and will only destroy more jobs in the industry”.22
  • Unions response “this company can hardly cry poor turning over $1.2B a year and with its chief executive one of the richest men in the meat industry”.22
  • Primo pays the lowest wages in meat processing around the country and the workers employed through third party labour hire companies earned even less” Grant Courtney.22
  • “For nine years while the Scone plant was not profitable, Paul Lederer pumped money into keeping it going and everyone employed” Primo Spokesperson.22
  • AMIEU is angry Paul Lederer  heads a consortium to buy the Football team ‘Wanderers’.23
  • March. AMIEU claim vast majority of workers at the Scone abattoir are forced to work excessive hours, grossly underpaid, mistreated, including allegations of sexual harassment.24
  • Workers are paid $7.70 per hour, less than minium wage and not advised to pay tax.25
    • up to 90% of the entire workforce are international.24
    • 70% of Primo’s workers on temporary 417 Visa’s.24
      • people could stay and work for 2 years.24
    • foreign workers are replacing local workers.87
    • 75 workers stated they had been advised by the labour hire company to lodge an Australian Business Number (ABN) without being advised to get a Tax file number.25
    • Estimation of 10,000 temporary international workers working in the Australian meat industry.24
    • Labour hire company – Scottwell recruits Chinese, Taiwanese, Japanese and Korean employees to work in abattoirs.24
      • across 19 different facilities in 3 states.24
      • 1,100 people.24
  • Primo deny claims workers are underpaid.25
  • Fair work Ombudsman take court action over claims by the AMIEU that workers at Scone abattoirhave been underpaid more than $41,000.26
    • Amounts ranging from $347 to $10,257.26
    • Employees were Chinese entry level labourers in slaughtering, boning and dispatch.26
    • 8 of the workers are casuals on short term visa’s.26
    • 2 were immigrants employed full time.26
    • Employees worked more than 38 hours, but received no overtime or penalties for casual loading, public holidays.28
    • full time workers were -sham contracting. Ray Holding has represented to the two full time employees they were independent contractors.28
    • Legal action commenced against Raying Holding Pty Ltd and another individual- who supplied the workers.26
      • hearing to be held March 28 in Sydney.27
      • Raying Holding face penalties $51,000 per breach.26
      • Alleged underpayments have been rectified but legal proceedings were commenced due to significant amount involved and vulnerability of the workers.26
  • Primo takes an advertisement in the Newcastle Herald defending its employment practices.30
    • claims never knowingly incorrectly paid a worker.30
    • less than half of Primo’s workforce were on 417 Visa’s.30
  • AMIEU claims Primo supplied personal information of employees to Colonial First State  Super without written authority from the workers.42
  • AMIEU status of industrial bargaining – Workers have voted to take protected action.42
  • AMIEU believes another 23 Scone workers have been underpaid.31
  • April. Hunter Valley Quality Meats Pty Ltd T/A Primo Australia Scone Abattoir Enterprise Agreement 2014.33
  • June. Scone announces large expansion plans.35
    • Currently employs about 600 people.35
      • expects to increase employees by 100 people.35
    • Processing 6 days a week.35
      • 1,000 head a day on a double shift.35
    • Expansion will include .35
      • extension of plate freezer capacity to 70,000 cartons.35
      • reconfiguration of works.35
      • extension of load out facility.35
    • $40M project expected to start in August and take 14 months.35
    • Plans are currently submitted to the NSW department of planning.35
      • plans have been worked on for last 18 months.35
  • Other abattoirs in the region that were export licensed.40
  • Meat and Livestock Australia (MLA) predict looming shortage of cattle and a robust global demand for beef into 2015.40
  • By June 2015 the Australian cattle herd was forecast to have fallen to 26.1M head, the lowest level in 2 decades.40
    • Expansives and severe drought has had significant impact on cattle production regions.40
    • sustained high levels of cattle slaughter and near record live cattle shipments have eroded production capacity.40
  • Scone is currently sourcing 75% of the cattle are from producers within 500km of Scone.35
  • 60% of the beef production is exported to about 50 countries.35
  • Chinese demand is encouraging, but also Middle East, Asian markets and Japan.36
  • producers in the area have been calling for more processing plants for several years.36
  • July.Primo consider taking in more Filipino workers to fill vacancies via the 457 visa programme.39
    • Primo already has 20 primary 457 visa holders that receive sponsorship.39
    • Join some 600 Australian and multicultural workers in the company.39
    • Under 457 sponsorship a minimum of 3 years experience is required for onshore meat workers or minimum 9 months training.39
  • JBS Australia purchase majority shareholding in NSW based Andrew Meat.37
    • specialise in high quality, portion cutting and further processing of meats for domestic and international restaurant and foodservice customers.37
    • produce ready-cooked meals.37
    • company banner Creative Food Solutions.37
    • Andrew Meat will allow JBS expansion into high growth retail and value-adding segments.37
  • Expansion of the Andrew Meats business will start in November .38
    • JBS global strategy to expand into value added meat protein – opportunity to expand margins.38
    • JBS have an existing value-added division – Food Partners.38
      • supplies food service customers like Pizza Hut and Domino’s with toppings.38

Andrew meats logo

Andrews Meat Industries logo Source Beef Central 27.11.2014

  • Andrew Meats focus will be produce ready meals.38
    • ‘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.38
  • At this time JBS operate.37
    • 10 processing facilities.37
      • Daily processing capacity of more than 8,000 cattle and 21,000 small stock.37
    • 5 feedlots.37
  • September Senator John Williams visits Scone abattoir at this point, it employs upwards of 700 people, plus ancillary positions.41
  • November 21. JBS Australia sign a A$1.45B conditional agreement to acquire Primo Group.2
    • Primo Group currently consist of –
      • Brand – Primo Smallgoods.2
      • Brand  – Hans.2
      • Brand  – Beehive.2
      • Brand – Hunter Valley Quality meats.67
      • Brand – Primo Quality Meats.67

Beef Central 27.11.2014. Hunter logo

Hunter Valley Quality Meats Logo Source  Beef Central 27.11.2014

  • 5 key abattoir, processing plants and distribution centres operating across Australia and New Zealand.2
    • Scone abattoir
    • Port Wakefield Pig abattoir
    • Chullora (Sydney) meat processing.52
    • Wacol (QLD) – Australia’s largest food processing facility.52
    • Carterton facility located New Zealand.67
    • 7 distribution centres.67
    • 37 retail outlets NSW Joes’s meat market and Farm fresh, are included in the sale.67
  • employ 3,000 people.2
    • Agreement is subject to customary regulatory approvals.2
      • As Primo is already 70% owned by an Asian fund Manager – essentially the deal is a sale from one foreign owner to another.44
  • JBS take over is consistent with the global strategy of Brazilian parent company JBS SA to grow its presence in value-added products.45
    • move closer to the end consumer.52
    • JBS don’t plan to make any significant changes to the Primo group operations for the forseeable future.52
    • Scone will be run under JBS’s southern program.67
    • remainder Primo group will be run as a stand alone business with 3,700 employees.67
  • Scone has greatly expanded its MSA kill in recent years.44
    • has brand names established.44
    • is located a large distance from other JBS plants.44

Beef central 27.11.2014.c

Freezer rooms in Scone abattoir Source Beef Central 27.11.2014

  • JBS is the the world’s largest processor of fresh meats.44
    • JBS takeover of Primo is the first major move of the red meat processor into the pork sector.45
    • JBS’s largest acquisition since Tasman Group.44
  • Australia’s cured meats and smallgoods markets worth $3B.46
    • most smallgoods manufacturing concentrated on the east coast.46
    • Industry has been plaqued by low profitability and volatile conditions that have contributed to significant consolidation over the past 5 years.46
    • Super market home Brands, Primo and Don have limited opportunity for growth in Australia.46
    • Pork production has a higher and faster protein conversion ratio than beef or sheep and may offer opportunities for high volume throughput and increased value adding.46
  • AMIEU is concerned Scone abattoir will increase reliance on overseas workers.47
    • AMIEU estimate only 140-150 of the current 500 workforce at Scone are local.47
    • 2,500 jobs have been lost in the Hunter region recently due to the Mining downturn.47
    • employers are seeking to engage 457 workers even when locals are unemployed.47
  • New Trade deal with China allows Chinese workers access through ‘investment facilitation arrangement’
  • Producers are concerned that the addition of 2 more abattoirs to the already powerful JBS network  will further reduce processing competition options.52
    • Primo takeover follows other mergers.52
      • Teys and Cargill – 6 abattoirs in NSW, QLD & SA.52
      • Sale of Country Fresh Australia’s NSW and QLD plants to Thomas Food International.52
      • recent smaller meatwork closures.52
    • Producers are concerned about the loss of independent kill options.52
      • Scone doesn’t provide service kill any more.52
        • Kills predominently for Coles.52
    • Concerned that the meat industry is moving to duopoly similar to the supermarkets.52
  • Producer experience of competition between abattoirs.70
    • “The efficent operation of an abattoir is 800-1,000km radius. Re the proposed acquisition of Scone abattoir by JBS. JBS own Dinmore. JBS will close Scone to improve economies of scale. If Scone closes; 40-60 dollars per head increased cost of transport for producers. Yet the ACCC has found that the Scone acquisition will not affect competition! But since July Primo at Scone was pulling cattle from up to 1,600kms. Jan 2015 Primo was paying $3.80 but JBS was paying $3.10. Primo was an important counter to JBS power” NSW Farmer.70
  • Speculation that JBS may on sell the Scone abattoir.52
    • JBS adament they will keep the abattoirs and invest in them
  • December.Beef industry participants call for declaration of the Upper Hunter region to be recongnised as a Critical Industry Cluster (CIC).53
    • acknowledgement of the importance of the local beef industry in that region.53
      • Thoroughbred and wine industry have developed CIC status’s.53
  • JBS envisage that Scone abattoir will become focal point for expanding JBS ‘Great Southern grassfed’ beef brand.54
    • opportunity to engage producers.54
    • Tasmania and Victorian producers receive premium prices for cattle that meet specific production and quality criteria.54
  • Port Wakefield abattoir is expected to be extended.54
  • NSW butcher shops will possibly be sold.54
  • Due to regulatory procedures JBS would not take over Primo and Scone abattoir until January or February.55
    • JBS wants to keep open communication with Scone public.55
      • intention to hire local employees and only others when necessary.55
      • 100 job increase announcement was decision of Primo but was consistent with JBS strategy to invest and grow in the region.55
  • JBS currently operate 12 meat processing plants across 5 Australian states67
    • Wages & local procurement $730M (Excluding livestock purchases)67
    • Employs 8,500 people at the facilities67
      • Employs 12,000 people in Australia67
    • Total revenue of $6.5B67

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)67
    • JBS share of Australian beef production 16%67
    • Market share of national small (lamb, mutton & goat) 16%
  • JBS spent $2.4M on halal certification costs of approved religious certifiers in 201467

2015

  • January. MLA forecast.78
    • Australian cattle herd has gone from 35 year high (2013) to 20 year low (2015).78
    • Australian cattle herd slip to 26.8M head by June 2015.78
      • by 2016 expected decline to 26.5M head.78
      • by 2020 27.9M head.78
    • Adult cattle slaughter expected to slump 15% year on year.78
      • 2015 to 7.8M head.78
      • 2020 expected 7.9M slaughter.78
    • Long term Female average in 2014 52%.78
      • Normally female kill percentage 47%.78
      • Only in years 1977, 1998 & 2003 has female kill been above 50%.78
    • Beef exports record levels in 2014 1.39M tonnes shipped weight.78
      • Expected to drop 20% to 1.3M tonnes in 2015.78
  • Labour Hire Company – Raying Holdings is found guilty of breaches of Fair Work Act.56
    • Fined for underpayment of 10 international workers $41,647.56
    • payments have been rectified.56
    • Raying Holdings has gone into liquidation.56
      • further 30 workers who are owed $150,000 would not receive payments due to the liquidation of Raying Holdings.56
  • Labour Hire person Zu Neng Shi also fined.56
  • Labour Hire company – New Bridge Trading, who also supplied Primo employees was being pursued in Federal court for owing 19 international workers $123,000.56
  • AMIEU claim workers at Scone have been underpaid for the last 3 years.56
  • Scone Primo supported action of Fair work Ombusdmen.56
  • February. ACCC will not oppose JBS’s proposed acquisition of Primo Food Group.57
    • ACCC received various submissions from a range of interested parties.57
      • Most expressing concern that the acquisition would result in less competition in the market for slaughter cattle in Northern NSW and QLD.57
    • ACCC determined that Primo were not a currently strong competitive constraint.57
    • JBS would continue to be constrained in the market due to alternative abattoirs and supermarkets.57
      • JBS’s other abattoirs were more than 500km from Scone.57
    • ACCC wary of the potential impact of further consolidation of abattoirs.57
      • Attached conditions to the sale.61
        • Scone abattoir must remain open and retain its capacity for consignment killings accesible by third parties.61
          • If JBS fail to do so the Treasurer has the power to order the company to divest itself of the meatworks.61
        • That JBS report to the Foreign Investment review board on its compliance every 6 months.61
        • Transaction is to be reviewed in 3 years time.61

Scone location

Approximate radius of 500km from Scone abattoir

Further mapping of current and historical Australian abattoirs can be viewed at
Australian Abattoirs google maps

  • NSW Senator John Williams says ACCC move was very disappointing and indicates ACCC is out of touch with reality.58
    • Cattle can easily be transported hundreds even thousands of kilometres.66
    • Requested Federal Parliament to update the competition laws.64
      • Current test for take-overs by ACCC are not tough enough.64
      • ‘Creeping acquitsitions’ occurs and is allowable.64
        • could lead to monopolies.64
    • ACCC made a decision that there’s not a ‘substantial’ reduction in comptetiveness of the beef market.65
  • Agriculture Minister Barnaby Joyce says conditions of the sale would ensure local cattle producers have certainty of access for contract processing.62
    • confusion surrounds interpretation of phrase ‘service kill’.63
      • some view as obligation that JBS provide service kill to others at Scone.63
    • Scone abattoir has for some time conducted a single service kill – Coles.63
    • Clarification by the Minister – Whatever arrangement that Scone facility had in place at the time of the sale is to remain.63
      • If Scone only had one contract and didn’t as a policy do others then they would not be forced to do more.63
      • would be expected to maintain custom killings in both a competitive and profitable manner.64
      • Minister acknowledged there were calls for stricter controls.63
        • warned chance that may have gotten less.63
  • Scone abattoir supervisor is sentenced after pleading guilty of aggrevated indecent assault.59
  • March. Finalisation of the sale of Primo Smallgoods to JBS Australia Pty Ltd.2
    • JBS has 100% share capital of Primo Group.67
      • Anticipates annual revenue from the Primo Business A$1.6B.67
      • annual pre-tax earnings A$150M.67
  • JBS operate as 2 divisions.4
    • Southern division.4
      • Processing sheep, goats, pigs and cattle.4
      • capacity combined process 110,000 small stock and 9,500 cattle per week.4
      • employs 2,500 people.4
      • Area having access to almost unlimited market access to worldwide meat and offal export markets.4
    • Northern division.4
      • 5 operating facilities.4
      • processes 1.4M cattle a annually.4
      • Employs 4,300 people.4
    • JBS also operated 5 feedlots.4
      • One time feeding capacity of 150,000 head of cattle.4
      • Annual turnoff of 330,000.4
  • 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

  • Farmers rally is held at Barnawartha (Near Albury/Wodonga, Victoria) following February 17 saleyard boycott.60
    • Concerns over processing market competition.60
    • Lack of competition as two other abattoirs are currently shut down due to Cyclone Marcia damage in February 2015.89
  • June. Cost of processing in Australia 1.5-3 times the cost of processing animals in another country67
  • cost of processing grain-fed cattle in Australia is twice of the USA67
    • lower levels of productivity in Australia in regards to kg per unit of labour67
    • 2 major differences between Australia and the USA67
      1. Government regulation
        • $10 a head more in Australia67
        • Dept. of Australian Agriculture fully recover costs of meat export inspection and certification67
          • Australia wide DAFF costs $80M67
          • JBS contribute $14.5M67
        • Export plants don’t use DAFF but use approved employees, which plants fully cover costs67
          • JBS estimate an additional $30M at Export level67
        • USA & Brazil governments provide services at no or minimal costs to processors67
      2. Energy Costs
        • $15 a head more in Australia67
    • Technical barriers to trade (TBT’s)- Total value in Australia estimated at $1.25B as identified costs67
      • 261 TBT’s in 40 key markets67
        • 136 have significant trade distortion impacts67
    • 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.

NSW abattoir capacities Dept ag consolidation_edited-1

  • Capacity of major beef abattoirs in NSW. 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

  • August. AMIEU found workplace conditions improved since JBS had taken over Primo.71
    • Local people are being employed ahead of foreign ones.71
  • September. Scone abattoir expansion plans require further explanation to the Department of Planning.72
    • JBS aim to more than double its kill to more than 55,000 units per week.72
    • beef boning room will be modified.72
    • new stock slaughter floor.72
    • Extra cold storage.72
    • Challenges in regards to environmental obligations, noise and vibration abatement, including odour impact on and off the site.72
    • Planning authorities have asked for wastewater and irrigation management plans.72
    • JBS have been told to consider local housing affordability to accommodate the increased workforce including demand on community services.72
  • December. ATO publishes tax data for agribusiness corporates.15
    • 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.15
    • Income tax information is for 2013/14.15
  • JBS Holdco Australia Pty Ltd produced Total Income $4,040,948,610.15
    • Taxable Income $419,882,525.15
      • Tax Payable $44,809,334.15
  • JBS receive approval for upgrades to failed treatment pond currently at the Scone site.73
    • JBS have spent $3.5M in the last 4 and a half months to rectify issues at Scone.73
    • there are 3 existing anaerobic ponds, 2 need to be taken off line as they are full of sludge.73
    • Development involves establishment ov 100m x 50m burrow pit above existing clean water.73
    • JBS spoke to citizens at a small forum for local residents.73
  • Council approve application 131/2015, received 27/10/2015 to upgrade the existing pond facility at Scone abattoir.74

2016

  • January. Scone abattoir scales back operations.76
    • 155 workers, including 15 permanent local employees are expected to lose their jobs.76
    • moved from double to single shift.76
    • Various market factors have affected production.76
      • Australian livestock supply experiences a dip.76
      • job losses were expected across the board.76
    • JBS’s other plants at Dinmore and Rockhampton had been dropping shifts late in 2015 and were scheduled to shut 18/12/2015, staying closed for 5 weeks over the christmas period – 3 weeks more than usual.90
  • AMIEU would fight to protect the jobs of local workers.76
    • AMIEU requested  that permanent residents be given obvious preference.76
  • MLA forecast beef production to drop to 25.9M head in 2017.78
    • lowest in 24 years.78
    • Numbers had been forced down by drought.78
    • higher production with record turnoff to slaughter and live export.78
  • Rather than trying to maintain throughput at all costs, processors are making commercial decisions to wind back kills to match available supply.91
  • Some processors have scheduled ‘dark days’  – facilities will only slaughter on 2-3 days a week.91

 

 

Sources Scone (NSW)  – JBS

  1. AUS-MEAT Accreditation Listing 29.12.2015
  2. www.primosmallgoods.com.au. Accessed 28.01.2016
  3. APC Action Plan 2010-2015
  4. www.jbssa.com.au
  5. ‘5,000 jobs at risk: Abattoirs facing closure’ Sydney Morning Herald 21.05.1996
  6. ‘Fears for sight’ www.ammonia.com.au 23.12.2003
  7. ‘Recent beef production and management system trends in NSW’ NSW DPI 01.01.2006
  8. 2006 Top 25.
  9. ‘$15M abattoir fire devastates employer’ The Advertiser 24.02.2007
  10. 2007-top-25-processors
  11. http://mcinnescontracting.com.au/projects-before-and-after/
  12. NSW Parliament Questions 17.06.2008
  13. HACCP compliance September 2010
  14. ‘Abattoir worker dies after freezer roof collapses’ SMH 06.04.2011
  15. ‘Visiting worker dies at Primo Scone’ Newcastle Herald 06.07.2012
  16. Hunter Quality meats trademark details 12.09.2012
  17. ‘Closed Coonabarabran abattoir up for sale’ Northern Daily Leader 13.11.2012
  18. ‘Primo abattoir fined for gas fire’ The Herald 11.10.2013
  19. ‘IRC fines Primo Australia Scone abattoir for gas fire’ Tradesmonitor. 09.12.2013
  20. ‘Strike action at Scone abattoir’ Newcastle Herald 17.12.2013
  21. ‘Lederer given red card over Wanderer’s move’ Newcastle Herald 03.01.2014
  22. ‘Speculation of Wanderer’s sale premature, says chairman’ www.accessnews.com.au 14.01.2014
  23. ‘Working holiday visa workers being ripped off and harassed’ ABC 06.03.2014
  24. ‘Union alleges meatworkers underpaid’ The Land 07.03.2014
  25. ‘Court action over underpaid meatworkers’ Good Fruit & Vegetables 13.03.2014
  26. ‘Fair work cracks down on alleged underpayment of 10 abattoir workers’ www.smartcompany.com.au 13.03.2014
  27. ‘Primo abattoir embroiled in $41K underpayment case’ www.foodmag.com.au 13.03.2014
  28. ‘Court action over underpaid meatworkers’ www.farmonline.com.au 13.03.2014
  29. ‘Primo puts case in ad’ Newcastle Herald 21.03.2014
  30. ‘Meat firm puts case’ Newcastle Herald 22.03.2014
  31. ‘Abuse of holiday workers reaches Parliament’ AMIEU 24.03.2014
  32. Enterprise Bargaining agreement April 2014
  33. ‘Primo to expand’ Scone Advocate 26.06.2014
  34. ‘Forty million dollar Scone abattoir upgrade’ ABC rural 04.07.2014
  35. ‘JBS takes stake in Andrews Meat’ www.farmonline.com.au 09.07.2014
  36. ‘What’s behind JBS taking a big stake in Andrews Meat Value adding Businnes? Beef Central 10.07.2014
  37. ‘Pinoys take on abattoir jobs’ kalatas.com.au 12.07.2014
  38. ‘Scone’s Primo abattoir to get $40M upgrade’ Maitland Mercury 21.07.2014
  39. Senator John Williams Speech 30.09.2014
  40. AMIEU Meatworkers Journal Vol #69 Oct 2013. March 2014
  41. ‘Primo group sold to JBS for $1.45B’ Singleton Argus 21.11.2014
  42. ‘JBS to buy Primo in $1.45B deal’ Beef Central 21.11.2014
  43. ‘Bringing home the bacon: JBS buys Primo’ The Land 21.11.2014
  44. Brazil’s JBS buys Primo Smallgoods’ www.ausfoodnews.com.au 24.11.2014
  45. ‘Meatworkers union worried about reliance on overseas workers’ ABC News 25.11.2014
  46. ‘$1.45B Primo acquisition part of JBS’s big picture value-added strategy’ Beef Central 27.11.2014
  47. ‘Scone abattoir expansion’ ABC Rural 27.11.2014
  48. ‘Scone abattoir announces 100 new jobs’ ABC Rural 27.11.2014
  49. ‘Primo buyout raises concerns’ Stock Journal 28.11.2014
  50. ‘Call for critical industry cluster to protect Upper Hunter Beef Industry’ ABC News 02.12.2014
  51. ‘JBS reveals it’s market appetite’ The Land
  52. ‘JBS emphasises local commitment’ Scone Advocate 04.12.2014
  53. ‘Workers unpaid as labor hire company folds’ Newcastle Herald 19.01.2015
  54. ‘ACCC won’t oppose JBS’s acquisition of Primo’ Beef Central 06.02.2015
  55. ‘NSW Senator John Williams hits ACCC over Primo takeover’ Weekly Times 10.02.2015
  56. ‘Scone abattoir supervisor sentenced over assault’ ABC News 27.02.2015
  57. ‘Producers call for a fair go’ www.farmonline.com.au 02.03.2015
  58. ‘Joyce welcomes conditions on JBS/Primo FIRB approval’ Barnaby Joyce media release 04.03.2015
  59. ‘Hockey approves JBS take-over’ The Land 04.03.2015
  60. ‘Hockey approves JBS’s Primo buy, but with strings attached’ Beef Central 05.03.2015
  61. ‘Primo sale approved, with protections to ensure Scone abattoir stays open’ ABC News 05.03.2015
  62. ‘Primo sale highlights need for competition…’ ABC Rural 06.03.2015
  63. ‘Sale of Primo to JBS disappointing: Senator John Williams’ www.deluxecafemoree.com.
  64. ‘JBS concludes $1.45b Primo deal’ Beef Central 30.03.2015
  65. “JBS imports new boss for Primo’ The Land 31.03.2015
  66. sub50_JBS Inquiry into the effect of market consolidation on the red meat processing sector
  67. sub45_WangarattaVFF 28.06.2015
  68. ‘Union officials contend Scone abattoir sell off a boost for internal workers’ www.myexpress.com.au 08.08.2015
  69. ‘Scone abattoirasked for more information on expansion plans’ ABC Rural 25.09.2015
  70. ‘JBS lodges DA to fix ‘legacy’ issues at Scone abattoir’ Scone Advocate 09.12.2015
  71. council approval for works Dec 2015
  72. ‘ATO publishes tax data for agribusiness corporates’ Beef Central 18.12.2015
  73. ‘Jobs to go at Scone abattoir’ ABC News 27.01.2016
  74. ABARES foreign ownership 2011
  75. ‘MLA forecasts beef market adjustment’ The Land 27.01.2015
  76. ‘Slow season opening for processors’ Beef Central 11.01.2012
  77. ‘Caualties emerging as export kill pressure continues’ Beef Central 25.07.2011
  78. ‘Hunters meat axe’ Newcastle Herald 15.05.1999
  79. ‘TAFE signs deal with Scone abattoir’ Newcastle Herald 27.08.2002
  80. ‘Abattoir to beef up it’s numbers’ Newcastle Herald 30.04.2003
  81. ‘Feedlot future has abattoir concerned’ ABC News 16.04.2004
  82. ‘Primo accused over foreign pork’ Sydney Morning Herald 20.02.2008
  83. ‘Improperly labelled pork sparks probe’ Sydney Morning Herald 20.02.2008
  84. ‘Taiwanese meatworkers in Scone underpaid, encouraged not to pay tax, says union’ ABC News 07.03.2014
  85. ‘Big beef producer cuts deal with Tasman Group’ The Age 06.03.2008
  86. ‘Teys Australia abattoir kills for the first time since Cyclone Marcia’ ABC Rural 06.03.2015
  87. ‘JBS shuts north ALD plant several weeks early, extends closure of other plants as cattle supply dries up’ ABC Rural 26.11.2015
  88. ‘Weekly kill, Processors dropping shifts in preference to chasing cattle at a loss’ Beef Central 27.01.2016

Rockhampton – JBS

Other Names

Current Operation

  • Aus Meat Accreditation registration dated 29/12/2015 #384 – JBS Australia Pty Ltd (Rockhampton).3
    • registered as a Beef, Offal export facility.3
  • Direct employment enquiries to www.jbssa.com.au

Location   


Hema Maps – Australia Truckies atlas.

Owner

  • A1

Operation   

  • Aus Meat Accreditation registration dated 29/12/2015 #384 – JBS Australia Pty Ltd (Rockhampton).3
    • registered as a Beef, Offal export facility.3
  • Direct employment enquiries to www.jbssa.com.au

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

Australian abattoirs inactive map

abattoirs_edited-1

History of Rockhampton #170

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.9
    • 27 have some level of foreign ownership.9
    • Ownership dominated by Japan, UK and the US.9

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

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.11
    • affected slaughter numbers to abattoirs.11
  • July.National slaughter rates decline 5%.12
    • Australian currency pressures.12
      • A$ is now above US108c.12
      • economic news out of US could send currency even higher.12
      • higher A$ would cripple Australia’s already limited price competitiveness for beef in international markets.12
    • QLD which does approximately half of Australia’s processing capacity.12
      • Down 8% from the previous week.12
      • lowest kill recorded in QLD in July for past decade.12
      • Down 21% on same period last year.12
      • Significant number of QLD plants only killing 3-4 days.12
    • listless export beef demand.12
    • Meat processing and export is low-margin business due to.12
      • Import duties.12
        • Indonesia 9%.12
        • Korea 40%.12
        • Japan 38%.12
      • New AQIS charges on meat inspection would add millions to processor costs.12
    • Is currently a big build up of meat in cold stores due to difficulty in selling into sluggish markets, Japan and the US.12

7. ABARES Nov 2011_edited-1

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

2013

  • November. JBS Swift Australia install closed-circuit television camera’s (CCTV) in it’s Australian meatworks.6
    • For the purpose of animal welfare and meatworker safety issues.6
    • CCTV for internal use by only JBS, with no plans to allow outsiders to view the footage.6
  • JBS’s US beef division (which includes Australia) delivered drop in net sales and earnings in it’s third quarter financial results.7
    • 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.7
    • Earnings before tax $134M,.7
      • Down by 22.5% on previous quarter.7
      • Down by 28.4% on third quarter last year.7
    • result reflection of domestic North American markets.7
      • Improved performance had occured in Australian.7
        • Demand had increased in Chinese markets.7

2014

  • July. JBS Australia purchase majority shareholding in NSW based Andrew Meat.5
    • specialise in high quality, portion cutting and further processing of meats for domestic and international restaurant and foodservice customers.5
    • produce ready-cooked meals.5
    • company banner Creative Food Solutions.5
    • Andrew Meat will allow JBS expansion into high growth retail and value-adding segments.5
  • Expansion of the Andrew Meats business will start in November .8
    • JBS global strategy to expand into value added meat protein – opportunity to expand margins.8
    • JBS have an existing value-added division – Food Partners.8
      • supplies food service customers like Pizza Hut and Domino’s with toppings.8
    • Andrew Meats focus will be produce ready meals.8
      • ‘grab & go’ beef roasts, designed to compete head on with hot cabinet roast chickens sold in supermarkets.8
      • Domestic markets were very immature but also with significant growth potential.8
  • At this time JBS operate.5
    • 10 processing facilities.5
      • Daily processing capacity of more than 8,000 cattle and 21,000 small stock.5
    • 5 feedlots.5
  • December. JBS currently operate 12 meat processing plants across 5 Australian states1
    • Wages & local procurement $730M (Excluding livestock purchases)1
    • Employs 8,500 people at the facilities1
      • Employs 12,000 people in Australia1
    • Total revenue of $6.5B1
  • 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)1
      • JBS share of Australian beef production 16%1
      • Market share of national small (lamb, mutton & goat) 16%
    • JBS spent $2.4M on halal certification costs of approved religious certifiers in 20141

    2015

    • January. MLA forecast.10
      • Australian cattle herd has gone from 35 year high (2013) to 20 year low (2015).10
      • Australian cattle herd slip to 26.8M head by June 2015.10
        • by 2016 expected decline to 26.5M head.10
        • by 2020 27.9M head.10
      • Adult cattle slaughter expected to slump 15% year on year.10
        • 2015 to 7.8M head.10
        • 2020 expected 7.9M slaughter.10
      • Long term Female average in 2014 52%.10
        • Normally female kill percentage 47%.10
        • Only in years 1977, 1998 & 2003 has female kill been above 50%.10
      • Beef exports record levels in 2014 1.39M tonnes shipped weight.10
        • Expected to drop 20% to 1.3M tonnes in 2015.10
    • 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 country1
  • cost of processing grain-fed cattle in Australia is twice of the USA1
    • lower levels of productivity in Australia in regards to kg per unit of labour1
    • 2 major differences between Australia and the USA1
      1. Government regulation
        • $10 a head more in Australia1
        • Dept. of Australian Agriculture fully recover costs of meat export inspection and certification1
          • Australia wide DAFF costs $80M1
          • JBS contribute $14.5M1
        • Export plants don’t use DAFF but use approved employees, which plants fully cover costs1
          • JBS estimate an additional $30M at Export level1
        • USA & Brazil governments provide services at no or minimal costs to processors1
      2. Energy Costs
        • $15 a head more in Australia1
    • Technical barriers to trade (TBT’s)- Total value in Australia estimated at $1.25B as identified costs1
      • 261 TBT’s in 40 key markets1
        • 136 have significant trade distortion impacts1

2013_2015_edited-1

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

Sources Rockhampton QLD. JBS

  1. sub50_JBS Inquiry into the effect of market consolidation on the red meat processing sector
  2. ‘ATO publishes tax data for agribusiness corporates’ Beef Central 18.12.2015
  3. AUS-MEAT Accreditation Listing 29.12.2015
  4. ‘Big Beef producer cuts deal with Tasman group’ The Age 06.03.2008
  5. ‘JBS takes stake in Andrews Meat’ www.farmonline.com.au 09.07.2014
  6. ‘Swift CCTV camera action’ Weekly Times 13.11.2013
  7. ‘JBS delivers lower third quarter beef sales, revenue’ Beef Central 14.11.2013
  8. ‘What’s behind JBS taking a big stake in Andrews Meat Value adding Businnes? Beef Central 10.07.2014
  9. ABARES foreign ownership 2011
  10. ‘MLA forecasts beef market adjustment’ The Land 27.01.2015
  11. ‘Slow season opening for processors’ Beef Central 11.01.2012
  12. ‘Caualties emerging as export kill pressure continues’ Beef Central 25.07.2011

Mackay

Mackay abattoir, owned by NH Foods trading as Thomas Borthwick and sons is a modern and currently operating facility. Organically accredited specialising in high quality grass fed beef.

Other Names

  • Thomas Borthwick
  • Borthwick’s meatworks
  • Nippon Mackay

Current Operation

  • Is currently in operation as at 2016.

Location

  • Mackay is located on the east coast of Queensland, Approximately 970km north of Brisbane, 334 km north of Rockhampton and 394km south of Townsville.
  • The Nippon Mackay abattoir is located at Bakers Creek approximately 10km south of Mackay.
    Aust. Mackay

Mackay

Owner

Operation

  • Mackay is certified for organic beef production.2
    • Specialising in high quality, chilled grass fed beef
    • Cattle are sourced from mainly Central QLD
    • Export markets include Japan, USA, Republic of Korea, South Africa, Russia, Europe, Taiwan, Mexico, Ukrain and Indonesia.13
  • Nippon currently own 3 abattoirs in Australia,

Other Abattoirs in the region

Pentland (QLD)

Ross River abattoir (QLD)

Townsville – Stuart (QLD)

Australian abattoir locations

abattoirs_edited-1

To access this map go to Australian Abattoirs – Google map interactive

History of Mackay meat processing facility

1890’s

  • Recognition that the export trade of meat needs to be developed for the economic benefit of Australian producers (Pg 1041).1
    • Existing low values are due to fact that half to one third of surplus meat is exported.1
    • Should be exporting 250,000 to 300,000 carcases of beef.1
    • £1M pounds is required to construct meatworks.1
    • If not constructed £10M pounds could be added to existing capital of the banks and still their securities would be unprofitable(Pg 1042).1
  • Parliament develope “The Meat and Dairy Produce Encouragement Act”(Pg 1042).1
    • Levy imposed on both cattle and sheep.1
    • 2 funds .1
      1. Dairying herds
      2. Beef herds
    • Fund allows for establishment of meatworks at.1
      • Pinkenba
      • Bowen
      • Redbank
      • Cardwell
      • Broadsound
      • Gladstone
      • Brisbane
      • Charleville
      • Mackay
      • Biboohra (Mareeba)
      • Burketown and
      • Sellheim

1905

  • Mackay abattoir inception.56
  • Authors note – there is a significant discrepancy as to when this site was established.

1954

  • Beef Cattle in the district of Mackay totalled 268,809 head.15
  • Meeting is held to discuss possibility of establishment of an abattoir in Mackay.15
    • If constructed must allow for extension to cope with increase in cattle export.15
  • Mackay Local Abattoir board applied for £5,000 debenture loan to build the facility.15
    • Refused by 5 Insurance companies
    • Refused by 2 banks and
    • Public curator

1965

  • July. Mackay, Baker’s Creek works opens – Borthwicks.16

1980’s

  • The Australian beef trading/processing environment is worsening(Pg 119).5
    • QLD Cattle herd in 1975 was 14M head.5
      • QLD Cattle herd in 1987 is 9M.5
    • There is low utilisation rates through meatworks and the need to reduce the number the meatworks is seen to improve efficency and reduce operational costs (Pg 120).5

1983

  • Federal Industries Assistance Commission produce a report that reveals the Australian meat processing industry has 38% excess capacity (Pg 126).7

1986 

  • April. Joint Venture Proposal is begun to amalgamate.7
    • FJ Walkers (Owned by Elders IXL)
      • Already own 10 abattoirs, including 4 key export works and meat packing plants in Australia (Pg 119).5
    • Metro Meat Industries
    • Smorgon Consolidated Industries
    • Tancred Bros
    • Thomas Borthwick & Sons
      • Borthwicks to add their plants of  Mackay and Bowen (QLD).7
  • Wide spread concern of potential domination of the QLD beef market by the merger entity (Pg 127).7
  • May. Trade Practices Commission (TPC) holds a investigation.7
  • June. TPC announce will not place legal impediment to the merger.7
  • July. Borthwicks  withdraw from talks(pg 120).5
    • Borthwicks had operation problems of it’s own and wanted to sell all Australian assets including hides and skin processing not just jewels of Bowen and Mackay.5
    • Portland (Vic) would be particularly difficult to sell due to union unrest.5

1987

  • Is listed in Aus-Meat Accreditation List as Establisment #67.8
    • Borthwick. T & Sons Ltd.

1988 

  • January. Teys Brothers are in discussion with Borthwick to purchase Borthwick Australian assets and a Japanese branch of the company (Pg 121).5
  • Teys had been in a joint venture with Canada Packers (Pg 121).5
    • Canada Packers withdrew from the joint venture which influenced Teys to seek financial backing from Kerry Packer in bidding for the Borthwick assets
    • Purchase price $25M Australian
  • AMH saw the ‘new entrant’, Teys as a threat to AMH’s ability to remain profitable and achieve further rationalisation in the northern region (Pg 122).5
  • AMH commented that Borthwick operations were the main price competition in QLD (Pg 122).5
    • If Borthwicks not in the market AMH would earn $10 a head more per animal.5
  • AMH offered Borthwicks $29M for Australian Assets (Pg 122)
  • TPC advised AMH not to proceed without their consultation as they would likely contravene Sec 50 Trade Practices Act and likely dominate the QLD cattle market (Pg 123).5
  • TPC placed an injunction for AMH to withdraw offer (Pg 123).5
    • AMH resisted arguing the the order would likely allow Teys to purchase without actual determination of contravention of section 50.5
    • AMH  offered undertaking that Borthwicks business’s would be maintained and conducted independently and in competition with the business of AMH.5
    • TPC accepted but possible divestiture order was of significant commercial risk to AMH.5
      • TPC announced an inquiry was to be held.5
    • Borthwicks sale to AMH was accepted 26/01/1988
  • Borthwick Hides and skins business were immediately sold.5
  • All remaining parts of Borthwicks were combined with AMH
  • February. TPC begins inquiry.5
    • TPC accepts that northern QLD is a seperate market to central and southern QLD.5
    • AMH control 5 of the 10 abattoirs in the region.5
  • Bowen abattoir could lift total regional slaughter capacity to over 76.76%.5
  • TPC ruled AMH had contravened section 50.5
    • Ruling was AMH must divest itself of Bowen & Mackay
      • Could retain control of Portland (pg 128).7
    • 3 months to do so
    • appeals and cross appeals conducted.
  • Trade Practices Commission forced sale due to AMH having dominant market share.2
  • March. TPC final judgement ruling on AMH case (Pg 123).5
    • Case is held as precedent on what constitutes the geographical limits of a product market
  • While the court case was in process AMH had been operating the plants(Pg 123).5
    • Profits from them had been above market expectations.5
    • Bowen was of marginal importance
    • Mackay was significant because of the access to lucrative Japanes market (Pg 128).7
  • AMH offered QLD plants to Anglo Irish $32M (Pg 124).5
    • initially Anglo Irish accepted but revalued plants at considerably less and withdrew from the deal
  • TPC increased pressure on AMH to sell plants (pg 124).5
    • If AMH didn’t sell them TPC would put plants up for public auction at market price
  • Nippon Meat Packers, in consortium with Mackay Sugar to purchase the Bowen and Mackay plants (Pg 123,86).5
    • reported $32M

1997

  • July. Is listed at this point in time in Aus-Meat Accreditation Listing.9
    • Beef Export Abattoir #67 Thomas Borthwick & Sons P/L
  • November. Nippon announce closure of the plant.17
    • Loss of employment of 450 workers
  • government encourage company and unions to continue negotiations of a new EBA.17
    • With government prepared to offer assistance package to facilitate new investment in the plant to bring up to world class standards if agreement is reached

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.51
    • 27 have some level of foreign ownership.51
    • Ownership dominated by Japan, UK and the US.51

1994

  • Nippon purchase (Pg 86).5 Wingham (NSW)
    • Wingham is a major beef exports facility.5
    • Tomen sells it’s interest to Nippon.5
      • Major shareholder in Anvic Meat Exports Pty Ltd.5

1995

  • Simon Stahl is appointed manager of the Mackay Plant57

1997

  • Nippon has invested $200M in abattoirs and feedlots over the previous decade(Pg 86).5
    • 3rd Largest meat processor in Australia.5
    • Exporting to 34 countries.5

NH foods Oakey export_edited-1

NH Foods holdings. Source www.nh-foods.com.au – General Information accessed 21/12/2015

2000

  • Seasonal closure date of works 20/12/2000.19

2001

  • Seasonal re-opening date of works 22/01/2001.19

2002

  • Mackay facility is currently operating.20
    • 5 days per week.20
      • Day and Afternoon
      • Voluntary Saturdays
    • Processing 1,020 head per day.20

2003

  • February. Borthwicks fined $15,000 after 3 employees overcome by carbon monoxide gas in a chiller room.37

2004

  • March. Borthwicks fined $40,000 for spilling 4 tonnes of tallow into Bakers Creek after a pumping tank overflowed.37
  • May. Borthwicks fined $40,000 due to death of a trainee export buyer when a stack of frozen meat fell on him.37
  • Paid $334,000 compensation to an employee who suffered permanent disability due to cabon monoxide incident.37
  • July. Facility was shut down 12 hours and 350 employees evacuated due to ammonia spill.37

2008

  • Is listed at this point in time in Aus-Meat Accreditation Listing.10
    • Export Abattoir ( Beef Offal) A+
      • #67 Thomas Borthwick & Sons

2005

  • Rockhampton – Lakes Creek (QLD) receives $660,000 federal grant to re-open it’s meatworks under Regional partnerships program.21
    • Rockhampton Lakes Creek had closed in 2002, 1,200 staff lost jobs.21
    • Jointly owned by Teys Investments Pty Ltd and Consolidated Pastoral Company Pty Ltd (Kerry Packer).21
  • Neither Rockhampton (AMH) or Mackay (Nippon) received any finanical support.21
    • Both sites are in direct competition with Rockhampton Lakes Creek.21
  • October. Mackay embarks on extensive recruitment drive locally but to practically no avail.22
    • workers have left to seek employment in the mining industry.22
  • Mackay employs 20 Brazillian boners to replace local workers.22
    • 2 year working Visa, after which they can apply for Australian citizenship.22
    • Workers will receive $950 a week.22
      • In Brazil they earned $200 a month, same work.22
  • Borthwicks plan to import more Brazilian workers next year.22
  • December. 2005 has seen a 50% turnover in the 500 plus staff at the plant.23
  • Borthwicks will employ up to 50 Brazilians in 2006.23
  • Mackay plant contributed to the Mackay economy in 2005.23
    • $17M in wages.23
    • Purchased 150,000 head of stock at cost of $135M.23
      • Numbers down due to restricted supply of cattle due to drought and graziers holding cattle to rebuild herds

QLD Drought 2003_2005_edited-1

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

  • Plant seasonal closure 18/12/2005.23

2006

  • Planned seasonal opening Mid January first shift.23
    • second shift in February
  • January. Plan to process 190,000 this year.24
  • Processed 160,000 last year.24
    • 50 Brazilian staff employed
    • some South African tradesmen due to start soon
  • New staff will allow production throughput to lift from 600 to more than 900 head a day.24
    • Staff numbers in total to almost 520
  • August. Up to 30 workers lost jobs due to short supplies of cattle.25
    • second boning shift has been suspended
  • Employees say had less than 25 minutes notice of their termination.25
  • Staff cuts based on ‘last on, first off’ basis.25
  • Australian workers saying they lost their jobs while imported workers kept theirs.25
  • Production to drop from targets of 900 head to 650 head daily.25
  • Shortage of cattle and workers has taken it’s toll.25
  • To operate effectively the facility needs to hire an additional 140 people.25
  • 2 workers who had been on probation period loose their employment after consideration of their performance by the company.26
    • Was done in accordance with EBA
    • Both offered work for the day and one to the end of the week

2007

  • August. 40 Brazilian workers on 457 Visa’s travelled to Rockhampton to meet with AMH for employment at the plant in Rockhampton.27
    • AMH recently been taken over by JBS Friboi
  • September. Federal Member from QLD, National Party, De-Anne Kelly says AMH Holdings is threatening the viability of smaller abattoirs by poaching their overseas workers.28
    • Claims 18 Brazilian workers left a local abattoir to work at Dinmore (QLD).
    • Another 30 workers set to leave Mackay – Nippon Meat Packers
  • October. Meatworks will cut pockets off employee overalls and conduct random searches to prevent stealing of gallstones.29

2008

  • January. Seasonal start up expected to begin 24/01/2008.30
  • Anticpating a great year at the meatworks.30
    • Have had 4 years of struggling against drought and labour problems.30
      • turnover of 35 staff every month.30
    • Borthwicks imported workers on ‘457 visas’ from Brazil, South Africa and the Cook Islands.30
      • housed and looked after by the company.30
    • Another 40 Brazilians, as well as Ireland and South Africans with 50 locals would begin.30
    • Mining has shown a significant slowdown in job offers.30
      • At the peak 600 mining jobs were advertised regularly now only 200.30
    • Existing 350 workforce will soon be joined by 100 more.30
    • Expect to process 150,000 head of cattle.30
      • Increase of 10% on previous year.30
  • “It’s been depressing for 4 years, If it weren’t for the fact we were foreign owned we would have had to close” Simon Stahl. Manager at Borthwicks.30
  • Seasonal conditions had improved significantly in the area.30
    • southern regions were still drought stricken.30

2008

  • June. Borthwicks meatworker is awarded $84,587 in damages for workplace injury.31
    • Total damages award was $102,028.31
      • Work Cover received $17,441.31
  • July. Abattoir will be forced to close for 2 days due to a Truck strike that will affect cattle deliveries.32
    • Truck strike was due to concerns of increased registration costs, harsher penalties for working extra hours.32
    • lack of rest stops forced truck drivers to drive longer than they wanted.32

2009

  • January. Seasonal opening 27/01/2009.33
  • A Halal slaughterman is employed allowing the facility to sell beef to Islamic countries.33
    • lucrative market.33
    • more difficult to access than previous years due to protocols.33
    • Many Muslims around the world interested in Australian beef.33
  • Expected to process 150,000 cattle through the year.33
  • December. Borthwicks loose a Supreme Court appeal against a fine for a workplace accident.34
    • 2 accidents combined total of $114,000.34

2007_2009_edited-1

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

2010

  • October. Joint research is conducted using the abattoir waste solids in the pyrolysis process.35
  • Waste to Energy. MLA project A.ENV.0101 March 2011
    • solid waste streams from red meat processing are generally disposed of at cost by the abattoir.35
    • study was to look at ways the waste can be treated through anaerobic/aerobic biological treatment and improving management practices, reducing disposal costs and minimising fossile fuel consumption.35
    • Ways for the abattoir to produce their own renewable energy.35

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.52
    • affected slaughter numbers to abattoirs.52
  • June. Injured foreign meatworker lodges compensation claim Borthwicks $740,000.36
    • Began work at facility February 2006 earning $807 a week.36
    • Worked until Mid August 2009, then placed on light duties until early 2010.36
      • Employment was terminated due to injuries.36
    • Claims that not enough staff or rest breaks are provided.36
    • Typical work day.36
      • Start 6am
      • Take a 7 minute break at 7.20am
      • 20 minute break at 8.30am
      • 7 minute break 10.15am
      • 30 minutes for lunch at 11.15am
      • 7 minute break at 12.45pm
      • 10 minutes at 1.50pm
      • Finish at 2.45pm.
  • July. Borthwicks found guiltyof failing to discharge workplace health and safety obligations for incident that had occured 8/10/2007 when a meatworker had been trapped between a metal beam and shelving.37
  • September. Borthwicks finsed $70,000 for trapped foot incident.38
    • Borthwicks had provided training to the worker and had safety measures in place that had not been disregarded by Borthwicks.38
    • Finding was based on Borthwicks failing risk management.38

 

2012

  • Currently processing 750 head a day.2
  • January. Mackay meatworks seasonal opening about 24/01/2012.39
  • Manager. Simon Stahl leaves and is appointed CEO of NCMC at Casino57
  • November. Australia’s negotiations with Korean beef export market need to be finalised.40
    • Korean Beef trade is worth $770M.40
    • Delays have stalled with Gillard insistance that an Investor state dispute settlement (ISDS) mechanism in the agreement be excluded.40
    • Korea is Australia’s 3rd largest beef export market.40
      • 2011 146,347 tonnes
      • 15% of Australia’s global beef exports
      • Currently 49% of Korean beef imports
    • Delays in FTA are causing high costs to processors.40
  • Australia’s market position would decline dramatically in 2013 to Korea if the EFT is not finalised soon.40
    • US beef has significant advantages over Australia.40
      • January 2015 will seee US gain a 5.3% tariff advantage
        • Australian been incures 40% tariff to Korea
      • Tariff widens 2.66% each January
        • US entering Korea Tariff free 2026
    • If the FTA is not finalised with similar tariff to US markets.40
      • Australia will incur cumulative loss A$1.4B over 15 years
      • Australia’s share of Korean market falling from current 49% to 26% in 2026.

 Profit Margins_edited-1Nippon Meat Packers Revenue Source IBIS world 2010,2013

revenue_edited-1

Nippon Meat Packers Profit Earnings Source IBIS world 2010,2013

2013

  • Mackay abattoir throughput of meat.41
    • 90% exported
    • 10% for domestic sales
  • Distribution of beef enterprises in the Mackay Whitsunday region is 80% coastal and 20% hinterland.41
    • Many producers combine sugarcane and pasture improvment with cattle production or fattening

2014

  • Nippon Meat Packers Pty Ltd changes name to NH Foods.55
  • Logo NH oakey exports_edited-1

    NH Foods Australia Logo Source  www.nh-foods.com.au

  • April Frozen beef shipments to Russia are temporarily suspended from 07/04/2014.44
    • A similar suspension occurred 31/03/2014 for chilled beef.44
    • Temporary suspension of beef offal imports occurred 27/01/2014.44
  • Wingham exports meat to Russia affected, along with another 29 Australian establishments.44
    • Australia placed additional requirements on its testing requirements.44
    • Russia detected Trenbolone 21/03/2014.44
    • Australian authorities held an immediate meeting with Russian counterparts.44
      • providing details of testing and invited Russia to inspect Australian meat establishments.44
      • Trenbolone is not produced from cattle treated with HGP’s.44
      • Russia has a zero tolerance, most countries have a maximum residue limit.44
  • Russia placed new requirements of detection of Trenbolone.44

 

  • Russia may consider Asia, Chinese port and Indian buffalo meat imports to replace decrease is supplies from the US, European union and Australia.44
  • Australia has been a traditional beef exporter to Russia since the 1970’s.44
    • To July 2012 – June 2013 exported 24,000 tonnes
    • To July 2013 – February 2014 20,000t
    • Trade is worth more than $170M a year
    • Russia is a declining market for Australian beef exports
    • Calendar year to date Russia taken only 1,221t beef
    • Full year exports 2010 and 2011 topped 60,000 tonnes
  • Tropical cyclone Ita hits far north QLD coast.

 

Cyclone Ita April 2014_edited-1

Tropcial Cyclone Ita impacts QLD April 2014 www.longpaddock.qld.gov.au

  • May. Mackay region producers are fairing better with climate conditions than Western QLD.42
    • Drought a significant factor in many areas of QLD
  • Other factors affecting producers are.42
    • high Australian dollar
    • rising debts
    • surplus of cattle due to halting of live export with Indonesia in 2011
  • July. Australia is on the verge of finalising a FTA with Japan.43
    • 97% of exporters set to get preferential treatment or be duty free
    • Japan’s standard 38.5% tariff on frozen beef will be cut to 19.5%
    • Fresh beef exports tariff will drop to 23.5% over the next 15 years
    • Beef Offal, worth $167M will also have reduced tariff and increased quota
  • December. Korea-Australia Free trade agreement enters into force 12/12/2014.50
    • Initially an immediate cut to some tariffs with a further cut 01/01/2015.50

2015

  • January. MLA forecast.53
    • Australian cattle herd has gone from 35 year high (2013) to 20 year low (2015).53
      • Australian cattle herd slip to 26.8M head by June 2015
      • by 2016 expected decline to 26.5M head
      • by 2020 27.9M head
    • Adult cattle slaughter expected to slump 15% year on year.53
      • 2015 to 7.8M head
      • 2020 expected 7.9M slaughter
      • Long term Female average in 2014 52%
        • Normally female kill percentage 47%
          • Only in years 1977, 1998 & 2003 has female kill been above 50%
    • Beef exports record levels in 2014 1.39M tonnes shipped weight.53
      • Expected to drop 20% to 1.3M tonnes in 2015

 

 

2013_2015_edited-1

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

  • March. Foreign ownership  in Australian red meat processing.

Nippon share_edited-1

Share of Australian red meat processing

Source The Stock Standard. VFF March 2015

  • April. FK Gardiner & Sons plan to build an abattoir, Darling Downs, Toowoomba.46

 

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

  •  December. Currently listed in Aus-Meat Accreditation Listing
    • #67 Thomas Borthwick & Sons Pty Ltd Export Abattoir (Beef Offal) A+.11
  • Mackay abattoir has a current listing as EUCAS accredited abattoir.12
  • Export markets of Borthwick’s include Japan, USA, Republic of Korea, South Africa, Russia, Europe, Taiwan, Canada, Mexico, Ukraine, Indonesia.13
  • Plant is Halal certified.13
  • Current processing in excess of 750 cattle per day.13
  • Plant closed 10 days earlier than usual for seasonal break.48
  • December. Mackay plant expects it will have to compete hard for cattle in 2016.48
    • Industry has been slaughtering cattle at record rates for the past 3 years.48
      • inevitable a shortage would arrive
    • Current El Nino cycle is creating fear that the rainfall will be reduced in the upcoming wet season.48
      • some graziers are destocking

 

  • American Trim market dropped significantly the last few months.48
    • some processors going into the red
  • Predicts Asian markets opportunities will emerge.48
    • more value add on products
    • Meatworks will look to expand to enable ability to use more of the carcase
    • will see every harvestable portion of organs to be packed

 

  • December. ATO publishes tax data for agribusiness corporates.54
    • 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.54
    • Income tax information is for 2013/14.54
  • NH Foods produced Total Income $845,824.273.54
    • Nil taxable income and nil tax payable.54

 

2016

  • January. KAFTA third round of tariff cuts occur 01/01/2016.49
    • Fresh, chilled and frozen beef has a current tariff 34.6%.49
      • Will reduce to 32%
      • Original level was 40%
      • Meat export is worth $A1.07B in 2014/15
      • Korea has always been one of biggest meat export markets
        • Shipments for lamb have increased 35%

 

Sources of Mackay Abattoir

  1. QLD beef industry 1962. pdf
  2. ‘Northern Australian Beef Industry – Assessment of opportunities and risks’ ABARE 2012
  3. House of Representatives Petition. Abattoirs. 09.03.1998.
  4. ‘World on a plate – A history of meat processing in Australia’ Stephen Martyn
  5. ‘Meat Processing in Australia’ IBIS World. June 2010
  6. ‘Employers & Industrial Relations in the Australian Meat Processing Industry’ J OLeary 2008
  7. Aus-Meat Accreditation Listing Nov 1987
  8. Aus-Meat Accreditation Listing July 1997
  9. Aus-Meat Accreditation Listing 18.07.2008
  10. Aus-Meat Accreditation Listing. Accessed 31.12.2015
  11. EUCAS accreditation Dept. Ag. 25.02.2015
  12. www.nh-foods.com.au/thomas-borthwick-sons/
  13. NH Foods brands
  14. ‘Mackay district’ www.trove.nla.gov.au 01.12.1954
  15. www.mackayhistory.org
  16. ‘Mackay Meatworks’ QLD Government media release 11.11.1997
  17. ‘Competition & Exit in Meat Processing’ J Rolfe, R Reynolds 1999
  18. www.cattlefacts.com.au. Work Recess Dates 2000-2001
  19. www.archive.amieu.net 02.07.2002
  20. ‘Packer firm given grant for abattoir’ Sydney Morning Herald 19.02.2005
  21. ‘Meatworks imports workers? The boys from Brazil’ Daily Mercury 21.10.2005
  22. ‘Meatworks to recruit 50 new workers from Brazil’ Daily Mercury 17.12.2005
  23. ‘Abattoir lifts staff numbers’ Daily Mercury 30.01.2006
  24. ‘Struggling abattoir axes 30 workers’ Daily Mercury 21.08.2006
  25. ‘Meatworkers angry at more job losses’ Daily Mercury 23.08.2006
  26. ‘Meatworks hopes to keep workers in Mackay’ ABC News 02.08.2007
  27. ‘More workers to leave Borthwicks abattoir’ ABC Rural 07.09.2007
  28. ‘Abattoir beefs up security after gallstone thefts’ www.mg.co.za 05.10.2007
  29. ‘Our Cash Cows’ Daily Mercury 17.01.2008
  30. ‘Injured worker wins $84,000 payout’ Daily Mercury 10.06.2008
  31. ‘Truck Strike will cause Borthwicks shut-down’ Daily Mercury 26.07.2008
  32. ‘Halal slaughterman to boost Mackay beef exports’ ABC News 27.01.2009
  33. ‘Borthwicks loses court appeal’ Daily Mercury 17.12.2009
  34. Waste to Energy. MLA project A.ENV.0101 March 2011
  35. ‘Injured meatworker sues works’ Daily Mercury 24.06.2011
  36. ‘Meatworker trapped for 20 minutes’ www.questia.com (partial article) 19.07.2011
  37. ‘Company must pay $70,000’ Daily Mercury 12.09.2011
  38. ‘Stock carriers hope for a better year’ Daily Mercury 09.01.2012
  39. ‘Korean beef trade under threat’ The Land 14.11.2012
  40. State of Agriculture region report 2013.
  41. ‘Mackay graziers cash in on strong seasons’ Daily Mercury 08.05.2013
  42. ‘Australia’s free trade agreement with Japan could see prices fall for consumers’ www.news.com 08.07.2014
  43. ‘Update on Russia’s suspension on Australian beef’ Beef Central 03.04.2014
  44. The Stock Standard. VFF March 2015
  45. ‘FKG plans processing move’ QLD Country Life 30.04.2015
  46. Dept Ag. Submission to Market consolidation and the red meat processing sector July 2015
  47. ‘Mackay meatworks gets ready to compete….’ ABC Rural 17.12.2015
  48. ‘Korea cuts import tariffs further’ www.farmonline.com.au 01/01/2016
  49. Trade Minister Media release 03.12.2014
  50. ABARES foreign ownership 2011
  51. ‘Slow season opening for processors’ Beef Central 11.01.2012
  52. ‘MLA forecasts beef market adjustment’ The Land 27.01.2015
  53. ‘ATO publishes tax data for agribusiness corporates’ Beef Central 18.12.2015
  54. www.nh-foods.com.au
  55. Mackay Planning. Connecting Mackay
  56. ‘New CEO for Casino plant’ Beef Central 15.02.2012
%d bloggers like this: