Tag Archives: Australian Abattoirs

Kalkarindji. NT

A small domestic processor located on an Aboriginal remote community, processes locally bred cattle to sell meat mainly to local communities.

Other Names

Current Operation

  • Currently in operation.

Location

  • Kalkarindji is an Aboriginal community located on the Buntine Highway 350 km south west of Katherine.

Kalkarindji. #1

KalkarindjiSource – Hema Maps.

Owner

Operation

  • Processes locally grown short horn cattle a week1
  • Uses a bolt action gun to kill the animal1
  • Process the animal by laying in a cradle to dress the carcase.1
  • Supplies communities in the Victoria River District with meat.1
  • Supplies Kakarindji store, Yarralin, Pigeon Hole and Lajamanu2

History

2008

  • July. At this time there are 2 other Aboriginal owned abattoirs operating in communities3
  • September. Indigenous Land Corporation have acquired 221 properties across Australia since 19955
    • Manage 70,000 head of cattle on various Aboriginal held stations5
  • December. Current butcher – Jason Scadden, has been working at the facility for 11 years.1
  • On kill days 2 other workers help.1
  • After slaughter the animal is laid on a cradle to skin, legs and gut1
  • Facility has a ban saw, mincer and sausage maker1
  • Meat is wrapped, packed and priced.1
  • Goes to the shop in Kalkarindji or other communities.1

2014

  • Is unsatisfied demand for local beef in northern Australia local communities, mining and tourism.2
  • Involvement in meat processing by Indignous communties could develope local beef processing facilities.2
    • Oenpelli abattoir (NT) – more commonly known as Gunbalanya, kills 30 head a week is currently operating.2
    • Palumpa (NT), kills 20 head a week is currently operating2
    • Mataranka (NT) – partially built but has been abandoned.
    • Peppimenarti (NT) proposed.2

2017

  • Oenpelli abattoir is closed4
    • No reason is given by the operator – Australian Indigenous Agribusiness Company4
      • Indigenous Land council newly formed subsidiary that is federally funded4
        • ILC lease and run  Gunbalanya station and meatworks under a 15 year lease agreement4

Sources

  1. ‘Touring a remote abattoir’ ABC rural. 15.12.2008
  2. Managing Indigenous Pastoral Land. Module 9, Small scale abattoirs. 14/025
  3. ‘Rare bush abattoir’ ABC Rural 07.07.2008
  4. ‘Local meat shortage, families without income ahead of christmas….’ ABC Rural 22/12/2017
  5. ‘Cattlemen muster pride’ The Australian 22.09.2008

 

Australian Abattoir Locations

How this map works.
This is a google engine layered map. At the moment it consists of 7 layers. By clicking on the box on the right hand side of the layers names it will illustrate the location of the abattoirs.

This is a work in progress and is not a complete list of all abattoirs that have operated in Australia or are currently operating.
Locations are approximate and are in relation to the closest town to which they are addressed.

The same abattoir site may appear in two different lists.

Use this link to access the Google map Australian Abattoirs locations.

https://www.google.com/maps/d/edit?mid=zg2q19Y75dIo.k9ID5cjkgPd0

abattoirs_edited-1

The Layers are

Closed prior to 1970

Closed after 1970

2014 Domestic Meat processors in current operation – as per the Ausmeat listing 16/07/2014

2014 Export Meat processors in current operation – as per the Ausmeat listing 16/07/2014

1963 Export meatworks  – as per  list of Meat export works in Australia as at February 1963 from the book ‘World on a plate – A history of meat processing in Australia’ Stephen Martyn. 2013.

Other abattoirs currently in operation

These are abattoirs located in some states that I am aware of

Abattoirs under construction

      These are abattoirs I am aware of.

Australian Abattoir and Meat Processor Locations

Roma #2 (Proposed)

 

July 2014. Maronoa council is seeking $75,000 to conduct a feasibility study into the establishment of an abattoir to process beef, sheep and goats. Proposal is reliant on a new airport at Toowoomba currently being built, rail link improvements that are proposed to Miles and extension of the rail from there to Roma.

Other Names

Current Operation

  •  Proposal.

Location

Owner

Operation

History

2014

  • July. Maronoa Regional Council seeking funding of $75,000 from state and Federal government to budget for ‘high level feasibility’ study into establishment of a beef, sheep and game meat abattoir at Roma.1
  • Wellcamp Airport at Toowoomba is being constructed and could open new opportunities to Asia, Middle East.1
  • Proposed upgrades to inland rail infrastructure.1
    • Rail  improvments to finish at Miles1
  • some private sector interest had been shown from a delegation from Asia1
  • Not looking to compete with Charleville (QLD) goat abattoir.1
    • Charleville abattoir currently operating at capacity with 80% of the feral goats coming from Surat Basin area.1
  • Council looking for ways to soften downturn in the economy that is predicted to hit once  the resource boom subsides.1

Sources

  1. ‘Roma ramps up abattoir study’ QLD Country Life 31.07.2014

SA Abattoirs listed.

This is a list of the abattoirs

Bordertown

Kangaroo Island

Normanville

Peterborough Abattoir (SA). Owned by Samex. Horse meat processor.

Gundagai – South. (Est #106) (NSW)

Other Names

Current Operation

Location   

  • Gundagai is located 70 km east of Wagga Wagga

Gundagai

Gundagai 2

Hema Maps – Australia Truckies atlas.

Owner

  • A1

Operation   

  • Aus-Meat Accreditation. As at 02/10/2017.
    • Export abattoir processing Beef, sheep and pigs.

History

1996

 

 

Sources

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

Cootamundra.1 #87. NSW

Cootamundra is located in south eastern NSW. It was operated by one owner for over 30 years to be recently sold to another Australian group, Manilda in 2014. The same year it obtained tier 2 export status. The facility was mothballed in February 2017 due to lack of sheep supply but remains registered under Aus-meat. (Accessed 02/10/2017)

Other Names

  • GM Scott lamb and beef processing plant2
  • Manildra Meat Company, from 2014.

Current Operation

  • Is currently mothballed as at 25/02/2017
  • Ausmeat accreditation Number 0087.6
    • Accredited as a domestic abattoir current in 1987 as #35N7
    •  
  • MSA accredited plant Establishment Number 0035 current as at 27.08.20138
  • Accredited as a Export abattoir current in 2013 as #876

Location   

  • Cootamundra is located approximately 95 km north east of Wagga Wagga
  • Facility is located on the Temora road19

Cootamundra 1

Cootamundra 2

Hema Maps – Australia Truckies atlas.

Other Australian Abattoirs.

This link will lead to a interactive page that lists past and present abattoirs, meatworks and processors in Australian.

Owner

  • GM Scott1
    • Owner Barry Noble.3
  • Manilda Group (2014)4

Operation   

  • Cootamundra is a multi species abattoir that has capacity to process22
    • 4,000 small stock and22
    • 600 head of cattle per day22
    • Has a goat processing line22
    • Export access to 160 countries including Asia, The Middle East, Northern America and Pacific Islands22
    • Employs 300 people23
  • GM Scott – Is a privately owned business with an annual turnover of $25M3
  • Gas-Flushed cryovac system for products produced3
    • Product is sold into export and domestic markets3
  • Brand name used is – Noble farm brand.3

abattoir-11-06-2015

Source. ‘Manildra remains committed to town’ Cootamundra Herald 11.06.2015

Manildra Meat Company, Cootamundra abattoir

Contacts

For employment enquiries contact Manildra Meat website and go to contacts.

contact-details-for-employment

History

1952

  • Cootamundra facility established3

1963

  • Cootamundra facility is currently operated by Conkey & Sons Ltd34
    • Export facility that has chilling, freezing and freezing storage capacity34
    • Authors Note. This facility could actually be in relation to Harden NSW

1980’s

  • Noble family purchase facility3
  • Manager / Owner is Barry Noble12
    • Originally the facility was established by Mr Noble’s wife’s (Colleen) parents12.
    • GM Scott name is derived from Mrs Colleen Noble’s mother’s name. Grace Margaret Scott12.
      • Mr Barry Noble had worked at an abattoir in Homebush12..
        • Homebush was Government owned and closed down12..
        • Upon closure Mr and Mrs Noble looked at sites for their own establishment12.
  • Area of Cootamundra was centrally located with an abundance of top quality livestock in the area to source supply12.

1987

  • Facility is currently registered as a domestic processing facility under Aus-meat #35N35
    • Registered name under GM Scott as a domestic facility35
  • Authors Note. It is possible that Cootamundra had 2 abattoirs operating in the region at this time. (Note made 04.01.2018)
    • Another domestic facility is operated as Cootamundra Abattoir see Harden NSW

1996

1997

  • July. Cootamundra abattoir is currently Domestically registered under Aus-Meat as #35N36
    • Operator – GM Scott P/L.36
      • Processing Beef and Sheep36

2000

  • March. Cootamundra abattoir #35N is currently registered as a domestic processing facility37
    • Operator – GM Scott P/L37
      • Processing Beef and Sheep37

 

2008

  • June 7. Major product recall occurs for lamb products supplied by Cootamundra to Woolworths supermarket chains9
    • Lamb products brought between May 27 and June 5 in NSW, Vic, Tas, SA and NT have been recalled9.
      • QLD products brought between June 7 – 14, only lamb and cheese rissoles, lamb mini roast and economy burgers are recalled10
      • No products are affected in WA10
      • Safeway has issued a recall of some of lamb products in some of its Victorian stores10
    • strange odour emanating from some of the products9
    • no specific health risks but issuing the recall as a precaution10
  • Manager at Cootamundra abattoir, Arthur Cullen resigns11
  • GM Scott Current Director – Peter Noble11
  • July. Cootamundra abattoir #35N is currently registered as a domestic processing facility38
    • Operator – GM Scott P/L38
      • Processing Beef and Sheep38

2009

  • July. Cootamundra abattoir #35N is currently registered as a domestic processing facility39
    • Operator – GM Scott P/L39
      • Processing Beef and Sheep39

2010.

  • Meat processed at Cootamundra was sold in all Woolworths stores throughout NSW22
    • boneless leg of lamb or a French rack of lamb22
  • March. Cootamundra abattoir doesn’t appear on Aus-Meat registration listing40

2012

  • June. Facility received a significant industry accolade award for development work with a robotic carcase cutter.2
  • Current capacity to process 200 cattle and 3,800 lambs daily2
  • Principally supplying supermarket group Woolworths.2
  • Robotic arm development – Robotic Ovine Cutter (ROC)2
    • First of its kind in the world2
    • Originated from a prototype installed at Midfield Meats in Victoria around 20062
    • Can cut up to 4 cuts per carcase2
    • Processing 360 carcases an hour (Average 10 seconds per carcase)2
    • If doing 2 cuts per carcase can process 450 carcases per hour (Average 8 seconds per carcase)2
    • Cutting system is designed to2
      • handle wide range of carcase size2
      • utilises vision-profiling2
      • dustless blade-cutting technology which prolongs shelf life2
      • High cutting efficiencies that increase accuracy and yields2
    • ROC is expected to have significant impact on the meat processing industry over the next 5 years2
    • Eliminates 4 bandsaw cuts that would otherwise be made manually by an operator2
    • Increases OH & S significantly2
    • With further refinement anticipate speeds up to 600 carcases per hour (Average 6 seconds per carcase) could be achieved2
  • August. Cootamundra abattoir is the first abattoir in Australia to receive Federal Government funding for carbon mitigation project.3
  • Facility will undertake $200,000 project to help industrial refrigeration units to run more efficently3
    • Include upgrading or recycled rainwater project3
    • will combat rising energy costs and improve productivity3
  • Current processing capacity 3500 lambs and 200 cattle daily3
  • Currently employs 200 people3
  • December. Patriarch Barry Noble passed away4
    • Owner of the Cootamundra facility Mr Barry Noble dies of a respiratory illness12.
      • Died at 85 years old. Established the abattoir in the 1980’s12.
    • Installation of improved technology had always been very important to Mr Noble to enable the facility to keep ahead of competition12.

2013

  • Facility placed on the market as family members pursued other professional interests4
  • Facility had recently had $17M invested on a new processing floor with a view to upgrading from tier one to tier two export status4
    • Allowed opportunity to export markets like Japan, Korea and the US4
  • January. Cootamundra abattoir is registered with Aus-Meat as an export processing facility #8741
    • Operator – GM Scott P/L41
      • Processing Beef, sheep, goats and offal41

2014

  • April. Plant cuts production from five days to four due to lack of lamb supply19
  • June. Manildra Group Purchase facility4
    • Manildra is Australian owned4
      • Manildra is 100% Australian owned13.
        • Family owned and run business13
          • Honan Family17
          • Interests in ethanol, flour, sugar and value added products such as starch13
          • Stockfeed business with crop processing ventures in 5 regional centres17
        • Company is 62 years old13
          • Employs over 1,000 people13
            • Most are located in regional Australia, head office is located in Sydney13
        • Manildra also recently purchased a beef boning room and retail ready meat packaging facility in Bomaderry (150km South of Sydney on the East Coast)13
        • Also operated starch and gluten plants in the US for 35 years17
        • Purchased Argyle Prestige Meats in the South West Slopes17
          • Manildra purchased a 50% stake17
          • Argyle meats moved from leasing boning and packing facilities at Harden abattoir to a high tech operation at the former Dairy farmers factory in Nowra17
  • 2 Chinese entities and 2 Australian entities considered or placed bids for facility4
  • Manildra plan to lift processing capacity beef kill immediately to 150-200 a day4
    • processing mainly company owned cattle.4
    • The existing beef line has been under-utilised in the past13
      • Modestly working 100 head per day initially13
  • Facility has current service kill contract with Woolworths to process and bone 1,400 lambs a day4
  • Lambs are sourced from Wagga to Griffith, Forbes, Goulburn up to Cooma4
  • The local area is very high MSA (Meat Standard Australia) capabilities
    • Major selling point for Manildra with easy access to stock13
  • Manildra had been a client of GM Scott in the past13
  • July 1. Official takeover of Manildra group of the Cootamundra abattoir 13
  • Management team
    • Launches the Manildra Meat Company 17
    • GM Scott business manager – Bill Scott13
    • Manildra Group director of business development Peter Millard13
    • GM Scott CEO Len Jones13
  • Full export licence granted – expanded potential overseas markets from 18 to 1485
    • ‘tier two’ export13
    • Has taken 14 months in application of process to obtain the licence13
      • Market export increase capability from 22 to 18413
    • GM Scott already had connections with USA & Hong Kong13
      • working toward ties with China13
  • Cootamundra abattoir is the largest employer in the area13
  • Target markets will be5
    • Saudi Arabia, Hong Kong, Indonesia, Taiwan and Papua New Guinea5
    • China – Took over the Middle east as Australia’s biggest lamb and sheep meat market5
    • Middle East markets – take a lighter lamb, most sourced locally or from the New England area5
      • recently was a good market for mutton to ME but now is not viable to produce for5
  • Most prime lamb is sourced within 100km of abattoir5
    • 70% of the meat processed is service kill.5
    • 30% is export5
  • Currently processing 4000 lambs and 200 cattle a day, with 200 employees5
  • Cootamundra abattoir is confident of continued source of supply even if abattoir at Young opens5
  • Cootamundra compete with abattoirs in Victoria and Queensland for livestock5
  • September. New Goat abattoir is proposed at Blayney, off Newbridge road14.
    • Blayney is located approximately 200km North East of Cootamundra14
    • Goat specific abattoir $38M project14
      • Only one of its kind in the state of NSW14
        • Capacity 13,500 goats14
          • 4,500 processed daily14
        • located at the current SeaLink Freezer site14
      • could employ 165 people likely 5 days per week14
    • Environmental impact will be completed mid October14
    • Strong opposition from neighbours, residents and business in regards to noise, traffic, smell and impact of the facility14
  • Cootamundra livestock producers are looking to a 2nd abattoir in Cootamundra to process livestock for the domestic market15.
    • Export lines are given priority kill over other supplies of kill space15.
      • Facility and management require large numbers and would desire full vertical control of all animals and outgoing meat products15
    • Many farmers in the area are organic producers15.
    • Manildra investment is great for the town has meant some producers have had to seek other facilities to kill stock15
    • Manildra meat Company have offered producers services of its plant on commercial terms appropriate to the operation of the business15.
  • October. Cootamundra abattoir is currently export registered #8743
    • Operator – Manildra Meat Company43
      • Licensed to process beef, sheep, goat and offal43
  • November. 2nd abattoir in Cootamundra gains momentum with a proposed location identified along Turners Lane16
    • Facility would focus on service kills16
    • small multi-species abattoir16
    • Local farmer David Booth leading the push for the abattoir16
      • previously had lambs and goats processed at Manildra16
      • Not allowed to open a small abattoir on his property due to Council Local Environment Plan of the area zoning16
    • Investment funding is being sought16
      • Potential investors have pledged support16
        • wholesalers in Canberra, butchers and small farm operations16
    • Proposed abattoir would be independently run16
    • New proposal could exist with current abattoir16
      • We will focus on small, domestic service kills, They will be all about processing only  with no packaging or wholesale from the site. We don’t intend to put anything in a box” Mr David Booth16.
  • December. $10M upgrades are occurring at the Cootamundra abattoir17.

2015

  • March. Facilities staff and management commit to very high standards of Animal Welfare18
    • Livestock manager David Alexander18
    • Abattoir aimed to not only meet industry standards but be industry leaders18.
  • Animal Welfare is the single biggest issue currently being faced18
    • Improvements are made to ensure the animals are calm and as stress free as possible18
  • A new shed will increase the undercover capacity to 7,000 animals18
    • sheep will be kept dryer and cleaner18
    • New pens will enable better access to water18
    • flooring used will be steel mesh18
      • Previous timber floors break and cause injury18
  • Vets are in attendance each day and asses each animal for injury and ailments18
  • Any animals deemed unfit for slaughter are euthanased18

dog-muzzeled-26-03-2015

Source ‘Animal Welfare awareness at the abattoir’ Cootamundra Herald 26/03/2015

Working dogs are muzzled to prevent biting. The dogs are restrained in purpose built dog boxes when not required and used sparingly.

  • Graded steel ramp used for the sheep to reach the initial restrainer stunning area is about 3 – 5 storeys high. Sheep were unsettled when the sheep could see they were elevated. Construction of a corrugated iron floor beneath the ramp, concealed the height and allowed the sheep to move up it more calmly18.
    • Eventually the entire ramp will be concealed18.

sheep-moving-calmly-along-to-restraint-26-03-2015

Source ‘Animal Welfare awareness at the abattoir’ Cootamundra Herald 26/03/2015

Sheep following each other towards the restrainer

aw-awareness-26-03-2015

Source ‘Animal Welfare awareness at the abattoir’ Cootamundra Herald 26/03/2015

This sheep stands at the top of the ‘restrainer’ before it is electronically stunned by the device pictured

  • 4 men herd the sheep through the gates and towards the stunning area18.
  • 3 men are stationed at the helm of the operation of the stick hole18
    • 1 is the stunner and 2 hang the limp carcases18
  • Manildra process 3,400 sheep and lambs each day18
    • and 100 head of cattle18
    • Site is being upgraded to process 4,000 sheep and lambs18
      • and 300 head of cattle a day18
  • June. Seasonal downturn allows for upgrades to the meatworks19
  • Rumours working hours have been reduced19
  • Lamb prices were up to $6.10/kg carcase weight at the last Cootamundra stock yard sale19
    • Higher prices are believed to be part of the reason for cut in production19
  • Other abattoirs are facing similar issues19
    • Dubbo, Fletchers had shut its plant for a week due to a shortage of sheep19
      • Non-production week used to do maintenance on the plant19

 

2016

  • September. Abattoir nears completion of capital works20
    • Expansion of the beef slaughter floor20
    • Improvements to staff amenities20
  • Had been a contraction in beef processing line  due to on farm and saleyard cattle prices22
  • October. Dam located on Manildra meats property bursts it banks and nearly derails a train21
    • Dam is located 2km from the abattoir facility21
    • Dam only contains run off storm water21
    • Dam had burst its banks and washed away part of a railway embankment21.

dam-burst-06-10-2016

Source ‘Train nearly derailed as dam bursts’ Cootamundra Herald 06.10.2016

Dam located on Manildra Meat company land bursts its bank and undermines the train track.

  • As of December this year the Cootamundra abattoir would no longer process meat for Woolworths22.
    • Traditionally Woolworths had been a major customer22
    • Well known in 2010 that lamb meat processed in Cootamundra was sold throughout NSW Woolworths stores22.
    • Followed a competitive tender process24
    • Loss of Woolworths will provide Cootamundra opportunity to expand domestic and export business22
  • Staff numbers would be assessed according to seasonal demands and industry challenges22
  • Contract to process lambs for Woolworths has been lost to the Junee Abattoir24
  • Local producer Ron Ward and ACT’s Griffith butchery win 3 awards at the Official Great Aussie pie competition25
    • Mr Ron Ward used to have his meat processed at Cootamundra but since 2014 now has his stock processed at Cowra25.
  • November. New General Manager Jason Graham26
    • Managed New Zealand abattoir 3 years26
      • New Zealands’ largest red meat processing facility26
  • Accessible abattoirs willing to process organic produced animals is of concern to local producers27.
  • Very important to local producers to have the capability to diversify to spread risk and enable a spread of earning possibilities27
    • Manildra closed its beef floor to organic animals27
    • Cowra’s Breakout River abattoir beef line is fully booked at the moment27
    • Young abattoir may re-open for beef, but not sure when27
    • Sheep can be service- killed at Cootamundra27
    • Goats can be killed at Cootamundra27

2017

  • February. Manildra Meat Company, Cootamundra Abattoir will close28
    • Last kill will occur 24/02/201728
    • Plant will be mothballed28
  • Authors note – Mothballed is a term used to describe placing a facility in shutdown but still keeping up maintenance and all required standards to re-open and begin operation of animal slaughter in a short period of time. Facilities may maintain Aus-meat registration status even though they are not actually processing any stock.
    • A maintenance team will be at the facility28
  • Very difficult meat processing environment at the moment28
    • Near record high slaughter cattle prices28
    • Intense export market competition28
      • particularly Brazil28
    • Processors have taken heavy losses in the last 12 months28
      • A QLD processor was reporting losses of $200 per head on heavy grass-fed steers28
  • Facility currently employed 150 permanent and 70 casual staff28
    • All employees will be paid full entitlements28
  • All outstanding financial obligations will be met28
  • Plant will not be sold29
  • “We cannot continue to maintain a viable business in the current industry environment, particularly given the record high livestock prices and the inability of our customers to absorb these price increases” Manildra Meat General Manager Jason Graham29
  • Abattoir operations can be a volatile industry especially when cattle prices are at the level they are at now. My thoughts are with the individuals and families as they go through this tough time” Member for Cootamundra. Katrina Hodgkinson30
  • Cootamundra township has a current population of 7,500 people32
    • Loss of 220 jobs in that size of a town has a huge impact32
    • Some staff have applied and obtained work at other meat processing facilities such as Wagga Wagga #291 NSW, Gundagai #106 NSW and Young #128 NSW. 33
    • Some staff have also been accepted to work at the Junee Correctional centre33
  • Roger Fletcher, Owner of abattoirs at Dubbo.2 #2309 NSW  and Narrikup in WA comments on the current trading conditions of processing lamb and sheep at the moment and that it is a tough industry32
    • “I do the numbers and it’s unsustainable where we’re at”. Roger Fletcher32
    • “It’s a bit like if there are six hotels in a town and there’s only enough room for five drinkers, one’s got to close. And there will be more close.” Roger Fletcher32
  • April. JBS Australia announce they will temporarily close two of its southern lamb processing plant due to current livestock supply and price conditions31.
  • Other facilities that have also stopped production or reduced throughput recently are31
  • Some plants are currently operating on loss-making skeleton 3 day weekly kills31
  • Recent spate of abattoir closures raises questions in regards to over capacity of the processing sector with oversupply of stock due to drought31
  • Has been high levels of foreign investment interest in investments directed into processing31

Sources Cootamundra #87

  1. ‘5,000 jobs at risk: Abattoirs facing closure’ Sydney Morning Herald 21.05.1996
  2. ‘Productivity: Cootamundra’s robotic carcase cutter wins innovation award’ Beef Central 04.06.2012
  3. http://www.beefcentral.com/processing/cootamundra-plant-blazes-trail-in-carbon-mitigation-projects/
  4. http:’Manildra secures Cootamundra beef, lamb abattoir, despite Chinese competition’ Beef Central 27.06.2014
  5. http://www.theland.com.au/news/agriculture/general/news/meat-from-coota-to-the-world/2704030.aspx
  6. AUS-MEAT accreditation list 01.01.2014
  7. AUS-MEAT accreditation list 1987
  8. MSA Licensed Plants Meat and Livestock Australia 27.08.2013
  9. ‘Woolworths not to blame for product recall: GM Scott’ ABC News 07.06.2008
  10. ‘Woolies recalls lamb products’ ABC News 07.06.2008
  11. ‘Meatworks manager leaves in wake of Woolies lamb recall’ www.austfoodnews.com.au 11.06.2008
  12. ‘Loss of noble man’ http://www.cootamundraherald.com.au 05.12.2012
  13. ‘Abattoir purchase official’ Cootamundra Herald 27.06.2014
  14. ‘Blayney neighbours unhappy with plans for goat abattoir’ Western Advocate 26.09.2014
  15. ‘Farmers look to a second Cootamundra abattoir’ Foodmagazine 08.09.2014
  16. ‘Second abattoir proposal gains momentum’ Cootamundra Herald  21.11.2014
  17. ‘Manildra Group’s meaty move’ Stock and Land 13.12.2014
  18. ‘Animal Welfare awareness at the abattoir’ Cootamundra Herald 26/03/2015
  19. ‘Manildra remains committed to town’ Cootamundra Herald 11.06.2015
  20. a
  21. ‘Train nearly derailed as dam bursts’ Cootamundra Herald 06.10.2016
  22. ‘End of an era for Cootamundra abattoir’ Cootamundra Abattoir 26.10.2016
  23. Manildra Meat website
  24. ‘Competitive process results in end of Cootamundra contract’ Cootamundra Herald 27.10.2016
  25. ‘Vote of confidence for local farm’ Cootamundra Herald 28.10.2016
  26. ‘Manildra director pays tribute to former CEO’ Cootamundra Herald 01.11.2016
  27. ‘Spreading risk at Cootamundra’ Cootamundra Herald 15.11.2016
  28. ‘Cootamundra plant closure could flag more widespread processor shut-downs’ Beef Central 17.02.2017
  29. ‘150 permanent and 70 casual staff out of a job’ Cootamundra Herald 17.02.2017
  30. ‘Member for Cootamundra, Katrina Hodgkinson saddened by decision’ Cootamundra Herald 17.02.2017
  31. ‘Indefinite closures for JBS lamb plants, as supply challenge reaches critical point’ Beef Central 20.04.2017
  32. ‘Shortage of lambs for slaughter pushing up prices, forcing abattoir closures’ ABC Rural 24.02.2017
  33. ‘Meatworkers consider their fate after abattoir shuts down’ Cootamundra Herald 24.02.2017
  34. ‘World on a plate, A history of meat processing in Australia’ Stephen Martyn. 2012
  35. Aus-Meat Accreditation Listing 1987
  36. Aus-Meat Accreditation Listing November 1997
  37. Aus-Meat Accreditation Listing March 2000
  38. Aus-Meat Accreditation Listing July 2008
  39. Aus-Meat Accreditation Listing July 2009
  40. Aus-Meat Accreditation Listing March 2010
  41. Aus-Meat Accreditation Listing January 2013
  42. Aus-Meat Accreditation Listing October 2014

 

Forbes #656. NSW

Located southwest NSW, built in the 1950’s, owned and operated by Japanese 1988 to 2003. Plant required significant capital upgrades which the owners were not prepared to do and it closed in 2003. Talk of reopening in 2013.

Other Names

  • Lachley meats

Current Operation

  • Unknown

Location   

  • Forbes is located approximately 600km east of Sydney in central NSW, Abattoir located in the Lachlan valley.4

Forbes

Forbes #2

Hema Maps – Australia Truckies atlas.

Owner

  • Lachley Meats ( when closed 2003)1
    • Owned from 1988-20034
    • Japanese owned – The Hannan Corporation2
  • Tasman Group4
    • Currently operates other abattoirs.4

Operation   

  • export beef works2
  • Specialised in grainfed beef for Japanese and Korean Markets5
  • 170ha site, that is 8km from the CWLX livestock selling centre14.

picture 2013._edited-1Source – ‘Abattoir industry in disastous state’ ABC Rural. 16.02.2010.
Forbes abattoir also known as Lachley meats.

History of Forbes #656.

1950’s

  • Built

1987

  • Liberalisation of Japanese beef markets meant reduced import quotas and reduced import tariffs over the next 3 years. (Pg 82)9

1988

  • Plant in operation at this point1.
  • Lachley meats take over2
    • Trading company Mitsubishi were important investors in Australian beef cattle lot feeding and were involved in ‘paddock to plate’ supply chain control. Mitsubishi invested in Lachley meats and Mid Coast Meats – Macksville NSW.(Pg 124)7
    • Japanese firms invested in Australia feedlots and processing facilities especially in QLD, in order to supply the liberalised Japanese market, to ensure product quality and safety standards and to create a more secure supply chain for their parents in Japan (pg 123)7
    • Cattle feedlots in Australia had increased in the 1960’s solely to supply the Japanese markets, when the 1974 (Oil Crisis) occured massive losses occured to Australian feedlotters and producers with little impact on the Japanese buyers as they had little equity in the investments. When trade was rebuilt Japanese importers had to invest in the feedlots to share some of the risk (Pg 81)9

1997

  • At this point Forbes abattoir is Aus-meat registered as an Export Beef, sheep facility11
    • Operator – Lachley meats (Forbes) P/L11

2003

  • August. Abattoir closes.1
  • 170 permanent employees, plus another 70 part-time1
    • company committed to meet all workers entitlements1
  • Another article cites 300 jobs were lost due to the Forbes abattoir closure
  • Forbes abattoir at one stage had employed up to 450 people14
    • 4.5% of the then Forbes population14
  • Unlike Cities of Geelong and Illawarra when Ford factory and Bluescope steel closed, Forbes didn’t receive anywhere near the same level of government support14.
    • Both cities had received about $25M together14.
  • Lachley closed operations rather than invest in capital in a plant that had a bad trading history since 19881
  • Japanese owned pulled the plug on further financial support.2
    • citing high operating costs of an aged plant2
    • shortage of labour2
    • capital requirements needed to comply with by-products results since acquisition in 19882
  • Hannon Corporation was the 2nd largest importer of beef into Japan3
    • Owned a plant in Japan that could process up to 150,000 head a year3
  • Increased tariff on beef imports by Japan earlier had claimed it’s first Australian victim3
    • Major factors are the economic situation in Japan3
    • Situation in Australia and markets is exasperated by the drought3
  • All creditors and liabilities will be paid out in full2
  • Abattoir had closed and re-opened 3 times in the last 20 years.2
  • Local council willing to help to facilitate sale of plant as abattoir or conversion to some other type of factory6
    • Money was available for industrial developement6
    • Special abattoir displacement retraining fund to help retrain people through TAFE6
    • Assist in reducing costs of worker’s compensation, public liability and insurances overall, “..because abattoirs pay right at the top of all those services and that is working against abatttoirs in general” Member for Lachlan Ian Armstrong.6
  • Closure of the abattoir would impact by taking a major premium buyer for cattle out of the market throughout the region.6
  • December. Abattoir sold to Tasman Group services.4
  • Tasman Group also operate Brooklyn (Vic) and Altona (Vic), Yarrawonga (NSW) Longford (Tas) and King Island (Tas)4
    • Also feedlot Yambinya – Wakool4

2010

    • Six red meat abattoirs in Central NSW have closed since 200313
    • Outlook for the sector looks bleak13
      • “It’s disastrous. There are too many processing abattoirs out there and not enough animals to slaughter” Neville Newton, Goulburn abattoir operator13
  • There are currently 29 red meat abattoirs in NSW, down 30% 10 years ago13

2011

  • May. Equipment from the Killarney #22Q. QLD abattoir is used to refurbish Forbes10
    • Equipment is kept in storage and not actually installed but is included in sale deal offered September 201614
  • Sale of facility is thought to have occurred about this time – Australian owner14.

2013

  • Abattoir to be re-opened, had be closed last decade.8
  • Will be over 12 months before improvements are carried out and plant in operation.8

2014

  • NSW Government is questioned if it will offer potential buyers of the Forbes abattoir financial assistance12.
    • Governments reply – Mr Ian Armstrong, Minister of Regional Development, Minister for the Illawarra and Minister for Small business answers that the NSW government would be willing to work with any potential buyer of Forbes abattoir12
    • Grafton #157 NSW had received financial assistance in the past12

2016

  • September. Forbes abattoir attracted strong overseas investment enquiry – principally Chinese10
    • With a view to re-opening as a beef processing plant10
    • Half of the 10 or so interested parties in the purchase were overseas interests10
      • Looking to vertically integrate10
  • Some investors looking to demolish the plant entirely and build a brand new facility14
    • One Korean interest is looking for an Australian shareholder partner14
  • Other facilities in Australia listed for sale at this time

Source ‘Three meat processing plants hit the market…’ Beef Central 14.09.2016

Forbes abattoir

  • Three abattoirs are on at the market in Australia at this time14.
  • Equipment removed from the Killarney abattoir in 2011 kept in storage is included in the sale deal offered at this time14
  • Current owner of Forbes abattoir is thought to have owned the site for 4-5 years14.
  • Stockyards, ponds and office infrastructure are intact at this point in time14
  • October 6. Forbes abattoir site is auctioned14

Source Ian Simpson Property sale advert.

2018

 

Sources of Forbes #656

  1. ‘Dubbo stands while Forbes falls’ Daily Liberal. 21.08.2003
  2. ‘Meat jobs go at Forbes’ The Land. 28.08.2003
  3. ‘Agriculture’ The World trade review. 16-30 September 2003
  4. ‘Abattoirs revived’ Stock and Land 24.12.2003
  5. ‘Meatworks jobs saved’ The Land 25.12.2003
  6. ‘Council offers aid as abattoir closes’ ABC News 22.08.2003
  7. ‘Japanese investment in the World economy: extract’ Roger Farrell.
  8. ‘Forbes council confirms towns abattoir be re-opened after a decade in mothballs.’ ABC Rural. 30.08.2013
  9. World on a plate. Stephen Martyn 2014
  10. ‘Chinese still showing interest in processing assets’ Beef Central 04.10.2016
  11. Aus meat registration list July 1997
  12. http://www.parliament.nsw.gov.au. Questions 18.09.2003
  13. ‘Abattoir industry in disastrous state’ ABC Rural 16.02.2010
  14. ‘Three meat processing plants hit the market – What’s behind it? Beef Central 14.09.2016
  15. https://www.ruralview.com.au/Real-Estate/1-lachley-street-forbes-nsw/Property-Details-buy-rural-10479908.html. viewed 04.03.2018

Queensland abattoirs listed – regions

North Queensland

Ayr abattoir (QLD)

Small processor located 90km south of Townsville, currently in operation

Biboohra abattoir (QLD)

Historical abattoir closed in 1927, Also known as Baron works, located near Mareeba.

Owned by MJ Munro, operated as a slaughterhouse in the early days and then a cannery.

Bowen abattoir (QLD)

Located 230km south of Townsville on the QLD coast.Was in operation at 1919, went through fires, labour disputes and temporary closures. Purchased by AMH, the final owners and permanently closed in 1997.

Cairns abattoir (QLD)

Cairns (more commonly known as Queerah meatworks) was located in far north QLD received cattle from mainly north Australia, often by Barge from the NT and Normanton that had travelled from the gulf of Carpentaria in the 1960’s to 1975. Began to export in 1950’s closed in 1989 as part of the AMH rationalisation strategy of its abattoir capacity through the 1980’s.

Camooweal abattoir (QLD)

Located 190km northwest of Mt Isa, small processor currently operating that supplies own butchery for retail.

Canon Vale (QLD)

A small local processor currently in operation, located 70 km south of Bowen between Townsville and Mackay.

Cape River abattoir (QLD)

Located  south west of Townsville. Closed in 1986 due to the AMH  rationalisation strategy of its abattoirs capacity through the 1980’s.

Pentland abattoir (QLD)

Built prior to WWII, At one stage was the 2nd largest meatworks in Queensland. Last owned by AMH consortium, closed in 1989

Ross River abattoir (QLD)

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

Tolga abattoir (QLD)

Small processor currently operating near Cairns

Townsville – Stuart

Owned by JBS. Large beef processor located in far north QLD

Tully abattoir (QLD)

Small processor currently operating between Cairns and Townsville

Weipa abattoir (QLD)

Small local processor

Central Queensland

Charleville abattoir – goat processor (Central QLD)

A goat processing facility that is currently operating located in central QLD. This facility exports all its production. Has had past problems of securing visa workers to ensure ability to process production. Floods have affected operations and government costs while plant has been closed at different periods.

Clermont abattoir (QLD)

Small local processor

Cloncurry #1 abattoir (QLD)

Small local processor currently operating

Cloncurry #2, proposed abattoir (QLD)

Proposal sponsored by DAFF 2012. Consider establishment of an abattoir at Cloncurry to process cattle from north west QLD and NT. Based on processing 100,000 heavy cattle per year, costing $49M to build not including land or government services. Marginal return expected on investment.

El Arish abattoir (QLD)

Located near Innisfail, a small processor that is currently operating.

Giru abattoir (QLD)

Domestic abattoir currently operating south of Townsville

Innisfail abattoir (QLD)

Owned by CMG then Teys, Hit by cyclone Larry in 2006, never to be reopened, equipment scrapped and auctioned off in 2011.

Mt Isa abattoir (QLD)

Built in the war years and closed in 1986

Southern Queensland

Beenleigh abattoir (QLD)

Large facility owned by Teys, currently in operation located south of Brisbane.Recently had a number of wage disputes. Invests heavily in new technology to optimise labour efficencies, currently operating 2 shifts processing 1,300 cattle per day

Caboolture abattoir (QLD)

Located in Queensland, one of only 2 abattoirs in Australia accredited for export of horse meat.

Dinmore abattoir (QLD)

The largest meat processing plant in Australia, currently operating and owned by JBS Australia. Located near Brisbane QLD.

Kilcoy abattoir (QLD)

Located northwest of Brisbane and primarily processes grainfed cattle. 4th largest abattoir in Australia, currently operating.

Oakey abattoir (QLD)

Located near Toowoomba, a large processing facility of mainly grain-fed beef, owned by Nippon. Currently processing up to 1300 animals per day. Has undergone significant upgrades to enable traceability for organic certification and assurances, with current work being carried out on methane gas collection. Problems in the past have been market fluctuations, unions and costs of production

Surat abattoir – Kangaroo processor (QLD)

Games meat abattoir located south of Roma. Processes Kangaroo. Started in mid 1980’s, possibly now closed due to floods, debt and costs of services to operate.

Queensland abattoirs listed – A-Z

These are the abattoirs currently listed on this blog, it is not complete of all actual operations at this point in time

Ayr abattoir (Nth QLD)

Beenleigh abattoir (Sth QLD).

Biboohra abattoir (Nth QLD)

Bowen abattoir (Nth QLD)

Caboolture Abattoir (QLD). Owned by Meramist Pty Ltd. A beef and horse processing facility.

Cairns abattoir ( Nth QLD)

Camooweal abattoir (Nth QLD)

Canon Vale (Nth QLD)

Cape River abattoir (Nth QLD)

Charleville abattoir – goat processor (Central QLD)

Clermont abattoir (Central QLD)

Cloncurry abattoir #1 (Central QLD)

Cloncurry #2. proposed abattoir (Central QLD)

Dinmore abattoir (Sth QLD)

El Arish (Nth QLD)

Giru abattoir (Nth QLD)

Innisfail abattoir (Nth QLD)

Kilcoy currently in operation

Mt Isa Owned by AMH, closed in 1986

Oakey abattoir (Sth QLD). Owned by Nippon. Currently operating.

Pentland (Cape River). Built originally prior to WWII, Eventually owned by AMH, closed 1989

Rockhampton – Lakes Creek Owned by Teys Australia, currently in operation.

Roma #2 (Proposed) Maronoa council seeking funding to conduct a feasibility study in 2014

Ross River Built in 1882, transformed from boiling down works to cannery to abattoir and meat processor. Finally owned by Smorgons closed 1995, Now demolished.

Surat (Wild game – kangaroo) Kangaroo processing facility, was in operation as at 2013

Tolga abattoir (QLD) 

Townsville Stuart  Owned by JBS, Currently in operation

Tully abattoir (Nth QLD)

Weipa Was in operation as at 2012

 

 

 

 

 

Oakey

Located near Toowoomba, a large processing facility of mainly grain-fed beef, owned by NH Foods (Japanese origins). Currently processing up to 1300 animals per day. Has undergone significant upgrades to enable traceability for organic certification and assurances, with current work being carried out on methane gas collection. Problems in the past have been market fluctuations, unions and costs of production. Includes short history of early days of the Japanese/Australian meat trade markets and general QLD market conditions affecting processing

Other Names

  • Toowoomba abattoir
  • Nippon Meat Packers name changed to NH Foods Australia
  • Oakey abattoir
  • Oakey Beef Exports

Current Operation

  • Aus Meat Accreditation registration dated 29/12/2015 #558 – Oakey Beef Exports Pty Ltd.3
    • registered as a Beef, Offal export facility.3
  • Direct employment enquiries to www.nmpa.com.au

Location   

  • Located north west of Toowoomba on QLD Darling downs5

Australia Oakey

Oakey

Source Hema Maps – Australia Truckies atlas.

Owner

  • Nippon Meat Packers1
    • Subsidiary of a Japanese Multinational1
    • Nippon meat packers incorporated 19781

products_edited-1Source Nippon Meat Packers Australia interactive beef products

This is a great diagram that is able to be clicked on in the Nippon website and illustrates where the various cuts of beef and offal are located in the animals bodies

Operation 

  •  Nippon currently own 3 operating abattoirs in Australia,
  • Nippon owned Bowen (QLD) which they closed in 1997
  • Combined processing capacity 2,700 cattle day2.
    • also owns and operates a feedlot1  at Whyalla5 and
      • 3 beef farms1
        • At 2014 land in Texas QLD and Tasmania on King Island5
      • 3 tanneries1
        • Oakey Blue tan factory closed 20127
      • piggery1
        • Piggery assets sold off2
    • Processes predominently grain-fed cattle1
      • 100 to 300+ day5
      • Processing mainly British and European cross steers5
    • All plants are certified organic to process and slaughter.1
    • Sells product  under subsidiary company1
      • Beef Producers Australia Pty Ltd – Sells approximately 20% of Oakey product, marketed domestically1
      • Nippon Meat Packers Australia Ltd (Exporter)1
      • third of product is exported to Japan2
    • Sells products under labels1
      • Nippon1
      • Australian premium beef1
      • Wingham gold1
      • Borthwicks1
    • Vertically integrated supply chain that allows traceabilty from animal’s property of birth through to end user5
      • traceability includes details on animal, workers, defects, yield and volume data5
    • Fully integrated slaughtering, fabricating, chilling, freezing and rendering facility.5

picture_edited-1Source – ‘Productivity a bone of contention in abattoir strike’ ABC Rural. 01.05.2012.
Oakey abattoir facility

brands_edited-1brands #2_edited-1Source. http://www.nmpa.com.au
Various branded products sold from the Oakey facility

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

Australian abattoirs inactive map

abattoirs_edited-1

History of Oakey meat processing facility

Authors Note – As Nippon Meat Packers, now NH Foods is Japanese owned firm I have included some information that is in relation to Australia/Japanese Beef  early trading. I don’t know how directly relevant it would have been to the Oakey abattoir.

1956

  • Oakey Facility established.5

1968

  • Japanese Beef Trade
    • January. Trial shipment of chilled 1500lbs (680kg) meat vacuum packed by Borthwicks from the Murarrie plant on the Brisbane river shipped to Yokohama, Japan (Pg 72).28
      • Product arrived 3 weeks later(Pg 72)
    • Requirements by Japanese were placed on frozen beef, required frozen temperatures at all points of the supply chain, even to small retail outlets (Pg72)
      • Logisitically this was extremely difficult as frozen meat had to be defrosted in advance for retail sale (Pg 72)
      • Chilled beef was much easier to handle (Pg 72)

1969

  • Japanese Beef Trade
    • Market research conducted by Borthwicks identified consumer market preference (Pg73).28
      • 15% high quality meat
        • Significant opportunity for Australia to provide high quality meat
      • 40% middle class meat
      • 45% was low quality
        • Australian cattle were meeting this demand in canned meats, curries and low priced product
    • The First containerised vessels are used in Australia opening up new opportunities to send vaccum packed beef primals to Japan (Pg71).28
  • Growing feedlot industry was developing to cater for the Japanese trade (of which Japan interests had no equity) (Pg 81).28
  • Designated store project in Japan started to differentiate the Australian product at retail level (Pg 84).28
    • by 1971 Japan had 740 Australian meat designated stores.

1970

  • Japanese Beef Trade
    • First full container of cryovac packaged chilled beef primals is shipped to Japan from the Borthwicks Brooklyn plant in Victoria (Pg 72).28
      • One of the first containers of any export commodity to Japan from Australia
      • Initial shipments of the packaged meat was in high quality wooden boxes, with each lid having a printed message about the contents
        • Card that placed inside the box, was protected from moisture damage, also provided a great deal of factual information about the product, it’s shelf life and that it had been chilled, not frozen.
        • Japanese retailers valued the box, some for fuel but also as reliable evidence to customers that this was a superior product
        • Wooden boxes later replaced by reinforced cardboard
        • The boxes and presentation made an everlasting impression and established reputation as Australian beef being of the best quality

1970

  • Alot of work is done at Oakey with Lindgren packaging  to commercialise and develope meat vacuum packs (Pg 74).28
    • Australia world leader in this development

1971

  • Japanese Beef Trade
    • First QLD shipments of beef to Japan occur from QLD (Pg 74).28

1974

  • Oil Crisis occurs (Pg 74).28
    • Oil embargoes (restriction of supply) had occured in 1973 by members of OPEC (the organisation of Petroleum Exporting Countries)
      • economic fallout proved catestrophic for the red meat industry
      • Oil dependent economies feared the effects of the oil restriction and closed their countries to imported beef to protect their currency and own livestock growers (Pg 81)
  • Japanese beef markets are closed (Pg 74).28
    • Australia had a large beef herd at the time
      • Australia and the US sold off their beef herds
      • Prices plummeted from 1974 prices of $350/hd to $40/hd in 1976
      • Australia had limited export markets and therefore sold into the US, producers there were already liquidating
        • US beef and mutton prices crashed, taking the industry with them
        • European beef mountain was created – EU stockpiled beef which they later sold into the early 1980’s furthur supressing prices world wide
  • Australian red meat exports fell by 43% in 1973/74 (Pg 81).28

1975

  • Japanese beef markets re-open (Pg 74).28
    • Much of the investment in chilled technology and production systems had been lost
    • Frozen sector sales to Japan recovered better but chilled took much longer
  • Feedlots that had previously catered to Japanese markets had collapsed with big losses. This inhibited investment into the future due to mistrust of the stability of the market.(Pg 81).28
    • rebuilding of the trade was dependent on Japanese importers investing in the feedlots so that they shared some of the risk

1976

  • Australian National cattle herd reached an all time high of 33.4M head (Pg 81).28

1978

  • Australian slaughter peaks at 10.8M head (Pg 81).28
  • Most abattoirs, both domestic and export are running at capacity (Pg 81).28
    • not uncommon for cheaper cuts to be rendered rather than sold as meat
  • Company of Nippon Meat Packers Australia Pty Ltd is established.29

 

 1980’s

  • Australian cattle herd has fallen by 11M head (Pg 82).28
  • Australian Sheep herd dropped from 174M in 1970 to 135M in 1985 (Pg 82).28
  • Many abattoirs and meatworks couldn’t source enough cattle to remain viable (Pg 82).28
  • Japanese beef market.28
    • Prior to 1960’s Japan’s main source of animal protein was whale meat and the mainstay of school lunch program (Pg 84)
      • Whale meat accounted for 25% of Japanese meat consumption (Pg 84)
      • Japan enabled a number of sub quota’s for red meat industry into which Australia was able to provide product (Pg 84)
        • supplied various sectors and agencies
          • School lunch program
          • Hotal quota
          • airline quota

1981

  • August. ‘Meat substitution scandal’ occurs in Australia.(Pg 82).28
    • Pet food grade meats, donkey, kanagroo and others were found in shipments to the US. Meat was being transported from northern parts of Australia to southern Australia, reboxed and repackaged and exported.28
    • Leads to Royal commission in the Australian Meat Industry.28
    • Profoundly damages Australia’s meat export reputation.28
    • leads to the evolution of AUS-MEAT.28
      • costs of regulation closed many export abattoirs.28
      • The US significantly step up standards of requirements for meat into the US under the USDA.28

1987

  • Nippon purchase Oakey abattoir1
    • Nippon began in Japan in 1942, establishing the Tokushima meat processing factory, producing ham and sausages (Pg 86).28
      • when supplies of pork were scarce, would substitute other proteins.28
        • rabbit, whale.28
        • By 1960 mutton was found to be a good substitute, which it began to source from Australia.28
        • Company changed its name to Nippon meat packers in 1963 and entered into business with US Swift 1969.28
          • Swift already had connections in Australian meat processing at that time.28
        • Purchase of Oakey was in direct response to Japanese beef market liberalisation.28

1987 purchased Oakey_edited-1

Oakey abattoir. Source www.nipponham.co.jp

  • Japan beef markets are liberalised(Pg 82).28
    • Lead to removal of import quotas and reduction in import tariffs.28
    • Gave companies in Japan opportunity and incentive to expand into meat importation, some who had been restricted prior to the liberalisation (Pg 85).28
    • Previously tenders had protected certain trading houses.28
    • Significant investment had occured in fully integrated supply chains into Japan to realise market potential and commitment to the Japanese market irrespective of market conditions.28Japanese export markets 001

Source World on a Plate –  A history of meat processing in Australia. Stephen Martyn. (Pg 83)

  • US industry analysts thought the US would be the major benefactor of Japanese markets opening up (Pg 85).28
    • US underestimated Australia as it (Australia) had previously only supplied mainly meat from grassfed stock.28
    • Assumed Australia would be confined to commodity meat supplies rather than the premium markets.28
    • Authors note; Significant investment occurred in Australian feedlots at this time to enable grainfed custom feeding of animals suited to specific Japanese meat markets.28
  • Nippon purchase Whyalla feedlot near Texas, NSW.67
    • already a 3,000 head feedlot.67
      • extensively developed latter in 1990.67

1989

  • Nippon also purchase the AMH plants at.28
    • Mackay (QLD) and
    • Bowen (QLD).
      • closed 1996 as part of capacity rationalisation.28
    • Operated boning room through subsidiary Namoi Valley Beef
      • Gunnedah abattoir (NSW)
        • Council operated, service kill facility
        • Closed 1997
      • Mudgee abattoir (NSW)
      • At the time was operated by council as a service kill facility,
        • Had massive debt and went into receivership.28
        • Later purchased by Flectcher’s in 2003, still in operation
    • Nippon is sensitive to it’s position as a foreign owned, non-Anglo company in Australia (Pg 86).28
      • keeps a low profile.28
      • Makes most asset purchases as joint ventures.28

 

1990

  • Nippon develop the Whyalla feedlot – Oakeys Holdings.28
    • Nippon website says they purchased this site in 1988.29

1988 whyalla feedlot_edited-1

Whyalla Feedlot. Source www.nipponham.co.jp

  • Whyalla feedlot is developed to a unprecedented scale.67
    • previously been a 3,000 head feedlot.67
    • Now scaled to 50,000 head.67
      • Later extended to 56,000 head.67
    • largest Australian single feedlot site.67
      • led the way in ‘US scale commercial feedlot operations.67
    • Australia’s largest feedmilling infrastructure.67
      • 8  18 x 36 inch roller mills.67
      • feeding 750 tonnes  mostly barley based mix a day.67
      • 5 delivery trucks – 4 in use at any one time.67
      • yard can store 100,000t grain.67
      • silos can store 26,000t.67
      • most hay produced on farm.67
      • corn is contracted silage.67
    • Site is licencsed to 75,000 head.67
    • Holds 100% Nippon owned cattle.67
      • 50% straight Angus.67
    • Cattle sourced from QLD, NSW, Victoria, and Central Australia.67
    • Typically induct 3,000 head a week.67
      • similar numbers dispatched.67
      • animals pre-vaccinated before induction.67
      • animals monitored individually.67
    • Yards.67
      • every pen has shade.67
        • unique slattered shadecolth system.67
    • Initially feeding was focused on Japanese markets.67
      • mid to longfed progam out to 300 days.67
        • heavily reliant on marbling-oriented British breeds
      • Now feeds large variety.67
      • most cattle are 120 – 150 day.67
      • Change in feeding length changed annual turnover.67
        • 2014 calendar year turned out 132,000 head.67
        • 2003 turned out 93,000.67
    • Vertical integration of abattoir /feedlots. Not focused soley on Japanase markets and has been versatile in supply to international and domestic markets.67
  • ABARES report – Foreign Investment and Australian Agriculture

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.54
    • 27 have some level of foreign ownership.54
    • Ownership dominated by Japan, UK and the US.54

1993

  • Acquire Rochel feedlot in NSW (3000 head) to assist research into cattle performance.28

1994

  • Nippon purchase (Pg 86).28 Wingham (NSW)
    • Wingham is a major beef exports facility.28
    • Tomen sells it’s interest to Nippon.28
      • Major shareholder in Anvic Meat Exports Pty Ltd.28

1997

  • Nippon has invested $200M in abattoirs and feedlots over the previous decade(Pg 86).28
    • 3rd Largest meat processor in Australia.28
    • Exporting to 34 countries.28

NH foods Oakey export_edited-1

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

1999

  • Spent $2M in marketing new Barley beef brand to Japanese customers1
  • Nominal capacity estimated at 50,000 head as per 50 weeks3

2001

  • Nippon establish leather wet blue tannery near abattoir to process Oakey hides and from other facilities, including competitors7
    • Prior to GFC hides are worth $110 each7

2003

  • July.Jondaryan Shire Council approve the project 08/07/2003.31
  • Started upgrades to plant and facilities, included new boning room, new slaughter room and a new traceability and control system1
    • Upgrade takes until about 20061
    • Slaughter capacity of approximately 1200 cattle per day1
    • Create 700 new jobs.31
      • Upgrade proposing to lift capacity to 2,000 head a day.31
      • Make Oakey the 2nd largest abattoir in QLD.31
      • Upgrades to take place over 5 years.31
  • $46M expansion using Marel meat equipment4,
    • New boning system includes 4 flowlines to take beef quarters to 96 individual workstations where beef is boned and trimmed before being vacuum packed for further processing in Japan4
    • Old system was meat was cut on tables now it is hanging in front of worker and is more efficent and easier4
    • created 500 new jobs4
    • make Oakey the 4th or 5th largest beef abattoir in Australia and 3rd largest in QLD4
    • New system expected to have effective life of 20 years with maintenance.4
    • key point of Marel system was the traceability, particularly important in latter years when BSE closed market access for US  to Japan and allowed access by Nippon to those markets4
  • “Marel traceability/accountability system …proved to be a magnificant investment, despite its detractors at the time” Pat Gleeson, Oakey general manager. 10.03.2014

2004

  • January. Construction offically begins at the abattoir for the upgrades.32
    • Workforce will lift from 500 to 1,100 workers.32
    • processing and export earnings capacity is to double.32
    • First stage of the project is expected to be completed by the end of 2004.32
  • Expansion of the meatworks will be ready when the industry turns around.32
  • “So even though times are tough at the moment, now is the right time to build rather than waiting until good times and then rushing around trying to build, so it’s a confidence thing at the moment” Jim Vick, Oakey Managing Director.32
  • September. Oakey Ergon Energy power substation causes black out 5.5 hrs, Caused shut down of the abattoir for that time.33
    • Third power failure in 3 weeks.33
    • New $7M power facility will be built.33
  • December. Abattoir extenstions $46M.34
    • Offically opened 03.12.2004.34
    • Facility will use NLIS, seen as controversial at the time.34
      • system guarantees quality, consistency and traceability.34
      • Ensures importers product is high-quality and disease free.34
    • Oakey expansion will mean 500 new jobs over the next 3 years
      • increase of capacity to 2,000 head a day by 2007.34

2005

  • Nippon form a strategic allience with OBE Beef – Australia’s largest supplier of certified organic meat1
    • Plan to export meat to UK and Central Europe under ‘Borthwicks’ organic brand1
  • Strong demand for export product key factor in gains in net profit after tax gains of 60%, with 2005/06 NPAT $21.5M from earnings of $875M (All Nippon meat Packers financial performance combined)1
  • Nippon upgrade hide tanning facility extensively to world-class quality – facility now has capacity to process 20,000 hides a week.7
  • Significant regions of drought across QLD.

QLD Drought 2003_2005_edited-1

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

2006

  • Sales revenue increased but net loss occured for year (Financial year ending June) $23.2M1
    • Large increase in administration costs of $30M1
    • Increase in wages due to increased employment1
  • Nippon Meat Packers Australia produce 5.9% of Australia’s red meat production in 2006.54
    • 3 abattoirs in operation.54

2007

  • Australian subsidiary earnings struggled in the first half of 2006/2007 due to higher cattle prices , low prices in Japan and high Australian dollar, earnings recovered in early part of 20071
  • Aim to increase profitability by processing more grain fed cattle1
  • Costs for raw materials increased for higher grain and oil prices1
  • May. Oakey shire water plant implement $6M upgrades to connect and treat bore water supplied to businesses in Oakey.35
    • Oakey residents, Oakey abattoir, Army Aviation centre, Jondaryan township.35
  • June. Abattoir is able to deliver system that is able to trace each piece of meat back to property of birth.36
    • system provides vital defect and yield feedback.36
  • Processing 1,000 cattle per shift.36
    • Mostly from the feedlot in Texas.36

2008

  • March.Queensland rail (QR) deem the rail siding west of the works requires upgrading and is currently unsafe.6
    • QR agree with Oakey management to run cattle train to Dalby, abattoir would pay for additional freight to Oakey.6
      • Allows Oakey to access and bid for cattle on Northern and Western district properties6
  • Sales revenue fallen by average of 1.2% in real terms, in contrast industry revenue estimated to have grown at marginal rates in real terms1
  • Nippon launches a large scale reform of Australian business to improve earnings in 2007/20081
    • Involved cutting costs in cattle feeding, processing plants and leather business1
    • potentially reorganising plants1
    • possible closure of piggery1
    • revenue affected by high Australian dollar and weak demand for beef in Japan1
  • Withdraws from restaurant operations and Hog production and sells idle farmland2
  • August. Sulphuric acid leak occurs from a tank, spilling 2,000 lt.37
    • no injuries occur.37
  • November. Nearly all 730 staff are stood down due to a shortage of cattle.38
    • One day, 11/11/2008, staff not paid.38
    • Management not alarmed.38
      • Couldn’t get enough stock for full weeks kill.38
      • Time of year was traditionally slower as was crop harvest period.38
  • Global finanical crisis is also causing a reduction in export sales.38
    • Korea and Russia slowed significantly.38
    • Difficult selling to those overseas countries where the money was difficult to obtain.38
    • Managing Director Howard Halter said Oakey was a lot better positioned to handle current climate than processors in Brisbane and North QLD.38

2009

  • Plans to double processing capacity to 2,000 cattle per day by moving to a two shift system1
    • Employing 750 people1
  • Plant certified for halal production and now exports to halal markets2
    • mostly Middle Eastern markets.30
  • Sluggish growth and weak export demand due to global economic downturn2
  • December. Queensland Rail (QR) informs Oakey they will not stop at Dalby, only unloading the cattle at ‘End of the line’ – Brisbane6
    • Oakey abattoir would have to truck cattle back from Brisbane 200km, from a tick zone and up the range to Oakey6
    • Dalby to Oakey is 50km6
    • Brisbane to Oakey is 200km6
  • Comparative road frieght to rail from Quilpie to Oakey6
    • Road $1.45/km 805km equals $1,167.25 /deck or $51,359 for 44 deck consignment6
    • Rail $1.03 /km 805km equals $829.15 /deck or $36,482.6o for 44 deck consignment6
      • Difference $14,876.40 over 44 decks6
      • QR were now making it uncompetitive if extra freight is incurred from Brisbane6
      • Situation of competitiveness would worsen if the abattoir can’t access channel country cattle.6

2007_2009_edited-1

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

2010

  • August. 2 employees  sacked for workplace bullying.39
    • Incident occured in July.39
    • Became a Fair Workplace Investigation.39
    • Worker bullied had supported speeding up the chain to 157 beasts, others wanted slowed to 155 beasts
  • October. Worker who claimed workplace bully and led to 3 people being sacked is now centre of a workplace bully allegation himself.40

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.48
    • affected slaughter numbers to abattoirs.48
  • March. Pittsworth abattoir -Located 30km south of Oakey closes
    • Regional abattoir that did private kills for farmers and supplied local butchers.41
      • employed 35 people.41
      • Lack of available stock and persistent rain were the reasons for closure.41
  • June. 3 workers  in July 2010 incident reinstated.42
    • ‘Booing, mooing and barking” was part of the workplace’s culture.42
    • Video footage used as evidence.42
    • Oakey abattoir ordered to reinstate and pay undiclosed sum for renumeration to one man, another man had withdrawn unfair dismissal claim.42
  • July.National slaughter rates decline 5%.43
    • Australian currency pressures.43
      • A$ is now above US108c.43
      • economic news out of US could send currency even higher.43
      • higher A$ would cripple Australia’s already limited price competitiveness for beef in international markets.43
    • QLD which does approximately half of Australia’s processing capacity.43
      • Down 8% from the previous week.43
      • lowest kill recorded in QLD in July for past decade.43
      • Down 21% on same period last year.43
      • Significant number of QLD plants only killing 3-4 days.43
    • listless export beef demand.43
    • Meat processing and export is low-margin business due to.43
      • Import duties.43
        • Indonesia 9%.43
        • Korea 40%.43
        • Japan 38%.43
      • New AQIS charges on meat inspection would add millions to processor costs.43
    • Was currently a big build up of meat in cold stores due to difficulty in selling into sluggish markets, Japan and the US.43
  • August. Top chefs tour the abattoir as part of a south east QLD tour.44
  • Cattle are in short supply, 2008 & 2009 had been drought periods.45
    • with seasonal pressure lifting producers are retaining females for breeding.45
    • Period of drought that lasted 10 to 15 years.45
    • “We’re paying for the numbers of store cattle that were killed in the droughts up until 3 years ago” Kurt Wockner, Oakey Livestock manager.45
  • Expected diversion of northern cattle displaced by the Indonesia live export ban won’t come to the processors until April 2012.45
  • September. Oakey abattoir hold an open day for active suppliers.46
    • Inspection tour of the plant.46
    • Boning room – features four production lines.46
      • provides individual animal traceability from the animal to the vacuum -packed primals in cartons.46
      • Oakey processing 1,100 per day single shift.46
  • Change in production emphasis from primarily being dedicated grainfed plant to much broader range of cattle.46
    • grassfed export steers.46
    • grain and grassfed yearlings.46
    • bulls.46
    • cows and.46
    • high quality EU grain and grassfed.46
  • A$ now us103c.47
  • Some QLD southern plants operated only 6 shifts for the week down from 10.47
  • General shortage of killable cattle across Eastern Australia.47
    • AACo lifted 4,000 from Brunette downs and 2,000 from Anthony’s Lagoon to processors.47
    • Weights for cattle are expected to be heavier later in the spring and early summer 20-30kg above normal.47
  • November. ABARES foreign ownership 2011 report is released

7. ABARES Nov 2011_edited-1

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

2012

  • January. Nippon close down ‘New Wave Leather wet blue tannery’  located at Oakey site.7
    • High Australian dollar and increases in direct processing costs forced tannery to cease operations
    • facility had capacity to process 20,000 hides per week7
    • Employed 38 full time and 15 casual staff7
    • was leading blue tannery supplying value-added blued hides to the international market7
    • Nippon deny had tried to sell business outright and may reconsider re-opening.7
    • Hides from the Oakey abattoir would now be salted and exported raw to China, where labour and other input costs and regulatory pressures are low.7
    • Hides currently worth $457
      • Prior to GFC $1107
      • 2009 $10 and less7
  • Japan export market has stagnated and Nippon shift focus to emerging markets in Russia and the Middle East2
  • Strength of Australian dollar is declining and increased competition from US will make breaking into new markets more difficult2
    • also competition from Brazil increasing2
  • Oakey commence season after traditional Christmas/New year season in 2nd week of January.48
    • on a reduced kill.48
  • ABARES release a report into foreign ownership in the red meat processing sector See Nov 2011.49
    • report ‘underwhelming’ adding nothing to current industry knowledge.49
  • Australian dollar has continued to climb US106c.50
  • Export demand North Asia and Russia remains subdued.50
    • current state of export market ‘woful’.50
    • some strengthening in the grinding meat market.50
  • Beef stocks held by processors are starting to decline.50
  • Many QLD processors were forced to close due to rain,.50
    • record 24 hour and 48 hour rainfalls in parts of QLD.50
  • Oakey plan to close for 1 day 03/02/2012.50
  • April.
  • AMIEU give notice 19/04/2012 of 2 hour protected industrial action to occur on 27/04/20128
    • AMIEU gave notice 27/04/2012 to Oakey management work stoppage to occur 27/04/2012 ending Friday 04/05/20128
      • originally planned a 2 hour protective action for Friday only, “The company responded to that by progressively locking out workers indefinitely, workers responded with this week-long protected industrial action” Brian Crawford, AMIEU QLD branch secretary10
    • AMIEU advised  that further 24 hour stoppage to occur 04/05/2012, work to resume Tuesday 08/05/2012 as Monday was a public holiday8
    • 600 workers on strike, not to be paid during action9
    • Management response  cease processing Friday 27/04/2012.8
    • AMIEU refused to allow members to bone out Thursday 26/04/2012.8
      • management conducted process themselves8
      • May 7 article claims 400 carcases still hanging in chillers11
  • Oakey and Management been in negotiations since May to finalise new Enterprise bargaining Agreement8
    • Oakey require productivity offsets required for plant to remain competitive with domestic and internation markets, current unfavourable trading conditions particularly in grain-fed business could not be sustained.8
    • Members of AMIEU not happy about productivity push, which includes increasing the speed of the boning room chain9
    • Workers want compulsory Saturday work to be wiped from the contract10
    • AMIEU want 4% wage increase, but won’t accept staff work faster12
      • management want to increase chain speed in boning room by 15 minutes12
      • other places are working faster and they have agreements with AMIEU that are signed and certified12
  • Workforce would prolong strike if agreement was not reached10
  • The shutdown would hurt local businesses, retail had not been great in the region.51
  • May. Toowoomba’s Labour day celebrations, abattoir workers among meatworkers marching with signs that read “Scab labour will not be tolerated”, non-unionised salary workers would be bought in.11
  • AMIEU – Main issue is the chain speed in the boning room and complusory Saturday work.52
    • Workers walked off 27/04/2012.52
    • Scheduled to resume 03/05/2012.52
      • Now they won’t go back until 04/05/2012 (Saturday?).52
  • May 4. Protected action scheduled to finish today.53
    • AMIEU has not been told when operations can resume.53
  • AMIEU say will not return to work at earliest 08/05/2012 unless an agreement is reached.55
  • 10 day strike led by AMIEU ended midnight 9th May. Management had continued to lock workers out with the AMIEU waiting to be advised of how long it would continue13
  • May 11th AMIEU Brian Crawford currently in talks with Oakey management Pat Gleeson.14
  • Management continues to lock staff out, even though strike ended, will not open until an agreement is reached.56
  • May 20, Oakey management release statement “..the decision of the workers to continue to strike is regrettable, but the company intends to continue to  negotiate in good faith to bring about an acceptable outcome that addresses the fundamental issue of productivity with its workforce”16
  • May 21. Workers return to work, compromise on wage increase and chain speed reached.17
    • 4% pay increase.58
  • Members of Construction forestry Mining and Energy union from Acland Coal mine have encouraged and supported AMIEU workers since start of strike14
  • Local businessmen say protracted action at the abattoir has hurt local retail trading as they rely on everyday people to walk into stores.15
  • Businesses have felt the impact from the strike and will continue to for couple weeks after work restarts.57
  • EBA negotiations had been occurring for 18 months11

Industrial dispute Oakey. 2012_edited-1

Industrial Dispute Calendar – Oakey Beef Exports 2012.

  • current high Australian dollar is particularly damaging to manufacturers and exporters alike.8
  • Boning room supervisor Bob Costello wins prestigious manufacturing industry-wide award.59
    • Manufacturing Student of the year.59
    • Nominated by the employer.59
    • Diploma of meat processing course.59
    • Bob Costello made major contribution to improving plant efficiency.59
      • saved thousands of dollars worth in daily savings to the facility.59
      • based on preliminary work on the carcase while hot to improve yield and reduce waste.59
      • Worked in the industry for 28 years, working his way through different levels of processing.59
  • November. Major southeast QLD processor say they have ample cattle supply in coming weeks to meet current requirements and international demand.62
    • Seasonal conditions are deteriorating.62
    • Large areas have had bushfires.62
  • Superstorm – Hurricane Sandy hit the US east coast and affected some imports.62
    • damage to US processing facilities and infrastructure was significant.62
    • Port of Philiadelphia (largest port of entry for beef) is open.62

 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

  • March. AACo conduct service kills for it’s brand products of 1824 and Waygu beef are being conducted at Oakey and Toowoomba (QLD) JBS Beef city.63
    • AACo don’t harvest and retain all of the material from the animal.63
      • processor (Not AAC0)keeps red & white offals, blood products, meat and bonemeal and tallow.63
      • AACo are in direct competition with major processors JBS, Teys/Cargill and Nippon in brand products.63
      • AACo began building their abattoir near Darwin.63 Livingstone abattoir (NT)
  • September. Pasturefed Cattle Assurance System (PCAS) registration process has begun at Oakey plant with information for suppliers to follow to establish PCAS certified grassfed supply chain18
    • cost of audit was likely to be point of resistance early in PCAS development18
  • Companies industry related revenue estimated to have contracted by 1.7% due to Australian chilled beef prices remaining flat over 2008/09 and 2009/102
    • weak export demand due to global economic downturn2
  • Oakey plant had killed same number of cattle in 2013 as it did for entire period of 2012 season.19
    • Daily kill 1200-1300 head are 30% above last year at the same time19
    • Kill weights are reflected by the drought.19
      • Average carcase weights back 20-25kg compared to 2012, due to lighter average weight of steers and significantly higher proportion of female slaughter19
    • In general Eastern states kill tally recorded by the National Livestock reporting services up 15% on same week last year19
  • October. Queensland abattoirs being charged up to $27,000 a month through a religious levy on meat exports in Jakarta to raise money for Islamic schools and mosques20
    • Scandel has stopped QLD halal meat exports to Indonesia, abattoir operators boycott expensive Halal certifiers endorsed by the Indonesian council of Ulama (MUI)20
    • certifiers must donate a share of their revenue to mosques and Islamic schools.20
    • Australian Halal food services (AHFS)was charging quarter of other certified endorser – was suspended by MUI for engaging in unfair competition that could weaken halal certification20
    • DAFF have no control over approvals for religious certifiers.20
    • Oakey relied on AHFS for certification and were now unable to sell Halal meat in Indonesia21
      • Indonesia was an important market for Oakey product21

2014

  • Nippon Meat Packers Pty Ltd changes name to NH Foods.29

Logo NH oakey exports_edited-1

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

  • January. Lack of rain and failure of the northern monsoon has left many areas critically short of feed in western and southern QLD.64
    • Dry areas extending across northern NSW.64
    • critical decision time for drought impacted producers.64
    • One processor states its is the worst start-of-season outlook in 35 years of business.64
    • first quarter of 2014 looking to be period of extreme high cattle turnoff.64
    • Some large processors not booking prices only kill slots.64
      • due to uncertainty over cattle supply.64
      • high placement rate in feedlots late in 2013.64
      • catch up of grain-fed kills due to seasonal break.64
  • February. Forecast of very difficult next 12 months due to supply of animals if drought breaking rains received.24
    • Herds rebuild and producers retain cattle24
    • Plans are to maximise numbers of cattle on feed which will help to insulate from predicted shortages in 3 months.24
  • currently employing 700 people24
  • upgraded trucking and spelling facility at abattoir that can hold 1000 head on feed in seperate area from plant operations24
  • Installation of Covered high rate Anaerobic (COHRAL) lagoon to extract green energy biogas from waster water streams to replace millions of dollars worth of natural gas currently consumed22
    • Uses concentrated anaerobic bacteria to digest 70% of organic matter of high chemical oxygen demand to produce effluent of far higher quality than typical open lagoons22
      • collect 6000 cubic metres of methane each day, calculated to produce a saving of about 50,000 gigajoules of natural gas used in boilers each year23
      • methane will produce 1 mega watt electricity each day23
    • floating membrane will draw gas off as soon as produced and held in specific bladder tanks for use until required.23
      • methane is cooled before use, moisture and sulphides removed before being used in boilers.23

CST wastewater_edited-1Illustration of process of gas recovery of an Anaerobic lagoon
Source CST wastewater solutions

  • reduce plants carbon footprint22
  • reduce waste water22
    • noval distribution system along bottom of lagoon will allow water retention period lower from 25 days to 15.23
  • Plant expects to repay cost of construction within 5 years22
    • $5M – with return on investment in 4 years23
      • $4M in capital works alone
    • reduce annual gas bill by 42%23
  • after 5 years continue to deliver benefits and profitability virtually to perpetuity22
  • gaurd against future price rises in cost of energy and imposts such as carbon tax22
    • energy is a significant and rising component of operating, Diesel, electricity and gas23
  • Project is entirely self-funded and did not attract support under former Federal government carbon abatement grants23
  • Project research funding partially from Australian Meat Processor Corporation & MLA donar company as a Plant initiated Project26
    • If implemented the process can provide a number of direct and indirect economic, social and environmental benefits to abattoirs across Australia26
    • Funding is through private investment, matching governement dollars, and producer levies are used.26

Beef central 28.08.2014_edited-1Oakey abattoir Source Beef Central 28.08.2014

  • project should be finished by late 201523
  • Is the first to use covered lagoons, other installations use reactor tanks of cement or steel23
  • project may help to handle future expansion of plant23
    • vision that will process 1500 head per day using 6 day operation within 3 years23
      • depends on national herd recovery after the drought ends23
  • other plants at Mackay and Wingham will be considered for installation of COHRAL23
  • plant needs to have diligence of staff to ensure chemicals don’t affect bacterial action23
  • currently 750 people employed at Oakey22
  • March. Sod turning ceremony to begin biogas development.65
    • Oakey is sending 75% of its beef production to export.65
    • of the 1,000-1,300 head that go through each shift 500 come from the companies own feedlot.65
  • April Frozen beef shipments to Russia are temporarily suspended from 07/04/2014.81
    • A similar suspension occurred 31/03/2014 for chilled beef.81
    • Temporary suspension of beef offal imports occurred 27/01/2014.81
  • Oakey exports meat to Russia, along with another 29 Australian establishements.81
  • Russia placed new requirements of detection of Trenbolone.81
    • Australia placed additional requirements on its testing requirements.81
    • Russia detected Trenbolone 21/03/2014.81
    • Australian authorities held an immediate meeting with Russian counterparts.81
      • providing details of testing and invited Russia to inspect Australian meat establishments.81
      • Trenbolone is not produced from cattle treated with HGP’s.81
      • Russia has a zero tolerance, most countries have a maximum residue limit.81

 

  • Russia may consider Asia, Chinese port and Indian buffalo meat imports to replace decrease is supplies from the US, European union and Australia.81
  • Australia has been a traditional beef exporter to Russia since the 1970’s.81
    • 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

 

  • June. Currently killing to capacity on a single shift with overtime25
    • Looking to extend production hours in the coming year to service markets25
  • Currently killing 1,200 head per day25
    • 2014 has been a massive year for production25
    • record kill year to 12 months to March25
    • Female component of grasskill component has been close to double normal level in response to drought in supply area.25
      • Mt Isa, Julia Creek and Northern NSW25
    • Normally female kill of grassfed is 35-40% – has been 60-70%25
  • Big cattle numbers have impacted on prices to producers25
  • Oakey marketers able to keep product moving due mature and developing markets25
    • Big 3 – USA, Korea and Japan25
    • China has also been big markets25
  • Nippon Meats Whyalla feedlot account for approximately half of plant’s kill.25
    • Authors note – 600 / day on 5 day kill, 50 weeks operation = 150,000 head25
  • Oakey plant buy up to 95% of cattle on weight basis25
  • July. Oakey abattoir is 2nd only to the Australian Defence force when it comes to employment in the area.27
  • Currently employs 750 people27
    • 3 main catagories of employment27
      1. Administration & Management27
        • Production supervisors, export, shipping, quality assurance, livestock purchasing, export sales, marketing, micro-biology, accounting & environmental management, human resources, laboratory technicians & information technology27
      2. Production and Maintenance27
        • Meat processing roles – salughter, boning, slicing, packing, labour and cleaning.27
      3. Engineering27
    • Lifestyle benefits in meat processing.27
      • Most work start between 5-6.30am – end 2-3pm27
    • Processing facility operates year round except closure over Christmas and New Year27
  • Enterprise bargaining agreement was supported by employees27
    • In principle agreement was reached of EBA 16/07/2014.78
      • Explanatory document was given to employees, which they voted in a secret ballot within 10 days.78
  • $20M investment in infrastructure planned over the next 3 years27
  • Whyalla Beef  feedlot – has 50,000 head capacity supplies half to two thirds of cattle processed at Oakey.27
  • Oakey is currently processing 1,200 head per day for domestic and international markets.27
  • December. Biogas equipment is in the final stages of installation.66
    • 6,000 cubic metre capacity polyester flexible storage ‘balloon’ collects biogas from nearby covered lagoon.66

ABC rural 10.04.2015_edited-1

Oakey abattoir biogas ‘sphere’ Source  ABC Rural 10.04.2015

MLA case study. covered lagoon_edited-1

Covered Anaerobic lagoon that captures the biogas. Source MLA case study – May 2015

2015

  • January. MLA forecast.80
    • Australian cattle herd has gone from 35 year high (2013) to 20 year low (2015).80
    • Australian cattle herd slip to 26.8M head by June 2015.80
      • by 2016 expected decline to 26.5M head.80
      • by 2020 27.9M head.80
    • Adult cattle slaughter expected to slump 15% year on year.80
      • 2015 to 7.8M head.80
      • 2020 expected 7.9M slaughter.80
    • Long term Female average in 2014 52%.80
      • Normally female kill percentage 47%.80
      • Only in years 1977, 1998 & 2003 has female kill been above 50%.80
    • Beef exports record levels in 2014 1.39M tonnes shipped weight.80
      • Expected to drop 20% to 1.3M tonnes in 2015.80
  • February. Whyalla Beef Feedlot is ranked as 3rd largest in Australia according to Beef Central, one-time operating capacity.67
    • One-time operating capacity 56,000 head.67
    • Turnoff in 2014, 178,000 head.67
    • See Years 1988 & 1990 for details of holding capabilities
  • 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

  • Oakey has re-activated Saturday boning shifts to keep up with high demand and rates of kill.70
  • April. Nippon have invested $100M in Oakey facility since taking ownership in 1987.68
    • Biogas will produce 183.3 gigajoules of energy per day.68
      • represents 40% of the current useage of natural gas.68
    • Annual production will lift from 298,000 to more than 560,000 head.68
    • Staff levels will rise from current 750 to 1,400.68
  • Increase in production proved the need to revitalise the western rail lines to towns such as Quilpie, Charleville, Morven & Roma.68
    • removing cattle trucks from the roads.68
      • easing up supply chain process.68
  • Funding that was applied for under the Gillard government was scrapped under Abbott in 2013.68
    • Project was built without any taxpayer funding.68
  • July. The following charts are from a submission by the Australian government Department of Agriculture to the Senate rural and regional affairs and transport references committee inquiry into Market consolidation and the red meat processing sector.

abattoir capacities dept ag sub consolidation_edited-1

Capacity of major beef abattoirs in QLD. Pg 15

T2 Throughput state beef_edited-1

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

T4 processing companies market share_edited-1

Major Processing companies by market share May 2015. Pg 16

M4 direct cattle movements NLIS QLD_edited-1

Cattle Movements to abattoirs. Pg 25

F12 hourly labour costs food manufacturing_edited-1

Hourly labour costs for food manufacturing industry Pg 30

  •  Oakey abattoir wants to access rail services to help increase through-put to 12,000 head a week.72
    • Rail is a critical part of strategy to double weekly kill.72
    • Current employees’s 730 people could be increased.
    • Rail line passes 300m from Oakey abattoir site.72
      • QLD rules don’t permit Oakey to receive cattle by train because there is no rail siding in place
    • Oakey are in advanced negotiations with QLD government to allow rail access
    • Oakey could utilise the rail for outgoing containers
      • currently delivers 100 containers of beef a week to Port of Brisbane
        • Many are underweight due to road limit restrictions
        • Many delivered by road could be moved by rail
  • QLD government currently subsidise Aurizon to provide rail services to rural and regional areas.72
    • restrictions had been placed on producers if they wanted to send cattle via rail they had to book the entire train – 800 hd.72
    • Last 4-5 years cattle rail service has virtually stopped.72
      • 12 years ago Quilpie would see 9 trains loaded a week.72
        • sending 100,000 head annually.72
      • Past 3 years only 5 trains have left Quilpie.72
        • 3 left in 2015.72
      • ‘ghost train’ Aurizon is funded to provide 27 cattle train services a year on the Western rail line
        • Only 7 ran last finanical year (2014/15)
        • Only 2 abattoirs are contracted to receive cattle from the rail JBS Dinmore (QLD) and Teys Beenleigh (QLD)
  • Lack of rail access  has seen large number of cattle drawn south towards abattoirs in Southern Australia.74
    • If rail enables cheaper freight those cattle could be coming back to QLD.74
  • New airport at Wellcamp has opened – 16km from Oakey facility.74
    • enable air-freight access to export customers, Asia & Middle East.74
      • United Arab Emirates is largest destination of air freight from Oakey.74
    • Increased opportunity to market shelf-ready portion controlled product.74
      • Particularly China – large potential growth area
  • Industrial relations progress.74
    • Old agreement meant 7.6hr shifts / 5 days a week with significant penalties for operating outside those restrictions.74
      • Could only operate the plant for 38 hours a week.74
    • New EBA 9.5hr shifts in the boning room and flexibility to move to 7 day operation.74
      • would allow plant capacity to increase to 1,650 per day over 7 days.74
      • length of employment of A grade Slaughterman in Australia was 25 years.74
  • Food safety and shelf life.74
    •  Americans sell their product 60-70 day shelf life.74
    • Australia sells it’s product 140 days.74
  • October. 10 mayors from Southern QLD form a mayoral group to act as a united lobby group for their region.76
  • represent 25% land area of QLD, quarter of QLD cattle and 75% of grain and crop production area.76
    • support the Oakey abattoir push for rail transport improvements.76
    • $2M in State and Federal funding is required to fund new rails sidings.76
      • Federal government feel that private investors should fund the improvements themselves.76
  • Oakey currently process 6,400 head a week.76
    • Announced plans to expand further but rely on the plant’s ability to source greater numbers of cattle.76
    • plans to increase to 11,500 head a week.76
      • add to processor competition in the area.76
    • Only 2 abattoirs are currently contracted to be supplied cattle on the Western line.76. JBS Dinmore (QLD) and Teys Beenleigh (QLD)
      • Oakey is to be added, starting January 2016.76
        • Contractually Oakey can recieve cattle but as they have no rail siding this is not physically possible.76
      • Oakey has to commit to transporting a minimum of 25,000 head per annum by year three.76
      • equates to 28 services per annum.76
        • increasing to 40,000 head after 3 years.76
  • December. ATO publishes tax data for agribusiness corporates.77
    • Data interpretation – Companies do not pay compay tax on revenue (total income) they pay on profits after paying all expenses, including wages, capital replacement, supplier costs and other operating expenses.77
    • Income tax information is for 2013/14.77
  • NH Foods produced Total Income $845,824.273.77
    • Nil taxable income and nil tax payable.77
  •  AACo have animals processed at Eastern abattoirs as service kill.63
  • See year 2013.63
  • Gross processing costs had increased in the 6 months to September 2015.63
    • $1.13 risen to $1.21/kg, 7% increase year on year HCW.63

 

2013_2015_edited-1

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

Sources – Oakey – Toowoomba. Nippon

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