Tag Archives: Australian meat processing facilities

Booyong. #7170. NSW

Booyong is an Export accredited facility processing Pigs and offal

Current Operation

  • Aus meat Accreditation number #7170. Accessed 02/10/20172
  • Operator website links

Location

  • Description of physical location in relation to main town and state
    • distance to main urban areas or export sites of that state

Insert – Australia map. location of approximate town site.

(Make Australia map default picture for site.)

Insert – Locality map of more localised area of site

Location relative to other abattoirs across Australia

Location of other Australian Abattoirs

abattoirs_edited-1

      

Owner

  • Owners names and approximate time period of operation

Operation

  • Aus-meat accreditation dates.
  • Website link to owner of facility
    • Employment link to operator of facility
    • Sale enquiries
  • Type of facility and accreditations for livestock types1

 

History

Year

2017

  • October. At this point in time is registered as a export processing facility2
    • Accredited to process Pigs and offal2

Sources

  1. www.casino.com.au
  2. Aus-meat accreditation list. Accessed 02/10/2017

Template. Site Name. Est #. State

(this will appear on description)

Short paragraph describing facility (Export / domestic), purpose (Livestock slaughtered and location.
Significant issues

Other Names

  • Operating business name1
  • Common name used

Current Operation

  • Is the facility currently in operation
  • Aus meat Accreditation number
  • Operator website links
    • Contact for employment
    • Contact for sales.

Location

  • Description of physical location in relation to main town and state
    • distance to main urban areas or export sites of that state

Insert – Australia map. location of approximate town site.

(Make Australia map default picture for site.)

Insert – Locality map of more localised area of site

Other abattoirs in Australia

Go to this link to view Location of Australian Abattoirs

abattoirs_edited-1   

Owner

  • Owners names and approximate time period of operation

Operation

  • Aus-meat accreditation dates.
  • Website link to owner of facility
    • Employment link to operator of facility
    • Sale enquiries
  • Type of facility and accreditations for livestock types1

 

History

Year

2017

  • Month. Facility/business Chairman at this time(taken from current website)
    • Facility CEO at this time
    • Leadership team at this time
  •  

Sources

  1. ‘World on a plate. A history of meat processing in Australia’ Stephen Martyn
  2. Ausmeat Accreditation list – Date
  3. Facility website

Murgon

Other Names

  • South Burnett meatworks

Current Operation

  • Closed 20001

Location   


Hema Maps – Australia Truckies atlas.

Owner

Operation   

History

2000

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

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

2007

  • Closed suddenly1

Sources

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

Killarney #22Q. QLD

Current Operation

  • Closed 08/02/2010.    

Location     

  • Killarney is located in the far southern region of South East Queensland within 5km of the QLD / NSW border.
    • Located Brosnan Road, Killarney, 2 hours drive from Brisbane CBD43
  • Killarney’s major closest small town is Warwick, population of approximately 15,500 people1.
    • Warwick is located 30km Northwest of Killarney
  • Killarney’s major larger towns are Toowoomba 100km north and Brisbane 130km to the North East1.

Australia. Killarney 06.04.2017

Killarney. QLD. 06.04.2017

Location relative to other abattoirs across Australia

abattoirs_edited-1  Location of Australian Abattoirs

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.

 Location of Australian Abattoirs      

Owner

  • Hancock Family. 1976 – 20088
    • Roly Hancock8.
      • sons of Roly, Rohan, Hector and Tony8

 Operation

grant thronton receivers.

  • Aus-meat Accredited Establishment list at July 199764
    •  as a domestic abattoir. Accreditation number #0022Q
    • Operated as Killarney abattoir
      • Processing Beef, sheep and pigs
  • Aus-meat Accredited Establishment list as at 18/07/200868
    • as a domestic abattoir. Accreditation number #0022Q
    • Operating trading name – KA Operations Pty Ltd
    • Processing beef, sheep and pigs
    • Rating – A
  • Aus-meat Accredited Establishment list as at 18/03/201065

 History

1976

  • January 17. Killarney abattoir begins operation under Roly Hancock8
    • Staff of 15 men8

2000

  • Facility is taking a break only over 3 public day holidays of Christmas period2

2004

  • December. Plant rolls back working hours from 38 hours per week to 30 hours per week4
    • Seasonal shortage of stock is the main reason4
      • drought breaking rains  in the region
      • lowest level of sheep numbers in Australia this decade
      • Australian dollar peaked at record highs
    • Production is usually offset by higher returns for by products such as hides, tallow and meat meal4
      • High dollar exchange has made exports actually worth less
    • a lift in the Australian dollar will hopefully lead to a short reduction in working time4

2006

  • January. Warwick town shire is considering tighter water constrictions if levels in reserve drop too low5
    • Killarney abattoir bores have not been considered in any proposals at this time
  • Feedlot application for 999 standard cattle unit capacity (SCU) located North branch road at Warwick is refused by council6.
    • Objections had been citing concerns of odour, water supply and conflict with rural residential character of the district6.
    • New application is made for 499 SCU6.
  • Feedlot application for 999 SCU at Loch Lomond (10km west of Killarney) is approved by council7.
    • No objections are made against the proposal7.
  • August. MLA conduct a research project to look at the collection of carcase weight and information to utilise for computerisation and ability to relay information to the producer, processer and wholesaler67.
    • system must be compliant to export standards.

Analysis of Information flows and implementation of an e-business solution for Killarney abattoir. Project P.PIP.OO79. D. Bowler. August 2006

MLA report 2006. Pg 11

Source. MLA report P.PIP 0079. Inside the boning room. Pg 11

2007

  • January. Feedlot application for 1,700 SCU located at Loch Lomond  is sought to be built on the property ‘Belvedere’6.
    • 1km from the previous proposal approved in late 20067.
    • ‘Belvedere’ 440 ha property purchased by Gold Coast based company ‘ Professional Investment Cattle’6.
      • subsidiary of ‘Professional Investment Holdings’6.
        • Licensed dealer in securities with $12.5B under management6.
    • Feedlot would turn off 170 cattle after feeding for 70- day period, to be processed at Killarney abattoir6.
      • represent a 15% increase in cattle processing6.
        • “Help to ensure economic future” Killarney CEO Hector Hancock6.
    • Road works upgrades would be required to accommodate semi-trailer turning movements6.
    • Protests are held against the proposal citing smell, devalued properties, noise, building restrictions, dust and Condomine river pollution7.
      • Area was a hub for life-stylers and retirees7.

2008

  • January 21. Announcement is made of sale of Killarney abattoir to Dudley Leitch8
    • Killarney abattoir sold for $5.1M 62
    • Dudley Leitch already owns another abattoir facility at Pittsworth8
      • 5km South west of Toowoomba
    • General manager of operations – Hector Hancock (of previous ownership)8
  • Sale of abattoir occurred in conjunction with a separate purchase of Condomine River meats8
    • Included property ‘Berrima’ and feedlot of 5,000 head capacity8
  • Sale of abattoir was never advertised. Roly Hancock wished to take a backwards step from the operations8.

Map proximity to Pittsworth 06.04.2017

Source. Hema Maps. Showing Proximity of Pittsworth abattoir south west of Toowoomba to Killarney abattoir near NSW QLD border. approximately 120km apart.

  • Dudley Leitch came into business success with gold discoveries in Victoria, listing ‘Perseverance Company on the Australian stock exchange in 19878.
    • shares rocketed from 25c to $13 in 4 months8.
  • Abattoir will capitalise on 2 of its by -products that have doubled in value recently8
    • Tallow, base for soaps and cosmetics, bio-diesel source8
      • $300 / tonne to $1,000 / tonne8
    • Meat-meal, replacing grain in diets for pigs and chooks8
      • doubled price in last 3 years8
  • Machinery will be installed to ensure the retention of more tallow8
  • Abattoir currently employs 179 people8
  • Abattoir capacity has the ability to process daily8
    • 400 cattle
    • 100 pigs
    • 1,100 sheep and lambs
  • “Half of the staff I’m related to and the other half I grew up with, We didn’t want to sell to just anyone but we feel Dudley is genuine, caring and recognises the value of our workers and we are confident he will look after our family at the abattoir” Hector Hancock8
  • June. 2008 season has been very wet in most parts of QLD causing stand-downs and in most places, the plants starting dates were delayed3
  • New owners will continue to work on working agreements and work with union3
  • Expectation that a new Enterprise agreement will be negotiated towards the end of 20083
  • Australian Bureau of Statistics (as at 30/06/2008) estimate Australia’s sheep flock is down 10% (fallen by 8.78M)51
    • Lowest Australian sheep flock since 191651
    • QLD record a lowering of 3.96M head51

2009

  • June. Warwick saleyards receives a record high price of $84.50 for butchers merino’s51
    • sold to Killarney abattoir51
    • competition for some sheep came from Fletchers International (Dubbo)51
  • Currently very positive for sheep producers due to 51
    • sheep prices increasing51
    • low stock numbers 51
    • concern for future over supply by wool growers51
      • meat processors anticipated shortfall in sheep availability during winter months51
  • July. During the last 12 months 70%, 140 employees have undertaken some form of on-the-job training9.
    • All levels of the workers from managers to newly -recruited school leavers9.
    • Aim was improve training opportunities and have skills formerly recognised9.
    • Technology advances and OHS has placed increased pressure on people to undertake formal training9.
  • Leitch Pastoral Group owned meatworks employ 190 locals9.
    • including 50 casual staff9.
  • It is claimed 42 employees lost their jobs at the Killarney and Pittsworth plants22
  • Dudley Leitch is ranked in QLD top 100 rich list53.
    • #80 $109M53.
  • September. Dudley Leitch believes he has discovered potential to revolutionise the meat processing industry10.
    • Transforming animal by-products into organic fertiliser10.
    • Intends to develop the organic fertiliser and test it extensively on their own properties10.
    • Using methods on the properties to stop degradation of farming land10.
  • Organic product will put carbon back into the soil with high phosphorous10.
    • Utilises natural products that make the soil super-absorbent with combined with nitrogen and phosphorous10.
  • Commercialisation of the product will incorporate intention to float a public company in 201010.
  • Leitch group currently own 52,600 ha in the region10.
    • intensively grazing10.
      • 100,000 meat ewes
      • 3,000 nanny goats
  • Temporary job losses occur for a month as facility is shifted from mutton to young cattle and prime lambs10.
    • 10-12 people will be laid off10.
      • Offered positions on other properties of the company10.
  • Killarney markets are mainly into Sydney where there is heavy competition with exporters10.
  • Local markets will now be the focus10.
    • bone more lamb and young beef10.
      • output will be a higher quality product10.
  • Pittsworth facility has undergone recent $6M renovations10.
    • New rendering plant that cost $4M10.
  • New rendering plant is being considered for Killarney10.
    • Current process takes 12 hours10.
      • new facility would take 45 minutes10.
        • Tallow quality is better10.
  •  Editorial article in Warwick Daily applauds the long-term business investment in the region of operators such as Dudley Leitch11.
    • Other regions of QLD are reliant on the mining boom11
    • Areas of agriculture require  long-term investment11
  • October. Shortage of suitable cattle for slaughter is causing loss of production at the facility12
    • John Dee (Oakey QLD) is similarly affected, missed 1 production day12
  • Contributing factors causing supply problems12
    • Seasonal conditions12
      • Stock are not finished as well12
    • Rising Australian dollar12
      • Places pressure on price causing some plants to offload product into the domestic markets12
  • Leitch Pastoral Operations manager – Rob Doro12
  • Cattle markets had tightened recently making it difficult to source livestock12
  • Killarney is committed to operating full kill 5 days per week, throughout the year12
  • Wallangarra (NSW) is temporarily closed due to a shortage of sheep13
    • Facility was planning to modify its plant to equip as a beef chain but this would take 9 months to complete13
  • December. Rumours are quashed by Dudley Leitch that the Killarney abattoir is in financial trouble14
  • Recent restructuring at the abattoir had cost 18 people their jobs14
  • Forward contracts had been introduced14
  • Negotiations are ongoing with the unions14
    • Enterprise agreement for Pittsworth abattoir and Condamine river meats.14
    • New enterprise agreement for Killarney would occur in early 201014
  • Renovation of the waste-water ponds was occuring14
  • Development talks were occurring in regards to the compost material14.
  • Clearing sale of some machinery items were to be sold on December 19 owned by Dudley Leitch14
    • 20 properties had been purchased in the last 3-4 years and a large volume of old machinery had accumulated14
  • Rumours had been concerned with how well the Killarney abattoir was running
    • Annual Christmas party had failed to occur14
    • Rumours had surfaced that Killarney production was slowing to concentrate on Pittsworth plant14
  • Loss of Killarney as an employer would be devastating for the town14
  • Hancock family have officially severed all ties with the Killarney plant14
    • Split had been amicable14.

2010

  • February 8. 240 workers are stood down from Killarney and Pittsworth abattoirs15
  • Both meatworks would have suspended operations15
    • including wholesale and feedlot arm Condamine River meats15
  • Management say abattoir is not closed and they have not sacked anyone15
  • Stand down was a result of current economic climate15
    • competitive marketplace a factor16
  • “The meat industry is a difficult environment at the best of times and this has been a particularly tough period” Rob Doro. Leitch Pastoral Group operations manager.15
  • Announcement of stand down comes only 2 months of assurances the abattoir wasn’t in financial trouble.15
  • Further announcement is expected to occur 12/02/201016
    • Management were confident of the plant re-opening, staff were not16.
  • Pittsworth residents said closure of the Pittsworth abattoir would be a massive blow to the community17.
    • Pittsworth currently employed 110 people17.
  •  Killarney currently employ 130 workers18.
  • Condamine River meats, uncertain of number of employees stood down18.
  • Meatworks would continue to operate with skeleton staff18.
  • Leitch Pastoral group would ensure employees were paid entitlements18.
  • Outstanding debts to Leitch pastoral were being actively pursued to meet creditor obligations18.
  • Killarney had been the regions largest employer for 30 years18.
  • Yangan abattoir was receiving enquiry from wholesale and retail butchers desperate to secure kill space in wake of the Killarney closure18.
    • Yangan didn’t have the infrastructure to process more stock18.
      • currently at 70% kill capacity18.
        • To increase capacity use would require significant increase in the workforce18.
  • February 12. confidence increases for the meatworks re-opening due to the fact 800 sheep are in the abattoir yards19
    • Management say the stock have been in the yards since the initial shutdown19
      • Stock have been on feed and water for the duration19
  • Announcement is made that the closure of the Killarney and Pittsworth abattoirs will continue in-definitely20
  • Dudley Leitch is confident the plant will re-open20
  • Grant Thornton, Brisbane based management consultants are hired to begin a debt collection program20
    • Expected to accelerate recouping of debt owed
  • Government provide assistance packages and support to employees of the facilities21
    • Jobs Assist program to assist employees to look for other positions21
    • Working with the unions to provide accelerated Centrelink entitlements
  • An independent government review identifies solutions that will keep the business afloat21
    • Company may or may decide to accept the proposals21.
  • Annual turnover of the 2 plants is in excess of $80M22
    • Businesses have a substantial amount owing from debtors22
  • Workers are angry and in disbelief at the recent announcements22
    • Claim the owners misled them22
  • Some producers are owed money by the abattoirs for livestock sold as well as for wages owed22
  • Government had been providing  assistance for some time to the abattoirs through the ‘Job assist program’22
  • February 16. AMIEU call for urgent meeting with management to provide definite dates and certainty to workers regarding work and entitlements23
    • Staff are not yet legally redundant, therefore are effectively still employed by the facility23
    • Workers are unable to claim concessions if they are not made redundant
    • Centrelink unemployment entitlement may allow $400 / fortnight payment23
      • Wages were nearer $1200 a week23.
  • February 19. 4 Workers accuse Leitch Pastoral Group have failed to make superannuation payments to employees accounts since June 200924
  • Payroll anomalies are being investigated by Grant Thornton management consultants24
    • Some employees are also owed holiday pay24
  • Employees have contacted superannuation funds, who then referred to Australian taxation office to begin an investigation into the workers entitlements24.

GT 2nd report. pg 25

Source gtal 2010 ka operations report released 01/04/2010
Showing final figures of monies owed for employee entitlements by KA operations.

  • Wallangarra (NSW) plant is sold to South Australian company25
    • workers at Wallangarra are assure their jobs are secure25
    • Wallangarra has been accessing some stock that normally would have been processed at Killarney and selling product into areas traditionally sold to also by Killarney25
  • Current sheep prices are very high25
    • due to low flock numbers nationally25
  • Gympie meatworks – Nolan Meats business was operating as normal52
    • highest throughput of cattle, processing 400 head a day52
  • March 3. Leitch Pastoral Group is placed into voluntary administration26
  • Dudley Leitch assures those affected by the Killarney abattoir the facility would be re-opened once debts had been collected from suppliers26
  • Several parties have shown interest in creating an alliance to keep the facility in operation26
  • Leitch Pastoral Group is now under the control of Michael McCann from the Grant Thornton accounting firm27
  • Operations at the Killarney and Pittsworth abattoirs would remain suspended
    • Likely the facilities will be placed for sale27
  • Westpac bank announce a relief package to assist customers who are employees of Leitch pastoral company affected by the closure of the abattoirs28
    • Home loans may defer payments for 3 months28
    • Existing business loans can request loan restructure without usual bank fees applicable28
    • Credit card customers can request emergency credit limit rises28
    • Personal loan customers can apply to refinance at a discounted fixed interest rate28
    • Westpac will waive interest penalties for early drawing of term deposits28
    • Free consultations with financial planners28
  • March 5. Alleged theft occurs of $31,000 worth of equipment from Leitch Pastoral Group properties in the last fortnight29
    • Killarney abattoir had a mig welder and maintenance equipment29
    • Elbow valley Property lost a spray unit29
  • Dudley Leitch is confident abattoirs will re-open30
    • Not necessarily under Leitch Pastoral Group30
    • Both plants are only 2 multi species abattoirs of significant size in the region30
  • Reason for failure of the abattoirs30
    • Outstanding payments to Condamine river meats30
    • Failed bid to unite various wholesale groups under one banner30
      • “The main problem we were having out there firstly the wholesale people not selling the meat at the right price and not making money” Dudley Leitch30
      • Lack of salesmen pushing the product and lack of ability to collect debts
    • Dudley Leitch would step back from meat operations of the Leitch Pastoral Group though he would continue to run the farming  entities30
      • Dudley Leitch insisting the farming entities were separate to the processing30
      • A number of Leitch properties were already on the market for sale
  • Core staff and basic maintenance crew remain at the plant enabling it to be re-opened if required30.
  • Leitch Pastoral Group owe in excess $7M to over 200 claimants31
    • Warwick Livestock agents31
      • Stock and Station agents across Darling Downs are owed more than $900,00031
    • cattle producers31
      • Coomith Cattle Company $170,00034
      • Un-named producers supplied stock worth $22,000 for slaughter of 31 head in November35
        • Had suspected problems with Killarney and had begun to grow heavier cattle and sell to another abattoir at Oakey prior to the end of 200935
          • Increased freight cost of $16-$20 per head35
        • Producers weren’t suppling stock to Killarney because the facility wasn’t making timely payments for them35
          • Producers had to chase abattoir for payment35
    • Superannuation funds $307,500, with over $265,000 to one fund alone31
      • Employees have received additional information from Grant Thornton but may have to wait 8-10 months before payment31
      • $3,000 garnered from employees wages for child support agencies was not forwarded to the agencies31
      • Employees are receiving formal notice of their termination of employment31
    • Government bodies31
      • WorkCover QLD $584,00031
      • Governments Levies Revenue Service $78,00031
  • Dudley Leitch himself is listed as a creditor – owed $2.25M31
    • Dudley Leitch supplied stock from his own properties to the Killarney abattoir when the facility was struggling to source stock35
    • $946,000 is owed internally between the 3 entities of the Lietch Pastoral Group31
    • Dudley Leitch had personally rung people to assure they would receive their money31
  • Full liabilities is still unknown as they don’t include former employees or financiers31
  • Suppliers feel Dudley Leitch should not be listed as a creditor31
    • Now like all failed businessmen he is finding blame with everyone but himself” – suppliers31
  • Creditor documents cast doubt on whether those owed money would see much32
    • Creditors view that voluntary administration absolves the groups owner of any responsibility to pay his debts32
    • Dudley gets to keep his assets because the voluntary administration only relates to the 3 other entities32
  • Employees rank as a priority ahead of claims by ordinary unsecured creditors and ahead of secured creditor31
    • 2nd – Rural Bank31
  • Accounting firm Grant Thornton to receive $225,000 for resolving the crisis31
    • $485 hourly rate31
    • Suppliers were cynical of administrators being able to guarantee their payment but not payment to other creditors31
  • Dudley Leitch quits as Director of Kings Minerals due to personal reasons32
    • Walks away with share portfolio of $5.7M32
    • Not uncommon for company directors to resign from other positions if certain their interests could be subject to intervention32
  • March 10. A proposal by the Leitch Pastoral Group to resurrect the Killarney abattoir as a co-operative with financiers Rural Bank is put forward33
    • Rob Doro resigned as Leitch Pastoral Group operations manager but allowed him to put proposal forward33
      • May allow creditors to recover money 33
      • Killarney to retain a major employer33
    • Would require Dudley Leitch and Rural Bank to forgo the assets of both Killarney and Pittsworth plants and roll them into a new entity33
      • Abattoirs would have an accountable board with independent and professional directors33
      • Require government support in the form of start up capital
        • Interest reduced loans33
  • Co-operative idea is labelled as “unrealistic, Cinderella solution” to the “only hope” for those owed monies34
    • Those owed money could translate their debt into shares34
    • Financial data was viewed that the abattoirs could be viable under a tightly controlled management regime34
  • Creditors and suppliers were wary of proposal but considered it may be a real option34
  • preference to see State Government take action to ensure corporations were not allowed to protect assets behind trading companies34
  • Views34
    • Co-operative concept had merit if close attention was paid to developing a sensible business model to ensure sustainable volume and pricing34
    • Bank wouldn’t for-go assets in the interest of a few trade creditors34
      • Lietch had always structured the business to protect assets
    • If the meatworks are actually viable why had Grant Thornton not recommended trading out of the situation34
  • March 12. Creditors meeting is held at Grant Thornton offices in Brisbane35
    • Grant Thornton indicate that unsecured creditors would not receive any money35
  • Further meetings are held with government organisations to consider the co-operative proposal35
  • Employees will receive monies owed in 90 days36
    • $1.6M in entitlements36
      • $1.3M is expected from debtors36
    • Federal Government General Employee Entitlements and Redundancy Scheme will top up any outstanding amounts36
  • Southern Downs Regional council developed a 70 ML off-stream storage facility last year with the understanding it was critical to the Killarney abattoir37
    • Ratepayers may be forced to pick up the $1.1M cost of the facility37
    • Killarney abattoir had been expected to use 50% and be the main contributor to the cost recovery37.
  • April 1. Report to creditors is released by Grant Thornton.

gtal_2010_ka_operations_pty_ltd_second-report_to_creditors

GT 2nd report pg 2.

Source gtal 2010 ka operations. Recommendations of action Pg 2

  • Reasons for failure of the business as cited on page 6 of gtal report.
GT 2nd report. pg 13

Source gtal 2010 ka operations. Reasons for failure. Pg 6

GT 2nd report pg 7.

Source gtal 2010 ka operations. Insolvent trading Pg 7

 

 

GT 2nd report. pg 8

Source gtal 2010 ka operations. Return to creditors Pg 8

 

GT 2nd report. pg 16

Source gtal 2010 ka operations. Profit and Loss Pg 16.
All accounts are un-audited and showing a trading loss of $1.27M at 28/02/2010

GT 2nd report pg 13.

Source gtal 2010 ka operations. Statement of Position Pg 22
Statement of Position showing debt to Rural bank of $32M

  • April 14. Lietch Pastoral Group meat entities are placed in formal liquidation38
  • Both meatworks. Killarney and Pittsworth are listed for sale by tender38
  • Dudley Leitch also lists a farming property owned in the Killarney area is listed for sale38
    • Employees are resentful of the fact Dudley Leitch owns property in the area but isn’t forced to sell the land or personal home while employees had to wait until legal notice of formal liquidation to receive their access to funds and still wait 90 days for payment39

Leitch proprety groups. Mercury 31.10.2014

Source Mercury ‘Last of Leitch properties…’ 31/10/2014

Listing of properties held within the Leitch Pastoral Group portfolio

  • 3 of the 27 Trainees employed at Killarney have found work at other sites39
    • Yangan abattoir employed 2 fitter and turners to enable them to finish training39
    • Most would be forced to forget training and take work elsewhere where ever they could39
  • Big W distribution centre employed 20 former meatworks staff39
  • Oakey abattoir (John Dees) employed 10 former Killarney workers39
  • Some Killarney workers were able to relocate to find work at other centres39
  • May 21st. Formal tenders for the 2 abattoirs close at 5pm40.
    • Facilities were being offered as 2 separate entities40
  • Dudley Leitch rural enterprises are struggling operating on skeleton staff40.
    • Management team now consist of Dudley, his daughter and a lawyer40.
  • Business review had been conducted for Government by Grant Thornton for Jobs Assistance Intensive program41
    • Independent business review of Killarney abattoir
      • Authors Note – Date is not mentioned of when the review was actually conducted.
    • Report undertaking cost $88,771.9641
    • Report didn’t indicate Leitch Pastoral Group was insolvent.41
  • June. Pittsworth abattoir is under contract to overseas interests
    • Settlement to occur June 2842
      • Killing expected to begin within weeks of settlement42
  • Killarney operations has received interest from overseas and interstate buyers42
  • Dudley Leitch believes facilities could operate as service kill but not as wholesale operations42
    • Killarney may have the potential to export42
    • Made error in not bringing arms of Pittsworth and Killarney meat wholesale arms together – effectively they were in competition with each other42
    • Leitch groups still has a considerable debt42
    • Clean up work was being carried out at the Killarney site42.
  • August. Pittsworth abattoir re-opens under new ownership48
    • Pittsworth closes permanently April 8 201148
  • Dudley Leitch is included in QLD Top 100 List53.
    • Estimated worth of $81M ranked 9453.
      • 2009 ranking had been #80 at $109M53.
    • Dudley Leitch claims ‘net personal financial wealth’ is impossible to assess53.
      • His family are heavily burdened by debt53.
  • Creditors who are owed money by the Leitch groups are taking on extra overdraft to pay bills53.
  • December. Colliers International real estate sale agents list Killarney abattoir for sale43.
    • Property consisting of 32ha grazing land43
  • Dudley and Karen Leitch hold an online auction of 7,000 Dorper and Damara sheep from traprock country west of Warwick44
    • Karen Leitch is also selling a high-class artworks store as a closing down sale44
      • Artes de Mexico specialises in unique forms of handmade ceramics44
    • Dudley Leitch continues to run 60,000 head breeding sheep flock on his traprock country areas44.
    • Sale is not confirmed to meet requirements of creditors but for 16 workers on the properties44
  • Dudley Leitch vows to re-open his beef cattle feedlots at Millermerran and Cullendore within the next few months44
  • Court action is on-going against the Killarney and Pittsworth abattoirs 44
    • Killarney co-op lodged March 201044
      • Undisclosed amount was agreed on and would be paid44
    • Coomith Cattle Company of Meandarra, Perrett Cattle company of Injune (owed $61,000) and the Amber Downs Feedlot at Wandoan lodged May 3144
  • Overseas investor inspects the Killarney abattoir44
    • Local (NSW and QLD) has shown some interest in the facility45
  • Colliers International selling agents are confident Killarney abattoir will be sold46
    • 7 groups of people have inspected the facility46
      • A shortlist of the offers will now be done46
      • Some are looking to re-open the facility others to lease the property46

2011

  • February. 2 potential buyers are in talks with the sales agent47
    • Hopeful a result may have occurred mid January but local flooding had caused delays47
  • April. Pittsworth abattoir permanently closes48
  • Freestone Feedlot, 2,000 head capacity located north of Warwick remains under external administration54.
    • Feedlot stock numbers were down due to high cattle prices54.
    • Feedlot had service killed at Killarney54.
      • Carcases were processed at their own meat processing facility at Molendinar (QLD Gold Coast)54.
  • May. Equipment is removed from the site48
    • Rumours the facility will not re-open48
    • Scrap metal merchant was removing materials and gear48
  • Equipment from Killarney  is used to refurbish Forbes #656 NSW 69.
  • Previous offers and negotiations had fallen through48.
    • Rumours $1.3M had been rejected in the hope of achieving a $2M sale48.
  • Dudley Leitch and his wife are subject to supreme court action by the ATO49.
    • $600,000 in unpaid taxes49
      • Tax debt under the Leitch family trust49
    • Family home in Brisbane was auctioned in the last week selling for $696,00049
      •  Leitch’s plan to move to one of their livestock properties49
    • Leitch’s sell 102ha Beaudesert property $1.33M49
  • November. Dudley & Karen Leitch are formerly declared bankrupt50
  • Tenants on former Leitch properties are ordered to vacate the properties by the end of January 201250
  • Cattle suppliers who took Leitch to court have not received any payment of monies and expect legal costs to have doubled their losses.50
  • ATO launch a second legal case for further unpaid taxes and Superannuation Guarantee charges $998,589.07 plus interest and court costs50
  • December. Killarney abattoir remains in the hands of the creditors50
    • site is gradually being dismantled with numerous sheds and workshops already gone50

2012

  • June. Belvedere (Owned by Leitch Pastoral Group) is passed in at auction $1.7M55.
  • August. Killarney abattoir site (now stripped of some sheds and most equipment) is sold to Chris Shaw $167,00062
  • October. Rumours Killarney abattoir will be converted to a pig processing facility56
  • Swickers at Kingaroy is currently processing 2,000 pigs a day56

2013

  • February. Memorandum of understanding is announced to re-open Killarney abattoir57
    • Northern Co-Operative Meat Company (Casino NSW) and Killarney based business identity Chris Shaw of Canning Downs58
      • Co-op currently run pig plant at Booyong (Lismore)58
    • Abattoir (formerly beef and sheep) would need to be completely rebuilt and refurbished58
      • Initial phase will be a feasibility study58
      • Chris Shaw had been interested in buying the Killarney site and building a pig abattoir himself.58
      • A new pig facility would directly compete with Casino, Northern Co-op wanted to have some control of negotiations58
        • better enable Casino protection for its business and staff58
        • Killarney would have saved many producers transport costs58
  • Livestock producers who received payment of livestock prior to the Leitch groups being placed under administration will be forced to repay money as they should not have received preferential treatment to unsecured creditors59
    • First call on assets is owed to ATO59
      • 2nd secured creditors – Rural bank59
        • 3rd company employees59
          • owed approximately $1.5M60
    • Return of payment of money will place undue stress on suppliers who provided stock under contract and in good faith of payment59
    • Some were considering a joined legal action to keep the money59
  • Law: Corporations Act60
    • By Law, to recover an unfair preference, the liquidator must show that the transaction occurred at a time when the company was insolvent, that the transaction gave the creditor an advantage over other creditors(preferential treatment) and that the creditor suspected or should have suspected that the company was insolvent.60
  • October. Dudley Leitch is working as a part time consultant for a Chinese company mining copper61.
  • Dudley Leitch and his wife are still listed as owners of several properties at Gore, Stonehenge, Springdale and Terrica61
  • At this time creditors owed from the collapse of Killarney, Pittsworth and Condomine River meats have not been paid61
    • Neither has the ATO61
  • Some suppliers who were asked to return payments have to avoid court costs61

2014

  • March. Grant Thornton as liquidators role will end61.
  • Expectation winding up process of the collapsed Leitch groups to be formally finalised62
    • unlikely that local firms and suppliers will receive any monies owed62
  • Re-development of the Killarney site as a pig processing facility could take up to 2 years62
    • Chris Shaw has withdrawn from the project62
      • Owns the Killarney site62.
    • Northern Co-op was proceeding with due-diligence62
  • October. Leitch properties Enisclare and Stonehenge sell prior to auction63
  • Last of the Leitch Pastoral group holdings will be auctioned63.
    • Bodumba will be sold 31/10/201463
      • Final of more than 17 properties63
        • Including 2 abattoirs63
      • Started buying in 2005 and 2006 continuing through the property price highs of 200863
      • Accumulated a rural portfolio of $30M63
  • Collapse of Leitch groups affected local property markets63
    • Prices back 30-40% from 200863

 Sources

  1. https://en.wikipedia.org/wiki/Warwick,_Queensland Accessed 06/04/2017
  2. http://www.cattlefacts.com.au Work Recess Dates 2000-2001
  3. AMIEU – Ian McLauchlan. 2008. – note link not working
  4. ‘Killarney abattoir staff face reduced work hours’ Warwick Daily News 10.12.2004
  5. ‘Outlook murky for Killarney’s water supply’ Warwick Daily News 12.01.2006
  6. ‘Loch Lomond feedlot plan is in’ Warwick Daily News 11.02.2007
  7. ‘Feedlot plan on the nose’ Warwick Daily News 22.02.2007
  8. ‘Meatly deal snaps up abattoir and feedlot’ Warwick Daily News 24.01.2008
  9. ‘Upskilling benefits both staff and bosses’ Warwick Daily News 10.07.2009
  10. ‘Abattoir plan a first: Leitch’ Warwick Daily News 22.09.2009
  11. ‘Long-term investment needed in the region’ Warwick Daily News. Editor. 22.09.2009
  12. ‘Cattle supply impacts on meatworks’ Warwick Daily News 13.10.2009
  13. ‘Abattoir closure kills 200 jobs’ Warwick Daily News 27.10.2009
  14. ‘Leitch disputes rumours’ Warwick Daily News 05.12.2009
  15. ‘Abattoir workers stood down’ Warwick Daily News 08.02.2010
  16. ‘230 abattoir workers stood down’ Warwick Daily News 09.02.2010
  17.  ‘Leitch Pastoral Group closes’ Warwick Daily 09.02.2010
  18. ‘Abattoir suspends workers’ Warwick Daily News 09.02.2010
  19. ‘Abattoir future to be known today’ Warwick Daily News 12.02.2010
  20. ‘Leitch vows to re-open abattoir’ Warwick Daily News 12.02.2010
  21. QLD Government Media release. Mr Andrew Fraser. 12.02.2010
  22. ‘Leitch extends plant shutdown’ Warwick Daily News 13.02.2010
  23. ‘Abattoir workers’ future uncertain’ Warwick Daily News 16.02.2010
  24. ‘Employees missing super’ Warwick Daily News 19.02.2010
  25. ‘Meatworkers told their job’s safe’ Warwick Daily News 02.03.2010
  26. ‘Abattoir owners confirm closure’ The Chronicle 03.03.2010
  27. ‘Abattoir entities in receivership’ Warwick Daily News 03.03.2010
  28. Westpac Bank Media release. 03.03.2010
  29. ‘Thieves make a hit on abattoir plant’ Warwick Daily News 05.03.2010
  30. ‘Abattoirs will reopen: Leitch’ Warwick Daily News 05.03.2010
  31. ‘Show us the money, Dudley’ Warwick Daily News 05.03.2010
  32. ‘Leitch resigns from top job’ Warwick Daily News 06.03.2010
  33. ‘Bold bid to keep abattoir running’ Warwick Daily News 10.03.2010
  34. ‘Plan to reinvent abattoirs’ Warwick Daily News 11.03.2010
  35. ‘Leitch faces creditors’ Warwick Daily News 12.03.2010
  36. ‘Better news for abattoir workers’ Warwick Daily News 12.03.2010
  37. ‘Abattoir leaves $1M water bill’ Warwick Daily News 31.03.2010
  38. ‘Leitch now in liquidation’ Warwick Daily News 14.04.2010
  39. ‘Workers doing it tough’ Warwick Daily News 15.04.2010
  40. ‘Killarney abattoir’s future unsure’ Warwick Daily News 20.05.2010
  41. Parliamentary questions on notice. #697 13.04.2010. Mr Springborg.
  42. ‘Killarney is still a goer: Leitch’ Warwick Daily News 02.06.2010
  43. ‘Colliers lists Killarney’s idle abattoir’ Stock Journal 09.12.2010
  44. ‘No movement on Killarney abattoir’ Warwick Daily News 10.06.2010
  45. ‘Locals register abattoir interest’ Warwick Daily News 14.12.2010
  46. ‘Abattoir set to sell’ Warwick Daily News 23.12.2010
  47. ‘Two groups interested in abattoir’ Warwick Daily News 24.02.2011
  48. ‘Killarney abattoir’s future vague’ Warwick Daily News
  49. ‘Tax office chasing down Leitch’s’ Warwick Daily News 26.05.2011
  50. ‘Millions to mud: Leitch bankrupt’ Daily Mercury. 17.12.2011
  51. ‘Sheep Producers smiling as meat price on the increase’ Warwick Daily News 02.06.2009.. Via http://www.questia.com
  52. ‘Local meat jobs safe, Industry is uncertain’ Warwick Daily News 24.02.2010
  53. ‘Living off the fat of the Lamb? Former abattoir owner Leitch rejects papers rich list tag’ Warwick Daily News 17.08.2010. via http://www.questia.com
  54. ‘Freestone Group still in Limbo..’ Warwick Daily News 05.04.2011. via http://www.questia.com
  55. ‘Belvedere QLD passed in for $1.7M’ www.farmonline.com.au 29.06.2012
  56. ‘Is pig abattoir sale tale a lot of pork pies?’ Warwick Daily News 10.10.2012. via http://www.questia.com
  57. ‘Abattoir plan is exciting’ Warwick Daily News. Editor comments 23.02.2013. via http://www.questia.com
  58. ‘Talks ramped up on new abattoir hopes riding on new venture…..’ Warwick Daily News 23.02.2013. via http://www.questia.com
  59. ‘Producers’ nightmare as big funs demand cash’ Warwick Daily News 28.02.2013
  60. ‘Liquidator looks into money owed’ Warwick Daily News 28.02.2013. via http://www.questia.com
  61. ‘Dudley Leitch back in mining biz’ Warwick Daily News 29.10.2013
  62. ‘Two-year plan with set-up of pig plant’ Warwick Daily News 01.04.2014
  63. ‘Last of Leitch properties to be offered up for auction’ Daily Mercury 31.10.2014
  64. Aus-Meat Accredited Establishment List July 1997
  65. Aus-Meat Acc Listing 18.03.10
  66. gtal_2010_ka_operations_pty_ltd_second-report_to_creditors
  67. PPIP0079-Final-Report
  68. Aus-Meat Accredited Establishment List 18/07/2008
  69. ‘Three meat processing plants hit the market….’ Beef Central 14.09.2016

Scone

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

Other Names

  • Scone Primo
  • Scone JBS

Current Operation

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

Direct employment enquiries to www.jbssa.com.au

Location   

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

Aust. Scone

scone 2

Hema Maps – Australia Truckies atlas.

Owner/s

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

Beef central 27.11.2014.b

JBS logo. Source Beef Central 27.11.2014

Operation   

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

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

Australian abattoirs inactive map

abattoirs_edited-1

History of  Scone Establisment # 262

1990

8. ABARES Nov 2011_edited-1

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

1991

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

1996

1999

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

2000

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

2001

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

2002

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

2003

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

2004

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

2007

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

2006

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

2007

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

2008

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

2009

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

Beef central 27.11.2014

Primo Logo Source Beef Central 27.11.2014

2010

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

IBIS Jun 2010_edited-1

Major Companies in the Australian Red meat processing industry

Source IBIS world June 2010

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

2011

 

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

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

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

 

2012

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

2013

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

2014

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

Andrew meats logo

Andrews Meat Industries logo Source Beef Central 27.11.2014

  • Andrew Meats focus will be produce ready meals.38
    • ‘grab & go’ beef roasts, designed to compete head on with hot cabinet roast chickens sold in supermarkets.38
    • Domestic markets were very immature but also with significant growth potential.38
  • At this time JBS operate.37
    • 10 processing facilities.37
      • Daily processing capacity of more than 8,000 cattle and 21,000 small stock.37
    • 5 feedlots.37
  • September Senator John Williams visits Scone abattoir at this point, it employs upwards of 700 people, plus ancillary positions.41
  • November 21. JBS Australia sign a A$1.45B conditional agreement to acquire Primo Group.2
    • Primo Group currently consist of –
      • Brand – Primo Smallgoods.2
      • Brand  – Hans.2
      • Brand  – Beehive.2
      • Brand – Hunter Valley Quality meats.67
      • Brand – Primo Quality Meats.67

Beef Central 27.11.2014. Hunter logo

Hunter Valley Quality Meats Logo Source  Beef Central 27.11.2014

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

Beef central 27.11.2014.c

Freezer rooms in Scone abattoir Source Beef Central 27.11.2014

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

JBS plants 2014_edited-1

JBS processing plants in Australia

Source JBS submission #50 Market Consolidation.

  • JBS estimates its current share of four eastern states beef kill – 20% (excludes service kill)67
    • JBS share of Australian beef production 16%67
    • Market share of national small (lamb, mutton & goat) 16%
  • JBS spent $2.4M on halal certification costs of approved religious certifiers in 201467

2015

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

Scone location

Approximate radius of 500km from Scone abattoir

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

  • NSW Senator John Williams says ACCC move was very disappointing and indicates ACCC is out of touch with reality.58
    • Cattle can easily be transported hundreds even thousands of kilometres.66
    • Requested Federal Parliament to update the competition laws.64
      • Current test for take-overs by ACCC are not tough enough.64
      • ‘Creeping acquitsitions’ occurs and is allowable.64
        • could lead to monopolies.64
    • ACCC made a decision that there’s not a ‘substantial’ reduction in comptetiveness of the beef market.65
  • Agriculture Minister Barnaby Joyce says conditions of the sale would ensure local cattle producers have certainty of access for contract processing.62
    • confusion surrounds interpretation of phrase ‘service kill’.63
      • some view as obligation that JBS provide service kill to others at Scone.63
    • Scone abattoir has for some time conducted a single service kill – Coles.63
    • Clarification by the Minister – Whatever arrangement that Scone facility had in place at the time of the sale is to remain.63
      • If Scone only had one contract and didn’t as a policy do others then they would not be forced to do more.63
      • would be expected to maintain custom killings in both a competitive and profitable manner.64
      • Minister acknowledged there were calls for stricter controls.63
        • warned chance that may have gotten less.63
  • Scone abattoir supervisor is sentenced after pleading guilty of aggrevated indecent assault.59
  • March. Finalisation of the sale of Primo Smallgoods to JBS Australia Pty Ltd.2
    • JBS has 100% share capital of Primo Group.67
      • Anticipates annual revenue from the Primo Business A$1.6B.67
      • annual pre-tax earnings A$150M.67
  • JBS operate as 2 divisions.4
    • Southern division.4
      • Processing sheep, goats, pigs and cattle.4
      • capacity combined process 110,000 small stock and 9,500 cattle per week.4
      • employs 2,500 people.4
      • Area having access to almost unlimited market access to worldwide meat and offal export markets.4
    • Northern division.4
      • 5 operating facilities.4
      • processes 1.4M cattle a annually.4
      • Employs 4,300 people.4
    • JBS also operated 5 feedlots.4
      • One time feeding capacity of 150,000 head of cattle.4
      • Annual turnoff of 330,000.4
  • Foreign ownership of Australian red meat processing facilities.
  • Nippon share_edited-1

    Share of Australian red meat processing

    Source The Stock Standard. VFF March 2015

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

NSW abattoir capacities Dept ag consolidation_edited-1

  • Capacity of major beef abattoirs in NSW. Pg 15

    T2 Throughput state beef_edited-1

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

    T4 processing companies market share_edited-1

    Major Processing companies by market share May 2015. Pg 16

    M4 direct cattle movements NLIS QLD_edited-1

    Cattle Movements to abattoirs. Pg 25

    F12 hourly labour costs food manufacturing_edited-1

    Hourly labour costs for food manufacturing industry Pg 30

  • August. AMIEU found workplace conditions improved since JBS had taken over Primo.71
    • Local people are being employed ahead of foreign ones.71
  • September. Scone abattoir expansion plans require further explanation to the Department of Planning.72
    • JBS aim to more than double its kill to more than 55,000 units per week.72
    • beef boning room will be modified.72
    • new stock slaughter floor.72
    • Extra cold storage.72
    • Challenges in regards to environmental obligations, noise and vibration abatement, including odour impact on and off the site.72
    • Planning authorities have asked for wastewater and irrigation management plans.72
    • JBS have been told to consider local housing affordability to accommodate the increased workforce including demand on community services.72
  • December. ATO publishes tax data for agribusiness corporates.15
    • Data interpretation – Companies do not pay company tax on revenue (total income) they pay on profits after paying all expenses, including wages, capital replacement, supplier costs and other operating expenses.15
    • Income tax information is for 2013/14.15
  • JBS Holdco Australia Pty Ltd produced Total Income $4,040,948,610.15
    • Taxable Income $419,882,525.15
      • Tax Payable $44,809,334.15
  • JBS receive approval for upgrades to failed treatment pond currently at the Scone site.73
    • JBS have spent $3.5M in the last 4 and a half months to rectify issues at Scone.73
    • there are 3 existing anaerobic ponds, 2 need to be taken off line as they are full of sludge.73
    • Development involves establishment ov 100m x 50m burrow pit above existing clean water.73
    • JBS spoke to citizens at a small forum for local residents.73
  • Council approve application 131/2015, received 27/10/2015 to upgrade the existing pond facility at Scone abattoir.74

2016

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

 

 

Sources Scone (NSW)  – JBS

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

Rockhampton – JBS

Other Names

Current Operation

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

Location   


Hema Maps – Australia Truckies atlas.

Owner

  • A1

Operation   

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

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

Australian abattoirs inactive map

abattoirs_edited-1

History of Rockhampton #170

1990

8. ABARES Nov 2011_edited-1

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

1991

  • 77 Beef export Abattoirs are in operation in Australia at this time.9
    • 27 have some level of foreign ownership.9
    • Ownership dominated by Japan, UK and the US.9

2005

  • Significant regions of drought across QLD.

QLD Drought 2003_2005_edited-1

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

2007_2009_edited-1

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

2010

IBIS Jun 2010_edited-1

Major Companies in the Australian Red meat processing industry

Source IBIS world June 2010

2011

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

7. ABARES Nov 2011_edited-1

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

2013

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

2014

  • July. JBS Australia purchase majority shareholding in NSW based Andrew Meat.5
    • specialise in high quality, portion cutting and further processing of meats for domestic and international restaurant and foodservice customers.5
    • produce ready-cooked meals.5
    • company banner Creative Food Solutions.5
    • Andrew Meat will allow JBS expansion into high growth retail and value-adding segments.5
  • Expansion of the Andrew Meats business will start in November .8
    • JBS global strategy to expand into value added meat protein – opportunity to expand margins.8
    • JBS have an existing value-added division – Food Partners.8
      • supplies food service customers like Pizza Hut and Domino’s with toppings.8
    • Andrew Meats focus will be produce ready meals.8
      • ‘grab & go’ beef roasts, designed to compete head on with hot cabinet roast chickens sold in supermarkets.8
      • Domestic markets were very immature but also with significant growth potential.8
  • At this time JBS operate.5
    • 10 processing facilities.5
      • Daily processing capacity of more than 8,000 cattle and 21,000 small stock.5
    • 5 feedlots.5
  • December. JBS currently operate 12 meat processing plants across 5 Australian states1
    • Wages & local procurement $730M (Excluding livestock purchases)1
    • Employs 8,500 people at the facilities1
      • Employs 12,000 people in Australia1
    • Total revenue of $6.5B1
  • JBS plants 2014_edited-1

    JBS processing plants in Australia

    Source JBS submission #50 Market Consolidation.

    • JBS estimates its current share of four eastern states beef kill – 20% (excludes service kill)1
      • JBS share of Australian beef production 16%1
      • Market share of national small (lamb, mutton & goat) 16%
    • JBS spent $2.4M on halal certification costs of approved religious certifiers in 20141

    2015

    • January. MLA forecast.10
      • Australian cattle herd has gone from 35 year high (2013) to 20 year low (2015).10
      • Australian cattle herd slip to 26.8M head by June 2015.10
        • by 2016 expected decline to 26.5M head.10
        • by 2020 27.9M head.10
      • Adult cattle slaughter expected to slump 15% year on year.10
        • 2015 to 7.8M head.10
        • 2020 expected 7.9M slaughter.10
      • Long term Female average in 2014 52%.10
        • Normally female kill percentage 47%.10
        • Only in years 1977, 1998 & 2003 has female kill been above 50%.10
      • Beef exports record levels in 2014 1.39M tonnes shipped weight.10
        • Expected to drop 20% to 1.3M tonnes in 2015.10
    • March. Foreign ownership of Australian red meat processing facilities
    • Nippon share_edited-1

      Share of Australian red meat processing

      Source The Stock Standard. VFF March 2015

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

Cyclone Marcia Feb 2015_edited-1

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

  • June. Cost of processing in Australia 1.5-3 times the cost of processing animals in another country1
  • cost of processing grain-fed cattle in Australia is twice of the USA1
    • lower levels of productivity in Australia in regards to kg per unit of labour1
    • 2 major differences between Australia and the USA1
      1. Government regulation
        • $10 a head more in Australia1
        • Dept. of Australian Agriculture fully recover costs of meat export inspection and certification1
          • Australia wide DAFF costs $80M1
          • JBS contribute $14.5M1
        • Export plants don’t use DAFF but use approved employees, which plants fully cover costs1
          • JBS estimate an additional $30M at Export level1
        • USA & Brazil governments provide services at no or minimal costs to processors1
      2. Energy Costs
        • $15 a head more in Australia1
    • Technical barriers to trade (TBT’s)- Total value in Australia estimated at $1.25B as identified costs1
      • 261 TBT’s in 40 key markets1
        • 136 have significant trade distortion impacts1

2013_2015_edited-1

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

Sources Rockhampton QLD. JBS

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

Wingham

Wingham abattoir is owned by NH Foods that specialises in the processing of British bred cattle, grass and grainfed into a number of high quality branded products.

Other Names

  • Wingham Beef Exports

Current Operation

  • Aus Meat Accreditation registration dated 29/12/2015 #154 – JWingham beef exports.51
    • registered as a Beef export facility.51
  • Direct employment enquiries to NH Foods

Location   

  • Wingham is located on NSW mid north coast, approximately 260km north of Sydney.

Aust. Wingham

Wingham 001

Hema Maps – Australia Truckies atlas.

Owner

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

Australian abattoirs inactive map

abattoirs_edited-1

Operation

  • Nippon currently own 3 abattoirs in Australia,
  • Wingham processes up to 800 head of grass fed and grainfed animals per day.11
    • 80% are British bred types
  • Developed two programs.11
    1. Wingham Gold MB1
    2. Wingham Golf MB2
  • Livestock are sourced from NSW and Northern Victoria.11
  • Wingham purchases stock directly from producers based on Weight at Works.11
    • Stock are delivered directly from the producer to the processing facility
      • reduces handling and mileage
  • Wingham also purchases from livestock markets in NSW and Victoria.11
  • Export makes up 70-80% of markets.11
    • To Japan, USA, Republic of Korea, South Africa, Russia, Chile, Europe, Taiwan, Canada, Mexico, Ukraine, Indonesia and Switzerland

Wingham logos._edited-2

Wingham Beef Exports Logo Source NH foods Wingham Beef exports

History of  Wingham meat processing facility.

1954

  • April. Taree and Wingham municipal councils meet to consider the establishment of a central killing yard (abattoir) at the current Wingham Bacon factory site that is in operation.7
    • Establishment of the central abattoir would ensure proper inspection of all meat which does not occur at present.7
    • Facility would be operated by the Master butchers and not the council.7
  • July. Establishment of an abattoir would be of great benefit to the beef and dairy industry who currently truck animals to metropolitan and Newcastle markets.8
  • Estimated cost of extensions to the Bacon factory to modernise £80,000 to £100,000.8
  • September. Directors of Manning Co-operative Bacon Society Ltd given the permission of shareholders to raise loans to £100,000.9
    • Proposal was to enter export beef trade.9
    • present factory would meet requirements until new facility is extended.9
    • Expect full operation 2-3 years.9
    • Killing price would need to be satisfactory.10
  • Current output was limited to Commonwealth inspection to fulfill military and naval contracts, or reach markets in the islands or overseas.10
  • Society did not possess a canning licence, thus denied participation in export sausages.10
  • Current bacon factory was having to bring pigs from Lismore and Casino to maintain supply.10
  • Dept. Agriculture and Minister for health had concerns about meat inspection and established centres at.10
    • Wagga
    • Dubbo and
    • Goulburn
    • No funding had been forth coming from the Federal Government to Wingham.10

1974

  • 15% of the abattoir workforce are laid off.22

1978

  • March. District is experiencing biggest flood this century.25
    • River at Taree was 18′ 18 1/4″ and rising.25
    • record floods occured in 1929 19′.25

1994

  • Nippon purchase Wingham (Pg 86).5
    • Wingham is a major beef exports facility.5
    • Tomen sells it’s interest to Nippon.5
      • Major shareholder in Anvic Meat Exports Pty Ltd.5
  • When Nippon purchased Wingham, workers felt more secure in their jobs.22

1996

  • Up to half of NSW abattoirs could close with the loss of up to 5,000 jobs.1
  • Authors Note – Majority of live export cattle during this period would have been Bos Indicus or crosses to South East Asia markets, sourced from mainly northern Australia. Not animals suited to heavy slaughter in Australia and from herds whos’ production was not likely destined for abattoirs in NSW.

LE exports 1990_1998_edited-2Source – Live Cattle Exports. Australian Commodities Vol 5 #2 June 1998

 Chart showing the high volume of South East Asia live cattle export destinations period 1990 – 1998

1997

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

NH foods Oakey export_edited-1

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

2000

  • September. Abattoir upgrade will be done in 3 stages over 6 years.16
    • Stage 1. extension to house 6 new side beef chillers.16
      • There are currently 7 chillers, some will be converted and used to include the new chillers
      • Chilling capacity will be 1,200 carcases a day
      • Boning room extension will be conducted
      • Construction of a 35ML storage pond
    • completion date March 2001.16

2003

  • Dairy Regional Assistance Program provided funding for improvements to infrastructure – $58M.14
    • Biggenden Meat Works Expansion  $208,230.
    • Casino Value Adding meat project   $801,724.
    • Midfield Meats Bull rearing and Processing plant $271,150
    • Nolan Meats Expansion and Value adding $1,595,000.
    • Scone abattoir expansion project $1,100,000.
    • Wingham abattoir project $990,000.
  • April. Wingham operate a rendering plant at Macksville that processes by products.11
    • Various items are offered for auction at the Macksville site.17

 

2008

  • June. Enterprise Bargaining Agreement EA08/20 is approved.13
    • Wingham Beef Exports  and AMIEU collective Agreement.13
    • Effective for 3 years.13

2009

  • AMIEU meet with major meat processors and the AMIC to seek public support to change the live animal export policy.40
    • Employers talked alot but did not commit to assisting the union to assist in campaigns to wind back live animal exports.40
    • AMIEU later joined with Animal welfare organisations to change Labour government position.40

2010

IBIS Jun 2010_edited-1

Major Companies in the Australian Red meat processing industry

Source IBIS world June 2010

2011

  • June. NSW experiences flash flooding in Clarence Valley, Upper Hunter, Bellingen Shire and Kempsey.19
    • Manning peaked at higher than expected level of 4.3m.19
  • August. Wingham conduct research assessing dewatered paunch waste co-combustion in boilers.20
  • Operation changes mean 86 casuals will be put off.21
    • 61 workers within the week and 25 jobs to be phased out.21
  • Wingham normally employs over 400 people.21
    • Largest employer in Wingham.21
    • Federal Government established a rapid response team to assist people to retrain and access support.21
  • Alot of people have careers developed through the facility.22
    • high focus on training.22

2012

  •  November. Australia’s negotiations with Korean beef export market need to be finalised.43
    • Korean Beef trade is worth $770M.43
    • Delays have stalled with Gillard insistance that an Investor state dispute settlement (ISDS) mechanism in the agreement be excluded.43
    • Korea is Australia’s 3rd largest beef export market.43
      • 2011 146,347 tonnes
      • 15% of Australia’s global beef exports
      • Currently 49% of Korean beef imports
    • Delays in FTA are causing high costs to processors.43
  • Australia’s market position would decline dramatically in 2013 to Korea if the EFT is not finalised soon.43
    • US beef has significant advantages over Australia.43
      • January 2015 will seee US gain a 5.3% tariff advantage
        • Australian been incures 40% tariff to Korea
      • Tariff widens 2.66% each January
        • US entering Korea Tariff free 2026
    • If the FTA is not finalised with similar tariff to US markets.43
      • Australia will incur cumulative loss A$1.4B over 15 years
      • Australia’s share of Korean market falling from current 49% to 26% in 2026.

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

revenue_edited-1

Nippon Meat Packers Profit Earnings Source IBIS world 2010,2013

2013

  • Wingham win 3 awards at the Royal Queensland Food and Wine show for its product – Manning Valley Naturally Beef.2
  • March. NSW coastal river valleys suffer heavy rainfall and flooding.23
    • Particularly areas around Wingham.23
    • Up to 190mm in one day.23

2014

  •  Nippon Meat Packers Pty Ltd changes name to NH Foods.44
  • Logo NH oakey exports_edited-1

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

 

  • February. Far West NSW  is suffering severe drought.24
  • April Frozen beef shipments to Russia are temporarily suspended from 07/04/2014.26
    • A similar suspension occurred 31/03/2014 for chilled beef.26
    • Temporary suspension of beef offal imports occurred 27/01/2014.26
  • Wingham exports meat to Russia, along with another 29 Australian establishments.26
    • Australia placed additional requirements on its testing requirements.26
    • Russia detected Trenbolone 21/03/2014.26
    • Australian authorities held an immediate meeting with Russian counterparts.26
      • providing details of testing and invited Russia to inspect Australian meat establishments.26
      • Trenbolone is not produced from cattle treated with HGP’s.26
      • Russia has a zero tolerance, most countries have a maximum residue limit.26
    • Russia placed new requirements of detection of Trenbolone.26
  • Russia may consider Asia, Chinese port and Indian buffalo meat imports to replace decrease is supplies from the US, European union and Australia.26
  • Australia has been a traditional beef exporter to Russia since the 1970’s.26
    • 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
  • Some workers rally in Wingham for a pay increase 17/04/2014.27
    • 300 workers striked.29
  • 24 hour strike started midnight by workers .28
    • 130 employees arrived for work, plant is in operation.27
    • 20 workers were striking at Wirrimbi, rending and cold storage facility near Macksville.28
    • Negotiations have been going on for several months in regards to EBA.27
    • Enterprise bargaining had been going on for 30 weeks.28
      • Eight months negotiating.29
    • Offer made to the unions in November 2013.28
    • Subsequent offer was made.28
      • common ground reached on many areas.27
        • except public holidays and overall wage increases.27
    • Workers want 5% increase for lowest paid workers in first year.27
      • 4% in each of the following 2 years.27
      • 80% of the workforce under lower pay agreement.27
      • Currently earn $17.20/hr.27
        • end of 3 years they would be paid $19/hr.27
          • Less than other export companies.27
      • Company had offered 9% increase last year but lose about 12% in offsets.27
        • removed payment of rostered days off.28
        • extend the ordinary working day.28
        • remove butcher’s picnic, which is a union picnic day.28
    • Boners, slicers and slaughtermen want 3.5% in first year.27
      • 3% in each of the following 2 years.27
  • Management of Wingham Beef Exports were continuing with negotations
    • entitlements that were to be traded for wage increases were ananchronistic.28
    • Modern working conditions are needed for the facility to be viable.28
  • Workers picketed 28/04/2014.30
  • May. Workers vote to continue with industrial dispute.31
  • Rolling stoppages – ban on overtime.33
    • Companies latest offer for lowest paid 4% first year.31
      • 3.5% second year
      • 3% third year
      • 3% fourth year
    • Highest paid workers to 3.25% first year.31
  • Ballot will be conducted 13/05/2014.31
  • June. Wage dispute is concluded, Ballot results.33
    • 175 workers voted yes – majority of 60%.33
    • 115 workers voted no.33
  • Lowest paid 13.5% wage increase over 4 years.33
  • Highest paid 12.25%.33
  • Wages would be effective from 29/06/2014 if accepted by the Fair Work Commission.33
  • Industrial action and overtime bans would now be lifted allowing full capacity production.33
    • current backlog of supply of cattle.33
  • Large percentage of product is HGP free2
  • China demand is increasing for forequarter and hindquarter2
    • including loin cuts, bones2
    • China buying quarters to process further once product is in China.2
    • Chinese meat processing plants are currently ruuning at 30 below capacity or less3
    • Note – other reports say China’s current processing capacity is only operating at 20-30%
      • Currently state-of-the-art plants in China with Germon technology just closed up
      • Quartered carcases offer an opportunity to better utilise their facilities3
      • By-passes costs in Australia by as much as 30%3
      • Australian processes are mainly configured for boxed packaging3
      • China was currently limited to frozen exports, chilled sales been suspended since September 2013 due to review of import protocols and health certifications3
  • Wingham is processing 600-650 cattle per day2
  • Very high cow kill numbers being currently processed are response to dry conditions2
    • likely to reduce in the coming year2
  • Construction and Infrastructure improvements $6M.39
  • Stage 1 – Truck access and turning area.39
  • Stage 2 Demolition of existing freezer area and construction of new plate freezing and packaging system.39
    • Expected completion June 2015
  • Stage 3 Construction of new cold storage and loading facility.39
    • Final completion expected September 2015
  • All construction will take place with fully operational facility allowing truck and pedestrian movement.39

 

  • July. Australia is on the verge of finalising a FTA with Japan.34
    • 97% of exporters set to get preferential treatment or be duty free.34
    • Japan’s standard 38.5% tariff on frozen beef will be cut to 19.5%.34
    • Fresh beef exports tariff will drop to 23.5% over the next 15 years.34
    • Beef Offal, worth $167M will also have reduced tariff and increased quota.34
  • Korea-Australia Free trade agreement enters into force 12/12/2014.45
    • Initially an immediate cut to some tariffs with a further cut 01/01/2015.45

 

  • December. construction will commence this month freezer facility at Wingham.36
    • more efficent plate freezing equipment will be used.36
    • quieter, cleaner and with significantly reduced environmental impact.36
    • will triple the plant’s holding capacity.36
    • provide better working conditions in the loadout area.36

Manning river_edited-1
Artist impression of the Freezer facility upgrades at Wingham Beef Exports. Source Manning River Times.

 

  • Branded product – Manning Valley Naturally is exported to Japan, USA, China, Korea and some domestic major supermarkets.36

Wingham logos._edited-1

Manning Valley Naturally – Wingham Beef Exports.

 2015

  •  January. MLA forecast.50
  • Australian cattle herd has gone from 35 year high (2013) to 20 year low (2015).50
  • Australian cattle herd slip to 26.8M head by June 2015
  • by 2016 expected decline to 26.5M head
  • by 2020 27.9M head
    • Adult cattle slaughter expected to slump 15% year on year.50
      • 2015 to 7.8M head
      • 2020 expected 7.9M slaughter
      • Long term Female average in 2014 52%
        • Normally female kill percentage 47%
          • Only in years 1977, 1998 & 2003 has female kill been above 50%
  • Beef exports record levels in 2014 1.39M tonnes shipped weight.50
    • Expected to drop 20% to 1.3M tonnes in 2015
  • March. Wingham currently employs 480 workers.37
  • Wingham is operating under Thomas Borthwicks and Sons (Australia) Pty Ltd Enterprise Agreement 2011.37
  • Foreign ownership of Australian red meat processing facilities

Nippon share_edited-1

Share of Australian red meat processing

Source The Stock Standard. VFF March 2015

 

NSW abattoir capacities Dept ag consolidation_edited-1

Capacity of major beef abattoirs in NSW. Pg 15

T2 Throughput state beef_edited-1

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

T4 processing companies market share_edited-1

Major Processing companies by market share May 2015. Pg 16

M4 direct cattle movements NLIS QLD_edited-1

Cattle Movements to abattoirs. Pg 25

F12 hourly labour costs food manufacturing_edited-1

Hourly labour costs for food manufacturing industry Pg 30

  • China current tariffs on Australian beef, sheep and goat meat, offal and hides amounts to $826M.49
    • Tariffs will be removed over the next 9 years.49
      • Add $270M a year to beef production.49
        • Flow to producers 8c/kg
      • Add $150M a year to sheep production.49
        • Flow to producers 13-26c/kg
    • NZ signed deal with China in 2008 and already 2 tariff reductions ahead of Australia, being tariff free end of 2016.49
  • China have interests in abattoirs in Australia and use Australian workers.49
  • Fear that the Chinese FTA could allow projects of investments of greater than $150M  to bring in workers with no market testing.49
    • Required to pay minimum Australian rates.49
  • December. American Trim market dropped significantly the last few months.46
    • some processors going into the red
  • Predicts Asian markets opportunities will emerge.46
    • more value add on products
    • Meatworks will look to expand to enable ability to use more of the carcase
    • will see every harvestable portion of organs to be packed

 

  • ATO publishes tax data for agribusiness corporates.47
    • Data interpretation – Companies do not pay company tax on revenue (total income) they pay on profits after paying all expenses, including wages, capital replacement, supplier costs and other operating expenses.47
    • Income tax information is for 2013/14.47
  • NH Foods produced Total Income $845,824.273.47
    • Nil taxable income and nil tax payable.47

 

  • AMIEU express concern that major meat processors in NSW have not challenged the current Turnball Governments advertising campaign supporting the FTA agreement with China and the Trans Pacific Partnership.40
    • Thomas Food International,
    • Wingham Beef Exports
    • Northern Co-operative meat company
    • Bindaree Beef
  • AMIEU had approached meat processors in 2009 to lobby to wind back live animal exports.40
  • China’s FTA agreement could mean 1M head live cattle.40
    • 1M head less cattle could mean 3,000 Australian meat workers out of work.40
    • China’s FTA will not deliver jobs to the processing sector.40

2016

  • January. KAFTA third round of tariff cuts occur 01/01/2016.48
    • Fresh, chilled and frozen beef has a current tariff 34.6%.48
      • Will reduce to 32%
      • Original level was 40%
      • Meat export is worth $A1.07B in 2014/15
      • Korea has always been one of biggest meat export markets
        • Shipments for lamb have increased 35%

Sources Wingham (NSW) meat processing facility.

  1. ‘5,000 jobs at risk: Abattoirs facing closure’ Sydney Morning Herald 21.05.1996
  2. ‘Export demand grows for Wingham’s HGP – free beef’ QLD Country Life 26.06.2014
  3. ‘China’s hunger for Aussie beef’ QLD Country Life 26.06.2014
  4. ‘China live cattle exports a strong chance’ QLD Country life 26.06.2014
  5. ‘World on a plate – A history of meat processing in Australia’ Stephen Martyn.2014
  6. ‘Meat Processing in Australia’ IBIS World. June 2010
  7. ‘Want central abattoir at Wingham’ www.trove.nla.gov.au 02.04.1954
  8. ‘Meatworks proposed at Wingham’ www.trove.nla.gov.au 30.07.1954
  9. ‘Wingham abattoir loan authorised’ www.trove.nla.gov.au 24.09.1954
  10. ‘Wingham’s 100,000 pound Abattoir plan’ www.trove.nla.gov.au 24.09.1954
  11. NH foods Wingham Beef exports
  12. Australian Premium Brands. NH Foods
  13. Wingham Beef Export 2008 wages agreement
  14. Dairy Regional Assistance Program. Parliament. 04.02.2003
  15. www.cattlefacts.com.au 03.06.2008
  16. www.cordellconnect.com.au
  17. www.steers.com.au 30.04.2003
  18. NSW beef production trends 2006
  19. ‘NSW Flash flooding’ www.poleshift.ning.com 16.05.2011
  20. ‘Use of paunch waste as boiler fuel’ MLA August 2011
  21. ‘Wingham Beef Exports’ ABC News 15.08.2011
  22. ‘3 Generations notch up 214 years with Wingham abattoir’ Wingham Chronicle 04.04.2012
  23. ‘Yet more floods in NSW’ ABC Rural 04.03.2013
  24. ‘Emergency Drought Assistance package extended’ Manning River Times 12.02.2014
  25. ‘Throwback Thursday – 1978 Flood’ Manning River Times 20.02.2014
  26. ‘Update on Russia’s suspension on Australian beef’ Beef Central 03.04.2014
  27. Wingham Beef workers protest’ Manning River Times 17.04.2014
  28. ‘Hundreds of workers from the Wingham Beef abattoir west of Taree are on strike’ ABC News 17.04.2014
  29. ‘Mid North coast mental health nurses…..’ ABC News 28.04.2014
  30. ‘Wingham abattoir workers on strike’ AMIEU 30.04.2014
  31. ‘Wingham Beef export workers to vote on new pay offer next week’ ABC News 07.05.2014
  32. MLA MSA Licensed Plants 06.06.2014
  33. ‘Wingham Beef wage dispute resolved’ The Land 20.06.2014
  34. ‘Australia’s free trade agreement with Japan could see prices fall for consumers’ www.news.com 08.07.2014
  35. ‘Inland QLD and NSW communities face second driest year on record’ ABC News 19.11.2014
  36. ‘Industry-leading freezer for Wingham abattoir’ Manning river times 05.12.2014
  37. Teys submission to Productivity Inquiry. March 2015
  38. Dept Ag. Submission to Market consolidation and the red meat processing sector July 2015
  39. ‘Wingham Beef exports’ Total construction Sept 2015
  40. ‘No Livestock means no work’ AMIEU 21.12.2015
  41. www.winghambeefweek.com.au
  42. ‘Nippon Ham plans to invest $250M overseas’ www.asia.nikki.com
  43. ‘Korean beef trade under threat’ The Land 14.11.2012
  44. www.nh-foods.com.au. Name change
  45. Trade Minister Media release 03.12.2014
  46. ‘Mackay meatworks gets ready to compete….’ ABC Rural 17.12.2015
  47. ‘ATO publishes tax data for agribusiness corporates’ Beef Central 18.12.2015
  48. ‘Korea cuts import tariffs further’ www.farmonline.com.au 01/01/2016
  49. ‘Meat producers call for ratification of the China free trade deal, while union delay over jobs’ ABC Rural 31.07.2015
  50. ‘MLA forecasts beef market adjustment’ The Land 27.01.2015
  51. AUS-MEAT Accreditation Listing 29.12.2015

Rockhampton – Lakes Creek

There is a historical Lakes Creek abattoir and the current facility that Teys operate at Rockhampton. It is not clear if the two sites are the same location or one was dismantled and another built.

Other Names

  • Rockhampton abattoir – there is another facility in Rockhampton operated by JBS, Rockhampton (QLD – JBS)
  • Lakes Creek abattoir

Current Operation

  • Aus Meat Accreditation registration dated 29/12/2015 #7 – Teys Australia Meat Group Pty Ltd.45
    • registered as a Beef, Offal export facility.45
  • Direct employment enquiries to Teys Employment Information

Location   Owner

Teys Logo_edited-1Source http://www.teysaust.com.au. the Teys-Cargill Australia Logo

Operation

  • Teys operate 3 feedlots12
    • Jindalee (NSW)12
    • Condamine (QLD)12
    • Charlton (Vic)12
  • Hide Processing Facility in Murgon12
  • Value adding facilities12
    • Hemmant – Produces cooked deli smallgoods and convenience meals12
    • Wagga Wagga – produces case ready goods for retail12

For employment information go to  Teys Employment Information

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

Australian abattoirs inactive map

abattoirs_edited-1

 

History of Rockhampton – Lakes Creek #7

1871

  • The Lakes Creek abattoir was built.(Pg 261)15
    • Owned by an English company – Central Queensland Meat Export Company15
  • Operated as a cannery35
  • The plant was a dominent element in the regions economy40
    • at this time Lakes Creek was a company town40
    • meatworks built housing for its employees40

1872

  • Lakes Creek processes three quarters of all the sheep processed by Queensland canneries (Pg 39)35
  • Facility was heavily in debt due to mainly expenses associated with the Jone patent process (Pg 39)35
    • authors note – I have not found what this patent was but assume it was to do with the technology and process of canning meat.

1874

  • April. company was bankrupt35
  • Enforced closure of the facility due to the high price of cattle. (Pg 261)15
    • Remained idle until 187715

1877

  • Facility was purchased by liquidators of Whitehead & Co. (Pg 261)15
    • Proposal was to move boiling downs works that Whitehead’s owned from Laurel Bank to Lakes Creek.15
    • Whitehead & Co also owned a meatworks at Ramornie (NSW, near Grafton)15
    • Whitehead & Co had a contract to supply 2M lb of preserved meats to the French Government but had been unable to obtain sufficent cattle in NSW to fill the contract15

1880

  • Whitehead & co went into liquidation (Pg 261)15
    • closure was stated as not being the fault of the Lakes Creek operation itself15
  • A second Central QLD Meat Export Co. was formed and reopened the works (Pg 261)15

1883

  • A freezing plant was added (Pg 261)15
  • September this year the chambers were full of frozen meat for the pioneering enterprise of exporting frozen product on the Fiado. The Ship was late and a fire went through the facility15
    • Opportunity had been robbed of Lakes Creek the honour of sending the first consignment to Britian15
      • In 1884 the first cargo of frozen meat was loaded from Bowen but a cyclone stranded the vessel, destroyed the product and the Bowen works.(Pg 262)15
      • The first frozen consignments from Australia didn’t occur until 1896.15
    • 200 employees were out of work15

1884

  • Works resumed operations (Pg 261)15

1885

  • Company went into liquidation (Pg 261)15
    • Due mainly to the expense of rebuilding and installing imported plant equipment15

1886

  • Melbourne Syndicate took the facility over (Pg 261)15
    • Andrew Rowan, George Fairbairn and John Living15

1901

  • Facility was purchased by a company formed in London (Pg 261)15

1910’s

  • Tinned beef was a staple ration for war soldiers in WWI40
    • accompanied by hard tack biscuits40
    • Bully Beef – corruption of the French name “bouilli” meaning boiled or corned, referenced to small hard grains of salt used to preserve the meat40
  • Rockhampton produced various tinned labels – Herford, Devon (not the  pork based luncheon meat of that name) and Hamper40
    • including frozen sides meat for export and domestic butcher shops40
  • All parts of the animal were used40
    • what was not edible was processed into fertiliser and by-products40

1918

  • Major flood year

1928

  • Facility was idle due to the strain of the post war depression (Pg 261)15
    • meat market was very dull15
  • Facility then went to a syndicate headed by Sir William Angliss and FJ Walker (Pg 261)15
    • Operated under their control until 193415

1934

  • Vesteys, British based but international organisation purchased Lakes Creek. (Pg 261)15
  • Facility began to prosper due to the Empire preference granted under the Ottawa Agreement (pg 261)15
    • The Imperial Preference was a series of bilateral agreements of limited tarriffs within the British Empire but higher on goods from the rest of the world. Principal was based on “home producers first, empire producers second, and foreign producers last”16
  • Improved plant, chilling, freezing and processing facilities were established over the coming years.(Pg 261)15
  • By products were saved and processed(Pg 261)15

1938

  • Lakes Creek is paying 4/ per 100lb14
    • authors note – I think the / is shillings.
  • Northern Graziers are complaining of the high costs of freight and low price that Townsville abattoir is paying.14
    • They call for a public abattoir to be established and operated by the government in Townsville.1
      • To operated under the Abattoirs Bill that allowed government to acquire operate the Canon Hill facilities in Brisbane, enacted in 1934 (Pg 264)16

1946

  • Teys formed as a partnership of 4 brothers to process meat for wholesaling and retailing13

1949

  • Queensland herd was deminished due to demands of Australia feeding Allied forces in WWII40
  • Plans were being pushed to develope the channel country in the west and increase QLD’s beef-raising capacity40

1950’s

  • Canned meat, known as bully beef, tinned corn meat was being boxed and sealed on hands-on assembly lines40
    • refer Year 1910 for more info.

packing tinned meats._edited-1Source ‘Bully for our Beef exports’ The Courier Mail 17.07.2011 Workers packing corned beef into cartons at Lakes Creek meatworks

1954

  • February 3. Season commenced38
    • Ended December 1738
    • Flooding Between February 11 to 22 of Fitzroy river system38
    • Killing season 1954 constituted a record38
    • “Meat supplies were maintained but killing took place in the abattoir surrounded by water to a depth of 2 feet”41
  • Facility was undergoing extensive alterations and improvements to beef killing floor38
    • When completed the killing floor would be one of the most modern in Australia38
    • Handle greater throughput38
    • OH & S issues improved38
  • Pigs killed at the facility had also increased on 1953.38
  • Queensland cattle herds had recovered from dry conditions during most of 1951.38
    • Channel Country was underutilised due to lack of quick and commercial transport for cattle38
    • Cattle were grown out to large framed animals to withstand long walking distances38
      • These animals were not the preferred types for killing38
      • UL introduced – Baby Beef grade38
        • significantly effected  producers to turn off younger animals with lighter frame38

1958

  • Daily processing capacity 987 head of cattle. (Pg 261)15

1991

  • Major flood year

2001

  • Employed 1,350 people18
  • Currently the second largest abattoir in Australia18
  • December. CMG lock out workers to force them to accept wage cuts, a six day production schedule and unlimited overtime22
    • Meat workers were forced back to work under a federal award that was $320 in wage cut for some workers22

2002

  • January. Management refused to open works18
  • March 2. Protesters march through the CBD of Rockhampton in support of the 1350 workers who lost their jobs when the plant closed in mid January.24
    • AMIEU called for mass protest24
      • AMIEU demanding re-opening and reinstatement of the workers without massive cuts to pay and conditions.24
      • supported by the Construction, Mining & Energy , Forestry & Manufacturing workers  unions24
  • April. Lakes Creek abattoir is locked into a bitter dispute over pay and conditions between the now owner Consolidated Meat Group (Kerry Packer) and the Australasian Meat Industry Employees’ Association.17
  • Facility will not be re-opening as early as planned17
  • May. Facility reopened but cut the workforce back to 70018
  • June. Plant was planned to be shut down entirely18
  • July 11. Workers begin a 5 day strike and re-establish a picket line outside the plant22
    • Strike is about production levels in the boning room and is part of a ongoing dispute of conditions of new work agreement22
  • July 30. Facility is offically closed.25
  • August. Negotiation had been occuring for an Enterprise bargain agreement for the last 8 months18
  • Consolidated Meat had come to agreement on Terms with Teys $1.2B joint venture to operate, Naracoote (SA), Beenleigh, Biloela and Innisfail (QLD)18
    • Deal to take effect in October18
    • Company had promised full severence pay but it would be at the lowest agreed rates18
    • Consolidated Meat had been awarded with $20M US Beef Quotas18
    • Governments Scheme based on 2001 rates, 40,000t known as the “Packer clause”18
      • Lakes Creek only produced 3,000t since June 200218
      • 2001 they had produced 49,000t18
      • quota flows into the merger entity18
      • Consolidated Meat will receive same quota in 2003 even though plant would be close.18
  • Abattoir is closed at this point in time 20/08/200219
    • It did open for short periods but had ongoing industrial disputes with protected industrial action begin taken19
    • Variety of owners of Lakes Creek plant had been unprofitable over the last decade19
  • ACCC investigate if merger of CMG and Teys would lead to reduced competition in terms of prices for cattle20
    • ACCC decide not to interven in proposed merger20
  • November. Jim Downey is appointed general manager at the plant21
    • Had been plant manager at Biloela21
    • Plant was still closed but undergoing major installations21
  • Drought was the single biggest factor now determining Lakes Creek operation21

2004

  • July. After nearly 2 years of being closed Lakes Creek re-opens25
    • 160 workers will start when the first kill takes place25
    • boning room will then begin employee numbers to be more than 300 in total25
      • Intention is to start with small production, settle the plant and make sure problems can be solved23
      • $1M in pay cheques will be injected into the community each month from the start up.23
    • Facility will gradually build towards a kill capacity of 2,500 head and employ 1,000 people.25
  • 6 weeks prior to opening Teys had been finalising plans to re-open and purchasing stock25
  • Profit margins for the processing sector currently as high as $150 a head25
    • Fallen due to a stronger Aussie dollar and the falling price of Japanese full sets.25
  • Originally the plant had been planned to open later in the year but successful negotiations with the AMIEU helped to bring the opening forward to July25
  • Re-opening was said not to be influenced by the risk of losing US export licences25
  • Lakes Creek had applied and received $660,000 – Under Regional Partnership grant.26
    • Assisted the facility to go back into business26
    • Funds were used to upgrade computer system and plumbing26
    • 2 other meatworks in the region, and operating didn’t receive the grant26
    • Labor criticised the Government for providing taxpayers money to a commercial venture that could give an unfair advantage26

2005

  • A shortage of skilled workers in Australia forces the company to look overseas29
    • People had been lost to the meatworks who have gone to the mining industry29
    • 60 vietnamese begin working at Lakes Creek29
    • Joining the 97 Brazilians already there29

2006

  • CMG implemented industry award27
    • Required to cut it’s 1,300 workers wages by 30% to remain competitive in the tightening beef export market27
    • CMG attempted to draw up new rosters that included27
      • night time and Saturday shifts without penalty rates27
        • Exceeded 38 hour cap27
    • Union workers voted against the new proposal and would only return to work on genuine award conditions.27

2009

  • December. Facility is considering job cuts over the next few weeks42
  • General Manager – Wasantha Mudannayake42
    • Reason for need to reduce jobs was livestock numbers had dropped due to overseas exports42
  • Biloela abattoir (QLD) – also owned and operated by Teys announced cutting of 40 foreign workers jobs42

2010

  • February.Tom Macquire – General Manager of corporate affairs for Teys Bros28
  • Lakes reopened after being closed for a short period following heavy rain.28
  • Currently employing 760 people28
  • Between April 2010 to February 2012 – Teys Employ 480 humanitarian refugees29
    • “Without humanitarian and skilled migrants Teys would find it very hard to continue production at sustainable levels at some sites, particularly in Rockhampton and Biloela”29
  • Since 1982 approximately 31 abattoirs have closed across Queensland30
    • Slaughter capacity had increased by 50%30
    • QLD meat processors forefront in adopting improved practices and technologies30
  • Last 2-3 years30
    • competition has come from restockers and live cattle exporters30
    • Lower export beef prices as a result of higher Australian dollar30
    • Export abattoirs have reduced throughput and cut shifts and the number of killing days.30
  • Major flood year

2011

  • July. Australian Competition & Consumer Commission (ACCC) don’t oppose Teys Bros & Cargill Beef Australia Merger42
    • View that the proposed merger would be unlikely to substantially lesson competition in any of the markets examined42
      • ‘fat’ cattle ready for slaughter42
      • acquisition of ‘feeder’ cattle destined for feedlots42
      • supply of processed beef to retailers and wholesalers42
  • Teys CEO – Brad Teys – says been 30 years since he’s seen cattle supply so tight44
    • Producer’s aren’t selling cattle44
      • due to poor prices44
        • forced the company to reduce kill days44
      • Rocky is working on 3 days a week kill44
  • September. Teys forms partnership with Cargill37
  • Federal Government Carbon tax legislation36
    • Creates a 2 tier system with those who generate more than 25,000 t of carbon each year to pay more36
      • Basic  costs would be $4 per head for all facilities36
    • Lakes Creek exceeds 25,000 threshold – would be liable to pay higher permit costs36
      • extra $2 head, adding up to extra $7M across Teys/Cargil enterprise.36
    • Abattoirs are energy-intensive business, Trade exposed, with export constituting majority of total production, narrow profit margins36
      • Carbon tax would disadvantage Australian facilities36
    • Government indicated there would be assistance for to introduce measures to reduce emissions to assit processors36

2012

  • Between April 2010 to February 2012 – Teys Employed 480 humanitarian refugees29
    • By February 306 were still actively employed29
  • December. AMIEU was investigating reports of working conditions of 100 workers who were part of the humanitarian program29

2013

  • March. Lakes Creek facility receives a grant from the Federal Government $4.17 for operational upgrades.31
    • Governments Clean Technology Food and Foundaries Investment Program31
    • Will assist Teys to improve competitiveness, local economy and environment.31
  • Upgrades begin of the waste water treatment plant39
    • involve building a new waste water treatment lagoons and installing a biogas boiler and handling equipment39
    • Methane emitted during the waste water treatment will be used to generate steam used at the facility39
    • reduce the facilities coal consumption by 30%39
    • Upgrade set to be completed by June 201539
    • Cost $16M39
  • Lakes Creek facility receives the Ministers Enterprise Award as part of the QLD state government’s annual Multicultural Awards for cultutal diversity10
    • Award recognises work and and volunteering efforts that develop strong, culturally diverse communities and promote awareness of the benefits of the cultural diversity in the state.10
  • Teys employed 4,500 across Australia10
    • Simply not enough local workers to operate the plants10
    • International workers were needed to fill the spaces10
  • In Rockhampton the mining boom left plants wth an employment shortfall10
    • Lakes Creek employs more than 1,000 people of 29 different nationalities10
    • Employ a significant number of humanitarian refugees and supports induction and training practices that assist new workers10
    • partnerships with settlement service providers and other groups in the community to employ and assist the workers.10

2014

  • June. Teys lobby government to repeal the Carbon tax11 Teys Media Release to repeal carbon tax
    • Manufacturers are closing down across the country due to unnecessary costs and charges on business” Tom Maguire Teys general manager of corporate affairs.11
    • countries Australia competes against do not have the burden of the carbon tax11
    • there is a direct link between the Carbon tax and competitiveness in the market place11
  • July. Rockhampton meatworks in the area employ more than 2,000 people1
    • Added more than $600M into the community1
  • Teys don’t support establishment of a live cattle export port at Port Alma (Rockhampton)1
  • Would be better for politicians to look at transport costs within Australia1.
    • currently costs $14M a year to rail product from Rockhampton and Biloela to the Port of Brisbane1
    • Development of a port at Rockhampton and Gladstone for shipment of containers would be better.1

unions 2012_edited-2Source The Bulletin. 01.12.2012

The Lakes Creek abattoir, Rockhampton. Queensland

2014

  • Teys is inducted into QLD business leaders hall of fame.32
  • Teys currently process 32,000 cattle per week across Australia32
    • Generates a turnover of $2.5B annually32

2015

  • February. Newly elected QLD Agriculture Minister – Bill Byrne said he “supported the live cattle trade under appropriate circumstances, but it would likely threaten the viability of the processors and value-adding of the local meat processing industry2
  • Cyclone Marcia hits Rockhampton 20/02/2015.3
    • 47,000 homes with no electricity3
    • Damage to buildings, bridges, destruction of crops and fencing.3
    • Flood levels were already high in Callide Valley and exacerbated by release of water from Callide Dam3
  • Lakes Creek abattoir suffers some minor damage to the roofing of the head office building3
  • Facility closed and wouldn’t likely operate for the rest of that week3
    • Plant and Equipment are OK3
    • most significant impact is no power, sewerage and water3
    • Until those services are restored the plant can’t operate3
    • Temporary amenities facilities had to be installed because of damage to existing ones9
  • Chilled and Frozen product was being maintained by generators3
  • Number of animals at the facility were getting water and fodder to ensure their welfare3
  • No kill occured on the day of the cyclone 20/02/2015 and wouldn’t for the rest of that week.4
  • Any cattle that were meant to be processed at Lakes Creek that week would be diverted to Biloela or Beenleigh.4
  • Cattle that had been at the plant at the time of the cyclone were returned to some producers at Teys cost5
    • Half were moved to other plants5
    • If the animals were stressed they would have lost weight and cut darker therefore Teys paid  a flat rate to the producers5
    • Temperatures climbed to 38 degrees with high humidity following the cyclone and some cattle suffered heat stress5
    • Heat stressed animals were not transported to care for their welfare5
  • Teys anticipate they would not be in the market for cattle all that week for Lakes Creek or Biloela4
  • Combination of their buying power not present in markets for the 3 abattoirs affected by the cyclone – Lakes Creek, Biloela and Rockhampton (JBS) accounted for 2,000 head per day4
  • Teys advise the plant will be closed longer than anticipated5
    • Many of the employees at the plant were overseas workers and not entitled to any government support5
    • Asbestos in exposed building material had slowed repairs at the site7
      • Asbestos was commonly used in older facilities7
      • Specialised workers wore plastic suits in 40 degree heat9
  • Facility likely to open 09/03/2015.6
  • Longreach cattle market sales had been cancelled due to the disruptions at the meatworks6
  • Markets still strong but there was congestion of cattle in the market6
  • QLD’s kill retracted to 75,275 head, down 7% as a direct consequence of the first weeks closure8
  • Where possible Teys was making forward payments to producers for cattle held up by the event9
  • Teys to restart the kill floor 18/03/2015 killing 1,000 head to increase to 1,6009

Brands_edited-1Source http://www.teysaust.com.au Product brand that are produced by Teys.

Sources Rockhampton – Lakes Creek #7

  1. ‘We’re not against live export but….’ QLD Country Life 17.07.2014
  2. ‘MP wary of live cattle trade at meatworks’ expense’ The Bulletin 21.02.2015
  3. ‘Disaster declaration expected today as Cyclone Marcia farm damage bill grows’ ABC Rural 24.02.2015
  4. ‘Power outages, structural damage from cyclone knock-out CQ plants’ Beef Central 23.02.2015
  5. ‘Asbestos closes JBS plant indefinitely’ 26.02.2015
  6. ‘Central QLD abattoirs closed for second week following Cyclone Marcia’ ABC Rural 27.02.2015
  7. ‘Rockhampton processing delays longer than expected, in wake of Cyclone Marcia’ Beef Central 27.02.2015
  8. ‘Weekly Kill: Cyclone impact reflected in lower tally’ Beef Central 03.03.2015
  9. ‘First Rocky Plant back to work Tomorrow’ Beef Central 17.03.2015
  10. ‘Lakes Creek plant earns QLD multi-cultural award’ Beef Central 13.09.2013
  11. ‘Meat Processor calls on new seante to stop games and repeal carbon tax’ Teys Media Release 03.06.2014
  12. Teys Website-facilities
  13. http://www.teysaust.com.au/about/
  14. ‘Public Abattoir Needed’ Courier-Mail 27.08.1938
  15. ‘Triumph in the Tropics’ 1959 Queensland Government
  16. Empire preference Ottawa Agreement
  17. ‘Lakes Creek abattoir re-opening plans delayed’ www.justfood.com 25.04.2002
  18. ‘Government rewards Packer for meatworks closure’ the Guardian 07.08.2002
  19. Parliament Hansard – Meat Industry Consultive structure and quota allocation 20.08.2002
  20. ACCC – Consolidated Meat Group and Teys Bros merger proposal
  21. ‘Drought biggest driver of Lakes Creek Opening’ QLD CL 14.11.2002
  22. ‘Lakes Creek Workers continue dispute’ www.wsws.org 13.07.2002
  23. ‘Lakes Creek abattoir to reopen’ ABC rural 13.07.2004
  24. ‘Thousands march to support meatworkers’ Green left 13.03.2002
  25. ‘Lakes Creek reopens Monday’ QLD CL 15.07.2004
  26. ‘Packer Firm given grant for abattoir’ SMH 19.02.2005
  27. ‘Union Avoidance Strategies in the meat processing/packing industry in Australia and the USA compared’ Jerrard, O’Leary
  28. ‘Lakes Creek has few lifelines’ the Bulletin 11.02.2010
  29. ‘Union investigates raw deal for refugees at abattoir’ The Bulletin 01.12.2012
  30. QLD Beef Industry Beef situation analysis 2010
  31. ‘Meatworks gets Federal Government grant’ Daily Mercury 05.03.2013
  32. 2014 Inductee – QLD business Leaders Hall of Fame
  33. History
  34. Great Barrier Reef – Environmental History, Ben Daley
  35. ‘To Feed a Nation – A history of Australian food science and technology ‘ Kieth Farrer. 2005
  36. ‘Carbon tax could cost $19M year for big three processors’ Brahman News. 2011
  37. ”Cargill & Teys merger good for the beef industry’ Meat Trade Daily. 22.05.2011
  38. ‘Lakes Creek meatworks had record year’ CQ Herald 06.01.1955
  39. ‘Methane for power at Teys Australia Lakes Creek meatworks’ The Bulletin 19.03.2014
  40. ‘Bully for our beef exports’ Courier Mail 17.07.2011
  41. AMIC Prime Cuts Newsletter 11.01.2011
  42. ‘Meatworks jobs may get the chop’ The Morning Bulletin 11.12.2009
  43. ACCC will not oppose Teys Bros & Cargill Beef Australia proposed merger
  44. ‘Cattle supply chokes’ ABC Rural 14.07.2011
  45. AUS-MEAT Accreditation Listing 29.12.2015

`

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

Mudgee

Other Names

  • Cudgeong abattoir

Current Operation

Location   

  • Mudgee is located 120 kilometres north of Lithgow in NSW on the western side of the Great Dividing range.

 

Hema Maps – Australia Truckies atlas.

Owner

  • Cudgegong Shire Council ( ? – 1988)1
  • Flectcher International exports – 19881

Operation   

  • Last council-owned meatworks to survive the rationalisation of the meat processing industry1

History

1965

  • Built as a service works for local butchers2

1981

  • Roger Flectcher – started his meat processing career when he leased the boning room at Mudgee and operated until 19882 when he built Dubbo abattoir (NSW)

1996

  • Up to half of NSW abattoirs could close with the loss of up to 5,000 jobs1
  • Authors Note – Majority of live export cattle during this period would have been Bos Indicus or crosses to South East Asia markets, sourced from mainly northern Australia. Not animals suited to heavy slaughter in Australia and from herds whos’ production was not likely destined for abattoirs in NSW.

LE exports 1990_1998_edited-2Source – Live Cattle Exports. Australian Commodities Vol 5 #2 June 1998

 Chart showing the high volume of South East Asia live cattle export destinations period 1990 – 1998

2003

  • August. Mothballed1
  • Had employed 230 people1
  • Accumulated debts of $13M, had appointed an administrator.2
  • 2002/2003 processed2
    • 32,000 cattle2
    • 600,000 sheep, lambs and goats2
    • 1,300 deer2
  • Liquidator – Steve Parberry of PPB chartered accountants2
  • Tender Sale conducted by David Nolan Rural and Project marketing2
  • Previous 5 years of operation it had worked almost entirely for 5 major export customers including2
    • Mudgee co-op for sheep2
    • Melbourne beef processor – GH Keily2
  • December. Purchased by Fletcher International Exports.1
  • Would be atleast a year or later before the plant will be sufficently renovated to enable operation1
    • $3M rebuilding program at the plant1
      • New freezers would need to be installed to allow for more freezer capacity1
      • the current coal-fired boilers need to be replaced with natural gas to cut operating costs1
      • Beef line was good, boning room had heavy investment1
      • Utilise as a single species abattoir – beef1
        • enable plant better chance to survive as cattle numbers not as severely depleted due to drought1

 

Sources

  1. ‘Abattoirs revived’ Stock and Land 24.12.2003
  2. ‘Meatworks jobs saved’ The Land 25.12.2003
  3. 5,000 jobs at risk:Abattoirs facing closure’ Sydney Morning Herald. 21.05.1996
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