Tag Archives: Australian meat processing

Surat

Australian Abattoirs, Queensland, Southern QLD, Surat 27/06/2013 Leave a comment

Updated. 27th June 2013

Other Names

  • Warro Games Meat1

Current Operation

  • Is operating as at June 2013.1
  • Operates as a Kangaroo processing site.1

Location

map SuratSource – Hema Maps. Australia Truckies Atlas

Owner

  • L. Micklebourgh & B Micklebourgh.1

Operation

  • Processes 1500 kangaroos a week for human domestic consumption and pet food markets2
  • Employs 22 full time2
  • supplies fillets on weekly basis to wholesaler who distributes to Adelaide, Melbourne & Sydney2
  • Produce manufactig meat – 12 t per week – mainly goes to pet stores.2
  • Each carcase for human consumption is worth $37 to processor2
  • Kangaroo processors pay levy to Dept of Agriculture – Fisheries and Forestry3
    • 7c per carcase for human consumption3
    • 3c/kg for pet meat3
    • Levy money is distributed to national residue survey and R & D3
      • Human consumption carcases processed collected $210,000 (2010 – 2013)3 = 3M carcases
      • Pet food processed collected $30,000(2010-2013)3 = 1M kg processed
      • R & D – one project in current study – $240,000 “welfare and humaneness of commercially harvested kangaroos”, conslude August 20133
  • Kangaroo Industry Association of Australia (KIAA)3

History

Prior

  • Had been other kangaroo works in QLD but many have closed down2

1980’s

  • Had started in skins trade and had begun a pet food supply business.2

2004 – 2008

  • height of pet food business was processing 40t of meat a week.2
  • Operation to which the pet food was going centralised and changed demand of meat to cause orders to dwindle2
  • requirements came in that even pet food processing plants had to be accredited to process meat to human consumption standards2
  • Surat works was purchased, renovated.2

2009

  • QLD Floods caused business to be completely surrounded by water and shutdown for 3 months2
  • Russian markets closed down that roo meat was exported too.2
  • Domestic market became flooded with roo meat product.2

2010

  • Floods cut off access around site for 3 months2

2011

  • Floods cut off access around site for 3 months2

2013

  • Predicted increase in electricity prices could ultimately shut down the business1
    • Electricity has more than doubled in past 3 years.1
    • currently $22,000 per quarter1
    • Doesn’t include chiller 6 boxes that cost $1,000 each a quarter to operate1
  • Floods and debt load has had devasting effect on operation of business.2
  • Second largest employer in town behind Council.2

Sources

  1. ‘Power price rise crippling’ QLD Country life 06.06.13
  2. ‘Surat processor hops ahead’ QLD Country life 06.06.13
  3. ‘Market working on big issues’ QLD Countrylife 06.06.13

Kangaroo Island (SA)

Australian Abattoirs, Kangaroo Island, South Australia 25/06/2013 Leave a comment

Other Names

  • KI Abattoir

Current Operation

  • Closed – 19981

Location

Owner

  • Samex Australian Meat Company, Managing Director – Rob Black. Purchased early 20131

Operation

  • Previously had operated seasonally for 5-6 months of the year2
  • Would require a combined throughput of 5000 sheep and lambs each week over a 9-10 month period to sustain the operation1

History

2013

  • Samex Australian Meat Company purchased1
  • May. discussion with producerson ability to commit to supply, producers were able to do 100,000 lambs but thought 200,000 was unrealistic1
  • Samex not looking for investors but commitment from growers to support2
  • Current production was required to be changed from over a 4-5 month period to 9-10 month1

Sources

  1. ‘KI abattoir Interest grows’ The Land. 02.05.13
  2. ‘Crunch time for Kangaroo Island abattoir’ The Islander 09.04.13.

Robb Jetty

Australian Abattoirs, Peel Region, Robb Jetty, Western Australia 24/06/2013 Leave a comment

Other names

  • Fremantle Freezing and Meat works7

Current Operation

  • Closed, is now a historic site with a preserved chimney of the original meat processing works.6

coogee-chimney-01-2012

Source – http://www.mingor.net/

Robbs Jetty meat processing site, historic chimney that has been preserved at the site.

Location              

  • Fremantle Freezing and meat works7

Australia. Robb Jetty

Map. Robb JettySource – Hema Maps. Australia Truckies Atlas.

Owner

  • Fremantle Freezing and Meat Works7
  • Western Australian Meat Preservers7
  • Western Australian Meat Exporters7

                               

Operation

  • Processed cattle and sheep
  • Had access from sea for unloading barges and railhead for inland animals
  • Export2
  • Operated originally by the WA Meat co-operative
  • had a long pier/jetty going to the ocean – named Robs Jetty.
  • Cattle transported from North WA, barges would unload onto jetty and animals walk to abattoir.
  • Closed due to population pressure, other abattoirs & prices

 History          

1850’s

  • Meat houses constructed in the area to service the convict establishment at Femantle Gaol7

1894 

  • Duracks (Kimberley’s) through agents Francis Conner and Dennis Doherty shipped cattle to Fremantle5
  • Dame Mary Durack- ‘Sons in the saddle’ – cattle originally swam to shore, now offloaded onto a jetty5
  • Cattle getting £3 a head in south markets, started their own Live Export to Manila5
  • Slaughterhouses established in the area, known as ‘Kimberley Meat Ring’, they had a monopoly on meat supply to metropolitian and Goldfields7.
    • Forrest, Emaual and Co
    • Conner, Doherty and Durack

1898

  • Railway was built from Fremantle to Robb Jetty6
  • Same period abattoir was built in Fremantle – consisted of offices, holding yards, freezer and chiller facilities6

1919

  • Robb Jetty constructed – prior to construction animals unloaded into the water and swam to shore7
  • Robb jetty abattoir constructed, portion being the preserved chimney – Known as Fremantle Freezing and Meat works. Capacity limited to few thousand lambs per year7
  • Abattoir also was cold store for potatoes, fruit, manufactured ice and carried out wool scouring7

1940

  • Robb Jetty company in financial strife, Commonwealth government stepped in to provide help.7

1942

  • Company bought out by government, changed name to Western Australian Meat Preservers’ latter to ‘Western Australian Meat Exporters’7
  • Abattoir diversified to include fruit storage, egg pulp, turtle and crayfish processing7

1966  

  • Ship – Centaur,passenger liner that carried 4000 sheep below decks. turned every fortnight from Singapore, Kuala Lumpar & Perth, return trip would pick up at Broome from Emaual stations and taken to Fremantle, sold at Robbs Jetty saleyards5 Pg 25

1970’s

  • Jetty dismantled, possibly in 1960’s6

1988/89     

  • Abattoir closed by the National Party3

1992

  • Numerous attempt to revive competitiveness failed and was shut down7

1994

  • Equipment removed from building.7
  • Chimney is only part remaining, listed on the State register of Heritage Places.6

1996

  • State Government supplied $50,000 for restoration of chimney.7

Sources

  1. Personal Communication #1 28.01.13
  2. Parliament Hansard. S. Thomas. 17.08.05
  3. Parliament Hansard M Trenorden 17.08.05
  4. ‘Brief History of the WA Lamb Marketing board’ www.wammco.com.au
  5. ‘The Australian Livestock export trade’ Nigel Austin 2011
  6. ‘South Fremantle, Western Australia’ Wikipedia, 24.06.13
  7. ‘Interim Heritage listing for Robb Jetty Chimney’ Richard Lewis, Ministerial Media statement. 23.08.96

Harvey

Australian Abattoirs, Harvey, Peel Region, Western Australia 21/06/2013 Leave a comment

Other Names

  • Harvey Beef

Current Operation

  • Operating as at 2013. Establishment #648

Location              

  • Harvey WA. 160km S of Perth
  • rolling foothills of the Darling Range, 3km from Township of Harvey.

Australia. Harvey

Map. Harvey

Owner

  • Joint venture – Harvey Beef Industries. General Manager Dean Goode7
  • Harvey Indsutries group purchased for $27M 20068
    • Harvey Industries group is owned by International private equity firm – Harmony Capital management10
  • Others in Group with Harvey Beef Industries
  • Elders – 20% stake – sold to Harmony Investment Fund (Harmony Capital) $0.7M, June 20098
  • Stark Investments sold to Harmony Investment Fund, June 20098

Operation

  • Site is 190ha10
  • 180 ac kill 100 000 animals1
  • 175 0002 (3,500hd a week)– assume when upgrades done about 2004/2005
  • Processes 145,0009
  • Largest processor in WA9
  • Harvey also operate Harvey Industries Processing Centre (HIPC) – a boning facility in Fremantle10
  • Cattle only5
  • export accredited, does operate in domestic, main focus is export2
  • Domestic – process 11% of states supply for WA4
  • Processed 80-90% of beef export (prior to Waroona closing)6
  • Medium sized2
  • 700 workers2
  • Processes large steers, area of Capel, for export, only ab to be able to process the large animals3
  • $150M turnover4
  • Export to 30 countries – Indonesia, Malaysia, Singapore, USA, Canada,Japan, Korea,Taiwan, Middle East4 & 10
  • 70% of Harvey beef product is exported10
  • Could process 210 0004
  • Food safety processes in place
    • Hazard Analysis Critical Control Points (HACCP) – process used for identification, evaluation & control.1
    • Onsite microbiological labratory accredited by the government National testing authority10
    • Underpinned by comprehensive standard operating procedures10
    • AQIS oversees meat hygiene, safety regulations and certification10
    • NLIS – use for identification and tracking of animals.10
  • Harvey Beef is accredited by globally recognised standards10.
    • USDA Approval
    • JAS Accreditation
    • MSA/EQA – gaurantees eating quality
    • Halal Religious and cultural criteria
    • Ausmeat A+ accreditation
    • Exceeds ISO standards under AQS

History

1919

  • Cited as the start of the establishment of WA largest beef producer at the site10

1924  

  • Built by Ernest and Mary Green1

1939 

  • Transported meat wholesale to metropolitan areas1

1945  

  • Company EG Greens and Sons Pty Ltd established.1
  • Started to acquire pastoral land – Balmoral Station & farms, Raised stock, shorthorns, Herefords, fat lambs, pastoral leases in NW, covered 1M hectares1

1959 

  • Granted export licence, continued to buy land, horse breeding and pastoral activities1.
  • Abattoirs improved and modernised, brine curing plants to handle skins and export of leather1.

2002 

  • Utilisation rate 60% – Industry average 70%5

2004

  • Utilisation rate 90% – Industry average 85%with 70-80% export5

2005  

  • Mentioned in review

“it is critical that this firm remains profitable and efficient to ensure the industry can continue to grow”2

  • Recently made additions to plant on slaughter floor and boning rooms2
  • Shut – Causes of downturn, drought, influx of cheap meat imports, LE and changing markets1
  • National Australia Bank/AWB landmark/Elders placed under recieivership2
  • Harvey had 90% of export market
  • Loss of Harvey result in direct cash loss of $8.5M in the town alone, multiplier $1.10 for every dollar lost, $2.10 equates to $17.5M/yr2
  • Corporate decisions cited as main problem causing closure2 & 4
  • Attempted to rationalise assets – sale of stations, Abattoir had 2 very bad trading months2
  • Some creditors owed $1M, producers $250 000, are others owed4

2006 

  • Purchase $27M – Harvey Industries Group8

2009  

  • March. WA largest abattoir – bargaining with unions “cost parity it needs to be competitive”
  • Workers rejected a 3 year workplace agreement for the 2nd time, 1st rejected month earlier. 160 workers since made redundant7
  • 115 voted against/99 in favour, would have led to a pay cut of 20% for 1/3 of workforce for 3 years7
  • Alternative may be short term agreement, wage cuts lasting 2 years some entitlement provisions7
  • April. 160 workers redundant, remaining workers accepted pay cut8
  • June. Harmony Capital buy all of Stark Investments and Elders shares in Harvey Beef8
  • Values company at $3.5M, 3 years previously paid $27M8???????? $3.5 sounds too low.
  • Harvey Beef website (accessed 22.06.13) updated 17.08.09.
    • Processing 145,000 grass and grain fed animals a year.10
    • Employs 300 people10

     

2013

  • Harvey Beef Website (accessed 22.06.13) undated Fact sheet.
    • Employees 650.10
    • Processing capacity 4,500 per week10
    • By products Hides, Meat and bone meal, blood meal and tallow10

2014

  • Andrew Forrest Minderoo group purchase for more than $30M11
  • Craig Mostyn Group – WA biggest pork processor had attempted to buy the facility11

Sources

  1. Harvey History Online. Undated
  2. Parliament Hansard 17.08.05.P Omodei.
  3. Parliament Hansard 17.08.05 S. Thomas
  4. Parliament Hansard 17.08.05. M Trenorden
  5. WAMIA . Meat Processors (2013)
  6. Parliament Hansard K. Chance 13.10.98
  7. ‘Harvey Beef workers vote against workplace agreement but new proposal offers hope’ AFN 27.03.09
  8. ‘Private equity firm snares Harvey Beef’ AFN 16.06.09
  9. ‘Northern Australian beef industry – Assessment of risks and opportunities’ ABARE 2012
  10. http://www.harveybeef.com.au/index.php/home
  11. ‘Craig Mostyn sell-off aims to boost growth’ Stock & Land 07.08.2014

Glenroy

Australian Abattoirs, Glenroy, Kimberley, Western Australia 20/06/2013 Leave a comment

Current Operation

  • Closed(1964)1

Location              

  • Located on Glenroy Station, 190 miles(304km) S of Wyndham 160 miles(256km) E of Derby1

Australia. Glenroy

map Glenroy

Owner

  • Kidman – period of 1920’s – 30’s2

                               

Operation

  • Processed 60 head cattle a day1

History

1920’s – 1930’s

  • Cattle supplied from Victoria River Downs which at that stage was owned by Emmual, Forrest and Yuill with Kidman. Pg 1152

Sources

  1. ‘Northern Australian beef Industry – Assessment of risks and opportunities’ ABARE 2012
  2. ‘The Australian livestock export trade’ Nigel Austin. 2011

Biloela

Australian Abattoirs, Biloela, Southern QLD 20/06/2013 Leave a comment

Current Operation

  • Currently Operating – currently accredited # 399 AUS-MEAT 14.01.131   
  • Employment contacts www.teysaust.com.au/employment                

Location             

  Australia. Biloela jpg   

map BiloelaSource – Hema maps. Australia Truckies atlas       

Owner                 

Teys Logo_edited-1

Source Logo http://www.teysaust.com.au

Operation          

  • Export, Beef and Offal
  • Teys also own North Rockhampton – 2009 calendar year Teys produced 15% less volume than in 2005 and 2006, with “a lot of days off” (Brad Teys)2

History                

1956

  • Facility was built13

1999 

  • Owned at 1999 by Teys3
  • Has a reported capacity 137,000 head per 50 weeks operation cycle3

2005

  • Biloela moves to hire refugees
    • Booming mining sector meant unemployment rates in the region 1.9%
    • Plant was unable to fulfil production demands due to unfilled job positions
      • Plant was only operating at 80% capacity
      • Foreign labour meant it could operate at 100%

2006

  • Teys utilise migrant workers at Biloela and Rockhampton – Lakes Creek abattoir (QLD).4
    • Workers are employed on 457 visas (Pg 17)4
    • Hired through a labour hire company AWX Pty Ltd4
      • Teys don’t directly employ the workers4
      • Workers were hired as casuals and paid a flat rate that was $2 /hr less than permanent Teys Bros employees4
    • Created a two-tiered workforce4
      • discriminatory against foreign workers4
      • reduced the labour costs.4
      • moved to a new agreement in 20134

2009

  • October. Teys announce a reduction of days working at Biloela5
    • blaming global financial crisis5 and
    • State government’s policy favouring of live export5
  • December. 40 foreign workers are cut5
    • Afternoon boning shift component of workforce5
    • Some are Korean, holders of working holiday visas5
    • Existing 350 workers – Australian and long stay visa holders will remain5
      • Most long stay visa holders were Vietnamese5
  • Teys consider job cuts at the Rockhampton – Lakes Creek (QLD)
  • Plant closes for seasonal break 11/12/20095
    • will resume in the New Year5
    • operating a 5 day single shift5
      • Processing 554 head5
      • single boning shift5
  • Gloomy outlook is reason for shift being closed5
    • Forecasts of dramatic reduction in available cattle in 20105
      • similar to the last quarter of 20095
      • Conditions expected to persist to 20115
    • Poor seasons5
    • Floods5
    • Large number of stock being live exported from QLD5
      • tilted playing field favours live export5
    • High Australian dollar5
    • Weak demand in export markets5

2010  

  • Kill to drop from 750hd day to 550hd

2011

  • July. Australian Competition & Consumer Commission (ACCC) don’t oppose Teys Bros & Cargill Beef Australia Merger7
    • View that the proposed merger would be unlikely to substantially lesson competition in any of the markets examined7
      • ‘fat’ cattle ready for slaughter7
      • acquisition of ‘feeder’ cattle destined for feedlots7
      • supply of processed beef to retailers and wholesalers7
  • Foreign labour in Australian beef processing8
    • Most people employed in meatworks and related industries are Australian citizens8
      • Depending on categories factored there are 35,000 – 50,000 employees in meat processing and handling businesses.8
      • Is a change of cultures, many have strong ethnic origins8
      • 457 Visa holders 5-10% of all food processing and manufacturing employees in Australia8
    • In 2010/11  there were 4,730 QLD 457 Visa’s granted8
      • 130 were skilled meatworkers (1.5%)8
      • Nationwide total 457 Visas issued to the entire Agriculture, forestry & fishing category is only 2.5%8
    • There is a labour shortage at all levels8
      • Competition from the mining sector8
      • labour force tends to be transient8
        • meat industry may source more foreign labour than other industries8
    • Other heavy users of 457 Visa’s8
      • Health Industry
      • Many hospitals unable to function without nursing support of imported labour8
  • Cattle supply is very tight23
    • Producer’s aren’t selling cattle due to poor prices23
    • Company (Teys) forced to reduce kill days23
      • for week beginning 18/07/2011 don’t even have one days kill organised as at 14/07/201123
    • CEO Teys Brad Teys, says been 30 years since he’s seen the supply of cattle so tight23

2012

  • Pacific Island Workers Scheme is working well9
    • Seasonal worker program is a scheme for the Agriculture and accomodation industries to employ people from overseas for short periods. Seasonal Worker program
  • “..the Biloela meatworks have always said that there would be no foreign workers in the meatworks while there was an Australian without work” MP Ken O’Dowd9

2013

  • Migrant workers that had previously worked under Work Choices now moved to a Meat Industry Award Agreement 2010. (Pg 17)4
    • Now received penalty rates for overtime, public holidays & shift allowances4
  • July. Beenleigh abattoir (QLD) wage dispute will not effect job security at other sites operated by Teys10
    • Beenleigh plant had much higer operation costs than Biloela or Rockhampton abattoir (QLD)10
      • Beenleigh only delivering 1% profit in the past four years10
  • If the meat processing industry is to avoid the path of the car manufacturing industry it needed to change10
    • “What we did in the 1970’s we can’t do now” Tom Maguire Teys’s general manager of corporate affairs10

2014

  • Free Trade agreement with China is being negotiated.11
    • Possibility of 1M head of cattle a year to be exported to China11
    • AMIEU QLD Industrial officer Lee Norris says the deal would lead to thousands of lost jobs.11
    • Central QLD university professor or regional economic development John Rolfe – hugh economic boost to cattle producers and would lead to a more robust industry11
    • QLD Premier Campbell Newman supports China deal – it was critically important for agricultural industries11
    • “They’ve been doing it tough in the west and northwest for quite some time now with the drought, and at least this gives people hope that when conditions return to normal that they actually have some real opportunities in the future” – Campbell Newman11

2015

  • February. Tropical cylcone Marcia swept over the QLD coast on 20/02/201512
    • Category 5, 300km/hr winds came across the Capricorn coast13
  • Significant structural damage has occured to12
    • JBS Rockhampton (Beef city)12
    • Teys Australia Rockhampton (Lakes Creek) abattoir (QLD)12
    • Biloela plant has not suffered damage but will lose time due to power supply problems12
    •  3 plants together account for 2,500 head a day slaughter capacity12
  • Biloela plant
    • Localised flooding12
      • Plant itself was not flooded13
    • Currently employs 400 people13
    • Currently processing 700 cattle a day13
    • did conduct half a days kill on day of the cyclone12
      • cyclone caused loss of only a single slaughter shift13
    • No Kill conducted following Monday 23/02/201512
      • boning shift is being conducted on 23/02/201512
    • Cattle at Lakes creek abattoir are either transported back to properties or origin (at Teys expense) or being sent to Biloela and Beenleigh abattoir (QLD) for processing12
  • Teys suffered cyclone damage to its Innisfail abattoir (QLD) in 2011. It was mothballed at the time but never reopened.12
  • Category C Emergency relief needs to be announced by Federal Government as soon as possible13
    • enables grants of $25,000 to eligible businesses and farms13
  • March. Cyclone damage to the two larger meat processors in Rockhampton will see JBS Rockhampton closed for at least a month and Teys Australia Rockhampton (Lakes Creek) QLD closed for atleast another week14
  • Seasonal stock work was complicating the matter with normal turnoff14
    • Producers having to send stock to other plants will incure greater freight costs14
    • Earliest stock were able to be slaughtered at Biloela was in April.14
  • Damage to the meat processing facilities renews debate of introduction of live export in the region14
    • Authors note – I think this in reference to using Port Alma (Rockhampton) to export live animals14
    • “We need diversity in any business and live export is part of that” Cattle Council of Australia president Howard Smith14
  • Teys Australia submission in regards to Australian workplace relations system15
  • September. Biloela plant is recognised at National level at Australian Migration and Settlement Awards – winning Business Inclusion award16
    • Foreign labour represents 70% of the plants 470 strong workforce16
    • Enabled operating capacity 100% since 200516
    • Biloela plant rates in the top 10% of the national industry16
      • due to newly skilled workforce16
      • Had to attract people to the town with a strategy as there weren’t many unemployed16
    • “The fact they could get a job and they were self-sufficent and they were contributing was the big reward” Duncan Downie – General manager of operations at Biloela16
  • November.Plant shuts down for two days in week due to lack of cattle17
    • Did not operate 02/11/2015 & 09/11/201517
    • Gone through an extended dry period17
      • Producers are holding onto cattle17
      • Cattle herd deminishing for 4-5 years due to drought17
      • When it does rain, shortage of cattle supply17
        • Don’t have the numbers to process at the facility17
    • Aim to operate 2 shifts 5 days a week, killing 710 head a day17
      • cut back operations due to shortage of cattle17
      • When graziers rebuild (if it rains) processing numbers will at normal targets17
      • Live export competition was having an impact but was not the major contributing factor17
      • “I don’t know what impact the live export trade will have. It is a long way to bring the ships down to Port Alma and the cattle they get in this areaare different to the cattle they get up north” D Downie.17
    • Plant normally sources cattle within 350km of the facility17
      • recently has had to purchase from Victoria, Longreach, Charters Towers and further north.17
  • Investment to occur at Biloela plant $10M over the next 6 months17
    • Work will begin in annual shutdown period17
      • Annual preventative maintenance program17
      • $2.7M upgrade boning room17
      • Installation of new vacuum pack machine and conveyor system17
      • In January plans to install new coal-fired boiler17
    • Seasonal closure is planned to begin 10/12/201517
  • Plant will conduct last kill 26/11/201518
    • final boning shift will happen 27/11/201518
    • Staff told 11/11/201518
    • Extended 7 week summer-season for the plant18
      • Normal schedule is 4 weeks18
        • Staff usually take 4 weeks of annual leave19
        • extra 3 weeks will be leave without pay19
      • Original target was to close 10/12/2015, reopen 08/01/201618
    • Cattle supply circumstances have dramatically changed18
      • shortage of cattle18
        • sustained records of slaughter across Eastern Australia18
          • Destocking from Western Areas19
          • high prices for cattle19
        • record live exports of cattle18
        • National herd level was on a 35 year high, to a 20 year low over the last 2 years.18
    • “This is a once-in-a-generation decline, but unfortunately  we can expect herd numbers to stay significantly low for at least the next two years as cattle producers rebuild their stock” Tom Maguire22
    • Biloela is a specialist grassfed plant, processing 700 head a day on single shift, employing 440 staff18
    • Intend to re-open 18/01/201618
    • Previous year (2014) had killed close to christmas18

ABC rural 12.11.2015._edited-1

Biloela meat processing complex. Source ABC Rural 12.11.2015

  • Early and extended shut down of the abattoirs due to lack of supply of cattle is affecting local butchers21
    • 2014 300g steak $7-$8 retail21
    • Now $9.6021
      • pricing is affecting the consumers ability and desire to pay for the product21
  • Early closure of Biloela would affect every little butcher across QLD21
    • Main problem is the drought21
    • Problem will continue when processors come back on line due to wholesalers buying aswel21
  • Agforce president Leo Neill Ballantine21
    • cattle shortage was a problem that wasn’t going to go away21
    • regardless of rain, will always be problesm with existing conditions21
      • vacuums are created in the market if producers can’t get assurances from processors21
      • producers need to be brought more into the supply chain21
        • enables cattle to be ready ahead of time21

Sources – #399 Biloela – Teys Australia (QLD)

  1. AUS-MEAT accreditation list 14.01.13
  2. ‘Abattoirs under stress’ Beef Central 22.02.13
  3. Competition and Exit in Meat Processing Agribusiness Review Vol 7 1999
  4. ‘Union Avoidance Strategies in the meat processing/packing industry in Australia and the USA compared’ A Jerrard & P O’Leary
  5. ‘Aussie workers safe in Teys cuts’ Central Telegraph 11.12.09
  6. ‘Meatworks jobs may get the chop’ The Morning Bulletin 11.12.2009
  7. ACCC will not oppose Teys Bros & Cargill Beef Australia proposed merger’ 06.07.2011
  8. ‘Processors raise hackles over ‘foreign labour’ claim’ Beef Central 21.07.2011
  9. Statement by member Ken O’Dowd. Parliament
  10. ‘Workers safe at Rockhampton and Biloela’s abattoirs’ The Morning Bulletin 14.07.2013
  11. ‘Cattle export deal with China raises fears for abattoir workers’ jobs’ Couriermail 07.11.2014
  12. ‘Power outages, structural damage from cyclone….’Beef Central 23.02.2015
  13. ‘CQ meatworks back in action’ QLD country Life 26.02.2015
  14. ‘Shutdown highlights market concerns’ www.farmweekly.com.au 02.03.2015
  15. Teys submission to Australian Productivity commission into workplace relations system. March 2015
  16. ‘Refugees save Meatworks’ Central Telegraph 04.09.2015
  17. ‘Teys Bros invest $10M in to Biloela plant’ Central Telegraph 09.11.2015
  18. ‘Teys Biloela joins list of ‘extended shutdown’ beef plants, as herd contraction bites hard’ Beef Central 11.11.2015
  19. ‘Teys abattoir shuts early due to lack of supply’ ABC Rural 12.11.2015
  20. ‘Cattle shortage forces extended closure at Teys Biloela’ The Morning Bulletin 12.11.2015
  21. ‘QLD’s rib eye price is sky high says butcher’ Observer 17.11.2015
  22. ‘Cattle shortage hits Teys’ www.farmonline.com.au 18.11.2015
  23. ‘Cattle supply chokes’ ABC Rural 14.07.2011

Dinmore

Australian Abattoirs, Dinmore, Queensland, Southern QLD 19/06/2013 Leave a comment

Current Operation

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

Location              

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

 Owner

  • AMH (1999)4
    JBS Australia

Operation          

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

Dinmore photo. _edited-1Source 2007 Feedback MLA

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

Australian abattoirs inactive map

abattoirs_edited-1

History of Dinmore #235

1990

8. ABARES Nov 2011_edited-1

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

1991

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

1996

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

1999 

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

2005

  • Significant regions of drought across QLD.

QLD Drought 2003_2005_edited-1

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

2007_2009_edited-1

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

2010  

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

IBIS Jun 2010_edited-1

Major Companies in the Australian Red meat processing industry

Source IBIS world June 2010

2011

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

7. ABARES Nov 2011_edited-1

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

2012  

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

2013

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

2014

 

  • July. JBS Australia purchase majority shareholding in NSW based Andrew Meat.15
    • specialise in high quality, portion cutting and further processing of meats for domestic and international restaurant and foodservice customers.15
    • produce ready-cooked meals.15
    • company banner Creative Food Solutions.15
    • Andrew Meat will allow JBS expansion into high growth retail and value-adding segments.15
  • Expansion of the Andrew Meats business will start in November .18
    • JBS global strategy to expand into value added meat protein – opportunity to expand margins.18
    • JBS have an existing value-added division – Food Partners.18
      • supplies food service customers like Pizza Hut and Domino’s with toppings.18
    • Andrew Meats focus will be produce ready meals.18
      • ‘grab & go’ beef roasts, designed to compete head on with hot cabinet roast chickens sold in supermarkets.18
      • Domestic markets were very immature but also with significant growth potential.18
  • At this time JBS operate.15
    • 10 processing facilities.15
      • Daily processing capacity of more than 8,000 cattle and 21,000 small stock.15
    • 5 feedlots.15
  • December. JBS currently operate 12 meat processing plants across 5 Australian states11
    • Wages & local procurement $730M (Excluding livestock purchases)11
    • Employs 8,500 people at the facilities11
      • Employs 12,000 people in Australia11
    • Total revenue of $6.5B11
  • JBS plants 2014_edited-1

    JBS processing plants in Australia

    Source JBS submission #50 Market Consolidation.

    • JBS estimates its current share of four eastern states beef kill – 20% (excludes service kill)11
      • JBS share of Australian beef production 16%11
      • Market share of national small (lamb, mutton & goat) 16%
    • JBS spent $2.4M on halal certification costs of approved religious certifiers in 20142

    2015

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

      Share of Australian red meat processing

      Source The Stock Standard. VFF March 2015

 

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

Cyclone Marcia Feb 2015_edited-1

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

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

    • Capacity of major beef abattoirs in QLD. Pg 15

      T2 Throughput state beef_edited-1

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

      T4 processing companies market share_edited-1

      Major Processing companies by market share May 2015. Pg 16

      M4 direct cattle movements NLIS QLD_edited-1

      Cattle Movements to abattoirs. Pg 25

      F12 hourly labour costs food manufacturing_edited-1

      Hourly labour costs for food manufacturing industry Pg 30

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

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

 

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

 

 

  • December. ATO publishes tax data for agribusiness corporates.12
    • Data interpretation – Companies do not pay company tax on revenue (total income) they pay on profits after paying all expenses, including wages, capital replacement, supplier costs and other operating expenses.12
    • Income tax information is for 2013/14.12
    • JBS Holdco Australia Pty Ltd produced Total Income $4,040,948,610.12
      • Taxable Income $419,882,525.12
        • Tax Payable $44,809,334.12

2013_2015_edited-1

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

 

Sources for Dinmore QLD. JBS

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

Cairns

Australian Abattoirs, Cairns, Northern QLD 18/06/2013 Leave a comment

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

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

Other names

  •  Queerah

Current Operation

  • Closed 19861
  • Others say 19894

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

Location             

  • Skelton Creek, Cairns

Australia. Cairns. jpg

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

Owner                 

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

Operation          

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

History                

 1950

Queerah 1950.Source Cairns Regional Council. Dated 1950

Queerah Meatworks

  • Begun to export early 1950’s4

 1960’s 

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

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

1962 

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

1970’s

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

p04048 (2)Source – Cairns Historical Society. c1970

Loading export meat from the Queerah meatworks at Cairns wharf

1975

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

1980

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

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

1986

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

1989

  • Closed4

Sources

  1. Competition & Exit in Meat Processing. Agribusiness review Vol 7 1999
  2. ‘100 years of Northern Beef Production’ Nth QLD register 22.11.12
  3. ‘The Australian Live Export Trade’ Nigel Austin.
  4. Cairns Historical Society.
  5. Employers & Industrial Relations in the Australian Meat processing Industry. P. O’Leary 2008
  6. ‘Queerah Meatworks strike’ North QLD register 17.10.2013

Smithton

Australian Abattoirs, Mainland, Smithton, Tasmania 18/06/2013 Leave a comment

Other Names

  • HS Greenham’s
  • Greenham’s
  • Blue Ribbon

Current Operation

  • Operating as at 2013.

Location

Australia. Smithton

Map Smithton 001Source – Hema maps. Australia Truckies Atlas

Owner

  • Blue Ribbon – established3
  • Ian Paterson 20015
  • Greenhams – 20024
    • Plant Manager Jack Erichson4
    • Greenham also own Tongala Abattoir (Vic)
      • have been operating in Victoria since 1860’s
    • Greenham’s is a family-run and operated business

Operation

  • Premium quality beef to USA. Japan, buying dairy cos, bulls, heavy beef cows, Jap Ox, calves and yearlings7
  • Greenham’s supply 2 annual burseries $10,000 to young people in Vic and Tasmania further their careers in dairy or beef industry7
  • Process 10,000 t beef annually
  • supplier catchment of 3,000 properties over Tasmania and King Island

History

Some articles are in reference to the meat industry in Tasmania in general and not just specifically the Smithton works

1941

  • Meeting held at town hall to discuss proposal of establishment of abattoir and saleyards at Smithton2
    • At the time 17 slaughtering places existed in Circular head municipality2
      • hygiene and disease of serious concern due to lack of inspections and disposal of offal unsatisfactory with dogs and pigs having access.2
      • water availability  was inadequate for some with poor drainage2
    • New facility main purpose was to ensure clean, wholesome product assuring meat production under hygienic conditions.2
    • Paddocks to be provided for grazing free of charge some distance from abattoir so animals only walked to facility once a fortnight2

    1958

  • Josef Chromy – a Czechoslovakian who fled to Tasmania in 1950 after WWII.3
    • started a butcher shop in Bernie 19573
    • Changed the butcher shop name to ‘Blue Ribbon Meat Products in 19583
    • Initial turnover of $160,000 pa, 5 employees, over 20 years developed the company, acquiring farms, 18 butcher shops, piggeries, distribution centres, factories and abattoirs.3

1972

  • Blue Ribbon aims to establish export standard abattoir3
    • sell to overseas markets premium lamb and beef cuts from Tasmania3

1979

  • Blue Ribbon now operates Smithton, Camdale, Launceston and Hobart abattoirs.3

1985

  • Red meat industry wide rationalisation Chromy sells all operations to RMI Group, in exchange for shares3

1986

  • Rationalisation falls over and shares are rendered worthless3
  • Chromy rebuilt businesses.3

1992

  • Blue Ribbon employ 540 people, annual sales of $75M3
  • Blue ribbon is floated on ASX.3

1994

  • Blue Ribbon win Austrade Agricultural products category at the Australian export awards.3

2000

  • Blue Ribbon post a loss of $3.18M18
    • esculated debts to $6M owed to Commonwealth bank and $4M to suppliers18
    • Company shares trading suspended at $0.13 down from 1993 price $1.6018
      • Peak operation annual turnover AUS$75M and18
      • processed 50% of states livestock18
      • Exports worth AUS$28M18

2001

  • July. Blue Ribbon turn down a refinancing offer from a Melbourne based syndicate18
    • Announce company is put into voluntary administration18
    • Decision chosen as alternative to receivorship and allows 3 months of trading life18
  • Nov. Ian Paterson purchases Blue Ribbon5
    • Federal court hearing – collapse of Tasmainian meat works say Paterson ignore everyones warnings, including Blue Ribbons chief financial officer that the the company was insolvent, ignored repeated advice that works needed $2M in capital injection to function5
    • Paterson misled buisness partners and Blue ribbon administrators pretending he had backing from a group of investors when he was operating entirely on his own.5
    • Former Blue ribbon CEO Ray Joy was part of investment group4
  • Dec. Blue Ribbon go into recievership and close.4

2002

  • Blue Ribbon sold to HS Greenhams.4
    • Employs 100 people7
    • Refurbish the plant to international export standards9
  • Greenhams (new owners of Smithton) develop marketing strategy and sourcing program to help secure cattle for the meat processing plant21
    • included better information to producers about types of animals suitable21
    • information feedback to producers about their animals.21
    • set up scholarships to reinforce commitment to area21
      • result – enough cattle secured for production to peak within weeks of plant opening21
  • Mar. To start production again, processing 100 cattle per day to build up to 200 head a day4
    • Processing capacity of plant 300 per day26
  • June. Smithton retrench 21 workers7

2003

  • When original company went into receivorship employees fired from full-time positions19
    • rehired latter by a labour hire firm on 12-month traineeships19
      • Hire firmis a split company from Blue Ribbon called Newemploy20
      • meant to re-employ 300 workers20
      • Only employed 95 at beginning of dispute20
    • after traineeship period then offered independent contracts for $120 a day without sick leave or holiday pay19
    • Abattoir citing needs flexibility in employment structure19
  • August. Longest lockout in Tasmania’s history enters 21st week.20
    • In dispute – 23 workers locked out, 40 have left, 10 sacked in previous week20
    • sacked workers jobs outsourced20

2004

  • Smithton set up buying centre for cattle in Devonport17
    • Producers take animals direct to site, weighed and paid on delivery.17
    • Acts as direct sale to abattoir with no agents17
    • Abattoir pays for freight to abattoir from selling centre17
    • Estimated to save producer $39 per animal in cartage.17
    • Authors Note – Normally when a producer sells at a point that is closer to property of origin the sale price of animal is reduced, therefore I question if producer in this case would actually get a saving of $39. Saving would be due to no third parties. Jo. 29.12.2013.
    • Devonport is the 6th selling centre established  by the Smithton abattoir since take over in 2002.17
  • HW Greenham and Sons Pty ltd is ranked 13th in top 25 Processors in Australia28
    • Statistics include abattoirs Smithton and Tongala abattoir (Vic)28
    • 2004 End of Dec. Throughput 52,500 ETCW (Estimated tonnes carcase weight) 2003 51,000 ETCW28
    • Kill share 2%28
    • Turnover 2004/2005 $230M (2003/2004 $200M)28
    • Employees 47028
    • Production 95% export – 5% domestic28
    • Major export markets USA, Japan, Korea, Canada, Taiwan28

2008

  • Jan. Smithton (Greenhams) dismiss 6 workers before christmas after losing a key Asian customer6
    • Unfair dismissal case lodged with Australian Industrial relations commission (AIRC)6
      • AIRC found wages and other legal entitlements were paid but had no jurisdiction to determine if dismissal unfair or harsh.6
  • Jul. Signs a exclusive deal with large Korean retail group – Lotte Mart.8
    • Smithton facilities need expansion in boning room, if not undertaken run the risk of losing export opportunities8
  • Oct. Propose to install a coal briquette-fired boiler to replace the existing boiler that is currently fired by tallow and fuel oil.9
    • Rendering process converts by-products into value added products – tallow, meatmeal & bloodmeal9
    • Rendering uses large volumes of steam to cook the materials.9
      • Edible – frying fats, shortening, oils, bakery products, confectionary and industrial margarine9
      • Inedible – soap, cosmetics, lubricants, leather dressings, candles and tallow for tanning leather.9
    • Refurbished 10MW briquett-fired boiler – consume 1.2 t coal /hr at full production9
      • working on 5 day week basis, 10 hours a day – use 1,800 t a year, coal soarced from Victoria.9
      • Ash production 3,600kg pa9
  • Smithton express interest in upgrading port facilities at Stanley to allow King Island cattle imports25

2011

  • Jul. Government – Federal and state supply $1.1M, North-West and Northern Tasmania Innovation and Investment (NWNTIIF)24
    • NWNTIIF created to assist manufacturing businesses, a number of which have closed in area due to GFC24
    • Greenhams contribute $3.3M to upgrade facilities10. –
      • build and fit out new enlarged boning room, freezing area and slaughter floor10
      • upgrade plants rendering facilities22
      • development of new value adding processing facility22
      • increase capacity from 320 head a day to 380, potential up to 45010
      • created 20 jobs with a further 7 likely10
        • other articles say 2422 jobs, and 1723 jobs.
        • upgrade created 17 jobs to date and will provide another 7 by December24
      • Deminished waiting time for producers in summer when larger number of cattle available10
      • Expansion 4 years in negotiations10
      • improvement in technologies increases efficencies22
  • August – Smithton again consider assisting with financial support to upgrade Stanley wharf – deep water24
    • Stanley is deepest port in Tasmania25
    • Would allow King Island cattle access, King Island abattoir (Tas) closed in 201224
    • Other ports are Devonport24 and Burnie26
  • December – Smithton and Tasport upgrade port facilities at Stanley to reintroduce shipping to the area25


2013

  • Jan. MSA grading of meat cuts (had been implemented for a number of years)27
    • Smithton work closely with producers providing feedback on haveing cattle eligible for meat brands.27
    • certain cuts suite certain markets.27

MSA grading _edited-1Source – Peter Greenham Managing Director of Greeham Tasmania. 31.12.2013.
Cattle in MSA program are assessed for eating quality and marketed under particular brands.

  • Apr. American buyers looking to expand purchases of beef from $80,000 per week to $800,00011
    • Grass fed beef.11
    • Tasmania is the only Australian state to ban the use of HGP, therefore all stock are guaranteed 100% HGP free12
    • lot more market potential to be realised yet11
  • July. Cattle unloaded at Stanley port, utilising the port for the first time in 20 years.26
    • Use of Stanley port takes 5 hours off sea trip compared to Burnie and improved animal welfare26
    • Expect about 240 head each sailing26
    • 12,000 – 13,000 head from King Island each year26
      • similar to amount sourced from Island for last 5 years.26

    source animals _edited-1Source – Peter Greenham, Managing Director Greenham Tasmania.

Smithton abattoir sourcing of cattle for processing. They process approximately 500 animals per day which is about 112,000 cattle per year, currently employing 200 Full time staff plus casuals.26

  • Oct. Workers strike for higher wages.13
    • 160 beef processing workers set up picket line – 25.10.2013 with ongoing ban on overtime13
    • 115 of 160 workers belong to AMIEU14
    • previous work agreement had been made in 201014
    • Workers want 4% pay rise – Greenhams offered 2.5% over 4 years & cut of $200 a week to new employees13
    • Negotiations have been going for 6 months.13
    • AMIEU figures say production has increased 25% of number of stock being processed.13
    • Union requested figures to substantiate processing from Greenham, Greendhams declined to supply figures.14
    • Smithton processes 40 to 44 cattle per man per day, elsewhere in Australia averages between 20-2414
    • Longford abattoir (Tasmania – owned by JBS) get over tally for 24 head a man, effectively getting paid time and a half for anything over 24 head.14
  • Nov. Company re-negotiated offer15
    • Raising the pay increase but not wage structure.15
    • Greenham’s showed AMIEU union rep Troy Baker figures to suggest business would not be viable in long term unless new employees paid less “..sat back and looked at it with a percentage rises on top, over time it would have made the company hard to be viable in another 4 years time” Trot Baker – AMIEU15
    • with original offer 2.5% across the board, also accepted 2.5% increase in pay with a $750 sign on bonus for the first 2 years, which will increase to 3% increase in payfor last 2 years of an agreement15

Sources

  1. ‘Support for KI meatworks’ The Mercury. 18.06.13
  2. Public Opinion article. Advocate. 24.09.1941
  3. ‘Josef Chromy : an expert vintage’ http://www.dynamicexport.com.au. 30.07.2009
  4. ‘Australia: Smithton abattoir to reopen tomorrow’ Just foods. 04.03.2002
  5. ‘Blue Ribbon owner criticised over abattoir collapse’ ABC rural. 22.03.2002
  6. ‘Meatworkers dispute taken to federal IR commission’ ABC news. 07.01.08
  7. Company profile. http://www.greenham.com.au Accessed 13.11.2013
  8. ‘Delay in works at Tongala abattoir’ http://www.greenham.com.au 01.07.2008
  9. ‘Smithton abattoir coal fired boiler – development proposal and environmental management plan’ Ecowise. Oct 2008
  10. ‘A meaty boost to efficency at Smithton abattoir’ The Advocate 19.07.11
  11. ‘Tassie beef industry industry impresses US buyers’ The Advocate 12.04.2013
  12. ‘Our plants – Longford’ http://www.jbsswift.com Accessed 13.11.13
  13. ‘Meat workers to strike for higher wages’ ABC news 23.10.2013
  14. ‘Industrial action hits Greenham’ The Advocate 25.10.2013
  15. ‘Industrial action ended at Tasmanian meatworks’ ABC rural. 12.11.2013
  16. ‘Devonport City abattoir doing well’ ABC rural 26.06.2002
  17. ‘Liveweight cattle buying centre opens in Devonport’ http://www.greenham.com.au
  18. ‘Australia: Blue Ribbon meats to go into voluntary administration’ http://www.just-food.com 19.07.2001
  19. ‘Welcome to the revolution’ AMIEU 11.06.2003
  20. ‘Tasmania’s longest lock out enters 21st week’ Green left. 20.08.2003
  21. http://www.lib.uts.edu.au
  22. ’24 new jobs as Tasmania meat processor expands’ Manufacturers monthly 19.07.11
  23. ‘North west coast prospects beefed up by expansion’ Bavid O’Byrne MP. 19.07.2011
  24. ‘Stanley wharf left to rot’ The Examiner. 20.08.2011
  25. http://www.shipspotting.com – dated 30.12.11.
  26. ‘Port of Stanley ready to receive cattle ships’ The Advocate 04.07.2013
  27. ‘Red Meat Updates’ Tasmania. MLA 20.06.2013
  28. Feedback’s top 25 processors for 2004 MLA. oct 2005

Longford

Australian Abattoirs, Beef processing abattoir, Longford, Mainland, Tasmania 18/06/2013 Leave a comment

Updated 28.12.2013. Longford abattoir is located on the North east side of Tasmania mainland, South of Launceston. Owned by JBS the abattoir is a multi species abattoir currently operating.

Other Names

  • Longford JBS
  • Number 195.18

Current Operation

  • Aus Meat Accreditation registration dated 29/12/2015 #195 – JBS Australia Pty Ltd (Longford).17
    • registered as a Beef, Sheep, Offal export facility.17
  • Direct employment enquiries to www.jbssa.com.au

Location

Australia. Longford

Map. LongfordSource – Hema Maps – Australia Truckies Atlas. 

Owner

  • Gilbertson family
  • SBA foods (Sumikan)- 1996
  • Tasman Group7
    • Used to operate under name – Belandra Pty Ltd
    • Victorian based operation7
    • General Manager Fracnk Orovec7
    • Chairman Giuseppe Catalfamo7
  • JBS Swift1

Operation Of Longford.

  • Multi species processing abattoir2
    • Multi species abattoirs notoriously difficult and complex to manage5
    • Longford is Australia’s most flexible and diverse red meat processing site5
  • Capacity to process 450 beef a day, 1,600 Small stock such as Lamb, mutton and veal1
    • With beef operation also kills 1800 lambs and sheep a day, plus bobby calves and veal.5
  • Full Halal kill to key Muslim markets – Malaysia, Indonesia and Middle East.5
  • Full License access for beef and lamb export to China and Russia5
  • Carries out EU grassfed supply – MSA backed grassfed Natural beef program5
  • Longford carries out most of weekly grainfed kill on contract for Japanese owned Feedlot located in Tasmania5
  • Emphasis is directing sheep and beef meat to branded programs instead of selling product as a commodity meat.5

History Of Longford

2002

  • SBA Foods sell to Tasman Group Services – $25M9
    • Includes King Island9
    • Altona abattoir – Melbourne (currently mothballed) – been closed for last 2 years9
      • Past 4 years had $10M spent on improving beef slaughter chain, chiller and boning facilities9
    • Yambinya feedlot – Wakool, Deniliquin.9
    • Tasman Group already owned – Brooklyn abattoir – gutted by fire June 2001 and still closed in 2002.9

2003

  • Abattoir closed -part of union agreement workers to paid full entitlements7
    • Rescue package offered by Government7
    • More optimistic about workers future with package announced7
  • Abattoir had applied for new rendering plant7
    • $5M plant had already been built but formal application still required approval.7
  • 600 Tasmanian feedlot cattle went to King Island abattoir for processing.7

2006

  • Tasman Group Chairman – Giuseppe Catalfamo brided Cole’s head of supermarket merchadising Peter Scott (Coles fired Scott in 2007).6
    • Scott had acquired million dollar bayside apartment from Catalfamo6
    • Considered a breach of retailers code of conduct – Tasman group main supplier of beef in Victoria and Tasmania6
    • Catalfamo been caught bribing and meat substitution in past – horse-meat substitution scandel that threatened Australia’s export industry 20 years ago, fined and banned from exporting to the USA for 10 years.6
  • Devonport abattoir provides Woolworths with fresh sausages for 29 Tasmanian stores6
  • Tasman Group – report ending 20056
    • sales had increased 30% but profit halved to $6.3M6
    • Company borrowings total nearly $62M6
      • Main creditors – National Australia Bank, ANZ and Japanese meat company Hannan Corporation6

2008

  • JBS purchased as part of Tasman group when entered Australia with acquitsition of AMH5
    • Tasman Group consists of abattoirs in Tasmania – Longford, Devonport and King Island8
      • Tasman group 3 abattoirs in Tasmania including King Island and 3 in Victoria.8
      • JBS paid $US150M8
    • JBS also purchased Smithfield Group $US565M8
      • Has four abattoirs8
    • JB also purchase National Beef $US560M8
      • Has three abattoirs8
      • 2 meat processing facilities8

2009

  • March. JBS lockout company -Cuthbertson Brothers10
    • Cutherbertson process sheep and lamb skins supply footwear trade.10
      • 150 year old company – established by Blundstone11
      • Purchase 80% of Tasmanian production of sheep and lamb skins11
      • Processing plant at Launceston11
        • supply exclusively to Manufacturer Melbourne – Dynasty11
        • Dynasty is agent for Henan Prosper – worlds largest tannery located in China11
      • Employ 20 people11
    • Cutherbertson call on ACCC to launch formal investigation as breach of Trade Practices Act, JBS have misused market power to push players out of the sheep and lambskin market.11
    • JBS refuse to allow Australian Lamb Company to process animals at Longford11
      • Australian Lamb Company is major exporter11
      • Processed 1000 heavy lambs  per week.12
      • Loss of buisiness caused producers $7-$10 per head.11
        • Australian Lamb company forced to send stock to Melbourne for processing11
      • At 2009 – Longford is the only supplier of export grade sheep and lamb produce in Tasmania11
    • JBS is dealing direct with producers , by passing stock agents.11
    • JBS continued pattern of activities designed to force Cuthbertson Brothers out of market by approaching Cuthbertson’s major clients.11
  • Sheepskin tender lockout has caused producers receive 50% less for skins11
    • $3-$4 per skin11
  • ACCC are investigating the matter but JBS refusing to discuss with ACCC.11

2010

  • JBS lay off 90 workers13

2012

  • JBS Australia split into two operating entities to make Northern and Southern regions in relation to abattoirs and feedlots within those areas14.
    • South – Victoria, South Australia and Tasmania14
    • North – NSW and QLD.14

2013

  • JBS threaten closure of Longford if another abattoir is established on King Island abattoir (Tas)3
    • JBS say – not receiving cattle from King Island would hurt Longford operations3
    • JBS (at June 2013) still owned the closed King Island plant. It was not leased or for sale3
  • Longford Plant – Boning room to be reconfigured for great throughput to increase efficency5
    • Long term strategy to optimise production efficency5
    • Lift beef throughput by 50%, increasing beef killed from 300 currently to around 475 head5
      • Majority of cattle sourced – well grown Angus from Tasmania’s NE and NW regions5
      • Islands – King Island and Flinders can account for anything from 200-450 head a week, higher in the spring run.5
      • 80-90% of slaughter cattle are sourced direct from vendors5
    • More productive work hours – 4 day weekly roster, based on four 9.5 hour working days5
    • New technologies – X-ray fat analysis equipment to determine Chemical lean (CL) content5
      • Note – Chemical lean is fat/marbling amount through the meat, the higher the number the less fat content. 90CL very lean, 80CL has high marbling.
    • New technologies – metal fragment contamination screening5
  • Since purchase of facility – considerable infrastructure development, modern blast freezer facility5
  • Focus on growing a range of beef and lamb brands for both key domestic and international customers5
    • 75% of currently weekly kill is MSA accredited at slaughter5
  • Value add at facility – Supplies supermarkets and key customers5
    • Sausages, corned beef, marinated products, dicing, shanks5
    • conventionally packed or MAP5
    • sold under supermarket label.5
  • September. JBS launch brand launch.20

Beef central 27.09.2013 logo

 Great Southern Logo. Source Beef Central 27.9.2013

  • Great Southern grassfed beef and lamb.20
    • Products first of their type in Australia.20
    • third party audited program JAS/ANZ ISO.20
    • 65 accredited farm quality assurance programs backing the brand.20
    • huge demand in domestic and global customers for traceable fresh grassfed meat.20
      • supplied by best practice producers with better livestock genetics.20
      • MSA graded for eating quality.20
      • Farmers would receive premium prices.20
        • 10c/kg premium applied to grid for UK.20
        • 650 farmers through NSW, Vic & Tasmania accredited to supply the program.20
        • Audit costs (for farmers) are paid by JBS.20
          • Audits conducted by AsureQuality.20
        • Animals are consigned driect to JBS.20
        • forward pricing.20
        • Animals consigned through saleyards would not be eligible.20
  • “Today the margins are so tight that if you want a point of difference and that premium or no discount, you have got to be involved with quality assurance” Jeremy Upton, Producer.20
  • November. JBS Swift Australia install closed-circuit television camera’s (CCTV) in it’s Australian meatworks.19
    • For the purpose of animal welfare and meatworker safety issues.19
    • CCTV for internal use by only JBS, with no plans to allow outsiders to view the footage.19
  • JBS’s US beef division (which includes Australia) delivered drop in net sales and earnings in it’s third quarter financial results.22
    • Australia’s division performance and overall contribution to the overall result is impossible to distinguish due to inclusion with US and Canadian beef processing results.21
    • Earnings before tax $134M,.21
      • Down by 22.5% on previous quarter.21
      • Down by 28.4% on third quarter last year.21
    • result reflection of domestic North American markets.21
      • Improved performance had occured in Australian.21
        • Demand had increased in Chinese markets.21

2014

  • April. Longford is the only multi species processing plant in Tasmania at this point
  • Integration of the King Island beef kill into the Longford business has delivered better effiecncies and success at the plant with economies of scale not previously available.18
    • Longford is a more robust business than prior to integration.18
    • Longford now hs the ability and consistency to supply key markets.18
      • China, European union, US, Japan, Korea, Malaysia, Indonesia and Russia.18
    • Production has increased to 500 beef and 1,700 small-stock being processed a day.18
  • Grading quality of Tasmanian livestock is high quality, non HGP, non GMO.18
  • Beef sales, focused on direct sales to export and retail.18
  • Lamb sales focus on supply of domestic, retail and food service.18
    • including commodity lamb and mutton into China.18
  • Everything that can be value-added in the form of meat and byproducts at Longford is processed on site.18
  • All of the plant’s kill and much of the lamb production is boned, sliced and packed in 2 fabrication room.18
  • JBS no longer required to send animals for processing to the mainland.18
    • sausage making plant.18
    • packaged corn beef and lamb shanks for retail.18
    • By products rendering plant makes 25t tallow a day.18
    • lamb skins are graded and salted for weekly tender.18
    • cattle hides are sold green (unprocessed) to a local hide merchant.18
  • 300 producers support the Great Southern Farm assurance production program.18
  • Staff numbers at the plant had reached 450 employees.18
    • Devonport (domestically licensed) employing 150.18
    • Work was less seasonal and had better security.18
    • Future leaders program pathway available – Career Leadership Opportunities.18
  • July. JBS Australia across all facilities in operation kills daily14
    • 8,500 cattle,14
    • 24,000 smalls – which includes lambs14
    • Employs more than 8,000 people14
  • December. JBS currently operate 12 meat processing plants across 5 Australian states15
    • Wages & local procurement $730M (Excluding livestock purchases)15
    • Employs 8,500 people at the facilities15
      • Employs 12,000 people in Australia15
    • Total revenue of $6.5B15
  • JBS plants 2014_edited-1

    JBS processing plants in Australia

    Source JBS submission #50 Market Consolidation.

    • JBS estimates its current share of four eastern states beef kill – 20% (excludes service kill)15
      • JBS share of Australian beef production 16%15
      • Market share of national small (lamb, mutton & goat) 16%
    • JBS spent $2.4M on halal certification costs of approved religious certifiers in 201415

    2015

    • June. Cost of processing in Australia 1.5-3 times the cost of processing animals in another country15
    • cost of processing grain-fed cattle in Australia is twice of the USA15
      • lower levels of productivity in Australia in regards to kg per unit of labour15
      • 2 major differences between Australia and the USA15
        1. Government regulation
          • $10 a head more in Australia15
          • Dept. of Australian Agriculture fully recover costs of meat export inspection and certification15
            • Australia wide DAFF costs $80M15
            • JBS contribute $14.5M15
          • Export plants don’t use DAFF but use approved employees, which plants fully cover costs15
            • JBS estimate an additional $30M at Export level15
          • USA & Brazil governments provide services at no or minimal costs to processors15
        2. Energy Costs
          • $15 a head more in Australia15
      • Technical barriers to trade (TBT’s)- Total value in Australia estimated at $1.25B as identified costs15
        • 261 TBT’s in 40 key markets15
          • 136 have significant trade distortion impacts15

 

Sources Longford Tas. JBS

  1. ‘Support for KI meatworks’ The Mercury 18.06.13
  2. ‘Abattoir closure claims unfounded’ The Stock and Land. 27.06.13
  3. ‘Abattoir closure warning’ http://www.mercury.com.au 26.06.2013
  4. http://www.jbsswift.com.au
  5. ‘Expansion plans ahead for JBS Longford – one of Australia’s most versatile meat plants’ Beef Central 21.10.2013
  6. ‘Woolies sticks by kickback butcher’ SMH 15.01.2007
  7. ‘Tasman Services fulfil final payouts’ The Examiner 23.10.2003
  8. ‘Big Beef producer cuts deal with Tasman Group’ The Age. 06.03.2008
  9. ‘SBA foods sell to Tasman Group Services’  Stock & Land 19.03.2002
  10. ‘End of the Tasmanian Ugg Boot’ The Examiner 03.03.2009
  11. ‘Submission to Select committee on Agriultural and related Industries – Inquiry into food production in Australian’
  12. ‘Abattoir cutback inconveniences lamb company’ ABC rural. 26.02.2009
  13. ‘Australia: Union shuts down picket of locked out meatworkers’ http://www.wsws.org 29.12.2010
  14. ‘The next Swift Shift’ The Weekly Times 30.07.2014
  15. sub50_JBS Inquiry into the effect of market consolidation on the red meat processing sector
  16. ‘ATO publishes tax data for agribusiness corporates’ Beef Central 18.12.2015
  17. AUS-MEAT Accreditation Listing 29.12.2015
  18. ‘JBS expands its books’ Stock & Land 24.04.2014
  19. ‘Swift CCTV camera action’ Weekly Times 13.11.2013
  20. ‘JBS unveils new QA driven southern grassfed brand program’ Beef Central 27.09.2013
  21. ‘JBS delivers lower third quarter beef sales, revenue’ Beef Central 14.11.2013