What Chinese Meat Interests May Mean

AN application which has been lodged with the NSW Department of Planning for an abattoir and feedlot west of Denman has raised questions about the impact it may have on the Scone based JBS Australia meat works and the local economy.

The Chinese backed company FJT Australia has proposed a facility to process 500,000 head of cattle and 1,000,000 head of sheep per year and create 600 jobs.

In a supporting document of the application it is described as an “export Abattoir with (in particular) accreditation to sell product to China as well as other foreign markets. Product would also be sold domestically.”

John Berry, director and head of corporate and regulatory for JBS Australia said they did not comment on competitors activities in the market, but said they had competitors throughout the east coast of Australia and they would continue to be committed to the Scone based facility.

In January there were 158 positions cut at the Scone based plant due to fewer cattle and Meat and Livestock Australia’s projection that predicted cattle slaughter rates would decrease by 27 to 30 percent during 2016 and 2017.

Stuart Sheldrake, livestock agent for MacCallum Inglis said he thinks the increased competition will be a positive thing for the area.

“It’s good to have another competitor in the market, every bit of support for the industry helps,” said Mr Sheldrake.

“Where they will get the cattle from is a good question, but if they are prepared to pay for them, money speaks all languages,” he said.

“It could mean more jobs, another market for our farmers and another purchaser which will build demand.

“People may be cautious about foreign investment but they are all foreign investors, JBS is a Brazilian based company,” Stuart Sheldrake said.

In supporting document to the NSW Department of Planning FJT Australia pointed out, “the addition of a facility such as the Yarraman Feedlot and abattoir will provide a much needed service outlet for producers in the region and elsewhere that has now been denied them by the recent acquisition of the former Primo abattoir at Scone by industry giant JBS of Brazil.”

Robert Gill, part-owner of Alexander Downs which has recently acquired the Kurri Kurri meatworks said he thinks it will be a positive for the local area.

“It could be great for the Hunter Valley, not just the cattle producers, but the grain growers, local businesses, there are heaps of pluses,” said Mr Gill.

“It is a big operation they are planning, so I do have some reservations about it happening, but it could be very good for the area,” Robert Gill said.

Wayne Bedggood, mayor of the Upper Hunter Shire agrees there are many unanswered questions at this stage and he is interested to see where they will be sourcing the livestock.

“Some of that stock may be sourced from our saleyard which would be a good thing and I’m sure some from Singleton and other local stockyards; JBS also source a lot of their stock from outside our area as well,” said Mayor Bedggood.

“There was a stage recently where people couldn’t get their stock processed, because the facilities didn’t have the capacity, it’s not the situation now, but it was several months ago,” he said.

“Our first priority obviously is for our shire, our region and our businesses, but having said that we do a lot of work with Muswellbrook and it may be something that benefits the whole region,” said Mayor Wayne Bedggood.

The proposed abattoir is on a property known as “Hollydene” on the northern side of the the Golden Highway approximately 8 kilometres northwest of Denman and is ideally located close to the proposed feedlot is located on a nearby property known as “Yarraman Estate”, in Wybong.

Related Story: Chinese Buy Bishop Property