July 23, 2010

AAco plans to build Darwin abattoir

Australian Agricultural Company is looking to open an abattoir in Darwin to process 140,000 cattle a year.

One of Australia's largest cattle companies, AAco is seeking investors for the project, which could cost up to AUD50 million (US$44.6 million).

Transport costs for heavy cattle to Townsville or southern abattoirs have blown out since Indonesia's introduced a 350-kilogramme weight restriction on live imports.

AAco managing director David Farley says a meatworks in Darwin is urgently needed to provide another market opportunity for northern pastoralists.

'If the correct operating entity or corporate structure can be put together a co-operative would be attractive," he says.

"If a co-operative is not going to work, then either a joint venture or some form of equity sharing would have to be studied," he adds.