February 22, 2021

 

Stockfeed use of grain in New South Wales, Australia, to be backed by growth in poultry sector

 

 

New South Wales, Australia, could see its stockfeed use of grain supported by a fresh growth in the poultry sector, helping to offset a short-term downturn in demand from feedlots.

 

This has come as the state recovers from the 2017-2019 drought, and graziers with thriving pastures limit female turn-off to rebuild herds and finish cattle with a much reduced reliance on feedlots.

 

Driving the poultry increase is a planned expansion by Baiada, which, in December, received approval from the NSW government to triple capacity at its Oakburn plant near Tamworth to three million birds per week.

 

The Oakburn expansion includes advanced water treatment and reuse to minimise impact on Tamworth's water. The expansion is expected to serve the market in southern Queensland, the NSW Central Coast and all points in between.

 

Industry sources have told Grain Central that the company's weekly grain use at its nearby Tangaratta mill is already on the way up from around 3,600 tonnes per week in recent months to 10,000 tonnes in coming years.

 

Along with Baiada's feed mill at Hanwood in the Riverina and Manildra Group's Manildra flour mill in the central west, this will make it one of inland NSW's three biggest grain consumers, each consuming more than 450,000 tonnes per annum.

 

The Tamworth expansion will enter the final stage of a multi-year rationalisation of operations in eastern states by Baiada Poultry and Ingham's Enterprises, suppliers of around 70% of Australia's meat chickens.

 

In recent years, Ingham's has expanded its footprint in Queensland and Baiada has done the same in NSW.

 

In terms of expanded footprint, Ingham's has done its biggest ramp-up in South Australia, where its Murray Bridge feed mill used grain at a rate of more than 400,000 tonnes per annum.

 

In the 2019, the Griffith City Council Economic Development Unit said Baiada's Hanwood operation was using around 5,500 tonnes of grain per week and the company's plans were under way to double its processing capacity to three million birds per week by 2021.

 

- Beef Central