July 1, 2011
Australia studies meat processing expansion in Queensland
In order to offer alterative markets for producers and enhance competition, the Australian government will examine the commercial feasibility of a meat processing facility in North Queensland.
Minister for Agriculture, Food and Regional Economies Tim Mulherin said the Department of Employment, Economic Development and Innovation (DEEDI) is undertaking a project to develop a business case.
"Over-dependence on a single export market and the lack of competition for meat processing capacity in northern Australia are significant issues for the industry," Mulherin said.
"The recent suspension of the live export trade by the Federal Government has highlighted these problems and put more than 60,000 tonnes of beef a year at risk," he says.
According to Mulherin, strategically-located abattoirs could have access to over three million cattle in north and northwest Queensland.
"An enormous swathe of Australian cattle country currently is not served by local meat processing facilities. If you draw a line diagonally from just above Townsville to Perth, you would find no abattoirs north of this line," he said.
"A new abattoir could reduce the need to truck cattle large distances to southern processing plants and provide alternative markets for producers."
AACo Chief Executive Officer David Farley has welcomed the initiative.
"AACo looks forward to working with the government on the feasibility of a processing facility in the north," Farley said.
"A new plant will add greater commercial competition and pricing opportunities for northern producers," he said.
While the exact location for the potential abattoir has not yet been determined, a final report to government is expected in December.