October 22, 2010

Northwestern Australia mulls abattoir establishment

The Australian and Western Australian governments recently released a jointly-funded pre-feasibility study into establishing an abattoir in northern Western Australia.

The Australian government provided funding of AUD$100,000 (US$98,000) through the Rural Industries Research and Development Corporation for a report to be jointly developed with the Department of Agriculture and Food Western Australia.

Minister for Agriculture, Fisheries and Forestry, Senator Joe Ludwig, said the meat processing industry would need to determine the commercial viability of an abattoir in the north of Western Australia.

The purpose of the study was to investigate market options for northern Australian beef producers, said Ludwig, adding that the report will prove a useful tool in informing future policy decisions relating to northern Australian agricultural industries.

"The government will continue to be a very strong supporter of the live trade and the processing sectors, both of which are vital to the future of Australia's red meat industry," she said.

The report found an abattoir in northern Western Australia would be of benefit to beef producers. However it would not be commercially viable without a significant commitment from industry.

"The northern Australian cattle industry is heavily reliant on the live export trade and it is important that the Australian and Western Australian Government work together to investigate opportunities to diversify production," Ludwig added.

"Ultimately, the decision to establish an abattoir will be a commercial decision," she said.