The chief executive of a troubled Gippsland meat processor says he hopes the plant will be able to restart production next month.
Tabro Meats has plants at Lance Creek, near Wonthaggi and Moe; chief executive Jack Jiang said in a statement the company was not able to begin production in February, “due to unforseen circumstances.”
“We anticipate recommencement of production in March 2016,” he said.
Tabro was acquired by the Chinese owned HY Holdings Australia, in 2014. Last year, the company lodged an application with the Bass Shire Council to invest a further $26m in the plants. The council receive three objections, covering concerns about noise, odour and traffic.
Since 2010, the company has twice been fined for breaching workplace safety laws. once over the death of a man who was suffered fatal injuries in a knocking box and the serious injury of an electrician.
It’s also been claimed agents are owed money for livestock supplied to Tabro; Mr Jiang didn’t address those concerns in his statement.
Mr Jiang said Tabro was mainly processing low grade cattle, for export to South-East Asia and America, as hamburger mince.
“While America, China and other countries withdrew or eased the ban on South American beef imports, early last year, competition built up against Australian beef in the international market and had a huge impact on Australian operations,” Mr Jiang said.
An extra $12 million was invested in Tabro’s two plants, with new machinery being ordered and installed in 2014-15.
“The result was Tabro’s capacity increased from 450 to 650 head per shift and Moe from 150 to 350 heads per shift,” Mr Jiang said.
Mr Jiang said some of the new machinery and technology had been installed.
“More production centres in China are under construction, or (have been) acquired,” he said.
The company now had 12 centres and was aiming for 18, “which allows to run the operation vertical, all the way from cattle to plates therefore the comparative advantage will be in place to compete in the international environment.”
Several batches of high end cattle have also been processed and were well accepted by the market.
“That's the start of the Australian premium beef product in China of the group, the demand is expected to be high for some time,” Mr Jiang said.
“Tabro is now (starting) to focus on the push of more ‘clean and green’ quality Australian cattle to be raised, processed and sold to the China market, surely for a premium price and aiming for better return especially during the tough times in the industry.”