Around the time when cow prices were at their peak, paying agents and private clients became an issue for Tabro.
Whether it was a misunderstanding of how everything works here in Australia, a problem with the Chinese owners Foresun Group back in China, or some agents allowing them to trade outside the recognised trading terms, will continue to be debated.
However, chief executive Jack Jiang said on Tuesday: “We have invested a lot of money in Tabro Meats, and we are here to stay.”
“As of last Wednesday we have paid all of our creditors and are looking to re-enter the cattle market, maybe as early as next week,” Mr Jiang said.
“We understand we have to negotiate with agency groups to establish acceptable trading terms, and as soon as this occurs we will re-commence processing.
“Foresun Group will operate differently when we re-commence Tabro Meats, looking to expand our product lines. Australia is very important to us, and we will be venturing into Angus and Wagyu production as an extension of our priorities, and will be marketing Australian beef into supermarkets in China in the future.”
Foresun Group is expanding their footprint globally with the recent announcement of agreeing to buy beef slaughtering houses in Argentina, plus a “confinement unit” or feedlot nearby too, according to China Ag.
“We are here to stay, and we appreciate the indulgence of the agents and our other creditors, and would like to thank very much for their patience in this matter,” Mr Jiang said.
Mr Jiang recognised the current market situation, and will be purchasing cows as per previous business, but with the global expansion of Foresun Group, Tabro Meats will be changing its footprint in Australia.
Mr Jiang did say “Opening the Wonthaggi plant is our priority, and when we have accomplished this, we will be looking at our Moe plant. However, Moe will not be reopening in the near future.”
In my opinion, livestock agents and their respective agency groups, should do their best to come up with acceptable terms of trade, as Tabro have repaid all of their debts, which is more than can be said for numerous businesses who have just closed up and left much owing to creditors.
When speaking with Mr Jiang on Tuesday, he was already in the negotiating process. The cattle industry can certainly do with the extra competition, as other processors wind back their working hours.
To quote Mr Jiang: “We are here to stay, and improve our business within Australia, and around the world.”