Victoria and Tasmanian meat processors, have cast doubts on plans to set up a new abbatoir on King Island, saying it was unworkable.
Senior staff from both JBS and Greenhams questioned the proposed $10 million abattoir, which was initially believed to have been backed by the King Island Beef Producers Group.
The Melbourne based Evans Agribusiness Trading (the EAT group) has lodged a notice of intent to build an abbatoir at Lymwood, north of Grassy, on the island.
King Island producer Roger Clemons confirmed the plans had been lodged.
“It’s out there,” Mr Clemons said.
EPA spokeswoman Sarah Graham also confirmed the notice had been lodged, adding it could be a year before any determination was made.
“The proposal comprises a slaughterhouse, meat processing works and a rendering facility, with conjoint facilities for composting paunch, treating wastewater and irrigation,” Ms Graham said.
“The proposal would produce a maximum of 10,000 tonnes of product (predominantly beef) per year, with a rendering capacity of approximately five tonnes per hour.”
The plan was first announced about a year ago by the EAT Group – which also owns baby formula manufacturer Camperdown Dairy International (CDI).
It’s believed the plant would process 180 head of cattle a day, for eight to nine months, to produce a 250kg dressed weight carcase.
JBS chief operating officer, southern, Sam McConnell, the market had seen smaller processors, seeking to open up.
“The timing would be the key there, and it’s probably not good,” Mr McConnell said.
Greenham’s livestock controller Graeme Pretty said processors would not stand in the way of any new works, nor would they refuse to take cattle from farmers who wished to supply it.
“We have never made those claims,” Mr Pretty said.
“Farmers are free to sell their cattle, to whoever they want to.”
But he said it was highly unlikely a meatworks on the island would be profitable.
“History speaks for itself – JBS, the biggest processor in the world gave it their best shot and it just didn’t stack up,” Mr Pretty said.
“If they can’t make it work, who can.”
He said it was more economical and smarter to take animals off the island, to a larger plant, with a permanent workforce.
“I wish them all the very best, but really, history speaks for itself.
“It’s got a chequered history and the economics of trying to run an abattoir on a small island like that, just doesn’t stack up.”
Mr Pretty said the introduction of a new ship on the King Island to Tasmanian route would make moving livestock “a hell of a lot easier and a lot smoother.”
He said about 30,000 cattle came off the island, every year.”
Tasmanian Infrastructure Minister Rene Hidding said a new service would replace the Searoad Mersey, due to finish in the next few months.
Port and Coastal Marine Services (PCMS) would work with SeaRoad to provide a twice-weekly run from King Island to Tasmania.
On its website, the EAT group said it had “formed a joint venture with King Island farmers to build a state-of-the art processing plant on King Island.”
The aim was to create an exclusive, branded product for distribution into the world’s most exclusive restaurants and hotels.
It is believed the group has bought a 200 hectare site, on the island, for the proposed abattoir.
JBS closed the island’s abattoir in 2012, with the loss of 80 jobs.
It, and competitor Greenhams, have since shipped cattle off the island.
Cattle are processed at JBS Longford, Tasmanian plant and Greenham’s meatworks at Smithton, Tasmania.
JBS also owns the King Island Beef label, which it acquired with the abattoir, in 2008.
Tasmanian Primary Industries Minister Jeremy Rockliff acknowledged the proposal was one of two, for planned meatworks on the island.
A separate group hopes to set up the King Island Multi Species Abattoir (KIMSA), to kill animals for local consumption and process wallabies, which are seen as an environmental threat.
Tasmanian Primary Industries minister Jeremy Rockliff said attracting private sector investment was a key part of the government’s Agri-Food Plan, to grow the value of the state’s agriculture tenfold to $10 billion per annum.
He said the loss of the island’s major abattoir was a blow to farmers and the local economy had been looking for alternatives, since.
“We are aware of the EAT Group’s proposal to establish an abattoir on King Island,” Mr Rockliff said
“Like any abattoir proposal it is required to go through the normal development and environmental approvals process and ultimately commercial viability depends on the support of farmers, markets and customers.”
Mr Rockliff said the government supported the King Island community, in being able to explore any opportunities to “process cattle, sheep and wallaby for local and interstate markets - which is why the government recently supported the King Island Council to develop a business case for the proposed King Island Multispecies Abattoir.’’
EAT Group directors Phil McFarlane and Gavin Evans declined to comment.
Members of the King Island Beef Producers Group also declined to comment.
