The Victorian chair of a leading Australian organic certifier says a Kyneton abattoir may have moved too quickly, in stopping small "service" kills at its plant.
Hardwicks has told small producers it'll no longer accept small drafts of organic cattle and sheep for processing.
The company was bought by Kilcoy Global Foods, in July, 2021, and takes organic sheep and cattle from as far away as southern NSW, South Australia and a large part of Victoria.
Australian Certified Organic is the country's largest industry-owned organic certifier.
ACO chair Wayne Shields, of Peninsula Fresh Organics, Baxter, said the price for organic beef and lamb had been on a par with conventional meat for several years.
That had changed recently, as the price for conventionally raised cattle and sheep dropped dramatically.
"I'm seeing an increase in applications for organic certification in the beef and lamb sector, already," Mr Shields said.
"With the price of cattle and sheep collapsing, there is a bit of a rush from all those guys wanting to jump back onto their organic certifications to help gain premiums. Suddenly, there is a 50 per cent premium for organics there now, which wasn't there a year ago.
"There is certainly big demand for Australian organic beef, around the world."
It had been tough for Hardwicks, over the last few years, with organic products selling at parity to conventional meats, he said.
"Why would you bother being organic, with all the paperwork, when you can get the same premium for conventional products?," he said.
"That's just changed, so they have probably moved a little bit early, if you ask me - they haven't read the play that well," he said.
"Inquiries for organic certification have started to lift - we know how it works, because we have seen it all before."
He said he expected Hardwicks may rethink its strategy, as demand for kill space grew.
Dadswells Bridge organic producers Peter and Leanne Jackman run British breed, second-cross bio-dynamic lambs and Angus/Hereford cattle.
He runs about 2000 sheep and 60 head of cattle, selling lamb and beef into butcher shops in Melbourne and Sydney.
Mr Jackman described the decision as "disappointing."
He said he worked through Janie McClure's Organics for Rural Australia (ORA), who supplies markets in Melbourne and Sydney.
"The options for us have been cut down quite considerably, if we can't get them to take our stock," he said.
Hardwicks offered the advantage of closeness, he said.
"From here, its more than two and a half hours to Hardwicks and the other option for us is Radfords, at Warragul, which is more than five hours for us," Mr Jackman said.
"That's potentially five and half hours each way, with stock on the trailer for a long time and the cost is quite a bit more.
"It's not convenient at all, for us."
He said he usually took about 30 lambs and three to four vealers down to Kyneton.
"In the interim, I guess we will take a few loads to Warragul and I might have to consider raising the number I take - perhaps a ute load as well as a trailer load, and make it up to 40 or 45."
He said organic sheep, lamb and cattle prices had previously been on a par with conventional animals, a premium for organic stock had recently opened up.
"When stock prices have been really good, there is not a lot of difference, especially when you take travel costs into account," he said.
"But at the moment, especially with sheep and mutton, the organic premiums certainly make it well worth while."
Radford's Warragul managing director Rob Radford said several organic producers had approached his company, after Hardwicks made its decision.
"Obviously, there is an added cost for them to cart their stock," he said.
"We used to process for ORA before and we are happy to talk to them again."
He said he had no thoughts or comment on why Hardwicks had made the decision.
"It's their decision they want to back away from contract work and I respect that," he said.
Mr Radford said the organic business was growing, particularly for one of his main suppliers, Cherry Tree Organics, Tarwin Lower.
"There is a demand for it, that demand in Sydney is growing as well, people are more conscious of what organics are about."
Radfords had held an organic certification for more than 20 years, being one of the first abattoirs in Victoria to do so.
"We have picked up a lot of business from guys who have decided not to do contract work, over the years," he said.
"My middle management team tells me there have been a number of phone calls, so we will negotiate what we think is a reasonable price to service that business.
"Some of it is exported, we can do Tier One (export accredited) some of it's going into the Sydney markets and we cover all those areas - we have always done a lot of contract business for small operators."
Neither Hardwicks, nor KGF, have responded to Stock & Land.
Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
