By Lynda Kiernan

Privately owned, fourth generation Angus Pastoral Company is investing nearly A$30 million (US$20.4 million) to expand into beef processing with the construction of a specialized abattoir and processing plant in central Queensland. 

Founded in 1960, Angus Pastoral has grown over the years to include four properties totaling 400,000 acres across central Queensland on which it runs 35,000 head of cattle.

A number of factors have made the timing of the project rather strategic. As overseas demand for Australian beef continues to rise, shipments from Australia to China jumped by 50 percent in the first half of this year, reports AFR. China, which was once Australia’s third biggest export market, has now risen in ranking this July to become the top destination market.  Furthermore, as the continued spread of African swine fever in China is pushing consumers away from pork to beef, the higher offshore demand is happening at the same time that drought conditions in Australia are cutting the availability of feedstock, resulting in higher grain prices and curtailed cattle production. 

Located on Angus Pastorals’ Sondella Station, in a remote area 125 kilometers northwest of Moranbah, and 200 kilometers southwest of Mackay, construction on the A$27.9 million (US$19 million) project is expected to begin in November, and take 13 months with an expected operational target of January 2021. And although others have upgraded or retrofitted abattoirs in Queensland in the past, this project represents the first greenfield project of its kind in the state since the 1990s, according to Beef Central. 

After four years of planning and due diligence, once completed, the plant, which will be immediately adjacent to an Angus Pastoral feedlot, will have the capacity to process 200 head of cattle per day, and will eliminate the need to transport animals up to 1,250 kilometers for processing.

“It’s been a big journey to get to this point,” Josie Angus told the North Queensland Register. “The whole premise for us is about maximizing the value of each animal we put through.”

“Due to the property’s relatively remote location, the on-farm abattoir project will also include the construction of a workers village to cater for up to 70 employees, including abattoir workers and their support staff,” noted Cameron Dick, Minister for State Development and Manufacturing. 

Amid a landscape of the aforementioned conditions, this investment will create valuable vertical integration for Angus Pastoral, which has building overseas markets for its Signature Brand products over the past 13 years.

“At Signature Beef we pride ourselves on our quality, and having the abattoir just 500 meters from the feedlot will improve animal welfare resulting in a superior finished product,” said Blair Angus, co-owner and manager of Angus Pastoral Company. 

Integrated in the design of the project will be cutting-edge technology that will enable greater supply traceability and a high level of bespoke capability.

“Everything is cellular design so you can be running a different spec on each individual animal and it doesn’t then affect the overall productivity of the boning room because it is that cellular design,” explained Josie Angus, reports Beef Central. “It is basically one team of people working on one animal rather than a chain scenario.”

 

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.