August 1, 2019

By Lynda Kiernan

China’s CNVM Investment has signed a deal with the Flinders Shire Council to advance the development of a $100 million meat processing facility and  feedlot in the town of Hughenden, in northern Queensland, Australia.

Called the Hughenden Processing Facility Project Development Deed, the agreement was signed during a ceremony involving Chinese Consulate officials from Queensland and CNVM’s Miao Wang, who sees the project as a strengthening of ties between China and Australia. 

“This is a very exciting project not only for CNVM and our partners along the supply chain to China, but also for further developing good working relationships between Australia and China,” said Ms. Wang. “We at CNVM are very committed to the Hughenden Processing Facility and feedlot and are looking to complete the approvals and development process as quickly and effectively as possible, and to bringing this project to life for Australia and China.” 

The project is also key for Hughenden, which has seen a decline in its sheep and rail industries, and followed within days of the approval of the town’s A$47 million, 15-mile Irrigated Agriculture Development project, by the Queensland Coordinator-General. 

Construction of the facility, which will be located on a 900-hectare site approximately five kilometers west of Hughenden, is expected to commence in 2020 and be completed in 2022. And once operational, the plant will have the capacity to process between 800 and 1,500 head of cattle per day.

The scale of the project will set a new benchmark for the region, sourcing cattle from a 700-kilometer radius, and providing a boost to not only Queensland’s beef industry, but creating new international market channels too. 

“This is a great outcome for the residents of the Flinders shire and the state of Queensland. This strategic project will stimulate further investment and create much-needed jobs in Hughenden and northern Queensland,” said Jane McNamara, Mayor of Flinders Shire, who noted that the project is expected to generate about 350 jobs. 

“There are no other meat processing facilities of this size in North Queensland. It will be good to give some hope to the producers who have been doing it tough,” she continued.

Additionally, in preparation for future growth, an application has been submitted for approval for a feedlot with a holding capacity for up to 50,000 head. And with the approval of the irrigated agricultural project in-hand, hopes are that the fodder needed will be locally sourced. 

“Importantly this new project will provide the opportunity to expand and develop further export channels and grow the current domestic supply chain for Queensland beef into China.”

– 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.