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New export meat processing plant flagged for Goulburn Valley

2005-10-19

Leading Australian meat exporter HW Greenham and Sons is investigating the potential for a new processing plant in northern Victoria.

The company has commissioned a feasibility study into constructing a specialist facility to process grainfed beef for the Asian market, in particular Japan, alongside its existing operations at Tongala.

Managing Director Peter Greenham said that while the timing may seem strange to some, given the current nationwide shortage of livestock and anticipated return of the United States to the Japanese market, the company believed it was essential to look to the future and remain “one step ahead” of its competitors.

“Twelve years ago we opened the first hot boning plant in Australia, following overseas investigations into ways to reduce processing costs and increase competitiveness. The plant at Tongala processes mainly culled dairy cows to produce lean grinding meat for the United States, and it’s been highly successful,” Mr Greenham said.

“But we cannot rest on our laurels. The dairy farmers who supply us have to work at constantly improving their farms, updating technology and assessing their market options to remain profitable, and the meat processing sector is no different.

“So we are looking at building a specialised plant alongside the current operation to process grain-fed cattle for export, capitalising on our existing expertise and resources, and generating even better economy of scale,” he said.

“We already have an existing arrangement with Rob Mackenzie’s feedlot in southern NSW and an excellent relationship with Sumikin Bussan in Japan,” Mr Greenham said.

“Initial negotiations with these parties tell us that there is considerable potential to build on these relationships.”

Mr Greenham said if the development went ahead, it would be a boon to the Goulburn Valley region, generating new employment and contributing to the local economy. The news is likely to be particularly well received in Tongala, where about 150 jobs were lost last month at the local Nestle plant.

A leader in the Australian meat export business, HW Greenham and Sons Pty Ltd represents some six generations of involvement in the meat industry. In recent years, the company has established a reputation for bringing increased competition into the marketplace for farmers, offering services such as a network of local liveweight buying centres to purchase cattle direct, and on-farm pick-up and buying services.

The Tongala plant currently processes more than 24,000 tonnes of beef a year.

Through Greenham Tasmania Pty Ltd, the business also operates a processing plant at Smithton in north-western Tasmania. The failed Blue Ribbon plant was purchased in December 2001, and refurbished to international export standards. Today the plant processes more than 10,000 tonnes a year and supplies quality table beef to Japan and the United States.

Mr Greenham said the company remained committed to both its existing processing plants, and was looking to set up the new plant as a third enterprise to expand the business.