WHILE the announcement of a new abattoir proposal for northern Queensland - this time at Julia Creek - has come as a surprise to supporters of a rival bid at Hughenden, they see it as a positive move for the industry in general.
The McKinlay Shire Council convened a meeting between proponents of a meatworks at Julia Creek and a small number of local landholders on Saturday, following Friday’s announcement that it had been in discussions on an abattoir supply chain proposal for around 10 months.
“Until we felt this was far enough along that it may come to realisation, raising the hopes of producers and community was not the right thing to do,” McKinlay Mayor Belinda Murphy said.
“Council has been interested in a viable and sustainable development for some time, and produced a document over two years ago covering the essentials to have ‘in the top drawer’ for investors that came looking, which is what has happened.”
NorthBEEF president Rob Atkinson said his group supported any chance of an abattoir on the Flinders Highway, as long as it was a new competitor and another outlet.
Cr Murphy said the main objective was a better farmgate deal for north west producers through a development that was smaller scale and stretched across an entire supply chain.
“McKinlay has always said the development comes down to where an investor wants to put their money and what is the best fit for them.
“At the end of the day, council is not building a meatworks; a commercial entity is - and as long as producers get a better deal it is about where the investor wants to invest.”
A 2012 Meateng study undertaken for the Qld Department of Fisheries and Forestry looked at potential catchment numbers and estimated value generated for abattoirs sited at various locations, from Longreach in the south to Charters Towers in the east, Georgetown in the north and Mount Isa in the west.
It selected Cloncurry as the location offering the greatest benefit per head at $41.10.
Julia Creek offered a per head value of $36.38 and a potential site at Hughenden offered $24.78 per head, according to the study.
Cr Murphy said the region would benefit from a Julia Creek location.
“We are centred in one of the largest catchments for northern Australia and already have significant numbers traversing the yards and the Julia Creek rail facility is the largest cattle loading facility.”
She added that it was the will and capacity to grow a development such as this into the future that sets the town’s location apart, saying that although the Meateng study highlighted things such as housing availability in Cloncurry, it hadn’t taken house affordability into account.
Mr Atkinson said NorthBEEF’s opinion was that a meatworks should be a little further east.
“The AACo facility at Darwin will suck cattle out of the Barkley catchment.
“When drought comes along you need a good spread to minimise risk.
“Something further east could source cattle from up on the Atherton Tablelands or up the Torrens Creek road from the Barcaldine area.”
He said that regardless of location, it had been NorthBEEF’s intention to start the conversation and that was happening.
“Shires compete for road funding; an abattoir is no different.
“It enhances the prospects when councils are looking at what they can do to attract one to their town.”
Julia Creek graziers have been generally supportive of the announcement.
John Stephens from Cremorna said that over the years graziers had gone backwards as processing plants had all gone south or east and that had to change.
According to James Spreadborough from Spoonbill, 110km to the north of Julia Creek, everyone at Saturday’s meeting had agreed it was a good idea.
“It cuts freight costs for people in a 300-400km radius,” he said. “It beats a 700km trip to Townsville.”
He said the unidentified proponents were fully aware of the competitive nature of the business and said they would resist any takeover.
“They’re not talking a huge scale at the start, 250 a day and building up to 400. They say they have their markets tied up.”
Cr Murphy said Saturday’s meeting was held to gauge initial responses and obtain feedback on supply and pricing models.
“It was just a snapshot of different operations across the shire. If the development moves to the next level of investor commitment, that’s when all the hard work and significant consultation will start.”
