feedback - Cattlefacts

1 calendar year 2004 presented a set ofextraordinary circumstances for theAustralian meat processing sector andits major packers took up the challengejudging from the results reported in thelatest Top 25ranking. Processors in all quarters of the countryvigorously pursued the opportunities thatwere presented last year by changes inkey international markets. As aconsequence, the top 25 was responsiblefor approximately 76% of Australia stotal red meat production last drought conditions stillprevailing in many parts of the country,processors in all states except NSWmanaged to achieve near-record levelsof beef production against largelyunchanged slaughter figures. Manyprocessors described 2004 as a yearin which the industry struggled to meetthe altered market conditions that haveemerged as a result of bans on USproduct in international IS THIS CALCULATED?

2 The Top 25ranking has been publishedannually since 1991, identifying themajor performers in the industry basedon their throughput levels andattempting to provide some perspectiveon developments in the sector duringthe previous calendar ranking is based on estimatedtonnes carcase weight (ETCW) of beefand sheepmeat of each company in2004. Throughput for plants that havechanged ownership during the year isattributed to the new owners. Credit forservice slaughter stays with the abattoirwhere it is HAPPENED IN 2004?The consistently higher numbers of feedlotplacements in the Australian industrythroughout 2004 have been noted inthe press and in feedback sTop 25 Lotfeeders ranking. For processors in2004 this translated into sustainedcompetition for sufficient numbers ofsuitable livestock.

3 The protracteddrought conditions throughout the year,in combination with high levels ofdemand from North Asian markets,meant that a higher proportion than inprevious years of the total slaughterwas Meat Holdings Pty Ltd (AMH)was confirmed again as the country slargest meat processor. Its four Queenslandplants last year produced an estimated435,000t of beef. The companycontinues to reap the benefits of theexpansion in capacity which took placeat its Dinmore plant in 2002, alongwith re-organised shift arrangements atits Townsville and Rockhampton on Australian Bureau of Statistics(ABS) production figures for 2004,AMH controlled around 43% ofQueensland beef and veal productionor about 20% of national beef andveal production. The throughputincrease of around 35,000t for 2004is roughly equivalent to the productionfrom one mid-sized supplement October 2005 1 TOP 25 PROCESSORS TOP25 PROCESSORSTOP 25 RED MEAT PROCESSORSC alendar year 2004 Processors respond to unique market conditions2004 AT A GLANCE AMH retained the mantle asAustralia s largest processor with435,000 tonnes carcase weight in 2004.

4 The bans on US product in keyworld markets gave Australianpackers and exporters an addedboost last year, with the top 25 stotal red meat production up by 8%. Teys Bros moved to second placewith its re-opened Lakes Creek plant. Higher tonnages put sheepmeatprocessors Fletcher and SouthernMeats into the top 10. The top five companies processedaround 49% of Australia's totalbeef and veal production. The Australian-owned componentof the top 25 throughput hasincreased to an estimated 60%.Meat & Livestock Industry Journal SupplementOctober 2005feedback2feedback supplement October 2005 TOP 25 PROCESSORS Figure 1 top 25 red meat processors for 2004 RankRankOrganisationThroughputThroughput KillNo. plants TurnoverTurnoverEmployee2004 2003 ETCWETCW share %operated$ million (d)$ (a)20032004 (b)in 2004prev.

5 Yr (d)11 Australia Meat Holdings Pty Ltd435,000399, $3,100$2,5004900**23 Teys Bros (Holdings) Pty Ltd205,000166, $929$7372,50032 Nippon Meat Packers Aust Pty Ltd166,500170, $750$7002,20044 Cargill Beef Australia130,000120, $4003751,00055 Bindaree Beef Pty Ltd106,00096, & R (Murray Bridge) Pty Ltd96,23772, $350$3201,20078(e)87,00072, International Exports Pty Ltd74,00084, ,15099 Midfield Meat International Pty Ltd70,00065, $220$2205401014 Southern Meats Pty Ltd55,00046, $1851804801111 Australian Country Choice Pty Ltd53,40052, Beef Pty Ltd52,80052, Greenham & Sons Pty Ltd52,50051, $230$20047014=22 JSA Jackson & Son Pty Ltd50,60034, $185$1655801513EG Green & Sons Pty Ltd49,80046, $1565201615 Kilcoy Pastoral Company Pty Ltd45,60042, $197$1683701717G & K O Connor Pty Ltd40,00038, (e)38,20037, na=19 Stanbroke Beef Company Pty Ltd38,00036, Herd Pty Ltd38,00037, & B Gathercole (Vic)

6 Pty Ltd35,25035, & V Walsh Pty Ltd34,30031, Co-Operative Meat Company Ltd33,64741, $80$907792425 Norvic Food Processing Pty Ltd32,00030, Tatiara Meat Company Pty Ltd31, $189470 Combined Total of Top 25:2,050, $6,81520,604 based on estimated tonnes carcase weight (ETCW) processed at plants under commonownership or control at 31 December share based on estimated national production of beef, veal, mutton and lamb for 2004 of2,685,926 MT carcase weight (Australian Bureau of Statistics figure). company profiles for end-of-financial year details. Most figures are preliminary results for 12 months ended June figures are for the year ended 30 June 2005 unless otherwise not approved by company.** comprises entire AMH operationIn: Stanbroke Beef Company Pty Ltd; Tatiara Meat Company Pty LtdOut: Queensland Beef Company Py Ltd; Valley Beef Pty LtdData compiled by ProAnd Australiafeedback sProduction at the re-opened Lakes Creek,Queensland plant boosted Teys Bros(Holdings) Pty Ltd (Teys) into secondplace.

7 The Rockhampton plant,reported to have the second largestprocessing capacity of any Australianabattoir, had been closed since July2002. Teys turnover for the 2005financial year has surged to almost $1 billion and its throughput levelaccounts for around 10% of Australia sbeef and veal production in higher tonnages for 2004were also recorded by Bindaree BeefPty Ltd (Bindaree), Cargill BeefAustralia (Cargill), T&R Murray BridgePty Ltd (T&R) and a fourth companywhich declined to be identified in theranking. T & R s throughput has increaseddue largely to a full year of productionat its Lobethal, South Australia plant. The top five companies all beef-onlyprocessors were collectivelyresponsible for over one million tonneslast year or slightly under 50% ofAustralia s total beef and veal output,compared with 47% the previous beef dominates the industry andthe ranking, it is worth noting that fiveof the countries largest sheepmeatprocessors are included in the rankingand all reported higher productioncompared to 2003: T&R, FletcherInternational Exports Pty Ltd (Fletcher),Southern Meats Pty Ltd (Southern), JSAJ ackson Pty Ltd (Jackson) and TatiaraMeat Company Pty Ltd (Tatiara).

8 Fletcher s tonnage of 84,450t for theprevious year included an allowancefor production at Mudgee RegionalAbattoir which it purchased in February2004. The plant did not operate in2004. Fletcher s has ranked in the Top10 companies since 1999. There are three multi-species companiesin the Top 10, for which sheepmeat isan important component of throughput:T&R, Midfield and an unidentified AND EXITST atiara, after a one-year absence, re-entered the listing based on higherproduction levels and better thanaverage carcase weights. Tatiararegularly appears in theTo p 2 Beef Company Pty Ltd(Stanbroke) joins the ranking for the firsttime following the buyout of minorityshareholders in Valley Beef CompanyPty Ltd. Stanbroke, now a family-ownedcompany, is the new operator of the former Valley Beef processing plant atGrantham, the ranking is Queensland BeefProcessing Pty Ltd (QBP) which recordedsharply lower throughput in 2004.

9 Theplant at Coominya, Queensland hadfeatured in previous top 25 lists formore than 10 years. It was purchasedfrom a Queensland-based wholesalerby offshore interests in March 2004and closed in July the processing sector during2004 was reasonably stable in contrastto the closures and changes inownership recorded in the two previousyears. At most levels, packers spent theyear capitalising on their sizableinvestments in processing capacity(both new and acquired), recordinghigher throughput and meat FOR MEASURET onnage by the top 25 as a group in2004 increased by approximately 8% on2003 levels, compared to a 5% increasein Australia s overall red meat 2 indicates the respective sharesof the top 25 and the rest of industry inthe period 1999-2004 on a speciesbasis.

10 In line with previous years, thetop 25 accounted for around 80% ofAustralia s total beef and vealproduction in 2004. But it was a different story in regard tothe top 25 s share of total sheepmeattonnage which expanded to around64% of total production compared with58% in 2003 and 45% throughout theperiod , a feature which is notreadily apparent from the top 25 data,but has emerged from ABS figures andfrom feedback received during thecompilation of this year s ranking, isthe increasing predominance of lambin the total sheepmeat throughput (seeFigure 3). The trend is particularlyapparent in NSW where sheepnumbers have been severely affectedby drought over the past four years. feedback supplement October 2005 3 TOP 25 PROCESSORS 0500,0001,000,0001,500,0002,000,0002,500 ,0003,000,000199920002001200220032004 Source: ABS.