Logistics News

King Island forum to tackle cattle transport

A workshop will be held on King Island to nut out a solution for transporting 40,000 head of cattle to the Tasmanian mainland following abattoir closure

By Anna Game-Lopata | September 18, 2012
A workshop will be held on King Island to nut out a solution for transporting peak season cattle to the mainland following the closure of the local JBS Australia abbattoir.
The state-of-the-art meatworks, processed 800 young local cattle a week to be sold as prime King Island beef.
The
sudden closure of the abbatoir last week send shock waves through the small bass strait community, leaving as many as 80 of the island’s 1600 residents out of work.
But with peak spring season approaching King Island Mayor Greg Barratt says organising the orderly transport of live cattle to the Tasmanian mainland will be top of the agenda.
“The current shipper, Searoad Shipping and Logistics only makes a weekly trip,” Barratt says.
The annual transport task is 40,000 head of cattle destined for the Brazilian company’s Longford abbatoir near Launceston and Greenhams abbatoir in Tasmania’s north west.
Acting Tasmanian Premier Bryan Green, says the 21 September workshop will work towards a solution.
Invitations have been sent to relevant stakeholders to take part in the workshop, including beef producers, the Tasmanian Farmers and Graziers Association, beef processors, shipping companies, transport contractors, King Island Council, and Meat and Livestock Australia.
The Tasmanian state government is facilitating the workshop, and representatives from Tasports, the Department of Infrastructure, Energy and Resources, the Department of Primary Industries, Water and Environment, and the Department of Economic Development will attend.
“It is envisaged that the agenda will examine a range of issues that will need to be addressed to overcome the transport situation, including assessment of infrastructure requirements, issues with road logistics and what flexibility there is with Meat Standards Australia requirements,” Green says.
King Island Mayor Barratt wouldn’t disclose any hopes regarding what could be achieved at the workshop, but it is understood Tasports is interested in developing partnerships between beef producers and transport providers, especially for the upcoming seven-week peak season.
According to media reports, JBS failed to make a profit from the King Island operations since acquiring it from the Tasman Meat group in 2008.
This is despite committing considerable resources, including a $12 million low interest loan from the Tasmanian government, to upgrade and modernise the meatworks.
JBS chief executive Andre Nogueira reportedly blamed the meatworks shutdown on the high cost of doing business on a remote island, rising power prices, uncertainty of cattle numbers and transport logistics.
He claims it was more expensive to export a container of boxed meat to the Australian mainland from King Island than it was to export it overseas.
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