Gladstone Beef


 

PROJECT: Gladstone Beef

A vertically integrated beef business (breeding to processing to export).

Situated on a freehold land of 340 hectares and leasehold land of 96 hectares.

Stage 1

► Sourcing composite cattle  breeds from north and south  of the Gladstone Beef site.  The composite breeds  produce high quality /  premium beef products for  select Asian markets.

► Underpinned by a long term  pricing supply model to offer  greater certainty to both the  cattle producer and the  processor.

► The objective of the dual-  regional (north and south)  supply strategy is consistent  year round supply and reduce  exposure to climatic risks.

Stage 2

► An integrated and highly  efficient class leading  processing and distribution  facility.

► Capacity for 600-1,200 head  per day.

► Adopting latest renewable  energy technologies to  generate own power needs  and waste processing and  recycling.

Stage 3

► Production of boxed beef  products supply into high  value consumer markets in  select Asian countries.

► With long term supply  agreements with a limited  number of sophisticated in-  country wholesale customers  who have an effective and  efficient in-country supply  chain.

 

A vertically integrated beef business – via a mix of 100% asset ownership and long term strategic partnerships with  other vertically integrated beef producers has the opportunity to:

►  Drive a lower and stable overall cost of production.

►  Achieve consistency of supply.

►  Greater pricing certainty for cattle producers, the processor and the wholesale customer.

 

 

Strategic Location

The location of  Gladstone Beef is  strategically well  placed for the efficient  supply of cattle and  export of final beef  products to key Asian  markets.

Gladstone Beef is located:

►  in the Fitzroy region, Australia’s largest beef  cattle region.
►  for efficient and cost effective transport of  cattle for processing and export of beef  products to key Asian markets – currently,  northern cattle producers truck export quality  cattle to Brisbane for processing and export,  which is a six hours drive south of Gladstone.

►  in close proximity to the Port of Gladstone,  with refrigerated containerised facilities  planned to support growing regional  industries.

►  with access to a skilled manufacturing  workforce in Gladstone.

 

 

Strategic appeal of the Gladstone Beef site

From the perspective of  major vertically  integrated producers of  composite cattle, the  Gladstone Beef location  has merit with respect  to shorter and thereby a  more cost efficient  route to market.

The location of  Gladstone Beef also  lends itself to securing a  sustainable supply of  cattle.

Critical for the efficient operation and sustainability of beef  processing facilities/operations is the ability to consistently source –  week-in-week out – the ‘right’ quality cattle at an acceptable  cost/price.

The geographic location of Gladstone Beef supports a dual-region  supply strategy – sourcing both southern cattle and composite  breeds from the north through to strategically located feedlots.

The dual-region supply strategy reduces the processing facilities  exposure to:

► Variability in seasonal condition; and

► Volatility in pricing.

Preliminary discussions with a cross section of supply chain  participants – including vertically integrated producers and feedlot  operators identified Gladstone being an ideal location for export of  beef products, and there would likely be interest from major  vertically integrated producers and other supply chain partners to  invest in their own assets to be part of an integrated supply chain  into a Gladstone processing facility.

The Gladstone Beef site is favourably located 12km west of  Gladstone, Central Queensland, and sits in the heart of Fitzroy  region. The site:

► Has direct highway access, main road frontage and direct access  to a rail siding;

► Has major arterial road networks for the efficient transport of  supplies and products; and

► Is in close proximity to the Gladstone Port facilities for export of  products via container ship – the Gladstone Ports Corporation is  receptive to investing cold storage facilities and associated  infrastructure at Auckland Point, subject to sufficient volumes.

 

 

Site and facility

The 436 hectare site is  zoned High Impact  Industry. The Gladstone Beef  processing facility is  designed as a ‘class  leading’, in contrast to  many existing outdated  processing facilities in  Queensland.

► The physical site of the facility has a capacity to process in excess of  1,200 head per day. The proposed operation will see 800 head per day  processed over a single shift with a total of 307 operational staff.

The ‘new generation’ processing facility is designed to deliver a low cost of  production via:

► Minimising labour and/or wastage – by integrated and automated/robotic processing, storage and distribution. The proposed equipment and  saystems adopted in the facility is designed to improve efficiencies in the  boning room of between 15% and 30% relative to current practices and  systems adopted in current facilities.

► Adoption of renewable energy including:

–An on-site solar farm with 78 mega watt capacity;

–A hydrogen plant utilising waste water from the processing facility,  working on a 6 hour shift, producing 2,053,000 kg of hydrogen per  annum;

–A biodigester for gas generation to boiler equipment; and

–Sustainable waste processing and recycling facilities with zero waste  to landfill.