Processors Remain Impacted by Floods

Article by: Hari Yellina

Beef processing in southern Queensland and northern NSW is in a state of chaos today, following record flooding and rainfall over the past four days. Between 350mm and 600mm of record rain has fallen across large parts of the coastal region, representing the largest concentration of meat processing capacity in Australia. Moreover, devastating floods continue to hit Australia’s ‘golden triangle’ of beef processing capacity in Queensland and northern NSW. From Gympie in Queensland to Casino just south of the NSW border and west to Grantham, the region is home to some of the country’s largest processors. According to the Australian Meat Industry Council, all have been severely impacted by the floods, particularly Gympie, which was hit earliest and worst. Abattoirs and industrial sites are still flooded, with personnel unable to get to work and livestock unable to reach abattoirs. These facilities play an important role in supplying meat to Australian customers through supermarkets and independent retail butchers.

In a statement, AMIC praised Federal Agriculture Minister David Littleproud and Queensland Agriculture Minister Mark Furner for reaching out to impacted businesses and offering assistance right away. “As an industry, we are currently reviewing the short-term as well as the medium to long-term consequences on processing capacity, infrastructure damage, insurance concerns, and access to personnel and animals,” said AMIC CEO Patrick Hutchinson. The affected firms and the Australian meat sector are grateful for the government’s offers of aid, as well as the offers of assistance from our industry partners, but an analysis needs to be done on the damage first before there is a discussion on what assistance is required.

At this point, the severity of the impact varies, ranging from lost processing days to serious damage to critical processing and supply facilities. “Our sector, which supports cattle husbandry and farmers in this country, has once again suffered a setback. It is critical not to overestimate the magnitude of the impact on Australian farmers, producers, and processors. The entire post-farmgate beef supply chain is unsure how much longer it can withstand.