Mark Perkins Report
The State of the Sheep Meat Industry
At the time of writing this report Southern Meats, Goulburn NSW closed their doors for 6 weeks due to a high Australian Dollar and high sheep prices. They were scheduled to recommence production on the 2nd May but made an announcement that they will be closed unfortunately for another 4 weeks. Southern Meats has been winding down production since July 2010 with the majority of employees using up their entitlements during this period which now with this recent closure leaves the employees with no entitlements to fall back on.
Fletcher International, Dubbo is another sheep meat exporter also feeling the pressure from a strong Aussie dollar and inflated sheep and lamb prices. Fletcher International Exports (FIE) made the decision to move production to a single shift operation working 5 x 10 hour shifts so to try and avoid reducing its workforce and to endeavour working 5 days a week.
Rumours have been circulating around the industry that Southern Meats has been sold. At the time of writing this they are just rumours and I for one don’t read too far into these but, given Southern Meats current position there could be some truth in these rumours. If, and I emphasise “if”, Southern Meats is sold I would hope the new company would be able to build the abattoir back into the business it once was for the good of its current and future workforce and for the good of the Goulburn community.
As I reported in the last journal, the national sheep numbers have dropped from 120 million in 2004 to currently 60 million with this number slightly on the rise due to higher stock prices, significant better wool prices and strong demand for Australian sheep meat overseas. Historically, the winter months are a difficult time for processors and if FIE, Southern Meats and some of the smaller domestic processors can get through the winter months, we could hopefully see some good seasons ahead and also some relief for consumers at the counter for Australian lamb. I for one can’t remember the last time I was able to sit down and enjoy a lamb dinner. I walked into a local butcher shop recently and noticed a sign on the lamb cutlets saying ‘lay-by now’, that’s how expensive lamb is at the moment.
I would like to take the opportunity to thank some of the other companies around the region who have opened their doors for the Southern Meats employees, Cargill Beef in Wagga Wagga, Riverina Beef/JBS Swift in Yanco, Junee Meat Processors and Ingham’s Tahmoor.
Just a quick wrap up of some of the other sheds:
We have begun negotiations at Heinz, Wagga Wagga and I look forward to working closely with the delegates and members to secure a favourable agreement.
Cowra Meat Processor is a mixed species shed processing pigs, beef and sheep. Whilst the pig numbers have been strong, unfortunately sheep numbers have dropped leaving the company no other alternative then to stand down some of its casual workforce.
Burrangong Meats in Young are still scheduled to reopen their doors in mid July concentrating on a specialised pig kill and small beef kill.
Monbeef in Cooma are back working 5 days a week which is good news for the employees. I have notified the company of the employee’s intention to begin negotiations for a new Enterprise Agreement and look forward to working closely with everyone down there.
G.M Scotts in Cootamundra are one of the few local sheep processors immune to the troubles facing some of the larger processors. We have just about reached concenses on a new Enterprise Agreement and by the time you read this a new agreement should be in place.
Junee Meat Processors another small sheep processor who also seems to be shrugging off the troubles facing the larger exporters.
Gundagai Meat Processors do a specialised lamb kill for Coles supermarkets. They have a boning room and a value adding department. They too at this point, don’t seem affected by the high stock prices.
Cargill Beef, Wagga Wagga I have met with the company and in the process of organising dates to begin negotiations for a new Enterprise Agreement. Again I look forward to working with the employees and Consultive Committee in reaching a favourable agreement.
Riverina Beef /JBS Swift at the time of writing this journal I have, through the direction of the employees, sent a letter to the company outlining their wish to begin negotiations with the company for an Enterprise Agreement. The employees at Riverina Beef have for the last few years been working as contractors and not employees and as such haven’t had the benefits of Annual Leave, Sick Leave, Long Service Leave and Employer Superannuation Contributions. Currently they are employed as casuals but once an agreement has been formalised the majority of current employees will move to permanent employment and begin accruing entitlements.
In Unity
Mark Perkins
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