Week Ending 25/5/18
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One of the worst-case scenarios for the top end cattle industry has occurred in recent days with the announcement that the Livingston Beef Abattoir south of Darwin is to be closed and placed in a situation of care and maintenance for the foreseeable future.
Spokesman for the AACO owner of works detailed a list of problems which had contributed to the shutdown.
We should wonder whether of not due diligence was carried out when the original idea was floated because many of the problems noted have been on-going for abattoirs in the North since the first were built after the second world war.
The wet season which can last up to five or six months has always been a major issue lack of quality labour, high cost of everything including power, water, transport etcetera, but these are problems that have been there forever.
Company losses in parts caused by Livingston Beef have to be substantial in recent times and no doubt have dented the value of the shares and share-holder returns.
Initially other companies may have had some interest in a Northern Beef processing facility but probably thought better of the scenario when all the potential problems were thought through the groups behind the push to facilitate a shed somewhere in Central Queensland should also draw breath and consider all the possible hurdles that they may face in this type of venture.
One commentator has suggested that the answer may be a government funded abattoir somewhere in East Timor or a similar location.
This theory would produce a host of different problems all of its own, but after some teething problems the idea may have some merit.
The boat trip may be only one-and-a-half to two days, labour would be plentiful and overall costs should be somewhat contained compared to here in Australia.
The trouble with no killing facility in the Top End or nearby is that old cows and bulls are bushed and left to fend for themselves with the obvious end result.
Cartage cost to transport these particular cattle to East Coast abattoirs is horrendous. Government of all persuasion usually can find money for schemes far less important than our northern cattlemen.
Done right this just may be a winner for all concerned and provide another reason for better relations between ourselves and one of our very near neighbours in the form of a very constructive project to improve the standard in living in the host country.
Dubbo agents have drawn for 6300 cattle for the sale on Thursday, May 24, down 1800 head on the previous weeks draw.
Markets across the eastern states were mostly softer in the early parts of the week.
Many graziers sending mixed consignment of lambs and mutton to Dubbo last week may have noticed a trend which rarely occurs.
On numerous occasions their best mutton would have returned far better results then their top pens of lambs.