Beef processing shake up for supermarkets

Beef processing shake up for supermarkets


Beef
Changes have been made to contract kill arrangements for both Coles and Woolworths.

Changes have been made to contract kill arrangements for both Coles and Woolworths.

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Both Coles and Woolworths have made changes to their contract kill arrangements.

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Beef processing arrangements for Australia's major supermarkets are going through changes, with both Coles and Woolworths making amendments to their contract kill agreements. 

Woolworths has signed a new arrangement with Australian Country Choice to process their northern cattle supply through their Cannon Hill facility starting from July. 

Meanwhile Teys Beenleigh last week started killing for Coles on a trial basis. It comes after a dispute between Coles and ACC was settled out of court last year, leading to an end of exclusivity arrangements between the operators.  

Woolworths head of meat Chris Croese said the chain entered into a temporary cattle processing arrangement with Teys following the closure of Churchill Abattoir in 2017, while conducting an expression of interest with multiple suppliers for a longer-term solution.

"ACC’s Cannon Hill site is ideally set up to supply product directly into the Hilton case ready processing plant in Heathwood when it comes online," he said. 

"The partnership will allow for the continued delivery of fresh meat to the same high standards our customers have come to expect from Woolworths. 

"There will be no change to our livestock supply arrangements with northern cattle farmers."

It's understood part of the appeal of the Cannon Hill processing site was being able to supply product direct to a case ready meat processing plant, compared to a traditional box meat model boning room. 

Meanwhile Teys Australia general manager of corporate services Tom Maguire has confirmed that a 12-week trial providing 400 head a week for Coles on a single day each week has begun. 

"We're doing everything to make it a success," he said. 

The story Beef processing shake up for supermarkets first appeared on Farm Online.

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