THE success of the Australian Agricultural Company's (AACo) profitability climb in the next two years could be heavily dependent on government support for its new high-tech meatworks in Darwin.
The $80 million-plus plant is set to play a key role in AACo's pitch to extract potential price premiums of $30-plus a head from overseas meat buyers wanting product from low-carbon production backgrounds.
Apart from being the most carbon-efficient works in Australia, the export abattoir in the Top End will reduce the number of cattle required to be trucked across the continent to east coast plants by about 30 per cent.
AACo estimates the project will enable a saving of 6.5m transport kilometres annually, resulting in huge cuts to carbon emissions.
A local government decision on development approval for the plant, which will process about 135,000 cattle a year, is due later this month.
AACo is in talks with potential joint venture partners, including other Northern Territory beef producers and meat companies, while also leaving the door open for other potential co-investors.
But before the works can be built the beef company needs the federal and Northern Territory governments' assurances to accelerate infrastructure developments to support local industry in the surrounding precinct.
Without key supplies of gas, electricity and water, and upgraded medical facilities near the meatworks site, the project will not go ahead.
Upgraded road access from the Stuart Highway, a railway crossing and provision for 145 refrigerated container power points at the Port of Darwin are also on AACo's wish list.
Managing director David Farley said the additional infrastructure expense was about $35.7m, but these works were already planned for.
"We just need a government commitment to move the plans forward three or four years," he said.
"We'd like to be processing in 2013 and we're willing to work with as many authorities as possible to make it happen, but the project's success is now in the hands of government."
Mr Farley said the opportunity to take advantage of the carbon off-set market overseas, particularly in Europe, would give AACo the chance to utilise its low-emission beef production supply chain as a selling point on export markets.
Current international indicators suggested cattle processed in Darwin could fetch premiums up to $42/head above stock handled through existing Australian meat supply chains.
The abattoir will require about 260 full time staff, but with labour shortages a big issue in the Top End, it is initially likely to be largely staffed by workers flown in from India and the Philippines.
It will process about a third of the aged cow cull from northern Australia, operating double shifts for seven months of the year, a single shift for another month, and closing in the wet season.
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