Signature Onfarm
Construction of beef processing facility (Investment Decision August 2019). Constructed.
About the Project
Under construction, the project is being developed by the Angus family, a leader in the cattle industry in Australia and will be used by local cattle producers and other branded beef companies to process cattle at an abattoir located closer to their farm. That will result in a reduction in cattle tissue shrinkage during transportation and increased carcass yields for local producers.
Infrastructure
- Construction of an on‑farm, greenfield specialist service, beef processing facility with on-site accommodation for up to 70 employees.
- Other ancillary amenities including office, amenities, lairage, waste water treatment, dry store building, irrigation system and supporting water, energy, telecommunications, road and IT infrastructure.
- The state-of-the-art facility will be able to process 50,000 head of cattle each year, giving Bowen Basin graziers new opportunities for beef sales, slaughter and marketing into domestic and international markets.
NAIF’s Value
Unlike commercial financiers, NAIF’s high risk tolerance in relation to factors unique to investing in infrastructure in northern Australia, supported the construction of this greenfield project located in a remote region and allowed it to proceed.
The NAIF loan will facilitate the establishment in the Isaac Shire region of much needed export-accredited beef slaughter and boning facilities, commercial scale dry aging capability and specialised packaging. Those are crucial elements for development of a premium beef product and will give local beef producers more avenues to market their beef domestically and internationally.
Indigenous Engagement
The project provides strong opportunities for Indigenous employment and Indigenous business participation in the beef supply chain, particularly for Indigenous pastoral enterprises that could benefit from capacity building strategies and commitments to preferentially process Indigenous produced beef.
Signature Onfarm will deliver participation, procurement and employment outcomes through Indigenous enterprise development opportunities including an emerging partnership between Signature Onfarm and Black Fella Beef. A draft Memorandum of Understanding has been developed which will help build Indigenous pastoral capacity and produce an Indigenous branded beef product.
More broadly the project has committed to a 2% Indigenous employment target, being 4 FTEs during construction and 2 FTYEs during operations.
Australian Industry Participation
Australian Industry Participation (AIP) requirements ensure full, fair and reasonable opportunity for Australian industry to compete for work. This includes work in major public and private projects in Australia, and procurements or projects receiving Australian Government funding of $20 million or more.
NAIF projects much comply with the Commonwealth’s AIP policy.
View the AIP Planopens PDF file for this project.
Economic Impact and Public Benefit
- It is estimated that the infrastructure funded by the NAIF loan will generate $63.5m in economic benefits for the broader community over 20 years, including savings in transport costs and increased carcass yields for local producers.
The project will assist the local industry through:
- reduction in freight costs, cutting the number of trucks on the road;
- providing training and development opportunities, focussing on retaining local young people in the beef industry;
- allowing the continued growth and reputation of the area as a premium beef region; and
- facilitating the transport and sale of central Queensland premium beef both domestically and to overseas markets, including China, the EU and Asia.
- The project is expected to create 200 construction jobs and up to 70 ongoing jobs.
The NAIF media release on the Investment Decision to Signature Onfarm can be found here.
Signature Onfarm Beef was established by Central Queensland pastoralists Josie and Blair Angus who say the cattle industry is a key economic driver for Northern Australia and access to local processing has been in decline.
“The loan from the Government’s NAIF alongside our existing financiers ANZ has allowed us to undertake this ambitious project to build a state of the art facility focussing on high quality beef output and maximising farm gate returns,” Mrs Angus said.
“We welcome the work put in by Minister Keith Pitt and Assistant Minister Michelle Landry in continuing to seek improvement in the NAIF to allow more projects across the North to access the facility.
“The beauty of this fund is that the money can keep recycling to generate vital growth in the North.
“We believe funds like the NAIF are vital to support lending in areas that have often been seen as higher risk.” Mrs Angus said.