Abattoir would benefit cattle producers: report

An independent report commissioned by Australia's largest cattle company says many northern pastoralists would benefit if a big abattoir is constructed in the Northern Territory.

The Australian Agricultural Company (AACo) plans to build the abattoir at Livingstone, south of Darwin, at a cost of about $80 million.

At full production, AACo says it would process about 180,000 beasts a year.

Economic consulting firm, ACIL Tasman, reported that the abattoir would deliver substantial benefits for the northern cattle industry.

Report author Mark Barber says by selectively sending older stock to an abattoir, mortality losses would be decreased and herd fertility improved.

"Then you will start to see more calves on the ground," he said.

"The economic impact is quite substantial for individual producers but also for the industry as a whole."

Mr Barber says the meat processing plant would strengthen the northern Australian economy by about $126 million a year when fully operational.

He says it has the potential to employ 270 people at the plant and 800 people indirectly.

The report says a local abattoir would lessen the north's reliance on the live cattle export trade.

Source: ABC News, 15 August 2012