AACo ready to begin work on northern abattoir

One of Australia's largest beef producers says it will complete the construction of an $85 million abattoir and meat packing facility south of Darwin within the next 12 months.

Once completed, the plant will process up to 200,000 head of cattle a year.

The Australian Agricultural Company (AACo) says civil works for the project will start in the next fortnight at Livingstone Valley, about 50 kilometres south of the Northern Territory capital.

It will be the first major meat processing operation seen in northern Australia for many years.

AACo is still believed to be looking to attract investors to the project but the decision to start work signals that it is prepared to go it alone.

AACo chairman Donald McGauchie says talks are still being held with the Commonwealth and Northern Territory governments about providing extra funding for support facilities.

Much of the meat processed at the plant is expected to be earmarked for overseas exports, mostly to Asia.

The abattoir will provide a marketing option for northern beef producers, who have been relying heavily on the live cattle export trade.

It is expected to serve cattle stations in the Territory as well as parts of Western Australia and Queensland.

AACo says the facility will create 260 direct and a further 530 indirect jobs, and inject more than $120 million a year into the local economy.

AACo operates 19 cattle stations, two feedlots and three farms in the Territory, Western Australia and Queensland.

Its operations cover 7.2 million hectares, or about 1 per cent of Australia's land mass.

Source: ABC News, 19 October 2012