Beef Australia reports loss of $800,000 for 2021 event despite record numbers

The two major events held in Rockhampton in 2021 posted losses of almost $1 million, with COVID-19 partly to blame. Find out the full details and dollar breakdown here.

Two major events hosted in Rockhampton this year have reported a combined loss of almost $1 million, as a result of COVID-19 compliance and planning and other unforeseen costs.

Beef Australia has reported a profit loss of $800,000 for its 2021 event, despite a record 115,866 people passing through the gates.

Rockhampton Agricultural Show also lost $164,335 for the 2021 event, however this a stark improvement from the $315,345 reported in 2019.

It should be noted there was no show in 2020 due to COVID-19.

This information was detailed in different reports in the Rockhampton Regional Council agenda for Tuesday’s meeting.

Beef Australia 2021

Beef Australia board treasurer Richard Brosnan wrote to council earlier this month asking if council was able to withdraw an invoice for $71,273.66.

The invoice, which was tabled in the report, was for electricity, Victoria Park restoration and levelling, irrigation repairs, cleaning wages, repairs and consumables/other.

Mr Brosnan wrote “to date I expect Beef Australia is expecting to report a financial loss of around $800,000 for the three-year event cycle”.

The organisation sustained a number of increased expenses including the extra work undertaken for COVID-19 compliance.

“Whilst we were concerned over the potential fiscal loss if the event was shut down, we took the view and attitude this was a prime opportunity to promote the industry and Rockhampton as well as providing a boost to local business and showcase the ability of the businesses for the longer term benefit,” the report detailed.

Beef Australia also built new wash bays with a cost blow out of more than $100,000 and the total project cost was estimated at $220,000.

It is noted many other organisations and events will be able to benefit from these new facilities.

The letter pleads with council to waive the invoice in light of the benefits the event provided to the region and local businesses.

Beef 2021 attracted a total attendance of 115,886, an increase of 15 per cent from the 2018 event, with the average person visiting the event for 2.81 days.

An economic impact study reported Beef Australia’s direct gross spend in Rockhampton was $8.4m.

The federal government contributed $3.9 million toward the 2021 event, the state government gave $1m and council contributed $200,000.

The matter was discussed during the closed session of the council meeting meeting and it was moved that council will meet with the Beef Australia Board to discuss waiving the invoice.

The council report states if the invoice was to be waived, council’s budget would be impacted by the cost of the Victoria Park work ($16,780.50) and the other costs had already been absorbed in the 20/21 financial year.

Rockhampton Agricultural Show 2021

The annual show returned to council management in 2019 following a fallout with the show society and the showmen’s guild.

The 2021 show recorded an attendance of 33,000 visitors over the three-day event, while the 2019 event had 40,000 visitors.

The council report details the total visitor spend of $1,485,000 attributed to staging the Rockhampton Agricultural Show would lead to a direct impact on output of $1,351,053.

It also states the direct, industrial and consumption results in a benefit of $1.8m to the economy across the Rockhampton region.

The total overall loss from the 2021 show was $164,335 for “actual costs that could be identified. There may (be) other support costs from other areas of council that have not been identified which contributed to the overall event”.

Comparing the revenue of the 2019 event to the 2021 event, the 2021 event had $25,000 less sponsorship, $35,000 less in vendor sites, $25,000 less in state government grants, $4,000 less in nominations and $5,000 less in camping fees.

In expenses, $380,000 was spent on operations and entertainment, around $60,000 less than the 2019 event.