Greenham Tongala cow processing plant shuts amid coronavirus, dairy farm exits

The livestock industry and local community have reacted to Greenham’s closure of its Tongala cow processing plant.

The Greenham abattoir in Tongala pictured in 2011.

THE closure of Greenham’s cow processing plant at Tongala has surprised the livestock industry and left Goulburn Valley community leaders calling for support.

The closure of the plant, with more than 60 people expected to lose their jobs, was announced yesterday. It is one of the main employers in the town.

Elders Shepparton livestock manager Andrew Kyle said the decision came as a surprise, with many people unsure what the closure would mean for producers.

“No one knew it was coming … I haven’t spoken to anyone that can say why this was done,” Mr Kyle said.

He said Greenham were an “essential part” of the Shepparton saleyards, buying cattle throughout the year.

“It does vary, depending on their orders,” Mr Kyle said. “But they do buy cattle from a long way away, up as far as Alice Springs.”

Campaspe Shire councillor Daniel Mackrell said the shift away from dairy in northern Victoria and the knock-on impact of the 2016-20 drought had dwindled stock numbers across the broader region.

He said the announcement was a key talking point at a meeting of Tongala’s development association last night.

“There have been moves at Greenham’s before when cattle numbers have gone down – three day a week rosters and that type of thing. This is a step further than that, so it will have a big impact,” Cr Mackrell said.

“The impact is not only those that have lost their jobs but the small businesses around the area too – the local bakery, the local fish and chip shop.

“We’ve also seen Nestle wind down its operations in Tongala, so we’re hopeful that another business sees the potential here and is keen to invest.”

Greenham group general manager operations Tom Maguire said in a statement to media that the impact of coronavirus on meat markets across the globe and the exit of many dairy farms in the region had caused the export manufacturing beef business to become uncompetitive.

“With a heavy heart, we announce the closure of the current cow processing facility at Greenham Tongala,” he said.

“This has unfortunately resulted in some job losses.

“We are doing everything we can to provide support and assistance to our people in this time, including offering relocations to our Smithton and Moe facilities.

“We know a bright future lies ahead for Greenham Tongala and we are currently considering all options for the site.”

Sixty-five jobs will be lost, according to local media reports.

Australian Meat Industry Council chief executive Patrick Hutchinson said the enduring impact of the pandemic was a key factor putting pressure on the livestock industry.

“We’re an exporting nation. The facility at Tongala processes cow beef … our number one hamburger nation is the US and they are going in and out of lockdown … they’re eating their own cows at the moment,” Mr Hutchinson said.

“We’ve also got a strong Australian dollar, there’s increased competition for that sort of product, and especially in Victoria the number of dairy cows has reduced.

“There are a range of structures which impact on the overall viability of that business alone … and it’s all happening at once.”

Campaspe Shire deputy mayor Leanne Pentreath said the announcement did not necessarily spell the end for cattle processing in Tongala.

She said unproductive cattle would be transported further afield but the Tongala site had the potential to be reopened in future.

“It’s cyclic – once things start picking up again, there’s certainly the potential to reopen. It’s all about stock supply,” Cr Pentreath said.

“In the meantime, it’s going to have a big impact on the town, particularly the people that have lost their jobs.”

The Greenham Tongala operation buys cows from more than 4000 mainland and Tasmanian suppliers, according to its website.

The plant, established in 1993, processes mainly cast-for-age dairy cows and bulls of all ages and sizes for lean manufacturing beef to established US customers.

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