$12 million loan, interest-free for 15 years – how much interest foregone? At 8% interest, that’s $960,000 annually. JBS Swift is the world’s largest meat company. Market capitalisation (2007 figures) exceeded US$4.2 billion.
A comment from one of Swift’s US employees (Published on Glassdoor.com (see what the employees are saying) :
http://www.glassdoor.com/Reviews/JBS-Swift-Reviews-E15023.htm
Very little communication from top down. Non-traditional working environment. Long hard hours, and pay is minimal. If you are not in the “inner-circle” you are just an employee. There is a sense of teamwork among those you work with, however, you could lose your job at any time. there is no job security with this company. If an acquisition occurs your position may be eliminated. All decisions are about the bottom-line and little information is provided about the overall goals and strategy of the company.
www.jbsswift.com.au
King Island gets $12m abattoir rescue deal
ABC Online: Posted 11.45am
22 Dec 2009
The Tasmanain (sic) Premier has announced a multi-million dollar package to save the troubled King Island abattoir.
The $12 million package is an interest-free loan from the State Government to JBS Swift to ensure it can continue to operate the abattoir on King Island.
David Bartlett travelled to Currie on King Island today to offer the deal which he says will provide certainty for the 100 employees.
“I know it’s been a very difficult time but I hope all King Islanders get to celebrate a fantastic Christmas knowing the abattoir is secure, the jobs are secure,” he said.
The future of the plant has been at risk since March, when JBS Swift announced the loss-making operation could not continue.
Mayor Charles Arnold says the announcement is fantastic news for King Island but has reiterated it is not a financial hand out but an opportunity the Island needed.
“[JBS] Swifts are part of our island, they’re part of our community,” he said.
“To obtain funds in which they can basically extend the factory, they can upgrade the factory, they can make sure that the existing workers are employed and make an opportunity for further workers to come to the island but it has to be paid off.
“Money’s that obtained now have to go back in to the state coffers or wherever they might come from.”
The Premier is also visiting Smithton this morning before heading to Devonport to make an announcement regarding the local surf life saving club.
And, there’s more:
http://www.abc.net.au/news/stories/2009/12/24/2779965.htm
Abattoir rescue details ‘bizarre, concerning’
Posted 24 Dec 2009 at 8am
The Tasmanian Opposition has criticised a loan condition positioning the State Government to buy the King Island abattoir in the future.
The Government has provided a $12 million low-interest loan to upgrade the troubled meatworks at Currie.
If the company closes the abattoir in the next 15 years, the Government will have first option to buy it at a fair market price.
Opposition leader Will Hodgman says that is bizarre and concerning.
“I don’t think it’s the job of the State Government to be saying that as the owner of last resort, that the Labor Party, or indeed any government might take over the running and operations of an abattoir,”
he said.
“I mean this Government, at the end of the day, they’re not good managers, they’re not good on process.
“We want to see the precise detail of this arrangement.”
And yet more …
http://www.bloomberg.com/apps/news?pid=20601086&sid=aPDkeX0jljkU
JBS Buys Tatiara, Becomes Top Australia Lamb Producer (Update1) By Laura Price
Dec. 15 (Bloomberg) — JBS SA, the world’s biggest beef producer, agreed to buy Tatiara Meat Co. for A$30 million ($27 million), making its Australian unit the country’s largest lamb producer.
JBS’s Swift Australia unit will have the capacity to slaughter 24,500 head of lamb a day after the acquisition from Vion Food Group, JBS said today in a regulatory filing. Tatiara Meat processes lamb and sells its products in the U.S., Canada, Europe and Australia, according to the statement.
Sao Paulo-based JBS resumed its global expansion in September after agreeing to buy bankrupt poultry producer Pilgrim’s Pride Corp. in the U.S. and Bertin SA in Brazil. The purchase of Bordertown, Australia-based Tatiara Meat is part of JBS’s plan to grow beyond the beef market.
Tatiara Meat has annual revenue of about A$200 million, JBS said. The acquisition still requires regulatory approval.
http://qcl.farmonline.com.au/news/state/livestock/news/swift-faces-market-abuse-probe/1469353.aspx
Swift faces market abuse probe
PHIL THOMSON
26 Mar, 2009 03:49 PM
Global meat processing giant, JBS Swift, could be called before a
Senate inquiry as early as next week to answer questions about alleged
abuse of market power in Tasmania.
The Brazilian-owned company is under fire on two fronts in the Apple
Isle – for allegedly blocking a family company from buying sheep skins
from its Longford plant and for this week closing its abattoir on King
Island while reviewing the plant’s future.
Managing director of Tasmanian hide and sheepskin processor
Cuthbertson Brothers, Doug Dickinson, alleged his production had
halved because his buyers could not properly tender for skins from the
Longford abattoir, which Swift bought last year, because they could no
longer inspect sheep before slaughter.
Cuthbertson officially complained to the Australian Competition and
Consumer Commission (ACCC) in February that the Brazilian-owned
company was allegedly trying to squeeze it out of the market.
After the latest hearing by the Senate Standing Committee on Rural and
Regional Affairs and Transport into the need for national standards
for meat marketing and branding in Canberra last week, committee
member and NSW Liberal Senator, Bill Heffernan, said Swift could be
called to front hearings in Tasmania next week.
“We want to hear both sides of the story,” Senator Heffernan said.
Swift director, John Berry, this week said the company hadn’t yet been
invited to appear before the inquiry and he wouldn’t comment on the
allegations made against his company.
“We’re promoting competition in the marketplace,” Mr Berry said.
Mr Dickinson said Swift was in the “unique position” of knowing what
price was being offered and was able to outbid Cuthbertson.
“Cuthbertson is literally being priced out of the market and is
suffering significant damage,” Mr Dickinson alleged.
An ACCC spokesman would not say whether the competition watchdog was
investigating the complaint which alleged Swift had breached section
46 of the Trade Practices Act by eliminating or substantially damaging
competitors using unfair advantage. (etc)
And more:
Wednesday afternoon, the government released details of its loan to JBS Swift. The first three years is interest-free.
www.media.tas.gov.au/release.php?id=28879
The loan to JBS Swift is $12 million for a fifteen year term.
The interest rates applicable are:
First three years interest free;
Next six years at cost of funds;
Final six years at full commercial rate.
JBS Swift also runs Longford abattoir, which is involved in a
protracted dispute with hides merchant Cuthbertson Brothers.
http://www.abc.net.au/news/stories/2009/11/09/2737064.htm
Tanner cops a hiding from abattoir
Posted Mon Nov 9, 2009 11:50am AEDT
There is still no end to a stoush between a Tasmanian hides merchant
and an international meat processor after a year of tension.
In December last year, JBS Swift locked Cuthbertson Brothers out of
its Longford abattoir, meaning the hides merchant could not bid on
lamb skins.
Cuthbertsons took the matter to the Australian Competition and
Consumer Commission (ACCC) earlier this year, but there is no
resolution yet.
The skins company now has access to the abattoir again, but
Cuthbertsons has to give any bids to JBS Swift.
Cuthbertsons’ manager Wayne Jones says it means the international
company can undercut them. (etc)
The TFGA tried unsuccessfully to mediate between Swift and
Cuthbertsons but “…Swift directors had given no firm response to
the TFGA proposal, pending the outcome of the ACCC action.”
http://www.getfarming.com.au/pages/farming/news_view.php?nId=9070220
