Beef Processor Warns over Carbon Tax

AUSTRALIA - Australian beef processor Teys has forecast that its energy costs are likely to rise by A$16 million by 2015 because of the new carbon tax.
calendar icon 9 August 2012
clock icon 2 minute read

The beef operation that has six beef processing plants in New South Wales, Queensland and South Australia and beef cattle feedlots in New South Wales and Queensland believes that the indirect impact of the carbon tax will see its energy costs increase by A$3.5 million in the first year, reaching A$16 million in three years time.

According to ABC, two of Teys abattoirs are likely to have a direct liability under the carbon pricing mechanism because they produce more than the levy threshold of 25,000 tonnes of CO2-equivalent emissions.

The Teys Rockhampton plant processes 1,600 head of beef cattle a day and 1,375 head are processed at the Beenleigh plant in southern Queensland.

ABC reports that Teys Group Environmental Manager Charles Hollingworth told beef producers at a recent carbon tax forum in Armidale, in the first 12 months of the tax's implementation, the A$23 per tonne will cost the Rockhampton operation about A$880,000, and Teys' Beenleigh plant faces a carbon tax bill of A$580,000 in the first year.

ABC says that Teys is also concerned the carbon price may affect the consumers' perception of beef as it draws public attention to the processors and products that are carbon intensive to produce.

However,Teys says that there is misconception abattoirs are the big polluters. They account for just two per cent of total emissions from the beef supply chain, the processor said.

Teys said it will have to bear the cost of the new tax because it cannot pass it on to the customers as competitors do not have the same burden and will keep prices down.

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