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Baiada moves ahead with Tamworth investments

Emma Alsop October 16, 2024

Artist’s impression of the Oakburn processing plant currently under construction at Tamworth adjacent to Baiada’s existing rendering plant. Image: Baiada

AUSTRALIA’S largest poultry meat producer, Baiada, is moving forward with a major expansion in New South Wales’ New England region, committing over $300 million to build and upgrade facilities.

It is understood the expansion will see Baiada’s regional grain, pulse and oilseed use will go up to 445,000 tonnes per year.

The family-owned company has also made further smaller-scale investments in the Riverina operations, centred at Hanwood, 5km south of Griffith, but little work appears to be on the cards for its Beresfield and Cardiff sites near Newcastle.

According to documents lodged with the NSW Government, Baiada has indicated that Tamworth and the wider New England region were ideal locations “for expansion and the increase in production capacity”.

The company said the “access to large quantities of locally grown grain including wheat and canola” as well as the “proximity to key NSW markets (including Sydney) and south east Queensland” were key features that underpinned the investment.

“It is rare to have the combination of the assets and infrastructure and presents a unique opportunity to benefit the New England region, and specifically Tamworth from the future demand for poultry products and facilitate growth of the Baiada business,” the document said.

Leading the projects is the $203M Oakburn Processing Plant, adjacent to its operational rendering plant, which is under construction and scheduled to be completed by early 2026.

The plant will have the capacity to process up to three million chickens per week, more than triple Baiada’s existing Tamworth plant at Out Street, close to the city centre.

The Out Street site is expected to be decommissioned once Oakburn starts up.

In a statement published to LinkedIn, Baiada said Oakburn will be the “first of its kind in Australia of this scale” to feature “an online process from start to finish” including complete air chill processing, online bone detection and online traceability.

“The Oakburn facility is not just a processing plant—it’s a symbol of progress, sustainability, and our commitment to providing quality poultry for decades to come,” Baiada Poultry chief executive officer Simon Camilleri said in a statement.

Feedmill plans

To accommodate the increased poultry production in the Tamworth region, Baiada has also submitted plans to construct a new $83.7M feedmill at Wallamore under its subsidiary Tangaratta Stockfeeds.

The new mill will be constructed on the site of the existing mill which has been operated by Tangaratta Stockfeeds since 1975.

It will have the capacity to produce up to 17,500t of poultry feed per week, up from the current facility’s capacity of 10,000t per week.

In planning documents, Baiada has signalled grain used in the mill, primarily wheat and canola, will be sourced from the Tamworth, Moree, Narrabri, Walgett, and Gunnedah districts.

“The economic benefits from the increase in regional grain, pulses and oilseed supply are estimated to be 445,000 tonnes per year (~$180.0m),” the planning documents said.

“The proposed feedmill will be an efficient and modern facility that adopts best-practice equipment and methodologies, reinforcing the area’s reputation as a high-quality, grain production hub.”

The mill will be constructed in two stages with the first section expected to be built in 12-15 months and have a maximum capacity of 12,500t per week.

The second stage will take an additional 12 months to complete.

The Tangaratta feedmill near Tamworth. Photo: Baiada

Broiler farm proposal

The supply of birds will also need to increase to support the processing plant, with Baiada predicting “that around 300 additional poultry sheds will be required to service the ultimate capacity of the Oakburn processing plant”.

“This growth is expected to occur via expansion of existing farms, as well as new farms located on suitable sites, located within a 2-hour drive of the Oakburn processing plant in accordance with animal welfare considerations.”

Baiada also has plans under way to produce additional birds to support the planned Oakburn plant, and recently unveiled a project to construct a $28.5M broiler farm at Appleby, 17km north-west of  Tamworth.

The proposed Silverweir Poultry Broiler Farm will feature 16 poultry sheds and will have a maximum capacity of 960,000 birds.

The company has also applied to upgrade operations at an existing broiler farm in the Tamworth Regional Council area, named Strathfield Farm 4.

Originally approved in 2014, the development will reduce the number of sheds at the site, but maintain the maximum capacity of 588,000 birds.

The development application lodged with the NSW Government said the works will ensure the farm “align[s] with the standardised sheds being delivered in the New England region”.

Baiada is believed to have had an earlier timeline for the New England investments which was stymied by the drought from 2017-19.

Riverina works

Smaller projects are also under way or have been recently completed at Baiada’s Hanwood processing and feedmill operations.

In December last year, Baiada received approvals to increase the processing capacity of the Hanwood plant from an average of 2.8 million birds per week to an average of 3.36M birds per week.

Earlier that year, the company proposed to invest in additional grain silo storage at the neighbouring feedmill.

According to planning documents, storage will double from 6000t to 12,000t.

However, Baiada confirmed that this work will not increase production levels, which currently sit at a maximum of 15,000t of poultry feed per week.

Also in 2023, the company announced construction was under way on two new automated breeding farms in the Riverina.

They were slated for commission in February.

“Growing our presence in the Riverina through the development of these farms is a strategic move that aligns with our vision for growth and sustainability in the region,” the company said in a statement.

Baiada currently supplies approximately 35 percent of the national demand for poultry meat, equating to around 5M birds per week.

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