HIGHER cattle throughput and the restoration of the plant’s China licence have helped deliver a solid $6.701 million pre-tax profit for the Casino Food Company beef processing business in northern NSW, for its financial year ended 30 June.
The profit result – the first delivered by Casino Food Co since the business migrated from its 90-year-old cooperative structure to become an unlisted private company in May – was built on a positive EBITDA of $14.5 million.
The lates result comes on top of a $4.5m profit the year before, despite global market conditions and ongoing geopolitical uncertainty, the company said.
The past two financial years are in stark contrast with the two years prior to that, when losses of $11m and $7.9m were recorded, following the loss of the plant’s China license, and lower throughput as national herd rebuilding took place, as some service kill customers were forced to shift to plants with access to China.
Casino, along with four other suspended Australian beef plants, re-gained China access in May last year.
Simon Stahl
As a result plant throughput is well up for the year ended June 30, with the back half of the year 25pc higher than the same period a year earlier, chief executive officer Simon Stahl told Beef Central.
Current operating capacity is around 7500 beef (including yearling and veal) a week. That’s the highest rate of throughput seen at the plant since the drought years of 2014-15 – even higher than the 2019 drought when numbers peaked at a level around 6500 a week, limited by labour challenges.
This year’s expanded throughput is being driven by higher rates of kill of CFC company-owned cattle, as well as growth among existing service kill operators.
As any meat processor knows, high utilisation of production capacity is critical in maintaining plant operating efficiency.
Another factor has been the gradual buildup of the workforce, which has now been restored to close to full capacity, after considerable expenditure on accommodation.
Mr Stahl said the strong result was due to a steady increase in livestock supply that has ensured consistent production at the Casino facility throughout the year, coupled with efficiencies and targeted investment in plant and operations.
“The company is in a solid position due to our focus on growing and skilling the workforce and prioritised capital investment to ensure reliability of supply to our domestic and international markets,” he said.
Casino Food Co employs more than 1200 people across the Northern Rivers and is one of the largest private employers in NSW north of Port Macquarie.
“As part of being future-focused, we are continually innovating in terms of employee recruitment, up-skilling and retention because it is essential our plant and operations are continually at peak efficiencies,” Mr Stahl said.
Renewable energy focus
Another aspect of the company’s future focused strategy is the investment in the Casino Biohub renewable energy project, built around methane gas collection from settling ponds and re-use. First earthmoving for that project is due to start next month.
“We align with industry standards in environmental sustainability, and the Casino Biohub is essential to Casino Food Co’s commitment to emissions reduction,” Mr Stahl said.
Further expenditure will be made in upgrading the plant’s boning room and carcase chillers.
Acting CFC chairman Lennard Blok said the company’s focus for the upcoming year was on reinvestment in the plant and operations, maintaining market presence in export destinations and supporting workforce growth and development.
“We know this is central to ensuring operational excellence, sustaining our strong global reputation, and protecting long-term shareholder value,” Mr Blok said.
Casino’s 500 producer shareholders shared in a $1 million dividend this year, working out at an average of $2000 per shareholder.
CFC will not hold its normal November annual general meeting this year due to the business transition, instead being held over until the back half of 2026.