Transforming the Pilbara Pastoral Industry - A TRANSFORMATIONAL PLAN TO DEVELOP A WORLD-CLASS WAGYU BEEF INDUSTRY FOR THE PILBARA AND WESTERN ...
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Transforming the Pilbara Pastoral Industry A TRANSFORMATIONAL PLAN TO DEVELOP A WORLD-CLASS WAGYU BEEF INDUSTRY FOR THE PILBARA AND WESTERN AUSTRALIA
“
Pardoo Beef
Corporation is leading
transformational change
in the Pilbara to produce
purebred Wagyu beef
for domestic and
international markets
and bring jobs to
the north.”
Bruce Cheung, Chairman
Pardoo Beef Corporation
2
MESSAGE FROM THE CHAIRMAN
A vision to transform
With a successful international marketing and commercial track record behind me,
I decided in late 2014 to make an investment into the Western Australian beef
industry. After searching the world for a suitable investment location, I chose to
focus on the Pilbara, the engine room of the nation, at a time when the economy
was still reasonably buoyant.
It is already three years since I arrived at the Pilbara. A consistent award winner at the
Pardoo and laid the foundation for what Australian Wagyu Association (AWA) Branded
is now an innovative Wagyu operation, Beef competitions, our Pardoo Wagyu beef
poised to transform the Pilbara’s economic has been well received in Shanghai, Beijing,
fundamentals through intensive irrigated Shenzhen, Seoul, Singapore, Hong Kong and
agriculture. Australia.
This has not been without its challenges Western Australia’s economy is back on an
and I have embarked on a learning process upward trend with agriculture a recognized
about Wagyu genetics, breeding, feeding and growth sector. Pardoo Beef Corporation is
processing while developing brands for our invested in the region and irmly believes in
discerning international customers. creating an Exclusively Pilbara Wagyu product
With support from the three tiers of that will train and develop the local workforce,
government and industry partners, we have making the Pilbara region and Western
forged ahead with nearly 900 hectares under Australia proud.
irrigation, holding 6000 Wagyu cattle to be I invite you to join me on this exciting journey.
ready for market by 2021.
To become the regional hub, we will expand Bruce Cheung
our operations to include nearby pastoral Chairman
and indigenous country in the Kimberley Pardoo Beef Corporation
so that we may reach our target of 21,000
Wagyu animals per annum by 2024. I bring
to the region strong access to China and
Asian markets, home to forty per cent of the
world’s population and within easy reach of
3
Leading
AgTech Innovation
Australia is creating and implementing
solutions that enable farmers and food
producers to manage key challenges
to increase production while managing
scarce resources and responding
to evolving consumer demand for
food that is healthy, convenient and
traceable.
Pardoo Beef is at the forefront of
these innovative practices and was an
early adopter of digital applications in
agriculture. Through a collaboration
with Meat & Livestock Australia (MLA),
the company is using the latest in
cattle performance measurement
technologies to deliver a premium
Wagyu beef product characterised by
superior marbling to market.
There are certainly challenging times
ahead but with vision and drive we look
forward to the coming years.
Bruce Cheung
Chairman and CEO
Pardoo Beef Corporation
4
Connecting the
Pilbara to Asia
CAPTURING THE GLOBAL MEGATREND
By 2020 the economies of Asia will people propelled into the consumer
be larger than the rest of the world segment.
combined.
Southeast Asia alone had some 80
Asia is on track to top 50 percent of million households in the consumer
global GDP by 2040 and drive 40 segment just a few years ago. This
percent of the world’s consumption, number is on track to double to 163
representing a real shift in the world’s million households by 2030, with
centre of gravity. Indonesia, in particular, generating
tens of millions of newly prosperous
With the global population expected consumers.
to reach 8.5 billion people by 2030,
65% of the world’s 4.9 billion middle- With $1 billion worth of sales in 2018,
class will reside in Asia. China has become Australia’s fourth
largest beef export customer, with
China is now the number one year-on-year export growth of 55
importer globally of beef with record percent from 2017 to 2018. A number
levels of greater than 104,000 tons of of Free Trade Agreements which
beef each month reaching households Australia has in force with Asia and
with incomes over $35,000 per year, ASEAN will further facilitate export
accounting for about 8 million people, growth from the region.
a number which is set to double over
the next four to ive years.
The growing Asian middle class will
soon be 3 billion strong with 1.2 billion
Chinese chefs, Pardoo-sponsored WA Food Experience, Shenzhen, April 2016 5
“
The signiicance of Pardoo's beef
enterprise is its development
of a major secondary industry
$1 billion
Australian beef exports
KOREA
in the North of WA. Agriculture to China in 2018
and particularly meat production CHINA
have one of the highest economic
multipliers and at this proposed 66%
scale the project will be a major of the world’s middle class
employer for the region." will reside in Asia by 2050
Hong Kong
Hon. Linda Reynolds
Senator for Western Australia,
8.5 million
Minister for Defence. tons of beef consumed
in China in 2018
Singapore
Pardoo
WESTERN
AUSTRALIA
30 years
Pardoo Beef Corporation brings
over three decades of Asian
market access and marketing to
the Pilbara beef industry
6
Research and Development INNOVATION IN AGRICULTURE Investment in research and development (R&D) and innovation is vital for ongoing growth and improvement in the productivity, profitability, competitiveness and sustainability of Western Australia's agricultural sector. Working with government, partners, industry associations and specialist researchers, Pardoo Beef Corporation will create an intensive Wagyu production outside of Japan, while monitoring breeding and herd genetics to develop the finest quality Exclusively Pilbara Wagyu. “ The Pardoo project is an outstanding example of internationally driven regional development in partnership with our irst nation's people; challenging the norm of 'business as usual'; diversifying the economic opportunities in the Pilbara; providing local jobs and economic beneits; and sustainably accessing WA's resources." Minister Alannah MacTiernan, Minister for Regional Development; Agriculture and Food; Minister Assisting the Minister for State Development, Jobs and Trade 7
“
“Sustained economic
and social advancement
Unlimited potential for development of our
communities, including
indigenous Australians
THE PILBARA, WESTERN AUSTRALIA AND PARDOO STATION remains a priority for the
Australian Government. I
look forward to continuing
The Pilbara is a region of striking beauty and abundant natural resources. to work with Pardoo Beef
The groundwater reserves of the of just 240,000 animals. In contrast, the
Corporation to position
region’s West Canning Basin have similarly sized Kimberley region to the Northern Australia to take
the potential to sustainably irrigate north has a cattle herd of 706,000. advantage of future growth
thousands of hectares of crops.
Like the Kimberley, and most of opportunities."
World-class road, port, rail and air northern Australia, the existing Pilbara
transport infrastructure, and the same herd is predominately focused on the
Hon. Matthew Canavan
business time zone as approximately live export of cattle.
Minister for Resources and Northern
60 percent of the world’s population,
By using water to produce feed year- Australia
provides unparalleled connectivity to
round, leading genetics to fast-track
international markets.
the establishment of a purebred
With middle-class incomes booming Wagyu herd and strategic partnerships
across Asia and regional food demand to build economies of scale, Pardoo
expected to double by 2050, the Beef Corporation will transform the
Pilbara is ideally positioned to take productivity and proitability of the
advantage of a diversiied economy Pilbara cattle industry.
through agriculture. With 200,000 hectares of prime
Although the region covers more than grazing country and signiicant water
500,000 km2, or 20 percent of the resources, Pardoo Station will become
State’s landmass, the under-developed a communal irrigation precinct and the
Pilbara rangelands support a cattle herd hub for this transformation.
8
Kimberley land area 425,500 km2
Kimberley beef cattle herd 706,000 KIMBERLEY
Pardoo
PILBARA
PILBARA LAND AREA
508,000 km 2
PILBARA BEEF
CATTLE HERD
240,000
9
Transformational change
THE PARDOO VISION
Taking the Western Australian pastoral sector to new heights, Pardoo Beef
Corporation will pioneer a shared investment of approximately $200 million in the
Pilbara region, provide access to new markets and engage with the State and the
region in a strong diversiication move from live cattle exports.
With a goal of establishing a regional Wagyu Boxed beef will be sold into lucrative Asian
breeding herd of 100,000 animals, Pardoo markets under the Exclusively Pilbara Wagyu
Beef Corporation’s vision will be achieved brand, consisting of Platinum (marble
through a long-term strategy. score 9+), Premium (marble score 5-9) and
Choice (marble score$12.3 billion public beneit over 20 years to the Western Australian economy, “
The Commission acknowledges the
and $4 billion increase in net income to the WA economy. potential of the signiicant changes
being implemented by Pardoo Beef
YEAR Corporation to improve and grow the
region’s beef and pastoral industries.”
2021 (PARDOO & REGIONAL)
Water: 25GL
Irrigated ha: 1,600ha
Terry Hill, CEO, Pilbara Development Commission
Total Wagyu Breeders: Total Wagyu and Wagyu First Cross turnof: 7,000
10,000
2024 (PARDOO & REGIONAL)
Water: 35GL
Irrigated ha: 3,000ha
Total Purebred Wagyu Total Wagyu and Wagyu First Cross turnof: 16,000
Breeders: 15,000
2028 (PARDOO & REGIONAL)
Water: 50GL
Irrigated ha: 3,800ha
Total Wagyu Breeders:
25,000
Total Wagyu and Wagyu First Cross turnof: 35,000
2033 (PARDOO & REGIONAL)
Water: 100GL
Irrigated ha: 6,000ha
Total Wagyu Breeders:
100,000 Total Wagyu and Wagyu First Cross turnof:
150,000 11Employment for Northern Australia
2019 Pastoral Breeding $431 Net return/hd
to produce
Employs 2 FTEs 1,000 hd 2,000 hd X
per 1000hd turnof turnof 11 FTE/1000
150kg weaners $1.96
return/$ spent
33 FTE
2021 On station irrigation $365 Net return/hd Employs 3 FTEs 7,000 hd 6,000 hd X
and feedlot back per 1000hd turnof turnof 10 FTE/1000
grounding to $1.23
400kg return/$ spent
60 FTE
2024 Southern feedlot $297 Net return/hd Employs 2 FTEs 16,000 hd 21,000 hd X
fattening to per 1000hd turnof turnof 9 FTE/1000
800kg $1.08
return/$ spent
189 FTE
2033 Processing and $2,254 Net return/hd Employs 4 FTEs 100,000 hd 100,000 hd X
marketing from WA per 1000hd processed processed 7.5FTE/1000
$1.44
return/$ spent
750 FTE
12CENTRE PIVOT EXPANSION PLANS Water is a key enabler
2021 WITHOUT IT WE CAN’T DO THIS
To fulill the vision of transforming the Pilbara beef industry, Pardoo
Beef Corporation and its neighboring pastoral partners ultimately
25GL = 1,600ha require water licenses totalling 100GL to irrigate 6,000 hectares of
crops using groundwater from the Wallal and Broome Aquifers.
2025
Connected to the West Canning World best practice land and
Basin, the Wallal Aquifer is part of water management technologies
an estimated 300GL system, which will improve rangeland condition,
forms part of Northern Australia’s monitor and evaluate environmental
signiicant and under-utilized impacts and ensure long-term
underground water resources. commercial and environmental
35GL = 3,000ha Unleashing the potential of
sustainability.
this Pilbara resource will allow Water is the key enabler for this
Pardoo Beef Corporation and its vision, which strongly aligns
2033 pastoral partners to drought-proof with the Western Australian
operations, develop weaners year- government's plans to increase
round, and give maiden heifers the the economic contribution of fresh
best chance to produce their irst food and animal protein production
calves. by at least 50 per cent by 2025
and with the Federal government’s
Pardoo Beef Corporation will commitment to bring improvements
implement leading fodder and to the Northern Australian pastoral
feeding practices to adapt its sector.
production model to the Pilbara's
100GL = 6,000ha unique climatic characteristics.
1314
“
I highly commend Pardoo Beef
Exclusively Pilbara Wagyu who have demonstrated in a record
three years since 2016 the capability
and vision to deliver an innovative
THE WORLD’S BEST TASTING BEEF
transformational initiative for the
Northern Pastoral industry.
Pilbara-bred Wagyu will be sold under the Exclusively Pilbara Wagyu brand.
The project has reached the next
The Wagyu breed is renowned for producing the inest tasting beef in the world.
Importantly there are health beneits in the marbling as the fat composition in stage of building out the required
Wagyu is very diferent to saturated fats in other marbled beef. infrastructure and inventory to
become a regional hub, providing
Australian Wagyu producers are Pardoo Beef Corporation has
experiencing unprecedented established strong relationships with other pastoralists with the
international demand, achieving key supply chain partners to ensure opportunity to beneit from this
signiicant premiums compared to direct access for its chilled beef
other leading breeds. products to Asian markets and 100% value added proposition with the
traceability from paddock to plate. subsequent employment generation
The intramuscular fat responsible
for the breed’s famous marbling Pardoo Beef Corporation believes the that will follow.”
provides Wagyu cattle with a readily Exclusively Pilbara Wagyu brand will
available source of energy and physical become for the Pilbara what Cloudy
endurance, making them ideal for the Bay is to the Marlborough wine region Hon. Melissa Price
Pilbara’s rangeland pastoral conditions. of New Zealand, and what Leeuwin Federal Member for Durack
Estate is to the Margaret River region
As the world’s middle class grows, Minister for Defence Industry
of Western Australia.
consumers are seeking better
connection to their food, and are Pardoo Beef Corporation is invested
willing to pay a premium for this full in the Pilbara and irmly believes in
traceability and provenance. creating a brand that makes the region
proud.
With an abundance of fresh water,
clean air and natural pastures, the
Pilbara is uniquely positioned to
produce clean and green, premium
purebred Wagyu beef.
15“
Bruce is a strategic
thinker who looks a
long way ahead, it’s not
short-term gain he’s Building a winning team
looking for but long-term
gain, and long-term gains PARTNERING WITH THE BEST IN THE BUSINESS
for others around him.”
Collaboration with international leaders in the Wagyu industry will allow
Peter Hughes Pardoo Beef Corporation to quickly transform its own herd.
Georgina Pastoral Company
Working with a highly specialized Wagyu content) within four years.
production team on Station and
Our partnership with Georgina Pastoral
collaborating with international leaders
will see Pardoo Beef Corporation
in the Wagyu industry, Pardoo Beef
purchase signiicant numbers of
Corporation will be able to achieve
pregnant F4 Wagyu cattle, further fast
purebred status. This will also beneit
tracking our purebred herd.
the local and indigenous workforce
and enhance the industry appeal of the Research and development is well
region. progressed to provide understanding
of the key drivers of eating quality
Working closely with key industry
from our Wagyu herd in the Pilbara,
partners in Australia, and Shogo Takeda
and to reach scale for a fully traceable,
from Takeda Farms in Hokkaido, Japan,
premium Wagyu beef product for export
Pardoo Beef Corporation will fast track
by 2020.
genetic improvement and quickly
increase scale. Early genetic work has already achieved
signiicant results, with crossbred
By embarking on a four-generation
Pardoo Wagyu entries claiming
rotational genetics program, Pardoo
prestigious awards at the Australian
Beef Corporation will breed up from
Wagyu Association’s (AWA) annual
a predominantly F1 herd (50% Wagyu
Branded Beef competitions.
content) to F4 status (more than 93%
16 Shogo Takeda and Bruce Cheung“ I was immediately taken by Bruce
Cheung’s commitment, energy and
drive to create this brand for the
Pilbara and agreed to help him achieve
this vision. Wagyu basically have a
DNA that is adaptable to any type of
environment, whether that be very hot
or very cold.”
Shogo Takeda, leading Wagyu breeder,
Hokkaido, Japan
Shogo Takeda at Pardoo Station 17“
Mowanjum is proud to
be associated with the
Bridging the gap Pardoo people who are
energetic, professional,
innovative and visionary.
ENGAGING WITH THE REGIONAL COMMUNITY We seek to support each
other to grow the northern
beef sector, improve its
Pardoo Beef Corporation will partner with other pastoral properties to
quality, its resilience and
establish a truly regional Pilbara Wagyu industry.
its performance."
Pilot programs have been established to An existing agistment partnership with
share industry-leading Wagyu genetics the Mowanjum Aboriginal Community
with partner stations, with Pardoo in the West Kimberley has already Charles Numandumah, Chairperson,
Mowanjum Aboriginal Corporation
Beef Corporation retaining irst right to provided signiicant mutual beneits.
purchase the progeny.
Pardoo Beef Corporation is committed
This will create a sustainable and reliable to working with local Traditional
Wagyu supply chain and a collaborative Owners, and other WA indigenous
purchasing partnership to provide cash communities, to develop long-term
low and a fair scheme for all producers. employment, mutually beneicial
land use agreements, new business
Pardoo Beef Corporation has developed opportunities, and agistment
a strong relationship and collaboration partnerships with Aboriginal-owned
with the Ngarla people, the Traditional stations.
Owners of Pardoo Station, and the
Wanparta Aboriginal Corporation to Together, we will build a Northern
ensure shared community beneits Wagyu industry that has long-lasting
are achieved. and wide-ranging beneits to the
whole community.
18Bruce Cheung, Jefrey Brown and family Image: Danella Bevis / The West Australian Bruce Cheung, Jason Russ and Steve Austin 19
“ Pardoo Beef Corporation is a game-changer for
the Pilbara. Their exciting program to lead Pilbara
producers towards an internationally recognisable
Pilbara Wagyu brand will be invaluable as Asian
countries increase their protein consumption.”
Lynne Craigie
President (WALGA), President and Councillor (Shire of East Pilbara)
20Engaging with government
WORKING TOGETHER TO ACHIEVE SHARED GOALS
Pardoo Beef Corporation’s vision for the Pilbara By developing a purebred Pilbara Wagyu beef
cattle industry is closely aligned with the West herd, Pardoo Beef Corporation brings the
Australian government’s push to diversify advantage of a global megatrend to make
the State’s economy and reduce reliance on a signiicant contribution to the Western
revenue from the resources sector. Australian government’s goal to increase the
value of the State’s fresh food and animal
Our vision complements key initiatives including
protein production by at least 50 per cent by
the Pilbara Regional Investment Blueprint,
2025, twofold by 2050 and double the value of
the Department of Water and Environmental
agricultural exports to $16 billion by 2031.
Regulation’s Transforming Agriculture in the
Pilbara (TAP) program, the Department of To transform the Northern cattle industry,
Primary Industries and Regional Development’s Pardoo Beef Corporation engages with
Value Added Beef program, the Federal government working through all relevant
government’s Australia for Agriculture 4:0 guidelines and regulatory approvals to
initiative to name a few. secure the required water licenses and
diversiication permits to underpin up to 6,000
Pardoo Beef Corporation’s vision will bring
hectares of irrigated agriculture, and to work
substantial employment opportunity, access
towards meeting the WA State Government
to new markets, much needed diversiication
requirements for Freehold tenure over 9,084 ha.
and additional investment to the Pilbara and
Kimberley regions. Our strong engagement
with local Aboriginal communities will provide
further economic development opportunities,
complementing the Western Australian
government’s eforts to the Close the Gap.
21“
A change in land
tenure can provide an
opportunity for an existing
Land Tenure Pathway interest holder to obtain
more secure title to
attract investment thereby
FOR IRRIGATED AGRICULTURE allowing diversiication
into intensive irrigated
agriculture.”
Pardoo Beef Corporation is among the irst proponents to embrace
the WA Government’s Land Tenure Pathway for Irrigated Agriculture
Department of Planning, Lands and
(LTPIA) process, administered by the Department of Planning, Lands Heritage (DPLH)
and Heritage (DPLH). Land Tenure Project Overview
Pardoo's growth objectives to develop irrigated agriculture on
resonate with the combined Crown Land and pastoral leases
initiatives by the Department in locations where the State is not
of Jobs, Tourism, Science taking a leading role.
& Innovation (DJTSI), the
Department of Primary Industries Over the last two years, Pardoo
and Regional Development Beef Corporation has progressed
(DPIRD), the Department of Water to an Option to Freehold tenure
and Environmental Regulation subject to the conditions of the
(DWER) and the Department Option being met.
of Indigenous Afairs (DIA) for Pardoo anticipates progression
economic diversiication through to the Development Lease Stage
irrigated agriculture. (the penultimate stage prior to
The LTPIA provides the Freehold Tenure) by 2020.
opportunity for the private sector
2223
Mapping the future
KEY MILESTONES – 2015 TO 2033
2015 2016 2017 2021 2024
Pardoo Beef Strategic Partnerships 15GL irrigating 900 hectares, 35GL irrigating 3,000 hectares,
Corporation partnerships formed with Pardoo Purebred breeder herd Pardoo Purebred breeder herd
purchases established with other Pilbara = 10,000 Wagyu = 15,000 Wagyu
Pardoo Station leading Wagyu stations Total Wagyu and Wagyu First Total Wagyu and Wagyu First Cross
breeders Cross turnof = 7,000 turnof = 16,000
24“
Western Australia’s economy is on an
upward trajectory which also means
opportunity for agriculture. With a dedicated
team, we have made considerable progress
over the last two years.
Pardoo Beef Corporation is invested
in the region and irmly believes in
2028 2033 creating an Exclusively Pilbara Wagyu
50GL irrigating 3,800 hectares, 100GL irrigating 6,000 hectares, product that will make the Pilbara
Pardoo & Pilbara Purebred breeder Pardoo & Pilbara Purebred breeder region and Western Australia proud.”
herd = 25,000 Wagyu herd = 100,000 Wagyu
Total Wagyu and Wagyu First Total Wagyu and Wagyu First
Cross turnof = 35,000 Cross turnof = 150,000 Bruce Cheung, Chairman, Pardoo Beef Corporation
25CONCEPT AND VISION
Pardoo Beef Corporation
www.pardoo.com
REVISIONS
Pardoo Beef Corporation Corporate
ORIGINAL DESIGN AND LAYOUT
key2creative
www.key2creative.com.au
PHOTOGRAPHY
Nathan Dyer
www.nathandyer.com.au
26www.pardoo.com
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