Singleton's EC Throsby abattoir is currently in the fortunate position to have locked in long term electricity and gas contracts.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
But those contracts finish next year and based on today’s spot prices the company will be faced with a $1.8million annual increase in power costs.
“Its a ridiculous situation,” says the company’s managing director Edward Throsby.
“Our business cannot sustain those types of costs and here we are located at Whittingham and every ten minutes a train laden with coal passes the meat works on its way to the Newcastle port.
“We are giving away our energy and charging local consumers, like us way too much, and making our business uncompetitive.”
EC Throsby can process 750 head of cattle a day with 95 per cent of their production heading for export markets.
“What people have to realise we compete on a global market and our Asian and South American competitors have a huge advantage over us in terms of costs – so something needs to be done immediately about power supplies and costs,” Mr Throsby said.
He also highlighted the fact that any extra power costs would result in lower returns to his suppliers.
“Farmers will simply be paid less for their cattle thats the bottom line from this current situation,” he said.
Mr Throsby’s abattoir was chosen by the Federal member for Hunter and Opposition Agriculture and Rural Affairs spokesman Joel Fitzgibbon as the perfect location to hammer home his message that Australia’s lack of a national energy policy will eventually cost jobs.
“We have a supply crisis which is absurd in the world’s largest energy exporter, “ Mr Fitzgibbon said.
Also visiting the region to talk about energy policy and manufacturing jobs was Victorian Senator and Shadow Minister for Innovation. Industry, Science and Research Kim Carr.
“The Hunter is an energy rich region so its indescribable to most people that manufactures in this area do not have secure and cost effective power supplies,” Sen. Carr said.
“This country is calling out for new base load energy sources and if they are not built there will be job losses and manufacturing will be forced offshore.”
He added it was a policy disaster by the Federal Government that resulted in exorbitant power prices for domestic users.
Commenting on last summer’s threat to power supplies due to huge demands during heatwave conditions Mr Throsby said cuts of power supplies could result in the loss of the $10m worth of stock kept at the works under refrigeration.
Mr Fitzgibbon would like to see the opening up of suitable gas sources which don't affect water sources or agricultural land.
“We need Santos to be able to develop those gas wells in the Pilliga district. They are vital for our future energy needs and could be used to supply new gas fired power stations built near the existing Bayswater and Liddell power plants,” he suggested.
“Action should be taken now to get those projects underway before we see significant job losses from manufacturers like EC Throsby and also among our dairy manufacturers.”