AMH is Top Value Added Meat Company

SYDNEY - Oct 11/04 - SNS -- Australia Meat Holdings topped the annual ranking of Australia's top 25 value adding companies in the October issue of Meat & Livestock Australia's journal Feedback.

Australia Meat Holdings by virtue of its Foodpartners and FJ Walker divisions reached the top spot. Last year the group used over 20,000 metric tons (MT) of red meat, producing hamburger patties for the McDonald's restaurant chain as well as further processed products for food service customers in Australia and in export markets.

The top 25 value adding companies ranking is based on the estimated MT of raw red meat used in value adding operations in 2003. Value adding is defined as adding ingredients or processing red meat such that increased market value should result and the product is no longer a piece of raw meat.

The ranking provides an insight into the largest bulk buyers of red meat products and the varied range of products that ensue as well as future consumer trends impacting on the red meat industry.

In 2003 Australia's top 25 value adding companies employed over 7,000 workers who diced, grind, cooked and fermented in excess of 202,000 MT of red meat, an increase of nearly 15% on 2002, resulting in sales well in excess of $2 billion.

This year's investigation turned up a diverse range of product offerings with 25% of production dedicated to patties and ground meat, 21% each for small goods and portion control items, 12% pies, 10% shelf stable products such as canned and freeze-dried foods, 5% toppings and 6% other.

The vast majority of value added products are destined for the food service sector (45%) followed by direct-to-retail (26%), small goods (16%), retail branded (11%) and specialized processing (2%).