The proposal, for an export-licensed abattoir to process up to 500,000 cattle and one million sheep per year outside Denman, and a feedlot on 375 hectares at Wybong, is the subject of a state significant development application made public this week.

Chinese-backed applicant FJT Australia Pty Ltd says it could provide up to 600 full time jobs.

The company has pushed for the abattoir and feedlot to be considered as a single, vertically-integrated project because of current high demand and high prices for Australian red meat coinciding with an historic low in livestock numbers caused by drought.

“A business model that is not fully vertically integrated (paddock-feedlot-abattoir-sales) cannot gain a foothold in the industry as it presently, and in the future, stands,” FJT Australia said in a supporting document for the application.

The mining industry’s sometimes controversial purchase of large tracts of former Upper Hunter agricultural land as buffer zones could be a significant advantage for the abattoir and feedlot project, and was a major factor in the selection of the sites, the company said.

Glencore Mangoola Coal’s purchase of extensive buffer land was a “significant benefit” for the proposed abattoir and feedlot because most of the potentially sensitive rural residential properties near the proposal had been “removed”.

An abattoir at Hollydene, about eight kilometres outside Denman, and a feedlot on the Yarraman Estate at Wybong, were expected to be “completely compatible with the adjoining mining use”, FJT said.

The Hollydene site is owned by United pastoral, which supported the project. FJT owns the Yarraman Estate site. 

“The Hunter region where the facilities will operate is in need of more diversity in terms of economic activity, and most particularly employment opportunity given the mature phase the coal mining industry is now in,” FJT said in its supporting document to the NSW Department of Planning.

”The social aspects of being able to employ as many ‘locals’ as possible who may have lost jobs in the mining rationalisation should also not be understated.”

FJT proposes long term agreements with cattle and sheep suppliers to address historically low Australian livestock figures, including “feedlot-style” short term fattening arrangements with grazier partners within 200 kilometres of the abattoir.

Real estate and stock and station agent Edward McTaggart, of Edward Higgens Parkinson, said the proposal was “very good news” for the Upper Hunter which was suffering because “the coal boom’s well and truly over”.

“We’re doing it a bit tough up the valley so any diversification has to be a good thing. It’s good to see the agriculture industry pick up because it’s been pushed to the side because of coal,” Mr McTaggart said.

The first signs of a coal decline were felt three years ago when property rentals started dropping and house prices fell by 10 per cent and more.

An abattoir and feedlot looking to use coal mine buffer land for agriculture and reach agreements with farmers would “create a lot of opportunity for people”, Mr McTaggart said.

Muswellbrook mayor Martin Rush welcomed the project and commended FJT for working with the council in the early stages to ensure maximum community benefit.

“The need to intensify agricultural production in Muswellbrook Shire has been a focus for council as part of its diversification efforts,” Cr Rush said.

“This single development has the potential to really move the dial insofar as intensive agricultural diversification is concerned.

“The creation of up to 600 new jobs will be a substantial economic boost for the shire and will have an enormous flow on effect for housing and housing construction in Denman, for local cattle and sheep graziers, retailers in our urban centres and suppliers of construction inputs,” he said.

Cr Rush said FJT had talked with the council  about leveraging good economic outcomes for other industry sectors and ensuring the development made “strong environmental commitments to renewable energy and vegetation connectivity”.