A Pilbara cattle station has received approval from the shire to build a large feedlot, taking another step towards becoming a major player in the global marbled beef market.
Pardoo Wagyu, owner of Pardoo Station 150 kilometres northeast of Port Hedland, plans to build a feedlot with a capacity of 10,000 cattle.
The 200,000-hectare station was purchased by Singaporean businessman Bruce Cheung for $13 million in 2015.
His interest in the property was piqued after he was told that a largely untapped underground river ran beneath it and that irrigation licenses were available.
In the years that followed, the company spent millions to convert Pardoo’s marginal pastureland into irrigated grass and hay production for cattle.
By 2023, 20 circular irrigation systems will be in operation at Pardoo Station. (Delivered by: Pardoo Waygu)
“In response to the cyclone, we have set up temporary cattle feeding areas to ensure that piglets can continue to be fed on site while maintaining high animal welfare standards during this transition period,” he said.
“At the same time, we went through the process of applying for a fattening license.”
This central pivot point of the Pardoo station was destroyed by Tropical Cyclone Ilsa. (ABC Rural: Michelle Stanley)
“Scale and volume”
The company’s goal is to build a feedlot that will ultimately house over 14,000 young Wagyu cattle, each weighing 350 kilograms.
“The focus of the feedlot will be on breeding young cattle, so our females will be intensively fed in the same environment they return to and come from,” Rockman said.
This cattle comes from three Pardoo Wagyu controlled stations in the Kimberley – Mowanjum, Fairfield and Leopold Downs.
“In the Kimberley and also on the Pilbara pastures, we will reach 10,000 breeding cattle by August 2025,” Rockman said.
“This number is not just a lofty goal. We see it as the number needed to actually achieve the scale and volume needed to actively participate in the global market.”
Wagyu beef is prized for its marbled white intramuscular fat, which provides a rich flavor and creamy texture. (ABC South East SA: Elsie Adamo)
Long-term trust
Beef market analyst Matt Dalgleish said Pardoo Wagyu was as confident as Gina Rinehart and Andrew Forrest about the long-term demand for marbled meat.
“There are already some very big players in the Wagyu space, particularly in WA, and I think people with that business acumen investing in something like Wagyu also brings confidence to the whole sector,” Mr Dalgleish said.
The long-term outlook suggests strong interest in luxuriously marbled Wagyu beef. (Delivered: Pardoo Wagyu)
However, he said fears of a recession in the US – the main market for Australian Wagyu – were a concern in the short term.
“It’s a high-priced product and it’s bought by people who have a lot of cash in their wallets to spend on luxury items. But that doesn’t mean you’re immune to a general downturn,” Dalgleish said.
“And that is exactly what we see: the risk of a downturn is still there.”
It is hoped that the investment in the Kimberley Meat Company abattoir will enable the local processing of Wagyu cattle from northern Western Australia. (Source: Yeeda Pastoral Company)
Editing option?
Pardoo Wagyu plans to process its cattle in slaughterhouses on the east coast of Australia and southern WA.
But a recent deal between Canadian investment fund AIMCo and the managers of the Kimberley Meat Company, located less than 600 kilometers from Pardoo, could provide an opportunity for local processing.
Mr Rockman hoped that under new ownership, the Kimberley Meat Company could receive the investment needed to process high-quality Wagyu cattle from northern Western Australia.
“Currently, this farm cannot process 100kg animals and does not have the skills or equipment to process Wagyu.
“If they ever reached that level, we would certainly start processing there – that would be the most desirable outcome for us.”
