THE chair of the major backing body behind the push to establish an abattoir in North West Queensland says the group faces an uphill battle to get the project off the ground.
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North Beef chairman Rob Atkinson said this week's approval of a development application by the Northern Territory Government for a meat processing facility near Darwin may jeopardise the Queensland project.
"It certainly will mean it won't be as straight forward as it would if there was only the one," he said.
He said the supply of cattle may not be sufficient to sustain two facilities.
"That Darwin abattoir would draw cattle from the same catchment area; that is around the Barkly Tablelands and Mount Isa," he said.
"That certainly does create a bit of an issue but I suppose time will tell."
However, the Darwin processing plant, backed by cattle giant AAco, is not without its own problems.
Though its development application has been approved, it is still struggling to attract necessary funding from the territory and federal governments.
Mr Atkinson said a tough economic climate was to blame.
"All the governments, both state and federal, seem to be having a few financial problems," he said.
"That's why our group is after an investor prepared to take the whole thing on, lock, stock and barrel so we don't have to rely on the government."
While Mr Atkinson said there was "no doubt Northern Australia needed a processing plant", attracting investment would be a tough ask.
"We couldn't even get CopperString off the ground and that was something so desperately needed by all industries in the North West," he said.
CopperString was the name given to the failed bid to build a $1.5 billion transmission line from Mount Isa to Townsville, connecting North West communities to the national electricity grid.
Cloncurry Mayor Andrew Daniels was more optimistic about the future of the North Beef abattoir.
"I don't think it will work in Darwin," he said.
"I still think we're well ahead of them in terms of being good to go.
"We've got good cattle numbers, we've got power, water and we've got all the development approvals."
Cr Daniels said the only hurdle would be attracting a sufficient labour force to man the plant.
State Agriculture Minister John McVeigh said the new Liberal National Party government was "very supportive of any commercial venture that can provide viable, long-term jobs", but added the State Government would not commit funds to the project.
Mr McVeigh said support would instead come from upgrades to local infrastructure such as roads and water treatment facilities.
