JBS’ Longford abattoir will stand down 130 employees from Monday for four weeks due to a sheep and lamb shortage on the back of last year’s serious drought.
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JBS representative John Berry confirmed the decision on Friday.
Mr Berry said the smalls line, processing sheep and lamb, would be shut down while the beef production line would remain open.
The 130 workers will be stood down until March 24, upon which date the situation will be re-assessed.
“Under the enterprise agreement which was negotiated between the workforce and the union, there’s provisions based upon livestock availability to stand people down [during livestock shortages],” Mr Berry said.
Mr Berry emphasised that staff had not been sacked but remained employed, with some workers able to access leave entitlements.
“JBS at Longford have worked very hard to make sure that the impact of this [livestock] shortage hasn’t affected the business, and … this hasn’t been a light decision,” he said.
“Unfortunately it’s got to the stage where livestock aren’t available, and therefore this is the best decision long-term for the Longford business and the workforce.”
Three weeks ago, JBS employed 25 workers at the Longford abattoir, which Mr Berry said was due to natural staff attrition.
A state government spokesman said the government “has been in direct contact with JBS and is offering support to affected workers”.
“We understand the staff involved in processing sheep/lambs have been stood down for four weeks and assistance from the State Growth skills response unit is available to those who require it,” the spokesman said.
“The underlying confidence in Tasmania’s $400 million livestock sector is strong and we are working closely with farmers and processors on strategies to continue to grow livestock productivity and production.”
Tasmanian Farmers and Graziers chief executive Peter Skillern described the situation as “a perfect storm” as high demand and competition between farmers working to restock after the drought, and meat processors searching for stock, drives prices higher.
Sale prices at the Powranna and Killafaddy saleyards last week saw record prices for heavy sheep averaging $18 higher than last week.
Heavy ewes sold between $107 and $136 a head, while some lambs averaged $7 higher.
Mr Skillern said the situation is being felt across the country, with experts predicting the situation will take up to three years to rectify as farmers recover from significant de-stocking.
He said that more needs to be done to develop pasture quality to prevent such fluctuations in stocking shortages in the future.
Greenham managing director Peter Greenham said the Smithton-based processing plant was also experiencing livestock shortage, but confirmed the beef-focused business has no plans to suspend staff.
“There’s definitely a shortage due to a very dry season probably 12 months ago, a lot of cattle left the state,” Mr Greenham said.
“Stock shortages are everywhere due to a very good season, farmers are holding onto cattle.”
In August 2016, JBS stood down 112 employees for similar reasons.
Mr Berry said the business would keep employees updated throughout the suspension before the four-week closure.
The JBS facility at Longford can process approximately 450 beef cattle and 1600 small stock a day.
The Australian Meat Industry Employees Union was contacted for comment.