Meat processing company Greenham's Smithton facility entered a week long shutdown at the end of January after a number of staff tested positive to COVID-19.

Andrew Foden, Tasmanian secretary of the Australasian Meat Industry Employees Union, said 48 staff tested positive to the virus.

Circular Head mayor Daryl Quilliam said he believed the workers' close living conditions had been the main driver of the outbreak.

The company has not responded to requests for comment, but last week a Tasmanian Public Health Services spokesperson said Greenham had been "extremely proactive" in its response to the outbreak.

On Monday Mr Foden said he believed operations had resumed and "everything had gone back to normal" at the facility which employs more than 200 people, and is one of the largest employers in Circular Head.

Mr Foden said he expected a Department of Health representative would visit the facility this week, and that the company would be doing everything it could to prevent another outbreak.

"I'm assuming that once they have been hit by an outbreak and the loss of income that follows, they will more than likely want to prevent that from happening again," Mr Foden said.

Cr Quilliam said the killing floor was resuming operations on Monday, and that the boning floor would resume Tuesday.

"What they kill today they will bone tomorrow," Cr Quilliam said.

He said many of the facility's staff are seasonal workers, and also live in shared accommodation in Circular Head.

"Because these guys live close together [management] believed it would be prudent to close it for the week," he said.

"That's the same as has happened any time there were similar issues on the mainland. It's just normal practice."

Cr Quilliam said anxiety about COVID-19 appeared to be easing in the region, which had at times the slowest vaccination rate take up in the state.