Fears for another meat processor as abattoir sector struggles

Just days after a meat processing company in the NSW town of Young collapsed into administration, doubts have been raised over the viability of a Queensland firm which stood down 230 workers at its two abattoirs yesterday.

Leitch Pastoral Group closed abattoirs at Pittsworth and Killarney in Queensland’s Darling Downs region after the Monday shift and have told workers that an announcement will be made about the company’s future on Friday.

But the outlook appears to be grim. The Queensland Government has already sent a “rapid response” team to start trying to assist affected workers.

“We have a rapid response team that will be out there talking to those workers, providing them and hopefully the company with options about how they can keep the organisation afloat,” Premier Anna Bligh said yesterday.

“And if not, how we can help these workers get placed in other… companies.”

Leitch Pastoral Group operations manager Rob Doro told the Townville Chronicle that a number of factors were behind the decision.

“The operational issues relate to a myriad of business issues — and financial issues are one of those, along with the ability to source livestock and also the competitive marketplace within the meat industry,” he said.

The meat processing industry has been hit with a number of blows in the last 12 months, including a drop in demand from key markets such as Japan and the United States, the stronger Australian dollar and the drought, which has affected cattle numbers.

Meat processors in Australia have also struggled to source cattle due to expansion of the live export trade, particularly to countries in the Middle East.