September 11, 2012

JBS Australia to close King Island abattoir

King Island abattoir will be permanently closed by beef processor JBS Australia.

Director of corporate with JBS Australia, John Berry, says that despite investing millions of dollars into upgrading, the Tasmanian abattoir has never been profitable since his company purchased it.

The company which owns the King Island beef brand intends to continue to purchase King Island beef and maintain the premium brand.

Berry says JBS has given an undertaking that all King Island beef will be processed in Tasmania at its Longford abattoir, near Launceston.

"This hasn't been a decision taken lightly," he said.

"We want to continue to be a competitor for livestock on the island and we want to make sure that we continue to supply to our customers either here or internationally the premium King Island beef product."

JBS has cited high freight and operating costs and variable livestock supply as reasons for the closure and is in talks with the 70 employees of the abattoir about redeployment.