Hundreds of jobs go as an abattoir closes its doors

FIVE hundred employees will be left without jobs after major Ipswich employer, Churchill Abattoir, announced it was shutting down.

The last day of cattle slaughter will be Thursday, September 28.

The closure announcement comes after months of rumours about the struggling facility.

Company director Barry Moule said cattle shortages and high prices had devastated the beef industry.

“Without the capacity to pass on increasing costs, our customers have struggled to maintain cattle numbers,” Mr Moule said.

“Without the numbers, we do not have a sustainable business.

“We need to work to our production capacity – at least five days a week. The current four days each week is unsustainable.”

Another 300–400 jobs will be lost when the Steggles chicken processing factory at Wulkaraka closes in January.

In recent years, Churchill engaged with potential investors to transform the abattoir into an export plant, but was unsuccessful.

About 500 people work at the abattoir.

All employees will be paid entitlements and the abattoir may reopen in six to 12 months time as an export plant.

Mr Moule said he had kept staff updated on the unfolding situation since October, which may have lessened the shock.

“I feel gutted. I am probably strengthened by the response from my staff who have been with me for up to 17 years,” Mr Moule said.

“I broke the news to staff (Monday) at 1pm and they have taken it in good spirits.”

Last year cattle prices rose to the highest in 35 years after a severe drought period.

High cattle prices in the saleyards means higher prices in the butcher shops and supermarket shelves, but profit margins for the processors caught in between hadn’t risen.

Dwindling cattle numbers and record high prices put pressure on the slaughter industry as farmers were forced to sell off their cattle because of a lack of food.

Herd numbers are slowly growing but the lack of rain continues to plague farmers.

The latest projections from Meat and Livestock Australia predicted Australian cattle prices were unlikely to drop back to pre-2013 levels, before prices rose sharply as cattle numbers dwindled.

Brian Surawski, director of Highchester Meats just outside of Beaudesert, said abattoirs were suffering and the high prices people were paying at the supermarkets for beef was unsustainable.

The Australasian Meat Industry Employees Union said it would do everything it could to support the workers affected by the abattoir’s closure.