SOUTH Australian pig producers reeling from low returns have been dealt another blow with major processor JBS Australia cutting its second shift at its Port Wakefield abattoir.
A company spokesperson said from Monday the company will move from two shifts a day to one day shift at Seven Point Pork “aligning its processing operations with supply and market conditions, partially driven by the severe drought and the consequent price increase of rations”.
The move will result in the loss of 102 jobs, of which 66 are labour hire workers and 36 permanent staff.
“Our priority is working with our team members in Port Wakefield through this difficult time,” the spokesperson said.
JBS Australia took over Primo, which included the SA site, in 2015.
Pork SA chair Mark McLean said pig producers valued both of the state’s major processors, JBS Australia and Big River Pork, and was sorry to hear of the job losses at Port Wakefield.
He understood all existing contracts would be honoured, which was a positive.
He said it was important a sustainable model could be found where everyone along the supply chain was profitable.
“The whole industry has been through turmoil in the last few years. Good, hard-working people and family farmers have closed the doors on their pork businesses,” he said.
“An abattoir relies on the throughput of animals but also good returns.”
With 70 per cent of the pork used for smallgoods in Australia imported, Mr McLean appealed to consumers to look closely at country-of-origin labelling, especially looking for the new pink Porkmark logos on fresh pork.
Mr McLean said there was an opportunity to encourage industry nationally and the federal government to develop alternative export markets to utilise more of the pork processing capacity in Australia.
“When you look at the decision Seven Point Pork has made, it sounds to me like they are aligning their supply chain with their sales,” he said.
“There is no point selling more and more product if you are losing money on that product.”
Mr McLean said pig prices had returned to more “normal levels” in the past three months, but record grain prices had offset any improvement in pig prices, and many producers were still struggling to make a profit.
