Authority granted for chicken processors to share staff and facilities

As red meat processors across Victoria slash workforce numbers in accordance with Government regulations, a handful of chicken processors have been granted permission to share staff and processing facilities. Here’s what we know.

Secured supply: The ACCC has allowed the biggest chicken processors to co-ordinate their staff and facilities to ensure a steady supply of chicken in light of stage 4 restrictions.

VICTORIAN red meat processors are operating at reduced capacity as the Victorian Government cuts the number of people working in proximity in abattoirs.

But some of the state’s biggest chicken processors, including two linked to coronavirus outbreaks, have been granted permission to share staff and processing facilities.

The Australian Competition and Consumer Commission has authorised Ingham’s Group, Turosi, Hazeldene’s Chicken Farm, and the Australian Chicken Meat Federation to co-ordinate processing capabilities.

The ACCC decision appears at odds with Victorian Government rules, which state poultry processing employees “will be able to work at only one premises”.

Ingham’s — on behalf of all four groups — made an urgent application to the ACCC on the same day as the State Government announcement, requesting permission to share or co-ordinate “the use of essential personnel, facilities and inputs (including chickens)” in order to meet ongoing demand, and avoid having to cull flocks.

The ACCC granted interim approval late last week.

ACCC deputy chair Mick Keogh said the decision would reduce job losses, and manage the impact of stage 4 restrictions on chicken growers and the supply chain.

“Chicken is a staple of many consumers’ diets. This authorisation should assist the chicken meat sector to implement arrangements that maintain supply and minimise the risk of food shortages during the COVID-19 restrictions,” Mr Keogh said.

It is not clear if red meat processing plants — which have been told to operate at 66 per cent capacity for the next six weeks — will follow the chicken meat industry to temper the impact of reductions.

The Australian Lamb Company in Colac has restarted with a reduced workforce, following an outbreak of coronavirus cases which shut down the plant last month.

An ALC spokesman said operations at Colac were in line with regulations issued by the Department of Health and Human services, and said the company was not looking to make application for authorisation to share staff and processing facilities. “ALC currently is not looking at ‘work around’ options in response to State Government restrictions. Our primary focus is getting the business up and running again,” the spokesman said.

The Weekly Times is seeking comment from the Inghams’ Group.

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