Processors warn of widespread shutdowns and meat shortages

A lack of workers is forcing shutdowns throughout the supply chain, and raising concerns about meat shortages.

Australia’s meat processors have started a another New Year in unhappy circumstances as Covid again threatens their workforce and ability to keep meat on supermarket shelves.

Multiple meat processors have, this week, been forced to slow or shut operations, The Weekly Times understands.

The pressure on processing businesses has also started to be seen in prime cattle pricing.

The peak lobby group for the meat processing industry has issued a blunt warning today that the food supply chain is under threat due to surging Omicron cases.

The meat processing sector is under pressure due to staff shortages. File picture.

Meat shortages loom as a result.

The issue threatens to dampen the otherwise high spirits of vendors and buyers due to turn out in force at summer weaner calf sales throughout southern Australia, starting tomorrow.

The Australian Meat Industry Council today urgently called on federal and state governments to “protect vulnerable food supply chains across Australia”, as surging Omicron cases in the community force essential workers to stay home and businesses to temporarily close or operate at very low staffing levels.

AMIC warned a meat supply shortage loomed unless urgent guarantees were in place to shore up meat production and supply capacity.

The processing sector has struggled with labour issues for several years, exacerbated by Covid.

AMIC chief executive Patrick Hutchinson said it was a tough time for the processing sector, with “a hugely challenging meat supply landscape, with record high livestock prices and labour shortages due to Covid border closures”.

“We are experiencing an unprecedented wave of staffing unpredictability,” he said.

“As Covid spreads in the community, our industry workers are unable to present for work for at least seven days should someone in their family or household test positive, under the current national Covid protocol.

“Australian meat processors take Covid safety extremely seriously and have been highly successful in the last two years in limiting and keeping Covid out of establishments through a number of Covid-safe measures.

“As we face the Omicron surge, we need federal and state Governments to prioritise the nation’s food chain production and supply, in the same way that the health care sector is continuing to operate under unprecedented pressure.”

Specifically, AMIC is calling on governments to provide Public Health Order exemptions for meat processing workers that are asymptomatic close contacts.

It also wants access to free or low-cost RATs, and prioritised PCR testing and turnarounds.

Meanwhile, the strain on processors was evident in the prime market today when prices, particularly on export cattle, dipped by up to 80c/kg on rates recorded late last year.

The National Livestock Reporting Service reported that prices at a Camperdown market were weaker on export-ready lines.

Prices fell by as much as 70-80c/kg on pre-Christmas rates, according to reporter Erich Gstrein. However trade cattle held their ground.

Buyers at Camperdown paid 30c to 40c less for better covered beef cows while dairy cows were 50c to 60c/kg lower.

Poor to plain conditioned dairy cows sold 60c to 80c/kg below the rates seen at the most recent sale, three weeks ago.

Beef bulls were 20c to 40c cheaper and dairy bulls made 50c to 70c/kg less.

The news of the shutdowns comes as restockers prepare to make purchases at the annual weaner calf sales.

While these cattle will be returned to paddocks and feedlots to grow out or breed from, the uncertainty in the processing sector could trigger some concerns about longer-term pricing patterns available to cattle finishers.