Covid Victoria: Positive cases affect billion-dollar meat processing sector

Covid cases have caused disruptions and temporary shutdowns at at least six facilities, which “could not have come at a worse time”.

The Australian Lamb Company in Colac is one of at least six Victorian meat processors hit by disruptions from Covid cases. Picture: Jay Town

Victoria’s billion-dollar meat processing sector is on tenterhooks with at least six facilities hit by disruptions and temporary shutdowns as a result of workers contracting Covid-19.

According to experts, the spread of the virus at processors “could not have come at a worse time” as peak turn-off time nears for the state’s lamb producers.

Employees at both Midfield Meats in Warrnambool and Australian Lamb Company in Colac have recently tested positive to Covid-19, but it is understood they contracted the virus in the community, not at the plant.

Thomas Elder Markets analyst Matt Dalgleish said the coming weeks were “incredibly time sensitive” for the state’s processors and farmers.

“The next few days will be crucial to see if the processors can control these cases and re-open fully,” he said, as the lamb turn-off had been delayed but would soon ramp up.

The biggest disruption had so far been at ALC, which temporarily shut following a rising number of cases in the community.

A spokesman for ALC earlier this week said while health authorities had confirmed there was no evidence of transmission at the ALC Colac site, “we have moved to shut down our facility to protect our workforce and limit the spread”.

“Although we have a small number of cases, the exposure of our workers to community

transmission is of major concern,” the spokesman said.

In Warrnambool, one positive case had been connected to Midfield Meats.

Midfield Meats spokesman Dean McKenna confirmed the positive case was onsite in the transport department, resulting in eight close contacts having to test and isolate.

“That’s all contained, all tests came back negative in that area except for the initial case,” Mr McKenna said.

He said while there had been no positive cases at the Midfield main site, about 58 people were unable to attend work late last week, after coming into contact with other cases in the community.

“We are still working, but at reduced capacity,” Mr McKenna said.

“The biggest issue we’ve had is keeping our employees relaxed. I say they’re safer at work than they are in the supermarket. At work, about the only things not wearing a mask are the sheep and the cattle. I’m very optimistic this will be contained.”

The outbreaks come as the Covid-19 vaccination was made mandatory for all agriculture workers in the state, in a move that angered the Victorian Farmers Federation.

The Victorian Government last week announced all workers on the Authorised Workers list, which includes agriculture, required their first vaccine dose by Friday, October 15 to continue working and would need to be fully vaccinated by November 26.

Victorian Farmers Federation president Emma Germano said the peak body had not been consulted about the move, which she described as “beyond a joke”.

“Why would you do anything to an industry that could lead to further worker shortages?” she said.

“The risk with us is that if you get it wrong, you’re going to have no food on the shelves.”

Ms Germano said the VFF had tried to consult with the health department about how to protect food supply – including a reduction in worker caps in the meat processing industry – but had been ignored.

Australian Meat Industry Council chief executive officer Patrick Hutchinson said Victorian meatworks now had 85 per cent of staff receive their first immunisation.

Mr Hutchinson said he hoped the Victorian Government saw the industry’s vaccination rates and Covid Safe Plans and would “treat us the same as any other worksite”.

“If they do not, they are ignoring the multimillion-dollar investments businesses have made to make their workplaces safe,” he said.

“The government is finally engaging with us, and we are keen to show that the workforce caps (imposed on metro plants) do not work,” he said.

While AMIC was promoting vaccinations, the Australasian Meat Industry Employees Union opposed mandating vaccinations. It is unclear how this position could affect the industry’s supply of staff.

Meanwhile, Mr Dalgleish said Victoria normally processes half the nation’s annual lamb cull. “During October to December the volumes of lambs at Victorian saleyards swell to over 100,000 head per week, with many of these making their way to meat works,” he said.

Current lamb throughput was well below normal, with Victorian saleyards recording 38,447 head for the week ending October 1, a significant 23 per cent below the five-year average.

This indicated a huge number of lambs were yet to hit the market, signalling the risk of a glut.

The Victorian Government failed to respond to The Weekly Times questions.