Abattoir lull points to deeper trend

As Fletcher International WA prepares to close down production for the next month as the usual winter lull period sets in, a deeper supply issue looms.

Since 2010 the Albany-based abattoir has scaled back its production by about 40 per cent as a host of supply-side factors have caused a reduction in livestock despite booming demand across the globe.

Fletcher International WA general manager Greg Cross said a series of droughts, blue gum farming and the mining boom had all contributed to the declining numbers of livestock in the region.

“Over the years it’s been spiralling backwards, it’s an unusual cocktail,” he said.

Mr Cross said although supply was in decline there had been some relief for farmers.

“On the positive side the return for livestock price is good and it has been for the last four to five years so that’s the better side of the story for the farmers,” he said

In the late 90s, Fletcher International WA was processing 45,000 head per week running two shifts.

Droughts caused production to drop back to about 27,000 between 2002 and 2004, and from 2005 to 2010 they were processing 47,000 head a week.

“It’s been a rise and fall over the years, it’s just the way the trend is going,” he said

“What frightens me is the numbers have been coming backwards on the majority of the State having good rains and good weather — what happens if there’s a drought?”

Production is currently at 27,000 a week and Mr Cross believes foreign investment, cost reduction, innovation and government spending are the way forward for the industry.

“It’s a big job out there, it’s a major concern and I look at as this company has a responsibility of looking after not only its customers but its employees,” he said