Abbatoir faces toughest conditions

Fletcher International Exports has closed early for its annual maintenance shutdown, with general manager Greg Cross blaming it on the toughest market conditions he has seen.

The Narrikup abattoir went into recess for eight weeks on Friday, almost a month earlier than usual, because of a lack of sheep.

Mr Cross said the historic four-week winter shutdown was being extended to two months for 430 employees.

Fletchers was processing 26,000 head a week before it shut, but can easily process 48,000.

“If you look at where we were six years ago, there was about 26 million sheep and lambs in WA and today we’re down to about 12.5 million,” he said. “Whether you’re killing 1000 a day or 4000, your overhead costs are the same, profitability is all volume-based.”

Mr Cross said the abattoir would suffer because of the decreased volume.

“About 90,000 head of livestock have gone over to the Eastern States throughout the years, but due to the Eastern States farmers restocking, over the last 12 months about 1.3 million sheep went from WA,” he said.

“That’s a lot of stock that’s taken away from our processors.”

Mr Cross said all workers would keep their jobs.

Fletchers is not the only sheep processor feeling the pinch.

In Katanning, WAMMCO has been operating on a single shift to process 16,000 to 17,000 head a week and Hillside, in Narrogin, is down to a three to four-day week.

WAMMCO chief executive Coll MacRury said the Katanning plant would possibly close for two weeks at the end of July, and would be moving to a four-day shift.

Hillside Meats director Peter Trefort Jr said there were no plans to close over winter.

“Our production has been back for some time but just at the moment, no shutdown is planned but it depends on stock numbers available,” he said.