Shockwaves have resonated from the closure of an abattoir in Young as the company’s biggest partner, Glen Innes agriculture business Ausgoat was forced to temporarily shut down part of its operations, resulting in more job losses.
Ninety per cent of Ausgoat’s animals were sent to Burrangong Meat Processors (BMP), Young, accounting for 65 per cent of the meat processing work at the multi-species, export licensed facility.
Ausgoat director Philip Lynn said the closure of the abattoir has had a significant short-term effect on the company, after a three-year business relationship.
“We were as shocked as everyone else,” he said. “We had no idea. He was a very forward thinking guy and owned the business for 25 years; he knew what he was doing.”
After being told of the closure at 1pm last Tuesday Ausgoat endeavoured to remove as much of their stock on hand due to the perishable nature of the product.
“We had to act urgently to save our product,” Mr Lynn said.
There were also 2000 live goats in the yards that had to be re-consigned immediately the next day, he said.
Mr Lynn said work at the factory ceased in the middle of a kill. He said some carcases were left half finished and others left to deteriorate.
Ausgoat has been in operation for five years processing 130 tonnes of meat a week (8000 live goats). The depot in Cobar, where several thousand goats are purchased each week has been temporarily closed. In addition three people based in Glen Innes have been temporarily let go.
The company was still in the process of deciding how to fulfil export contracts to the United States, Canada, Taiwan, Vietnam and the Caribbean, Mr Lynn said.
“We are looking at alternatives,” he said.
“There are not a lot of other export-licensed abattoirs that can do sheep and goats.”
The closure of the abattoir could see an oversupply of goats resulting in a lack of competition, which may drive prices down, Mr Lynn said.
However, he said the company was definitely optimistic.
“We will work out what alliance to develop next, and as we are also a major supplier of livestock, I believe our business should be in demand,” he said.
“There is always the option that someone else could come in and buy the facility but this may take some time. You never know, this news is only so recent.”
The closure of the facility has been blamed on several factors including the investment in a $3million power generation system from their methane capture system.
BMP had been trying in vain to connect this green power supply to their system which would have saved one million dollars per annum on power bills but the authorities put many obstacles in their way to achieve this, Mr Lynn said. Together with some infrastructure costs, and a fire in their rendering plant over Christmas, the impending sale to a Chinese investor collapsed, he said.
Receivers PPB were called in last week. They have listed the business for sale.