EXPLAINED: Why Beef City is slashing its workforce

Beef City.
Beef City. Dave Noonan, The Chronicle Toowo

UPDATE: The head of a beef processing plant says the company was forced to slash jobs after drought drastically cut the supply of cattle.

JBS Beef City will cut 60 staff from its workforce as the company lowers its daily output.

The company plans to maintain a five-day, two-shift kill and bone operation, but its daily output will be significantly cut from 1134 head of cattle per day to 972.

The changes will take place from July 25.

JBS chief executive officer Anthony Pratt said there was simply not enough supply for the abattoir to run at full capacity.

He blamed drought for the low cattle numbers.

"We've had three years of drought and the herd has reduced through that period," he said.

"Now that we've had some rain, farmers are looking to rebuild their stock."

Mr Pratt predicted it would take producers three years to build up numbers.

Staff have been informed of the job losses.

Mr Pratt expressed hope the company would be able to hire more staff as the supply of cattle grew.

EARLIER: Dozens of jobs are set to be cut from a major Toowoomba region beef processing facility.

Beef City staff were told by JBS management that staff levels would decline about 15%, according to Beef Central.

While the company plans to maintain a five-day, two-shift kill and bone operation, daily output will be significantly cut.

That will see the kills reduced from 1134 head per day to 972.

The changes will take place from July 25.

A spokesman for the company said it had been forced to scale back its production capacity because the supply of stock was not available to maintain products.

The move comes less than a month after 260 workers lost their jobs when Wallangarra Meatworks was shut down.



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