and their contracts terminated
August 31, 2017
Chicken processor Baiada is cancelling contracts with all chicken farmers in south-east Queensland, following its announcement earlier this week that it is closing its Ipswich plant.
The Queensland Chicken Growers Association (QCGA) said the announcement had come as a devastating blow to the entire industry.
Baiada, one of Australia’s largest chicken companies, has been processing chickens for its Lilydale and Steggles brands at its plant at Wulkuraka.
The closure of the plant is expected to cost 400 jobs, however the cancellation of the contracts is also expected to cost growers $150 million.
The QCGA accused Baiada of “blatant corporate profiteering at the expense of its viable and productive farmers”.
QCGA president Jodie Redcliffe estimated that the decision by Baiada to discontinue its SEQ production would strip growers of a conservative $150 million in lost production and the devaluation of their farms.
Twenty-six growers (28 farms) operate 155 purpose-built poultry houses and employ more than 80 workers within the SEQ region.
They have been supplying the Ipswich processing facility with approximately 23 million chickens a year.
These farmers have been given notice that their contracts will be terminated and the plant will cease production in mid-January.
“The entire Queensland industry is in shock at the timing and manner in which this decision by one of Australia’s largest chicken meat processors,” Ms Redcliffe said.
“It is clear that Baiada’s decision has been driven by corporate greed and a desire to consolidate its business in NSW rather than because of any questions about the viability of the industry in in Queensland.
“Our farmers were not given any warning or notice of this decision.
“They operate modern, efficient farms that meet and indeed exceed industry standards, within an industry that continues to see record profits and growth.
“This decision has wide-ranging impacts on the Queensland chicken meat industry and has rattled confidence of farmers, financial institutions and all other supporting industries.
“QCGA calls on the State Government to consider how it can assist affected farmers over the next 6-8 months as transitional arrangements are worked out and implemented.
“QCGA also calls on banks and other financial institutions to consider how they can make relief considerations for farmers as they struggle though this financially and emotionally difficult time.
“Affected farmers are now considering all their options in the aftermath of the decision and will make further comment in the coming weeks.”
