June 7, 2019
Swickers’ devastating fire in Kingaroy in 2016 – and another fire at an Adelaide abattoir two years later – have been blamed for a large rise in insurance premiums for some food processors.
An ABC news report on Friday linked the two fires to huge insurance bills at grower-owned dairy and meat co-ops.
The problem lies with the combustible polystyrene panels that are used in chiller and freezer rooms in many food processing plants.
A NSW-based beef and pork processor, Northern Co-operative Meat Company, told the ABC that insurance quotes had more than tripled in the wake of the two fires.
They had now turned to UK underwriters in a bid to lower their premium costs.
Another company, Norco, had started to remove the panels to reduce the fire risk and associated insurance costs.
Acting CEO Greg McNamara told the ABC the company was anticipating a 20 to 30 per cent increase in insurance costs.
No one was injured in the blaze which razed the boning room and associated facilities at Swickers in November 2016.
Reports at the time blamed a light fitting for sparking the huge fire.
- External link: Insurance Costs Skyrocket (ABC)
- Related article: Swickers Fire Stuns Community
