Brazil-JBS-Swift have battle on their hand in Tasmania.

GLOBAL meat processing company Swift has a fight on its hands, on King Island and Tasmania.

Swift Australia, the Australian arm of JBS Swift & Co, will reopen its loss-making King Island abattoir today but faces allegations it is trying to control a key part of the Tasmanian agribusiness market.

A 150-year-old Tasmanian company, Cuthbertson Brothers, which supplies skins and hides to footwear makers — Ugg boots are made from Cuthbertson’s skins and hides — has accused Swift of trying to force it out of business.

Since February, it has been locked out of Tasmania’s largest abattoir, owned by Swift.

"This lockout is threatening financial returns to drought-affected farmers and exports of Ugg boots to lucrative US markets," Cuthbertson director Doug Dickinson said.

Swift owns the two main sheep and lamb abattoirs in Tasmania — Longford, the island’s only producer of export-grade sheep and lamb produce, and Devonport, which processes for the Tasmanian market.

Mr Dickinson said Cuthbertson was refused entry to Swift’s Longford plant in early February to tender for sheep and lamb skins.

A big lamb exporter, Australian Lamb, could also no longer process at Longford.

Mr Dickinson said farmers’ agents might be the next to be pushed out by Swifts, which could move to gain control of Tasmania’s export lamb.

He said his Hobart solicitors had had advice from a Melbourne QC that Swift Australia had contravened sections of the Trade Practices Act.

These sections prohibit conduct that is misleading or deceptive, or is likely to mislead or deceive, or is unconscionable.

Mr Dickinson said the Australian Competition and Consumer Commission should investigate the matter. "We are not asking for money — just the right to tender when the skins become available."

An ACCC spokeswoman declined to say whether the commission was investigating the issue.

Swift Australia’s head of corporate affairs, John Berry, also declined to comment.

But Mr Berry said Swift’s abattoir on King Island, shut down a week ago because it was unprofitable, would reopen today after talks with the Tasmanian Government.

The Government has offered financial support while it conducts an eight-week review of the business.

http://jbsswift.com.au