Farmers fear that Harvey Beef is pushing to cut the price it pays some beef producers by 15¢/kg in a bid to keep its abattoir viable.
Beef farmers at the Midland cattle sales yesterday said Harvey Beef representatives were absent, sparking speculation about the future of the meat processor, which is in the midst of a restructure.
The Pastoralists and Graziers Association is furious at reports that Harvey Beef is renegotiating contracts with some beef farmers and is trying to cut prices between 15¢ and 17¢/kg.
A Harvey Beef spokesman confirmed yesterday it was in talks with a small number of producers.
Workers at Harvey Beef, the State’s biggest abattoir, last week rejected a pay deal which would have cut wages for 100 staff by about 20 per cent.
Harvey Beef says it cannot sustain current losses indefinitely. It closed for nine days in January, blaming a build-up of product and the downturn of the meat export market.
Executives from Queenslandbased Kilcoy Pastoral Company have been brought in to restructure the company and have made 18 redundancies. PGA meat and livestock committee chairman Tim D’Arcy said farmers were concerned at the state of Harvey Beef.
"I’ve heard rumours that some of the forward contract signees at the present time are being asked to reduce their contracts up to 15¢ a kilo, at a time when producers are not breaking even with cattle prices," he said.
"I believe the producer is being asked to subsidise Harvey Beef for their inability to run a viable facility."
Harvey Beef’s spokesman said it had a good relationship with its cattle suppliers and the company led the market in offering long-term, forward contracts.
"Our livestock team are currently discussing a range of issues with a small number of cattle suppliers who contracted cattle, these discussions are in parallel to negotiations with our workforce," he said. Quindanning farmer Mark Mounsey was at the Midland saleyards yesterday and noted there were "no boys on the rail" from Harvey Beef.
Farmers were concerned over the future of the abattoir, he said.
"Farmers don’t know where the hell they are," Mr Mounsey said.
"It’s a bloody shame it’s got to this stage, it’s got to be sorted out."
