Australia-JBS-Swift flexing muscles.

AUSTRALIA-JBS-SWIFT FLEXING MUSCLES.

KING Island beef farmers are devastated by the closure of the island’s abattoir and worry it will damage their prestige food brand.

Swift Australia, part of the worldwide conglomerate JBS Swift & Co, has announced a suspension of operations at its King Island abattoir, pending a review.

The global meat giant is being investigated by Australia ’s consumer watchdog over an alleged misuse of market power in Tasmania ...

It was the subject of Senate debate earlier this month after being accused of squeezing out competitors and skewing markets for Tasmanian sheepskins and lambs at its Longford abattoir.

Swift arrived in Tasmania in March last year, buying three abattoirs, including the state’s only export-authorised plant at Longford.

Tasmanian Farmers and Graziers Association boss Chris Oldfield said the abattoir and its 100 jobs were vital to the future of King Island ’s population of 1600.

The decision was a major threat to the King Island brand, he said.

"It is of great concern to farmers on King Island , who are proud about the integrity of their brand," Mr Oldfield said.

"They have always held the view that to be a true King Island brand the cattle have to be fed and grown on King Island and processed on King Island ," he said.

"So farmers are concerned about that link in the chain being broken."

Opposition MP Brett Whiteley said King Island beef was an iconic Tasmanian brand and all reasonable steps should be taken to ensure the plant remained open.

Energy costs and environmental issues were factors in deciding to close the plant, Mr Whiteley said.

Tasmanian Senator Eric Abetz lodged a motion in the Senate earlier this month calling on Swift to deal fairly with its competitors.

Worldwide JBS Swift employs 40,000 people at meat processing plants in 13 countries.