Australia-JBS-Swift in trouble.

AUSTRALIA-JBS-SWIFT TO FACE SENATE.

Global meat processing giant, JBS Swift, could be called before a Senate inquiry as early as next week to answer questions about alleged abuse of market power in Tasmania.

The Brazilian-owned company is under fire on two fronts in the Apple Isle - for allegedly blocking a family company from buying sheep skins from its Longford plant and for this week closing its abattoir on King Island while reviewing the plant’s future.

Managing director of Tasmanian hide and sheepskin processor Cuthbertson Brothers, Doug Dickinson, alleged his production had halved because his buyers could not properly tender for skins from the Longford abattoir, which Swift bought last year, because they could no longer inspect sheep before slaughter.

Cuthbertson officially complained to the Australian Competition and Consumer Commission (ACCC) in February that the Brazilian-owned company was allegedly trying to squeeze it out of the market.

After the latest hearing by the Senate Standing Committee on Rural and Regional Affairs and Transport into the need for national standards for meat marketing and branding in Canberra last week, committee member and NSW Liberal Senator, Bill Heffernan, said Swift could be called to front hearings in Tasmania next week.

"We want to hear both sides of the story," Senator Heffernan said.

Swift director, John Berry, this week said the company hadn’t yet been invited to appear before the inquiry and he wouldn’t comment on the allegations made against his company.

"We’re promoting competition in the marketplace," Mr Berry said.

Mr Dickinson said Swift was in the "unique position" of knowing what price was being offered and was able to outbid Cuthbertson.

"Cuthbertson is literally being priced out of the market and is suffering significant damage," Mr Dickinson alleged.

An ACCC spokesman would not say whether the competition watchdog was investigating the complaint which alleged Swift had breached section 46 of the Trade Practices Act by eliminating or substantially damaging competitors using unfair advantage.

Swift has been reported as saying its ready to talk to the ACCC while also claiming it had actually increased competition for Tasmanian sheepskins.

Mr Dickinson claimed his buyers were refused entry to Swifts’ Longford abattoir to price skins on February 9 this year.

It followed an attempt by Cuthbertson to tender directly to the owner of the skins, and not Swift.

Mr Dickinson said in a letter to this newspaper: "The withdrawal of Cuthbertson Brothers from the market means producers are likely to receive significantly less for their product as there is less competition which is estimated to be between $3 and $4 per skin."

Meanwhile, King Island feared its acclaimed food brand was under threat after the shock closure of the Bass Strait island’s abattoir.

Local officials were concerned about the integrity of the King Island brand if local cattle had to be shipped to Melbourne for processing.

Another firm, the Australian Lamb Co, said Swift had forced it to send export lambs from Tasmania to Victoria for processing, adding about $7 to the cost of slaughtering each animal.