JBS Australia spokesperson John Berry said Cobram processed up to 3200 head of lamb, hogget and mutton a day, however had struggled as supplies of lamb and sheepmeat tightened in recent months. 

Longford in Tasmania will continue to halt sheep processing but continue its beef processing supply chain.

“It’s an industry-wide issue. Eight or nine plants have closed across the country in recent times that are a direct result of significantly declining sheep numbers,” Berry said. 

“A key issue we’ll be looking at is where the season goes from here,” he said.

Meat and Livestock Australia’s (MLA) manager of market information, Ben Thomas, said national cattle and sheep flocks were down significantly as beef and sheep producers opted to keep stock for breeding after herd sizes dwindled in recent seasons.

While the MLA said supplies were expected to improve by the end of the year, it was clear the situation was affecting processors.

More than 300 employees will be out of work until at least September. JBS told staff and has held discussions with the industry union. It is understood redundancies will not be offered.