Authorities in Victoria are investigating an alleged illegal abattoir in suburban Melbourne.
Agriculture Victoria is investigating after it received graphic video of sheep being slaughtered without being stunned at a Koo Wee Rup facility.
The video also revealed several additional concerning practices including a disregard for biosecurity.
The Australian Meat Industry Council (AMIC) has slammed the illegal slaughterhouse, saying its operators should face the harshest possible penalties.
AMIC chief executive Patrick Hutchinson said the illegal facility was a disgrace and did not reflect the practices of the wider red meat industry.
"The appalling lack of basic animal welfare awareness is distressing and disgusting," Mr Hutchinson said.
"Animal welfare and safety for stock and staff are the two most critical priorities in any legal operation and our members are simply horrified by this footage."
He said the breaches of food safety standards undermined the good work the Australian industry had done to build and protect a global reputation for high quality product.
"The video shows workers butchering meat in their street clothes," he said.
"There are other animals, including rather ludicrously, a peacock inside the shed, and meat products are transported in the boot of a car.
"Every element of the entire operation is completely shonky and we urge PrimeSafe not only to prosecute the operators but to pursue the maximum available penalties.
"This kind of operation damages our whole industry."