Small producers processing capacity concerns remain

They remain unconvinced by assurances from multinational livestock processors, JBS Australia and Kilcoy Global Foods, they won't be shut out, as a result of the two companies planned acquisitions of abattoirs in NSW and Victoria.

Producers have expressed concern at the loss of slaughter facilities at Diamond Valley Pork, Laverton, which is 80 per cent owned by Rivalea, and subject to a takeover bid by JBS.

JBS Australia chief executive Brent Eastwood said the company understood the important role that DVP played in offering customers access to service kills, which was a cornerstone of its business model.

"Through the purchase of Rivalea, JBS is aware of the many long-term and regular customers, both large and small, that value the service kill offering at DVP," Mr Eastwood said.

"Under our ownership, JBS Australia will continue to provide service kills under commercial arrangements. In addition, we will look to attract additional service kill customers.

"This should provide comfort to existing and future DVP customers."

But the announcement of the acquisition of Hardwicks' Kyneton plant, by multinational Kilcoy Global Foods, has also rung alarm bells with paddock-to-plate producers, like Warialda Belted Galloway Beef, Clonbinane and Brooklands Free Range Farms, Blampied.

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Warialda was sending its cattle to Hardwicks but co-founder Lizette Snaith, said recently the works introduced a massive hike in its "service kill" costs.

"They've always been the link in what we do that we can't control and we don't want to be doing - you need professionals to do it and they do a really good job," Ms Snaith said.

"It's really sad.

"You just get the feeling they aren't interested in having you there anymore."

It was now costing around about $1000 per head, to get cattle slaughtered and transported to Warialda's butchers.

She said Hardwicks had been instrumental in helping her and husband Allen get the Belted Galloway beef operation off the ground.

"It's just ridiculous, it's just beyond belief, to think that is actually reasonable," she said.

"They claimed it was an occupational health and safety issue.

"It's nuts because, as far as I know, I don't think anything has changed - the cattle haven't got any bigger, they've just decided they don't want to do it, I think."

She said she felt Warialda had a "really good relationship" with Hardwicks, for a long time.

Kilcoy Global Foods Australian President Jiah Falcke said he could not comment on what had happened at Hardwicks, in the past, as it was not involved in the business.

Brooklands Jono Hurst uses both Hardwicks and DVP for beef cattle and heritage pigs.

"There seems to be less processing capacity, rather than more," Mr Hurst said.

"We are really happy with what DVP and Hardwicks do for us, but it's always a concern when you hear these things."

He said Hardwicks had provided additional services to Brooklands, which had developed with the good relationship they had with the company.

"My communication with the company, talking direct to my contact, was that nothing had changed at the moment," he said.

'But it's the 'at the moment', which is the issue."

Jim Willis, High Steaks, Ballan, said he expected JBS would seek to allay producer's fears.

"They are going to want to make sure the thing goes ahead, but we will just wait and see, what happens over time," Mr Willis said.

The company sells Australian pork to selected retail and processing outlets, sending about 800 pigs a week to Diamond Valley Pork.

The pigs are sourced from family farms around Victoria.

If DVP stopped doing "service kills" it would present a major issue, he said.

"We would have to get them killed somewhere, I'm fortunate I have been in the meat industry a long time, I know a lot of people and I never burn bridges," he said.

"Hopefully I would be able to get them killed somewhere else.

"Wherever we have had pigs killed in Victoria, it's been an inferior service to that offered by DVP - they have the best kill around.

"They have spent a lot of money there and they've always been very particular to ensure they suited shop operators."

High Steaks worked with farmers, to provide pork to selected retail and processing outlets.

"It just creates a little bit of uncertainty, that probably wasn't there before.

"It wasn't something we had to concern ourselves with previously."