WA abattoir shuttered one year after reopening

A Western Australian abattoir reopened last year is understood to be shutting its doors in what would be a major blow to south coast sheep farmers.

Business News understands Minerva Foods will close its Shark Lake abattoir in Esperance 14 months after firing up again from a COVID-induced closure.

The abattoir had been processing up to 1700 sheep and 120 cattle prior to COVID-19.

WA Farmers president John Hassell said he had received news of the imminent closure on Thursday.

“Even with pricing of sheep the way they are it shows what challenges there are in the sheep industry at the moment,” he said.

“It is really disappointing for growers in Esperance region and the industry as a whole.

“If you can’t make it pay when the on-farm price is as cheap as it is, it is going to be a real struggle when the market prices pick up.”

Mr Hassell said the closure was another “punch in the face” for an industry already grappling with the federal government’s looming phase out of live sheep exports.

The abattoir has been on shaky grounds for years since former owners Shark Lake Food Group went into administration in 2017.

It was closed again under Central Agri Group’s stewardship in 2020, after which South American giant Minerva stepped in to purchase it and the Tammin abattoir under a $48 million joint venture with Saudi Agricultural Livestock and Investment Company.

Minerva had planned a capacity expansion to as much as one million head of lamb and mutton per year, according to comments made to Beefcentral in 2021.

Value-add products for supermarket shelves and restaurants were also on the cards.

Some 50 jobs were created with reopening of Shark Lake and it was expected to grow to a 220-person operation.

Minerva was in discussion with the Port of Esperance to upgrade facilities to ship products from the south coast town instead of trucking them to Perth.

The company is hailed on a federal government website for its efforts to “revive two regional communities” in WA through its investment in the processing facilities.

Minerva has an expansive meat processing footprint covering Brazil, Paraguay, Argentina, Uruguay and Colombia.

The nearest facility to Esperance is five hours west in Albany.

Minerva Foods has been contacted for comment.