WA beef industry headed for trouble

The viability of the state's beef processing industry is in doubt after a breakdown in talks between troubled red meat exporter, Harvey Beef, and its employees.

Last night, workers rejected a new pay deal which would have cut some 20 per cent of employees' pay packets.

The West Australian reported that the union representing the workers had concerns over conditions and wanted to know more about the company's financial standing.

Earlier this year, the company revealed it had been hit hard by the global economic turmoil with demand falling due to tightening of credit conditions.

The company suspended operations for a week to lower stockpiles and to also commence a restructure, which saw chief executive Michael Rapattoni standing down from his position.

Today the Pastoralists and Graziers' Association president Rob Gillam said the breakdown of discussions requires an urgent resolution to ensure the viability of the beef processing industry.

"Beef producers are facing processing disruption, limited outlets and competition for their product at a time when stability is critical," Mr Gillam said.

"Harvey is WA's only major accredited export beef processor, in a State that is dependent on red meat exports.

"Producers and consumers will ultimately bear the brunt of this breakdown. A decision by all parties to secure the future of the WA beef processing industry is both urgent and essential."