Baiada Poultry, which manufactures the Steggles and Lilydale brands, has announced plans to close down its processing operations in Victoria and reduce its headcount by around 100.
Processing will cease in March at its Laverton North factory, with Baiada using the plant as a distribution hub only for chickens processed in other states.
Baiada's managing director Simon Camilleri pointed to market conditions, which meant the company must consolidate its national processing operations, according to a report by ABC Rural.
National Union of Workers spokesman Alex Snowball said the company had suffered in a price war for supermarket sales against its main rival Ingham's, according to the report.
Sixteen chicken growers will also lose their contracts, but all employee and contractual obligations would be honoured and Baiada would try to help staff find new work, and growers new markets, the company said.
