JBS Australia will shut its plant in Cobram, Victoria and part of its abattoir in Longford, Tasmania indefinitely due to a shortage of livestock.
The company has said it will review the shutdown in September, leaving more than 300 employees out of work until then.
Lamb and other small livestock have been in short supply over recent months, according to JBS Australia. The company's spokesman, John Berry, told The Australian, that livestock shortages was an industry-wide issue.
“Eight or nine plants have closed across the country in recent times that are a direct result of significantly declining sheep numbers,” he said.