Poultry company Inghams Enterprises will close its processing plant at Byron Bay in northern NSW in October following a review of its facilities in the region.
Inghams acquired Byron Bay-based Sunnybrand Chickens, an integrated operation with breeding farms, a hatchery, contract growers and poultry processing facility, in 2011.
At the time Inghams described Sunnybrand as “very modern and well-equipped”. The acquisition, the company said, would enable it to better meet the future supply needs of its customers across both the foodservice and retail markets.
However Inghams this week told ABC Rural that the facility was older and less efficient than its other plants, and it couldn't competitively produce the range of value-added poultry products, such as fresh pre-prepared cuts, now being demanded by Australian consumers.
The cost of Environment Protection Authority standards for waste water at the site was also reportedly a factor in the closure, which will result in the loss of more than 80 jobs.
Last year Inghams' founders sold their Australian poultry giant to US-based private equity group TPG for $880 million.