JBS Australia blamed a weak domestic and international lamb and mutton market on its decision to halve production and stand down 260 workers in Victoria and South Australia.
Staff at the company's Brooklyn in Melbourne's west, and Bordertown in south-eastern South Australian facilities are affected by the temporary measure.
The company employs 8,500 people across 10 meat processing facilities, 5 feedlots and 7 distribution centres in various states.
JBS Australia, which recently acquired Primo Smallgoods, is Australia's fourth largest food and drink company according to the Food & Drink Top 100 Companies Report.
Last year the company’s CEO Brent Eastwood said challenges facing the industry included over-regulation, bureaucracy and the costs of doing business in Australia, as well as competition from other protein-exporting countries.
