Thomas Foods International (TFI) has moved from two shifts to one extended single shift at its Lobethal processing facility, reflecting drought conditions and lower livestock supply. The company said it was a “difficult but necessary decision”, given current market conditions.
Based in South Australia and coming in at #7 on Australia's Top 100 Food & Drink Companies Report 2024, TFI is one of Australia’s largest family-owned food businesses, which processes and distributes meat and seafood all over the world.
The company has experienced a change of leadership recently, with Tony Stewart stepping down as TFI CEO in September 2024 and moving to an executive director position, while Darren Thomas stepped into the role, as well as remaining managing director.
The Lobethal facility is one of Australia’s leading smallstock processing plants, employing approximately 600 workers. The company said its Murray Bridge facility, which opened in May 2023, will not be impacted, with plans currently underway to increase beef processing there from 700 to 800 head per day.
Australia has experienced weather whiplash over the past five years, with the increased rainfall of La Niña climate patterns in 2021-23, followed by the driest three-month period on record from August-October 2023. Although the Australian Bureau of Meteorology (BOM) declared the latest El Niño (warmer, drier climate patterns) over in April 2024, South Australia in particular has been suffering from a prolonged period of dry conditions, with some areas experiencing severe rainfall deficiencies since early 2023.
TFI management met with its Lobethal workers on 30 July to provide an update of processing operations, stating it expects the majority of the current workforce will continue to be employed under the new working arrangements, with employees also to be offered work at its other sites, including Murray Bridge, if not required at Lobethal.
“Lobethal management continues to explore redeployment opportunities with approximately 100 workers, almost all visiting Australia on temporary work visas, whose positions have been made redundant following the change to a single shift,” TFI stated.
“All existing workers employed under the Pacific Australia Labour Mobility (PALM) scheme are on the new shift roster now in operation.
“The Lobethal plant is, and remains, a leading smallstock processing facility with a positive outlook. TFI has invested significantly in recent years in the Lobethal plant which processes high quality Australian smallstock meat products destined for global markets and provides important value-adding services to the meat industry,” the company stated.
TFI has not been the only producer affected by drought, with a Livestock SA survey in May revealing almost 80 per cent of livestock producers had undertaken varying levels of destocking, and 6 per cent had moved all stock off farm.
The South Australian government has contributed $73 million in drought assistance since November 2024, with the most recent contribution in April, recognising the critical and ongoing challenges livestock producers are facing across the state.
Livestock SA chair, Gillian Fennell, said the support package is a significant step in helping producers manage the pressures of ongoing dry conditions while laying the groundwork for longer-term recovery, but it will take time.
“This round of drought funding acknowledges the stresses that many families and farm businesses are facing and will help them to navigate through this challenging time,” said Fennell.
“Even if the drought breaks tomorrow, recovery will take years. This package sets the groundwork, but further investment will be essential to ensure long-term recovery and resilience for South Australia’s livestock producers.”
