The Australian arm of Brazilian meat processor, JBS, is reportedly cutting its lamb and mutton processing in half as a result of poor demand.
The news concerns the Brooklyn plant in Melbourne and Bordertown plant in South Australia.
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In a report carried by The Weekly Times, a spokesperson for JBS Australia said 260 workers were being stood down "but not sacked".
He added: "It is due to the selling side of business … we can’t dictate the supply side nor can we affect demand."
JBS could not be reached for comment at time of press.
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