Baiada Poultry Managing Director Simon Camilleri said market conditions led to the decision to close.
The closure of the facility, which produces Steggles brand products, would lead to the loss of about 250 jobs. However, its economic impact will be even greater when contract growers are taken into account.
According to the QCGA, about 26 growers would be affected, and those growers employ about 80 people. The association estimates that the closure will leave farmers with about an AU$150 million (US$119 million) in lost production. QCGA said growers were not given any advance notice of the plans to close.
The Queensland government is being asked by QCGA to consider ways in which it can offer assistance to affected growers.
Camilleri stated that the company would do what it could to minimize the impacts of the closure on its growers.
The move comes less than a year after the company announced that it would close its plant in Laverton North, near Melbourne in the state of Victoria.
According to the WATTAgNet Top Poultry Companies Database, Baiada Poultry claims about 35 percent of the Austrailian broiler market.
Farmers estimated to lose $150 million from Baiada Poultry closure
The closure of an Ipswich chicken meat processing facility will cost south-east Queensland farmers an estimated $150 million, the industry's peak body says.
Baiada Poultry closure to cost chicken farmers $150 million
THE closure of an Ipswich chicken processing facility will cost southeast Queensland poultry farmers about $150 million in lost production.