Processors buy up motels, houses to accommodate growing workforce

Most are finding opportunity to purchase existing establishments in town but some are also investigating building on-site accommodation or installing dongas.

The second option, however, is significantly hindered by the need to secure approvals, the lack of spare land around plants and the length of time it would take, processors report.

Veteran processor Roger Fletcher, whose Fletcher International Exports operates a plant in Dubbo, NSW and in Albany, Western Australia with a combined capacity of more than 90,000 sheep and lambs per week, said moving into the landlord business had become a necessity.

"There's not much point saying we can give you a job but put your tent up," he said.

"No one else was about to fix this problem, we have to do it ourselves."

Fletchers now has a pub, motels, units and a backpacker hostel, with around 300 beds in total.

"We are trying to give our employees coming in a soft landing, somewhere to go until they can find their own accommodation," Mr Fletcher said.

The Casino Food Co-op, which has a beef and veal plant in northern NSW, has invested in what is believed to be the first meatworks onsite accommodation in Australia, with 60 beds. The move to set up the relocatable homes was initially made when workers lost houses in floods, co-op chairman John Seccombe said.

"But it has proven very important as short-term accommodation for new workers until we can secure accommodation for them in the wider region," he said.

"It's been full since we built it a few years ago."

Mr Seccombe said there were extensive building approvals required but the local council was very helpful in working with the co-op to make it happen.

"Most processors see securing accommodation now as a wise investment. Most are looking to at least lock in long leases on housing in towns," he said.

Export meat processing company Nolans, in Gympie, Queensland, has also invested in homes and set up an accommodation centre, giving the business 188 beds in total.

"If you'd have asked me ten years ago, I'd have said you're mad, there's no way that it would be viable for a processor to buy accommodation for workers but it's become a necessity," Mr Nolan said.

Australian Meat Industry Council chief executive officer Patrick Hutchinson said the dynamics had changed - labour had become a far more expensive proposition for processors overall.

"Accommodation is now seen as an investment we need to underpin a consistent, permanent workforce," he said.

"We are trying to do everything we possibly can to maintain and exceed our capacity, to ensure we can process the increased amount of livestock coming through.

"We have been preparing for a long time for the increase in livestock supply."

Mr Hutchinson said the housing crisis speaks to a much bigger issue of a labour shortage in processing and while the sector was not looking to governments for the accommodation solution, it certainly hoped for "recognition of the increased cost burden and assurance that does not come with any additional burdensome regulation".

He also urged governments to invest in long-term housing in regional towns themselves, acknowledging that processor purchases of accommodation would impact other sectors.

The buy-ups by abattoirs were taking place across the country, he said, with some southern operations even buying caravan parks.

Processors are also announcing big investments in infrastructure and new jobs in a bid to set up for what is expected to be years of increased supply.

Mr Fletcher said there was plenty of faith in the future demand for Australian red meat.

"We've been through some upheaval - the dire straits of drought then three magnificent seasons which provided a great opportunity for everyone to restock and the COVID debacle thrown in on top, where containers were sitting on ports for months," he said.

"But we are now coming into a bit more of a steady time I believe and that's giving me confidence. We are back into old markets we've been out of for some time."