Northern WA's only major abattoir has been put into administration - two years after reopening its doors.
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Australian Securities and Investments Commission documents last month showed KordaMentha had been appointed administrators of Kimberley Meat Company (KMC), which is about 100 kilometres from Broome, its parent company Yeeda Pastoral and several subsidiaries.
This means the nearest processing opportunity for pastoralists in that region is now about 2000 kilometres away.
Kimberley Pilbara Cattlemen's Association chief executive officer Bron Christensen said the closure would hit pastoralists, who relied on the local market, hard.
She said a certain percentage of cattle weren't suitable for live export or to be trucked south.
"We will have some cattle in paddocks that don't have a market at the moment," Ms Christensen said.
"Having a local processor provided that market and options for pastoralists to consider."
Ms Christensen also noted the additional freight costs of transporting cattle to the nearest facility in southern WA.
"Transport costs to Perth will add an additional $150 to $200 per head," she said.
"Compounding the issue is that without a northern WA market, there is no price point which provides some competition within the market.
"When there is less competition in the market, the price point can sometimes reduce because of a lack of alternatives."
With a very dry wet season experienced across much of the Kimberley and Pilbara, Ms Christensen said many pastoralists had organised to decrease their stocking rate to compensate.
She said the closure of KMC could trigger some changes in herd management.
"We may see some cattle being turned off earlier than normal to meet transport requirements, or perhaps some kept longer to meet the southern market," Ms Christensen said.
The voluntary administrators KordaMentha held the first meeting of the group's creditors on Friday, March 8.
In a statement one of the voluntary administrators David Osborne, of KordaMentha, said:
"Having only been called in recently to assist, the administrators are still assessing all the circumstances leading up to the companies entering voluntary administration.
"Trading at the abattoir has been transitioned to care and maintenance, leading to the loss of jobs at the processing plant."
Mr Osborne said Yeeda station was continuing its operations with the ongoing support of the workforce.
He said the current focus is on stabilising the group's operations, preservation of the key assets and preparation for a sale process.
"We continue to work for the best outcomes for all stakeholders and are grateful for the ongoing support of the group's staff, key stakeholders, and suppliers to that end.
"The voluntary administrators will shortly be taking the group's assets to market.
"We expect a high level of interest given the iconic and unique nature of the pastoral assets and abattoir."
The last time KMC closed its doors was in 2021, amid record high cattle prices, supply shortages, seasonally low beef trim prices in the United States and increased scrutiny of the live export industry.
It reopened in April 2022, operating as a wholly-owned subsidiary of Yeeda Pastoral Company.
KMC has been contacted for comment.
