Workforce pressures in red meat processing set to build

Ongoing workforce replacement means the industry is recruiting heavily just to maintain its current workforce. Most new entrants to the sector will be replacing departing workers, leaving a growing gap as labour demand strengthens later in the decade.

Despite a short-term easing of workforce pressures as livestock numbers rebuild, the recruitment challenge will become significantly more pronounced later this decade. From 2030, the number of available workers is expected to fall short of industry needs, with the shortfall projected to reach around 1900 workers by 2036, equivalent to 5.7 per cent of workforce requirements.

The report found the Pacific Australia Labour Mobility (PALM) scheme remains essential to industry operations. Under a scenario with no future PALM arrivals, the workforce shortfall would reach 32 per cent by 2036.

AMPC commissioned Oxford Economics Australia to assess future workforce needs and develop options to address these pressures.

The workforce analysis projects demand and supply through to 2036 for the industry as a whole across 10 core occupations, covering six specialist processing occupations and four enabling trade and management occupations.

The research suggests that the industry’s biggest challenge is managing the scale of ongoing workforce replacement.

Around 91,300 worker departures are projected over the next decade through migration, occupational movements and natural attrition. Cumulatively, that is equivalent to nearly three times the industry’s current workforce of around 30,760 employees.

Lead economist in Oxford Economics Australia’s Macroeconomic Consulting team Tom Creevey said most new entrants will be replacing workers who leave rather than expanding workforce capacity.

“Migration is already playing a critical role in filling labour gaps. Nearly 10,000 PALM workers were employed in red meat processing in June 2026, accounting for around one-third of the workforce,” he said

“However, reliance on migrant labour also brings additional employer costs. Direct employers incur an estimated $4,000 per PALM worker each year in net non-wage costs, including recruitment and onboarding, welfare support and administration, compliance and unrecovered accommodation and transport costs.”

Meat packers, meat boners and slicers will be where the heaviest shortages are felt, however trade positions such as electricians and fitters are also forecast to remain in short supply.

The report shows processors continue to look for opportunities to recruit locally. However, many plants operate in communities where the available labour pool simply cannot meet the full workforce requirement.

AMPC program manager for people and culture Amanda Carter said the research showed migration was a key pillar of our industry’s workforce strategy.

“The reality is that red meat processing needs strong, stable and targeted migration settings to fill genuine shortages and maintain regional processing capacity,” she said.

“AMPC is investing in initiatives that introduce more Australians to careers in processing, strengthen training and leadership, and create clearer pathways for people to enter, remain and progress within the industry.”

See the full report here.