Ag News

Red Lea Chickens collapse - Chicken Farms owed up $4 million

  • By: "Prime" Ag News
  • Apr 05, 2018

NSW Farmers’ Association fears farmers who are owed millions of dollars by poultry company Red Lea Chickens will remain out of pocket, forcing many out of business, following the collapse of the company.

Association CEO, Matt Brand, said 28 chicken farmers in NSW are owed collectively at least $4 million as a result of Red Lea failing to honor payments dating back to July 2017.

“We commenced legal proceedings late last year before the company was put into voluntary administration as a result of our members failing to be paid for their chickens for months on end.

“We’re disappointed with Red Lea Chickens for not revealing the true financial mess the company was in when it gave solid commitments to farmers that everything was okay.

“This could break a number of farmers whose future now lies in the hands of the administrators.”

NSW Farmers has been working with other chicken processors and the Department of Primary Industries to ensure the welfare of birds that remain on farms.

The birds will now be assigned to other processors including Pepe’s, Cordina and Baiada.