A company in Australia that has been trying to grow its business by selling food processors has revealed it has been unable to find customers to help process the vast amounts of processed food it sells.
The company, which describes itself as the largest food processing company in the world, is based in the Sydney suburb of Southbank.
But the problem began in November last year, when a major supplier of the food processing equipment and packaging technology to the company went out of business.
The problem was caused by a sudden drop in demand, the company said, as it tried to replace some of its staff who were laid off.
In a statement, the Australian branch of the company, Groupe Linguierie du Temps, said it has “lost significant market share to rivals in China, the US and other emerging markets”, and it had “suffered from a severe shortage of personnel”.
Groupe is a French company, and its chief executive officer, Jacques Baudin, said the company was “relatively small in size” and has only two full-time staff.
But when it started hiring staff last year it “found it difficult to recruit sufficient staff” because it did not have enough money to pay its suppliers, Mr Baudins told the ABC.
“We had to take the decision to terminate all our existing contracts, which included paying suppliers to supply the equipment,” he said.
“At the same time we also had to renegotiate all the contracts that had been in place.”
The company has since started to lay off staff, and has to cut costs, but Mr Bison told the Financial Review it was not an easy task.
He said he had had to cut his staff by 50 per cent in the last year.
“This has meant a substantial reduction in staff,” he told the publication.
“So we’ve now cut back our costs by at least 50 per 100,000 in staff per month.”
Groupto is not the only food processor company to face a shortage of workers.
In September the United States Department of Agriculture reported that the US Food and Drug Administration had stopped accepting new applications for new food processing jobs.