AUSTRALIA's biggest processor JBS Australia has closed its Prime City Feedlot at Tabbita, north west of Griffith.

JBS Australia director John Berry today told Weekly Times Now the feedlot's closure was permanent but the property would not be sold.

Mr Berry said the company had conducted a review of the business and due to the challenging overseas conditions decided to close the Riverina feedlot.

The site was bought from Australia Meat Holdings in 1994/95 and has a licence for 60,000 head and yards for 35,000 head.

"This is a permanent closure and we will be looking to move the cattle to other sites over time," Mr Berry said.

He said 60 jobs would be affected and the company's Human Resources department were talking with workers.

He said the company would continue to operate feedlots at Yanco and Caroona in NSW and Mungindi and Beef City in Queensland.

"It's been very challenging for grain-fed cattle out of Australia . . . This is a commercial decision. We have gone through a review of the grain-fed business and unfortunately it's a permanent closure."

He said the move meant the company would have less grain-fed cattle but focus more of grass-fed cattle.