A major Tasmanian abattoir, the subject of "deeply concerning" animal cruelty allegations, has been hit with a partial export suspension but can continue processing lambs.
The federal department of agriculture in early December threatened to suspend the export licence of Tasmanian Quality Meats (TQM) after animal activists captured covert footage.
The vision from August and September allegedly showed calves being slaughtered without being properly stunned and workers kicking, whipping, beating and throwing animals.
TQM said it took immediate steps after learning about the footage, including appointing an animal welfare officer and retraining workers.
The department on Friday said it had suspended the abattoir's registration for handling, receiving and slaughtering bobby calves for export and imposed "stringent" broader conditions on the company.
Owner Jake Oliver said TQM had agreed to four conditions including additional CCTV monitored by an animal welfare officer and a new restrainer for calves.
An independent report will be done and there must be a monthly declaration signed by company management.
Mr Oliver said the abattoir had the "green light" to continue processing lamb for the domestic and export market.
"This is great news for TQM, our staff, Tasmanian farmers, suppliers that rely on us, our local community ... and the whole state," he said.
Mr Oliver said the abattoir had voluntarily suspended bobby calf processing until a new restrainer was in place.
The federal export suspension on bobby calves is understood to be in place for 12 months.
A department spokeswoman said the suspension did not preclude the abattoir continuing to service Tasmania and Australia.
"Any decisions relating to the establishment's ability to supply meat for the domestic market remains the responsibility of the Tasmanian government," she said.
The state government, which has been contacted for comment, has set up a six-month task force to strengthen animal welfare standards.
State Primary Industries Minister Jo Palmer previously said the footage captured at several Tasmanian abattoirs was deeply concerning and unacceptable.
Ms Palmer said all footage was being reviewed against provisions of the animal welfare act and the primary produce safety act.
The Farm Transparency Project, the group that captured the footage, described the government's task force response as "all talk, little action".
"We will do everything we can to keep this issue in the public eye," the group said in a statement.
Mr Oliver said his company was committed to high animal welfare standards and would "continue to take every action possible to ensure this does not happen again".
Tasmanian Farmers and Graziers Association president Ian Sauer previously said a suspension on lamb processing would have created an ever bigger welfare problem because there was nowhere else for them to be killed.
