A King Island farmer believes local beef producers are struggling about a year after the island's only abattoir shut.

About 80 jobs were lost and farmers were forced to send stock to mainland Tasmania for processing after JBS closed its doors.

The State Government's offered a short-term freight subsidy to producers and a feasibility study has found a new facility could be built at a cost of $30 million.

But Chris Porter remains worried about the local industry.

"The subsidy will certainly be very acceptable to anybody who can get it but it's just pushing the problem 12 months down the track it's not going to cover as much as a third of the freight, so there's still going to be a major freight problem getting cattle off the island," he said.

Director of JBS John Berry, says a year on, the company is still pleased with its decision to close.

"We've been able to have a strong production year at Longford but again, we've got to make sure that we focus on what's important for our business that's about sustainable long-term employment of our people and making sure we're cost efficient," he said.