Meat co-op dilemma
Meat processor Alliance Group's cash-strapped farmer shareholders face a dilemma - either pour more money into the co-operative or risk losing 100% ownership and control.
The third shift at the plant north of Oamaru will enable the company to process 880 extra cattle per week through May and June when the cattle throughput traditionally hits its peak. The third shift will also offer about 80 existing employees from the sheep and lamb processing shifts a longer season.
Alliance Group is modifying the plant including extending the cattle yards ahead of the change.
John Brader, general manager of processing at Alliance Group, said the additional third shift was necessary to ensure Alliance continues to meet the needs of suppliers.
"This is something we have been planning for some time. Significantly boosting the plant's capacity at peak times represents good news for suppliers and the company.
"Alterations have been made in our systems to accommodate the additional cartons, giving more flexibility to which blast freezers or equilibration chillers the products can be directed. The cattle yards amenity area will also be relocated to enable us to expand the cattle yards."
Pukeuri processes more than 10,500 sheep and lambs a day. More than 900 staff work at the plant, which is the largest employer in North Otago. It is estimated the plant injects around $100 million into the local economy every year.
