Wednesday, 28 August 2019 09:55

Fairton for final chop

Written by 
Silver Fern Farms says it is planning to close the pelt processing operation. Silver Fern Farms says it is planning to close the pelt processing operation.

It sounds like the death rattle is signalled for the former Fairton meat processing plant near Ashburton.

Silver Fern Farms (SFF) last week said it is planning to close the pelt processing operation there following a review and staff consultation.

“All the 44 people processing pelts at the Fairton site and four preparing pelts at Pareora have been presented with potential redundancy, as well as with work options at other Silver Fern Farms sites in the region,” the company said in a statement.

SFF closed the Fairton sheepmeat processing plant in May 2017 following a decline in regional sheep numbers.

“Continued low sheepmeat numbers in the South Island have also led to... excess pelt processing capacity in the South Island,” the company said. “Pelt processors are also seeing low returns from the global market.”

These factors, coupled with high overhead costs due to the large site, are making pelt processing unsustainable at Fairton, SFF says.

“This will mean the company can consolidate its South Island pelts at its Finegand (Dunedin) pelt preparation facility, bringing efficiency gains through this early part of the pelting process.”

The company also claims it has investigated alternative processing options with others in the industry. 

“Should this proposal proceed following consultation, SFF intends to consolidate its volumes through other pelt processors for mutual benefit.”

The company says it is offering support to the 44 people at Fairton and those in four roles at Pareora affected by the proposed closure.

A final decision is expected at the end of August.

More like this

Shipping crisis deepens

The shipping crisis caused by Houthi rebel attacks in the Red Sea and problems with a lack of water in the Panama Canal appears to be deepening by the day.

Limmer signs off from SFF

Silver Fern Farms chief executive Simon Limmer has signed off after six years at the helm of the meat processor and exporter optimistic about the future of New Zealand red meat.

Wrong!

The Hound is quick to put the boot in when someone gets things wrong, so he has to confess to his own major cock-up in the last issue of 2023.

Featured

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

Editorial: Passage to India

OPINION: Even before the National-led coalition came into power, India was very much at the fore of its trade agenda.

National

Knowing bugs means fewer drugs

A mastitis management company claims to deliver the fastest and most accurate mastitis testing available at scale for New Zealand…

Machinery & Products

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

JD unveils its latest beast

John Deere has unveiled its most powerful tractor ever, with the launch of the all new 9RX Series Tractor line-up…

Biggest Quadtrac coming to NZ!

In the biggest announcement that Case IH Australia/New Zealand has made around its tractor range, its biggest tractor is about…

A different shade of blue for Norwood

Norwood and ARGO Tractors, the Italian manufacturer of Landini and McCormick tractors, have announced an agreement that gives Norwood exclusive…

Kubota tests diesel engines

Kubota last month used the UK LAMMA Show to test the water with its new 200hp, four-cylinder 09-series diesel engines.

» Latest Print Issues Online

The Hound

Why?

OPINION: A mate of yours truly wants to know why the beef schedule differential is now more than 45-50 cents…

Fat to cut

OPINION: Your canine crusader understands that MPI were recently in front of the Parliamentary Primary Sector Select Committee for an…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter