Friday, 18 October 2024 09:59

Meat plant closure confirmed, hundreds of workers to be laid off

Written by  Sudesh Kissun
Sheepmeat, calves and night shift venison seasonal processing ceased at the plant at the end of September. Sheepmeat, calves and night shift venison seasonal processing ceased at the plant at the end of September.

As expected, Alliance Group will close its Smithfield meat processing plant in Timaru, South Canterbury, making hundreds of workers redundant. 

Sheepmeat, calves and night shift venison seasonal processing ceased at the plant at the end of September. Venison day shift processing at Smithfield will continue until no later than the end of December and the plant will then close.

Approximately 600 staff are employed during peak season at the 139-year-old Smithfield plant, which has been owned by Alliance since 1989.

Alliance says wherever possible, impacted staff will be offered the opportunity to apply for re-deployment at its other processing plants, however the decision means many Smithfield employees will be made redundant.  Redundant staff will receive payments according to their employment agreements. The decision follows a two-week consultation period with Smithfield staff and unions.

Willie Wiese, chief executive of Alliance, says closing the plant was an extremely difficult decision for the company. 

“Our thoughts are with our people and their families affected by the closure of this plant. Smithfield has been a familiar presence in the region for almost 140 years and we know this decision will impact the Timaru community and South Canterbury.

“Unfortunately, we must face the reality of declining sheep processing numbers because of land-use change. This has resulted in surplus capacity in our plant network. We cannot maintain excess processing capacity when livestock numbers don't support it.


Read More


“According to our forecasts, we can process our farmers’ sheep, deer, and cattle at our four other South Island plants during peak season, without the need for a fifth plant. 

 "This closure will also mean we will have the right scale and a lower cost structure to meet the needs of our farmers and customers.

“I want to acknowledge the feedback from our people over the consultation period. We have made the decision to close the plant with a heavy heart, knowing the significant effect this will have on our people and the community. 

“Despite exploring all possible alternatives, we were left with no viable option. While we know the outcome is not what anyone wanted, we are committed to working through the closure process as respectfully as possible.

“Alliance is grateful for the efforts of local authorities, Venture Timaru, local MPs and support agencies who have rallied around our people over the past few weeks.”

 In total, Alliance operates six other plants at:

  • Lorneville, near Invercargill (sheepmeat, venison and beef)
  • Mataura, Southland (beef)
  • Pukeuri, near Oamaru (sheepmeat and beef)
  • Nelson, (sheepmeat)
  • Levin, Horowhenua (sheepmeat and beef)
  • Dannevirke, Hawke’s Bay (sheepmeat)

More like this

Chilled cow cuts enter China

Alliance Group has secured greater access for chilled beef exports into China following approval of its Levin and Mataura plants to supply that market. With its first load of beef from Levin clearing Chinese customs in early January and a shipment from Mataura recently arriving in China, journalist Leo Argent talked to Alliance general manager safety and processing Wayne Shaw.

Co-op boosts chilled exports to China

Alliance Group has secured greater access for chilled beef exports to China, following approval for two of its processing plants to supply the market.

Alliance Group re-set delivering results

Alliance Group has turned a corner on a challenging two years following a comprehensive re-set over the past 18 months and is forecasting a return to profitability, farmer-shareholders were told at the company’s annual meeting in Gore today.

Featured

Case IH partners with Meet the Need

Tractor manufacturer and distributor Case IH has announced a new partnership with Meet the Need, the grassroots, farmer-led charity working to tackle food insecurity across New Zealand one meal at a time.

25 years on - where are they now?

To celebrate 25 years of the Hugh Williams Memorial Scholarship, Ravensdown caught up with past recipients to see where their careers have taken them, and what the future holds for the industry.

Rockit Global appoints COO

Rockit Global has appointed Ivan Angland as its new chief operating officer as it continues its growth strategy into 2025.

National

Machinery & Products

Iconic TPW Woolpress turns 50!

The company behind the iconic TPW Woolpress, which fundamentally changed the way wool is baled in Australia and New Zealand,…

» Latest Print Issues Online

The Hound

Keep it up

OPINION: The good fight against "banking wokery" continues with a draft bill to scrap the red tape forcing banks and…

We're OK!

OPINION: Despite the volatility created by the shoot-from-the-hip trade tariff 'stratefy' being deployed by the new state tenants in the…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter