June 15, 2010

New Zealand's major meat processor, Silver Fern Farms, is set to axe another 174 jobs at two of its Christchurch meatworks.

The cooperative, formerly known as PPCS, axed about 1000 jobs in 2008 when it closed or cut back at six plants around the country in a rationalisation programme. Today, it said the meat cutting plant would close as well with the loss of 135 jobs.

Silver Fern will also close the rendering and casings departments and restructure the coldstore department at its beef plant in the suburb of Belfast, at a cost of 39 jobs.

Chief executive Keith Cooper said that in 2009 the company formed a joint venture company, Farmbrands, to provide capital for new specialist rendering facilities with improved processing and greater expertise in technology and marketing.

Farmbrands used that capital to buy a new state-of-the-art rendering plant at Washdyke for rendering animal fats from the Belfast plant into tallow and grease and other wastes into meal. Retaining rendering at the old Belfast plant would require significant new capital spending on buildings, hygiene and environmental standards.

Mr Cooper said the proposed closures were a result of the company's continued focus on streamlining business operations and optimising efficiencies across its South Island meatworks.

It has four slaughter plants in the South Island: Fairton at Ashburton (capacity: 8,000 head per day), Pareora at Timaru (12,000 per day), Finegand at Balclutha (12,000 per day) and Waitane at Gore (3,500 per day).

The company has begun consultation with workers and their representatives at the two Christchurch plants and said a final decision would be made on June 25.