KEY POINTS:
Nearly 250 Canterbury jobs are likely to be lost following an announcement today by meat processor Silver Fern Farms.
The meeting, held at the former PPCS meat cooperative's lamb, mutton and veal plant in Belfast St, outlined a proposal to shut down its two sheep and lamb slaughter chains at the plant.
The company said doing so would impact on 225 processing and 24 administration and maintenance positions.
Silver Fern Farms chief executive Keith Cooper said there would be about 70 redeployment opportunities at plants nearby.
Mr Cooper said it wasn't an easy decision and was not a reflection on the capabilities, efficiencies or productivity of staff.
The company's projections were broadly aligned with Meat and Wool Economic Service forecasts that signalled an overall reduction in livestock over at least the next three years.
"There were also specific issues that make the slaughter processing operation at Canterbury less tenable than other processing options," he said.
They included the capital investment needed in effluent management systems, environmental upgrading and limited development options compared to other key sites.
Mr Cooper said closure was the final instalment of its Project Rightsize for 2008, designed to align processing capacity with reduced supply.
"It reflects the overall decline in South Island sheep and lamb numbers, which are expected to drop by an estimated 2.2 million units next year, as conversions in traditional sheep and lamb farming areas to dairy and alternate land uses translates into lower stock units," he said.
While no further closures were planned, all operations were subject to ongoing review, he said.
The latest proposal will reduce the number of full operating sites by six, with lamb capacity reduced by five chains.
Since February 2007 the company has reduced debt by $150 million.
- NZPA
