Jobs lost in meat company takeover

Most of the 60 jobs at bobby calf processor Dairy Meats will be lost as a result of Affco New Zealand's takeover which will be settled next Tuesday.
The Horotiu-based meat company is paying $44.2 million to buy the Dairy Meats co-operative after approval from its shareholders late last year.

Affco is to take over Dairy Meats' enzyme plant at Eltham in Taranaki, re-employing a dozen staff but all other staff, mainly based in Auckland, will go.

Dairy Meats' Avondale plant has closed while the head office in Auckland and a small office in the US will remain open for a few months to ensure a smooth transition.

Dairy Meats chief executive Paul Rivers said he and a few staff would remain until it was complete.

Mr Rivers said the job losses were predictable.

"It's not unexpected because Affco has its own sales people and accountants and it's pointless duplicating."

He said there was plenty of goodwill between the parties which was making the transition easier.

Affco chief executive Tony Egan said it was a busy time with pre-sale preparations, including a stock take and preparing for bobby calf processing next season.

The purchase and Affco's top financial result for the year should create an upbeat mood for Affco Holdings Ltd's annual meeting of shareholders in Hamilton tomorrow.

Affco produced a $58 million after-tax profit after years of struggle, resulting in patient shareholders receiving a $20 million capital repayment in October.

Mr Egan predicted the mood at the Te Rapa meeting should be "reasonably upbeat".

Other developments to be discussed in what has been a busy year are Affco's new meat plant in Southland, its first venture into the South Island.

The opening of South Pacific Meats, a joint venture with food processing firm Talleys, has been delayed probably until March because of poor weather.

Meanwhile, Mr Egan said construction tenders should be let this week for a new $16 million plant at Horotiu, alongside the present works. He expected construction to start next month.

- NZPA