Goodman Fielder denies pullout

Goodman Fielder has refused to rule out further job losses in its New Zealand milling business, but denies absolutely that it may pull out of flour milling entirely.

The company, Australasia's largest flour miller, last week confirmed plans to shut down its Champion brand flour mills in Auckland and Palmerston North and Flemings oat mill in the Southland town of Gore.

About 125 jobs will go, although 30 mostly Auckland staff may be moved to the Mt Maunganui flour mill.

The Herald revealed in March that Goodman Fielder was reviewing its operations, with one possibility being the shutdown of all four New Zealand flour mills, meaning all its flour would be imported from Australia or North America.

Instead, the company decided to rationalise its flour production to the mills in Christchurch, which employs 64 staff, and Mt Maunganui, which will increase from 27 to about 57.

But an industry insider said to expect more job losses here and in Australia. He said the decision to keep two flour mills open here was made only because the company could not find a cheap enough way of shipping flour from Australia to New Zealand bakeries.