Alliance Group has announced a proposal to close its historic Smithfield meat processing plant in Timaru, South Canterbury.
The closure, if confirmed, would end the processing of sheep meat, calves, and night-shift venison at the plant by the end of 2023.
The decision could potentially impact 600 employees, some of whom may face redundancy, though redeployment opportunities will be offered where possible at Alliance's other facilities.
The 139-year-old Smithfield plant, the oldest in Alliance’s network, has faced challenges including a decline in livestock processing volumes and the need for significant maintenance.
Willie Wiese, Alliance Group’s CEO, explained that the proposal is part of a strategy to streamline operations in response to falling livestock numbers due to changing land use.
“This proposal aims to align our operations with current livestock availability,” Wiese said.
The company reported a $97.9 million pre-tax loss for the year ending in September 2023, attributed to weakening global markets, lower livestock volumes, and inflation.
These challenges have persisted into 2024, leading the company to assess its South Island processing operations. Wiese emphasized that sheep numbers are expected to decline further, and deer processing is projected to remain static.
Smithfield has been part of Alliance’s operations for more than 30 years, but its closure is being considered as the company focuses on its more modern facilities.
Alliance's Lorneville plant near Invercargill and Pukeuri plant near Oamaru have additional capacity and will handle the redirected processing demands.
“We understand the emotional and economic impact this proposal will have on our employees and the local community,” Wiese said. “Our priority is to support our staff and work closely with local authorities.”
Consultation on the closure will run until October 11, with a final decision expected by October 18. In the meantime, Alliance is committed to assisting affected employees and ensuring transparent communication with the community.
