The mayor of Nelson says news that more than 100 jobs are at risk at Sealord is indicative of a high New Zealand dollar and a tough exchange rate.
Workers at Sealord's factory in Nelson said they were blind-sided by news their jobs could be axed as part of a restructure of its wetfish factory.
Nelson mayor Rachel Reese said the current economic situation was causing real problems throughout the country.
She said all industries need to be mindful of the high exchange rate as it is really starting to cause issues for the primary production industry.
"I think the exchange rate is having quite and impact and we've got to be mindful of that over the next 12 months.
"All industries need to be looking at change, looking at the pressures on them."
The Service and Food Workers Union said Government inaction on manufacturing is largely to blame and it is part of a disturbing trend in food processing.