Silver Fern Farms is investing $11.2 million in a custom-built automated lamb processing system for its South Otago plant.
The fully-automated system, designed by Scott Technology, will use advanced X-ray and vision technology to cut the carcasses more accurately and more quickly than can be done manually - with the ability to process 600 full carcasses an hour.
Scott Technology chief executive John Kippenberger said it was an incredibly complex machine.
"So the carcasses go in, they've already been split in half, and the X-ray system looks at the bone make-up and the meat and the fat ratios and defines the optimal place for, for example, a forequarter or the middle to be separated, which allows the maximum amount of meat or quantity meat to be left on the higher value cuts," Kippenberger said.
"So in that instance, that would be the middle, then the real technology is taking that X-ray data, which has a lot of data points at high speed, at over 600 lambs an hour, and then telling the robots to make very, very precise cuts, not just on one single dimension but on multiple dimensions.
"There's a very high speed and very precise level of work going through that system."
Kippenberger said the machine would maximise the quality yield of high value cuts.
The processor would replace some manual roles, he said, but as the sector had chronic labour shortages, it meant staff could be better utilised in less dangerous roles.
"It allows Silver Fern Farms to put what labour it has available to itself (because a lot of these rural companies are struggling with labour supply) - so it allows them to put that labor into higher-value operations that are not able to be automated in the same way.
"So it's kind of a win-win in terms of short labour supply anyway, being able to reposition or repurpose that labour to other areas of the plant."
Kippenberger said Scott Technology sold similar processing systems mostly to New Zealand and Australian companies, but also to companies in the United Kingdom.
"All of these meat companies are suffering from a shortage of labour," he said. "Before they even start the day they're generally all starting off short of where they need to be.
"In the peak season, they have to get through high levels of output and when you're labour constrained, that impacts the ability to keep up with volume.
"So, it's a really critical piece of the supply chain."
Kippenberger said the system would be ready to be put to work late next year.
The contract came on the back of Silver Fern Farms' purchase of several stand-alone automation units for other sites, taking the total deal to around $13m.
Silver Fern Farms chief executive Simon Limmer said the two businesses had built a strong working relationship.
"Over the last few years, Silver Fern Farms has invested significantly into the business to ensure our success continues over a longer-term horizon," Limmer said.
"The bulk of this investment is going into infrastructure at our sites, which in some instances have a history going back over 100 years.
"Scott's automated meat processing technology is world-class, and this modernisation will help drive a positive return to our farmer suppliers and our consumers the world over."