Country / Corrections And Clarifications

Alliance group Smithfield plant in Timaru shuts its doors after 138 years

16:09 pm on 20 December 2024

*The the last line of this story has been amended after incorrectly saying the Ministry of Social Development declined to comment on job seeker numbers in Canterbury.

A historic photograph of plant workers at Smithfield. Photo: RNZ / Nate McKinnon

Red-meat co-op Alliance says it will be an "emotional time" for the 55 remaining meat workers at its Smithfield plant in Timaru today, as it prepares to shut its doors after 138 years in operation.

Alliance confirmed the closure of the Timaru processing plant in October, amid dropping livestock numbers and weaker demand for red meat.

The co-op spent $51 million on redundancies for the 600 people who lost their jobs and the subsequent plant closure, after two years of reporting annual losses.

Alliance Group general manager of processing Wayne Shaw said it would be an emotional time for the remaining 55 staff on-site.

"While this is not the outcome anyone hoped for, we appreciate the way the community has rallied around our people."

Marketing of the site was underway and there had been "strong interest from potential buyers", he said.

"We expect to be in a position to sell the land with buildings intact next year."

Alliance workers leave a meeting at the Caroline Bay Hall in September. Photo: Tim Brown/RNZ

Meat Workers' Union national secretary Daryl Carran said it believed there were "minimal numbers" of workers who had not been able to find alternative work - but it was "a mixed bag".

Around a dozen workers had gone to Timaru's other meat plant at Pareora, around 80 went to the Pukeuri plant an hour south to Ōamaru, and several went north to Ashburton, he said.

Around 20 workers went to Australia - as the impact of dropping breeding ewe numbers continued to bite, Carran said.

New estimates show there were 1.1 million fewer lambs tailed this spring compared to last year, due to fewer breeding ewes and challenging weather conditions - especially across Te Wai Pounamu.

Beef and Lamb's new Lamb Crop report warned New Zealand's balance sheet would be hit by the forecast 6.5 percent drop in export lamb and 10 percent reduction in adult sheep exports this season.

The Ministry for Social Development said unions suggested 250 workers were able to find alternative employment.

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