Shipping crisis deepens
The shipping crisis caused by Houthi rebel attacks in the Red Sea and problems with a lack of water in the Panama Canal appears to be deepening by the day.
It sounds like the death rattle is signalled for the former Fairton meat processing plant near Ashburton.
Silver Fern Farms (SFF) last week said it is planning to close the pelt processing operation there following a review and staff consultation.
“All the 44 people processing pelts at the Fairton site and four preparing pelts at Pareora have been presented with potential redundancy, as well as with work options at other Silver Fern Farms sites in the region,” the company said in a statement.
SFF closed the Fairton sheepmeat processing plant in May 2017 following a decline in regional sheep numbers.
“Continued low sheepmeat numbers in the South Island have also led to... excess pelt processing capacity in the South Island,” the company said. “Pelt processors are also seeing low returns from the global market.”
These factors, coupled with high overhead costs due to the large site, are making pelt processing unsustainable at Fairton, SFF says.
“This will mean the company can consolidate its South Island pelts at its Finegand (Dunedin) pelt preparation facility, bringing efficiency gains through this early part of the pelting process.”
The company also claims it has investigated alternative processing options with others in the industry.
“Should this proposal proceed following consultation, SFF intends to consolidate its volumes through other pelt processors for mutual benefit.”
The company says it is offering support to the 44 people at Fairton and those in four roles at Pareora affected by the proposed closure.
A final decision is expected at the end of August.
Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.
Shipping disruption caused by Houthi rebels in the Red Sea has so far not impacted fertiliser prices or supply on farm.
The opportunity to spend more time on farm while providing a dedicated service for shareholders attracted new environmental manager Ben Howden to work for Waimakariri Irrigation Limited (WIL).
Federated Farmers claims that the Otago Regional Council is charging ahead unnecessarily with piling more regulation on rural communities.
Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.
OPINION: We have good friends from way back who had lived in one of our major cities for many years.