'Skewed' Govt policy blamed for meat plant closure

Feds meat and wool chairperson Toby Williams claims this is a symptom of broader issues that will continue undermining the primary sector until fixed.

Extending his sympathies to the 600 workers and their families affected by the proposed closure of the aging Smithfield plant, Williams noted that this would be a huge blow to Timaru.

"The prospect of the 139-year-old Smithfield plant going, and the loss of such a major employer in Timaru, is a huge blow to South Canterbury and we’re really feeling for them."

Williams says while there are multiple macro-economic factors at play behind Alliance’s decision, wrong-headed and skewed policy settings are a key reason the sheep and beef sector is under such strain.

"We’ve had a decade of policy that has favoured forestry over farming, incentivising planting radiata, particularly for carbon revenue.

"On top of that, excessive red tape and layers of impractical and poorly consulted-on regulation have strangled farming confidence and investment.

"This year’s stock count showed sheep numbers slumped by another million or so in the last year, to 23 million.

"Federated Farmers has always highlighted that when poor regulations stifle farming, the impacts are felt throughout our rural communities and broader national economy.

"This is sadly coming to play today, and it is the people of South Canterbury who will feel this the hardest."

The coalition Government is making progress winding back some of the previous administration’s freshwater and resource management regulations and planning directives, Williams notes.

"The aim is to continue looking after the environment, but balancing that with ensuring the economic and social wellbeing of communities gets the same prominence.

"For farmers, and for processors and the wider economy, that re-balancing can’t happen soon enough," Williams says.

Alliance Group says it will close the Smithfield meat processing plant in Timaru, South Canterbury, ending at the site. Alliance would continue venison processing at the plant until no later than the end of December, by which time the company expects to have alternative arrangements in place for deer.

If the proposal is confirmed following a consultation process, impacted staff, wherever possible, would be offered the opportunity to apply for re-deployment at the company’s other processing plants, however it is anticipated there would be a significant number of redundancies.

Willie Wiese, chief executive of Alliance, says the proposed closure is due to a decline in sheep processing numbers as a result of land-use change, which has resulted in surplus capacity in the company’s plant network.