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The closure of Alliance's Smithfield plant at Timaru will prove yet another blow for the heartland.
OPINION: Rural New Zealand has been taking some very big hits of late. The latest of these, the closure of Alliance’s Smithfield plant at Timaru, is yet another blow for the heartland – the engine room of the economy.
Farmers are struggling with the effects of adverse weather, terrible prices for lamb and having to sell their products in an unstable global market.
For the workers at Smithfield it is a bitter blow. They are highly skilled people who have played a huge part in the local and national economy. There are also the other people who have support roles around the processing plant who will now have the unenviable task of finding work and maybe having to leave the district.
While many may see the closure of the 139-year-old Smithfield plant as a surprise, the fact is that this has been a storm coming and the fact that it’s taken so long to happen is itself a surprise. Alliance rightly points to the age of the plant and need for investment to upgrade it. Another major factor is declining stock numbers, so the economics of an upgrade don’t cut the mustard. Unfortunately, Smithfield is the area where the declining stock has had a significant impact, says Alliance.
But there are other things in play as well.
Land use change – for the worse – has seen pine trees planted on good sheep country, with the result that the national ewe flock continues to drop. That is not the fault of Alliance, rather questionable economic policies which encourage the planting thousands of hectares of land in pines. For what good reason, many ask. Carbon farming, they say.
The other factor at play with Smithfield is urban encroachment and there are rumours in Timaru that a developer is interested in the site for retail or other business options.
There is talk that the coolstores at the site may be kept as they are believed to be in reasonable condition. Little is for certain now.
What is certain is that there could be more closures like Smithfield if stock numbers continue to decline and newer plants with greater capacity and are better designed to better meet the needs of overseas consumers take over from the older plants.
OPINION: Your old mate hears some of the farmers involved in the Meat Industry Excellence (MIE) group ten years ago think the Alliance deal with Irish company Dawn Meats is “an absolute disaster” – and is the kind of outcome they predicted back then if nothing changed.
The new majority owner of meat company Alliance has no plans to close any processing plants. Instead, Dawn Meats plans to extract more value from Alliance's existing footprint.
Dawn Meats chief executive Niall Browne says their joint venture with Alliance Group will create “a dynamic industry competitor”.
Alliance Group's Pure South Handpicked 55 Day Aged Beef has been recognised on the world stage, securing top honours at the World Steak Challenge in the Netherlands.
Meat co-operative, Alliance has met with a group of farmer shareholders, who oppose the sale of a controlling stake in the co-op to Irish company Dawn Meats.
With the current situation in the European farm machinery market being described as difficult at best, it’s perhaps no surprise that the upcoming AgriSIMA 2026 agricultural machinery exhibition, scheduled for February 2026 at Paris-Nord Villepinte, has been cancelled.
The Meat Industry Association of New Zealand (MIA) has launched the first in-market activation of the refreshed Taste Pure Nature country-of-origin brand with an exclusive pop-up restaurant experience in Shanghai.
Jayna Wadsworth, daughter of the late New Zealand wicketkeeper Ken Wadsworth, has launched an auction of cricket memorabilia to raise funds for I Am Hope's youth mental health work.
As we move into the 2025/26 growing season, the Tractor and Machinery Association (TAMA) reports that the third quarter results for the year to date is showing that the stagnated tractor market of the last 18 months is showing signs of recovery.
DairyNZ chair Tracy Brown is urging dairy farmers to participate in the 2026 Levy vote, to be held early next year.
Beef + Lamb New Zealand (B+LNZ) is calling for nominations for director roles in the Eastern North Island and Southern South Island electoral districts.
