Alliance Group’s Smithfield plant in Timaru to close

12:32 pm on 18 October 2024

Workers enter an Alliance meeting, at which it was announced the meat co-operative would close its South Canterbury plant with the loss of 600 jobs. Photo: Delphine Herbert

Alliance has confirmed its Smithfield plant in Timaru will close with the loss of 600 jobs.

Workers at the meat processing plant in Timaru were called into a meeting at 9am Friday.

It came after owner, Alliance, announced it was planning to close the 139-year-old site, a move that would leave about 600 employees out of work.

Alliance Group confirmed on Thursday a proposal to close its Smithfield meat processing plant in Timaru, South Canterbury.

Sheepmeat, calves and night shift venison seasonal processing ceased at the plant at the end of September. Venison day shift processing at Smithfield will continue until no later than the end of December and the plant will then close.

Approximately 600 staff are employed during peak season at the 139-year-old Smithfield plant, which has been owned by Alliance since 1989.

Wherever possible, impacted staff will be offered the opportunity to apply for re-deployment at Alliance's other processing plants, however the decision means the vast majority of Smithfield employees will be made redundant.

Photo: RNZ / Nate McKinnon

Smithfield employee Philip Lusty is nearing retirement age and was one of those who lost their jobs on Friday morning.

He told RNZ it was likely to be the end of his career, but he worried for his younger colleagues.

"I work with a lot of old butchers, and we were killing prime stock like a month ago."

Prime livestock animals are typically raised for top-grade meat, rather than for processing into other products.

"And we all sort of looked at each other and thought, 'Eh? We're killing [prime] stock.

"We knew [it would close]... we had a pretty good idea of what was going on."

Lusty said he believed falling sheep processing numbers were behind the plant's closure - also one of the factors Smithfield had cited for the shutdown.

The company had 100 jobs available at its Pukeuri plant near Oamaru, and Lusty said he hoped colleagues would be able to find employment.

Alliance chief executive Willie Wiese said closing the plant was an extremely difficult decision for the company.

"Our thoughts are with our people and their families affected by the closure of this plant. Smithfield has been a familiar presence in the region for almost 140 years and we know this decision will impact the Timaru community and South Canterbury.

"Unfortunately, we must face the reality of declining sheep processing numbers as a result of land-use change. This has resulted in surplus capacity in our plant network. We cannot maintain excess processing capacity when livestock numbers don't support it.

"According to our forecasts, we can process our farmers' sheep, deer, and cattle at our four other South Island plants during peak season, without the need for a fifth plant.

"This closure will also mean we will have the right scale and a lower cost structure to meet the needs of our farmers and customers.

"I want to acknowledge the feedback from our people over the consultation period. We have made the decision to close the plant with a heavy heart, knowing the significant effect this will have on our people and the community.

"Despite exploring all possible alternatives, we were left with no viable option. While we know the outcome is not what anyone wanted, we are committed to working through the closure process as respectfully as possible.

"Alliance is grateful for the efforts of local authorities, Venture Timaru, local MPs and support agencies who have rallied around our people over the past few weeks."

Smithfield staff who are made redundant will receive payments according to their employment agreements.

It has been a stressful few weeks for workers waiting on the news.

Melissa Biggs had worked at the meatworks for 16 years, and told RNZ it had been a tough time.

"It's a bit hard. It's just been stressful not knowing what's going on... They said there is talk of redundancies."

The decision follows a two-week consultation period with Smithfield staff and unions.

In total, Alliance operates six other plants at:

Lorneville, near Invercargill (sheepmeat, venison and beef)
Mataura, Southland (beef)
Pukeuri, near Oamaru (sheepmeat and beef)
Nelson, (sheepmeat)
Levin, Horowhenua (sheepmeat and beef)
Dannevirke, Hawke's Bay (sheepmeat)

'Really challenging time' - Timaru mayor

A local taskforce is being launched to help those affected by today's announcement of the closure of Alliance Smithfield.

The group had been formed to co-ordinate support services for those being made redundant, and identify opportunities with local employers.

Timaru District mayor Nigel Bowen said that the closure was a significant blow, not only to the hundreds of families directly affected, but the whole community.

"It's really important that the community now wraps itself round the people affected and ensures we help them every way we can," he said.

"We're a district of opportunities, and our economic development body Venture Timaru will be working closely with the South Canterbury Chamber of Commerce to identify local businesses needing staff and linking them with those seeking employment.

"Our community development team has also met with all the non-governmental support agencies in town to ensure they are aware of the issue and can be co-ordinated in their response.

"We'll also be helping by ensuring that there's a single place people can go to access advice and support resources they need.

"It will be a really challenging time for people, and it's important they have trusted people to walk alongside them and connect them to, advocate for and help them navigate through their options going ahead."

Rangitata MP James Meager said it was great to see so many agencies had stepped up to the plate following the initial announcement.

"We've got a strong community here, and one of those major strengths is that we have people who want to pitch in and help with those facing a tough time," he said.

"From our perspective, I'm ensuring that government departments in South Canterbury such as MSD are providing resource to help those wanting one-on-one support and advice as soon as possible.

"Everyone who works at Smithfield is a major part of our community and we value them hugely. We want to make sure that we can offer them every opportunity to stay here and ensure they and their families continue to contribute to our community."

A number of events are being organised in the coming weeks:

Drop-in sessions with the Ministry of Social Development covering CV writing, budgeting, managing redundancy, applying for benefits, and health and wellbeing: 30 October, 10am- 5.30pm; 31 October, 8.30am-5.30pm; and 1 November, 8.30am-3pm
Jobs fair to match affected workers with around 40 local employers at Caroline Bay Hall, Timaru: 5 November, 2pm-7pm
Drop-in CV workshops at the Work and Income office, 14 Strathallan Street, Timaru: 22 October-8 November.

Community support would also be provided by local support organisations such as Multicultural Aoraki, Family Works, Arowhenua Whānau Services, Citizens Advice Bureau, Pasifika O Aoraki Services, Tongan Society South Canterbury, the Samoan Society, Ara, Volunteering Mid and South Canterbury, and The Y.

Any workers or families affected by the Smithfield Closure who need support can contact the following agencies for help: