Hundreds Of Jobs At Alliance Groups Timaru Plant In Jeopardy

• Timaru's Alliance Smithfield plant could lose 600 jobs under a new proposal.
• A 21-day consultation period will end, with a final decision expected by October 18.
• Declining sheep numbers and land-use changes have led to a surplus in processing capacity.

Hundreds of jobs at Timaru’s Alliance Smithfield meatworks are under threat, following a proposal from the Alliance Group. If approved, approximately 600 workers could be affected. The consultation period will run until October 11, with a final decision expected by October 18.

Alliance, which has owned the Smithfield plant since 1989, cited a drop in sheep processing numbers. Chief executive Willie Wiese said this decline was due to changes in land use, creating excess capacity within the company’s plant network. “We simply cannot maintain excess processing capacity when livestock numbers don’t support it.”

Signs something was afoot surfaced two weeks ago when Alliance relocated its Pure South online store. Previously, the store fulfilled orders from the Smithfield plant but has now been moved to Wellington.

The 139-year-old plant is Alliance's oldest site and, according to the company, would require “significant” investment to remain operational. Additionally, it faces “encroachment” from retail development in the area.

Wiese acknowledged the impact of the proposal, saying, “We know our people at Smithfield, their colleagues and the local community will be devastated by this proposal. Our priority is to support affected employees during this immensely difficult period.”

Alliance posted a $97.9 million loss before tax for the year ending September 2023, and Wiese noted that “despite everyone’s best efforts, these challenging conditions have persisted into 2024.” The company believes it can manage sheep, deer, and cattle processing at its four other South Island plants during peak season.

The consultation period will run until October 11, with a final decision expected by October 18.