Wednesday, Aug 21, 2019
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Proposal to close pelt processing operation Will result in the loss of 44 jobs locally Four job losses at Pareora Final decision by end of the month
THE FINAL BLOW? Silver Fern Farms is planning to close its pelt processing operation at Fairton, with the loss of 44 jobs. The proposed pelthouse closure was conveyed to staff at a meeting yesterday; another meeting was held in Timaru for four other staff whose jobs would also be affected. A statement released by the company following the meeting in Ashburton said the 44 people processing pelts at Fairton and the four preparing pelts at Pareora had been presented with potential redundancy, as well as work options at other Silver Fern Farms sites in the region. Sheep pelts from Pareora, Finegand near Balclutha and Waitane near Gore have been delivered to Fairton for processing and the pelts sold to be made into car seats and other items. Silver Fern Farms closed its Fairton sheepmeat processing plant in May
2017, with the loss of 370 staff, following a decline in regional sheep numbers. The pelthouse continued to operate, while the rest of the plant was shut down; the company said last year it had no plans on the table to sell or develop the site. The company said yesterday continued low sheepmeat numbers in the South Island had led to a situation where there was excess pelt processing capacity in the South Island. Pelt processors were also seeing low returns from the global market. “These factors, coupled with the high overhead costs due to the large site, is making pelt processing unsustainable at Fairton.” Closing Fairton will mean the company can consolidate its South Island pelts at its Finegand pelt preparation facility, bringing efficiency gains through this early part of the pelting process.
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Silver Fern Farms said it had investigated alternative processing options with others in the industry through a thorough process. Should this proposal proceed following consultation, it intends to consolidate its volumes through other pelt processors for mutual benefit. Support was being offered to the 44 people at Fairton and four roles at Pareora affected by the proposed closure. A decision is expected at the end of the month. The company said it was committed to preserving items from the plant that had historical interest for the local community, as the facility had been operational for over 100 years.
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