SFF closes UK processing plant

Declining frozen sheepmeat exports to the United Kingdom have prompted Silver Fern Farms to close its processing facility in the British city of Norwich.

The Dunedin meat processor bought a half-share in the plant in 1988 and bought it outright in 1998. It processed frozen New Zealand carcasses and cuts into retail-ready products, but the rapid growth of sheepmeat exports in chilled form has made the plant surplus.

It will close immediately, with the loss of 64 jobs.

Silver Fern Farms (SFF) chief executive Keith Cooper said changing consumer lifestyles and growing demand for fresh, healthy and convenient added-value products, was happening worldwide, but particularly in the UK, our biggest sheepmeat market.

Chilled meat exports to the UK last year grew 20%. Mr Cooper said the growth of SFF's chilled business to the UK exceeded that. That meant less meat went through the Brooks plant.

SFF signalled in 2007 change was in the wind when it sold the plant and leased part of it back, citing falling frozen carcass sales. That move cost about 100 jobs.

In addition to the growth in chilled meat, more meat was being processed in New Zealand and overall export volumes were falling due to fewer sheep being farmed.

In 2007, New Zealand exported 334,000 tonnes of lamb, but in 2009 that had fallen to 317,000 tonnes.

Mr Cooper said SFF was also changing the way it did business, which reduced the need for the Brooks plant.

The meat company was moving to become a fully integrated, market-led company which partnered with major UK retailers and this was increasing demand for chilled meat.

SFF would retain marketing and logistics operations in the UK, he said.