Some South Island meat processing plants could close as early as this year.
PPCS chief executive Keith Cooper yesterday warned that in 2008, ‘‘our processing plants will be operated in relation to geographic supply and to suppliers' requirements and commitments.
‘‘Fewer plants will reduce the company's overall operating costs.''
The Dunedin meat company has previously warned that it was contemplating closing plants because of overcapacity and to cut costs. Mr Cooper yesterday would not say which plants would be affected or when, but only that the company was evaluating the situation.
Any closures could be in the South Island.
In response to a question at the company's annual meeting in Dunedin yesterday, Mr Cooper said a study by PricewaterhouseCoopers on the merits of merging PPCS and Alliance had provided a blueprint of how to reconfigure South Island stock processing requirements.
PPCS operates 12 plants in the South Island and 13 in the North Island, but in the last financial year reported a $48 million loss before tax.
The meat industry has long acknowledged an excess processing capacity, especially for sheep, with the flock shrinking in size as sheep farmers change land use in response to low returns.
Outgoing PPCS chairman Reese Hart said the deer herd was expected to fall below 500,000 by 2009 and the number of lambs available for slaughter to fall 1.4 million in the next three years.
Mr Cooper said PPCS planned to make greater use of multispecies plants, which would give greater efficiency, smooth the seasonal nature of processing and allow the company to offer longer employment options.
Finding staff has been an issue for PPCS in the tight labour market. In the past six months, it has closed a North Island venison plant and a South Otago lambskin business.
The company also yesterday announced it was changing its name. From the middle of the year, it will be known as Silver Fern Farms Ltd. Silver Fern has been a company product brand since 1985.
‘‘In Silver Fern, we are creating a brand that showcases the very best of New Zealand,'' Mr Hart said.
It brings to an end 60 years of the company being known as PPCS.
Millers Flat farmer Eion Garden was yesterday elected company chairman, replacing Mr Hart who lost his seat in director elections.
Mr Garden said that, given the suddenness of change, he intended continuing the direction set by Mr Hart.
‘‘The company has a number of exciting things ahead of it, and I intend progressing with that.''
Mr Garden, who farms 2500ha, has been on the board since 1998.
Richard Somerville will continue as deputy chairman.