The Waitaki District Council plans a proactive approach to ensuring Alliance Group's Pukeuri meatworks - which contributes about $90 million a year to the local economy - stays.
With rationalisation of meatworks in New Zealand and overcapacity in killing space in the South Island, the meat industry is investigating the future of plants.
Yesterday, Pukeuri plant manager Danny Hailes said that, at this stage, no rationalisation was planned at Pukeuri.
"But we all know experts are predicting two million to three million less sheep and lambs next season and there is overcapacity so I can't say what may happen in the future," he said.
Pukeuri employs about 1000 people at the peak of the season, injecting about $30 million a year into the Waimate and North Otago economies in wages and an additional $60 million a year in services, contractors and livestock purchases.
This year, it had a record 11-month season in duration of work and livestock numbers, with demand for killing space boosted because of dry conditions in the South Island.
It started processing in June, ended the third chain on May 16 and will lay off the last two chains today. It worked a record 20 Saturdays.
"In a good year, the season usually lasts nine to 10 months," he said.
On Tuesday, Mr Hailes went to the council's hearing of submissions on its 2008-09 draft annual plan and rates.
He said Alliance opposed any rates increase which would have a detrimental impact on the operation of the plant. He also wanted the bulk charge it had to pay to dispose of solid waste at the Oamaru landfill reduced from $100 a tonne to $50.
Yesterday, Mr Hailes said the plant disposed of as much solid waste at its own landfill and composting operation as possible. It was also undertaking a waste review to identify more composting and recycling.
Mr Hailes did not tell the council that its charges were putting the plant under threat, but councillors were worried.
"We are all aware of the importance of that industry to the community," Waitaki Mayor Alex Familton said.
Councillors resolved to seek discussions with Alliance.
