Declining lamb numbers force workforce cuts.
The company behind TK Natural Lamb Te Kūiti Meat Processors Ltd is cutting its workforce by about a third in response to declining lamb processing numbers.
Te Kūiti Meat Processors workers were called to a meeting at the Rangitoto Road lamb and sheep processor plant on Monday and told up to 70 jobs will go in a seasonal layoff.
“Normally, this time of year, we put staff on a holiday programme – it bridges a gap – but we have not got enough livestock to get us through this season, so between 60 and 70 staff will be laid off,” company general manager Alastair Bayliss told The News.
The Government declared a medium-scale adverse event due to drought conditions on March 7 for the western Upper North Island. Ongoing hot, dry conditions and below average rainfall impacted soil moisture levels and pasture growth in the King Country from Christmas until March.
King Country farmers sold many of their lamb and sheep store during the drought, causing a decline in lamb and mutton processing numbers.
“Drought has been a big factor,” Bayliss said. “Our supply is being seriously decimated. It’s just not generating enough work, and we have to let staff go. It’s unusual for the plant. It’s not ideal.”
Bayliss said the workers will be working out their notice in coming weeks.
“Different people will be on different notice periods,” he said. “We are hoping it’s a seasonal thing. Then we have to try and get staff back.”
The local council built the plant more than a century ago. Joint owners Allied Farmers and Davmet modernised it in 1996 allowing export standard processing. The company is now owned by Hawke’s Bay Meat Company based in Hastings and its directors are Kevin Bowler, Craig Boyce, Georgina Falloon, Ashleigh Gilmour, Craig Hickson Willem Sandberg and John Signal.
Bayliss said the company had not had to take such drastic action in the decade he had been involved with it.
