Massive changes to the casualty stock business have forced Newton Slinkskins to offer a reduced service to Southland farmers this season.
Starting September 1, the business will be offering pickups for dead lambs to farmers around the greater Southland region.
It will not be collecting dead cows or calves.
Newtons Slinkskins director Trevor Newton says last season, his business picked up around 140,000 lambs and 25,000 calves. This season, he estimates he might collect 50,000-70,000 lambs.
He is also employing fewer staff – from 35 last year, down to 10-12.
Newton’s pickup is limited to what can be on-sold via supply contracts and the changes within the industry over the past 15 months, and forced the company to cut its costs to what it can sell.
Newton says they had worked hard to secure supply contracts for its casualty stock business over the past 15 months and were supplying a North Island company.
“In the 43 years that we have been involved in this industry we have never seen the casualty stock business go through such radical change,” Newton said.
“Markets affected by the covid pandemic, slink operators going into receivership, change of ownership within the major players of the casualty stock industry, resulting in factories closing and collection services being affected.
“It’s just been a dismantling of the whole industry.”
In the South Island, WG Ltd Partnership are the only other business still running after Slink Skins went into receivership last year and the Lowe Corporation pulled out of the casualty operation in the South Island.
Newton says it was frustrating it could not offer their services to the areas it usually collected from.
“It’s not good really. I’m absolutely gutted because I’m not going to be able to offer our services to some of our clients. We’ve always been proud of the fact that we offer the same level of service whether it’s two or 2000 lambs,” he said.
“To not be able to pick up from some pretty loyal clients is heartbreaking.”
Newton said they will continue to work hard to be able to offer their services for the upcoming season.
“We are still actively campaigning to secure more supply contracts with our usual exporter,” he said.
