The expected demand for space in January, February and March had not materialised and Hamilton said SFF had in recent weeks closed its Fairton works, reduced chains at other works and put staff on four-day weeks or given some four weeks leave.
The dry spring and summer meant stock was shipped out of Canterbury last year leaving little demand for killing space so Hamilton said the decision was taken to close the Fairton near Ashburton much earlier than usual.
But, with recent grass growth in many regions, there was still stock to be killed before the weather turned, requiring processors to retain capacity.
Given low prices and an abundance of feed in some regions, farmers were understandably trying to add weight to their animals to improve returns.
“It is challenging times as you need to maintain the ability to process when numbers arrive.”
In addition to the stilted stock flows markets had also been difficult with beef prices collapsing late last year but now showing signs of recovery though prices for lamb forequarters and flaps were 40% lower than at this time last year.