The company plans to close the pelt house, kept running since processing stopped in May 2017.
A depressed global pelt market and low sheep numbers in the South Island have been cited as the key reasons.
Those factors, coupled with the high overhead costs of the large site, make pelt processing unsustainable at Fairton, the company said.
The 44 staff processing pelts at Fairton and four people preparing pelts at the Pareora plant in South Canterbury have been presented given redundancy and options for work at other SFF sites.
An SFF spokesman said continued low sheep numbers mean there is excess pelt processing capacity in the South Island.
And processors are getting low returns from the global market.
“The large and old Fairton site with high overheads is no longer in any capacity economical or viable in SFF’s operations.”
The company plans consolidate South Island pelts at the Finegand pelt preparation facility in Southland, getting efficiency gains through the early part of the pelting process.
SFF has investigated alternative processing options with others in the industry and should the closure go ahead, it intends to consolidate its volumes through other pelt processors for mutual benefit.
A decision is expected at the end of the month.
The only thing that could change the proposal would be if an option came forward from staff in the consultation period.
“Then we may extend that decision period.”
A neighbouring 450-hectare farm owned by SFF that has been an integral part of pelt house effluent disposal consents is likely to be sold.
“But like what happens with the whole plant site, the decision on what happens with the farm will also be announced at the end of the month,” the spokesman said.
The Fairton plant was one of the biggest employers in Ashburton District for 120 years.
SFF has committed to preserving items from the plant that have historical interest for the local community.
At peak the plant was a three-chain sheep meat operation employing more than 700 staff.
