In a statement chief executive Dean Hamilton blamed the move on the decline in sheep numbers from Mid Canterbury to Marlborough in the last 10 years.
In 2010 Fairton processed one million lambs but last year that halved to 500,000 and fell further this year to 325,000 over six months.
The pelt house would remain open because of its ability to pickle pelts.
“There has been significant land use change in Canterbury and Marlborough over the last decade and there are fewer sheep farms in these regions as they have made way for other uses such as dairy and wine.”
Recent drought accentuated that decline in sheep numbers.
Hamilton said despite a likely slow down in land use change, sheep numbers would settle at current levels, which encouraged SFF to consolidate processing at its Pareora works south of Timaru that has surplus capacity.
“Pareora is a large multi-species plant an hour down the road in Timaru.
“Consolidating at one plant will provide a longer season with higher staff retention rates.”
Fairton employs up to 370 people and several hundred of them attended a meeting in the Mid Canterbury town to be told the company was starting a two week consultation process ahead of the plant’s possible closure.
Hamilton estimated 230 jobs could be available at SFF works at Belfast in Christchurch, Pareora and Hokitika.
Other roles around the country could become available as the new season commences.
“We will be working closely with our livestock suppliers through any transition, the majority of who already supply both plants.
“We remain fully committed to providing a competitive service offering to our farmer partners in the region and the proposed changes would support us in doing that.”
