O'Connor said butchers were an essential part of the supply chain for pork and would now be able to process it for supply to supermarkets and other retailers which were already open.
"We need them to operating to ensure that pigs can continue to be processed and are not backing up on farms leading to animal welfare issues.
"The pork industry is domestically focused with limited export to the Pacific Islands so there aren't as many avenues to offload product into other markets."
• Covid19.govt.nz: The Government's official Covid-19 advisory website
The pork industry raised this issue with the Government.
Cabinet agreed that there were strong enough grounds for a change to be made to address specific concerns in relation to animal welfare, O'Connor said.
Any butchers who choose to operate would need to follow health guidelines for distancing in the workplace to ensure staff safety and prevent the spread of Covid-19, he said.