"Advancements within production, combined with our planning solutions, is enabling highly efficient production runs, which is vital to making gains in processing.
"This is another significant investment by Alliance Group and underlines how serious we are about achieving processing excellence," he said.
"This technology is also more advanced than any other system in New Zealand and will ensure we can deliver greater accuracy, better yields and minimise waste."
The custom-built primal/middle cutting technology features an x-ray unit which analyses each carcass and instructs the two cutting machines where to cut.
The robotic primal cutting machine then separates the carcass into hind, middles and forequarter cuts. A robot middle cutting machine then separates middles into racks, loin, flap or saddle.
The primal cutter automatically adjusts to a wide variation in carcass size.
Circular cutting blades rather than bandsaws also result in improved hygiene, less strain for workers and better health and safety, which is a key priority for the co-operative, Mr Surveyor said.
The same technology is already in place at the company's Smithfield (Timaru) and Pukeuri (Oamaru) plants.
The boning rooms will also be reconfigured to allow a streamlined operation that results in improved operator performance and yield.
"We have learnt a lot from the primal cutters at Smithfield and Pukeuri, which has led us to reconfigure the boning rooms at Dannevirke and this promises to deliver even greater benefits," Mr Surveyor said.
"This investment fits with our vision to lift the performance and productivity of our plants and reflects our commitment to remaining the leader in New Zealand red-meat production.
"The investment is also good news for the Dannevirke community and our farmer shareholders in the region.
"The plant is a vital part of our business and we're pleased with the operational performance," he said.
"The hard-working team and our farmer shareholders deserve a lot of credit for this success."
No job losses were expected as a result of the introduction of the changes, general manager processing Kerry Stevens said.
"The technology will reduce the amount of labour required, but this will be accommodated by natural attrition so we're not anticipating redundancies."