Lamb processing delays expected due to labour shortage

Staff shortages had been a major problem for some processing plants. Photo / Supplied/ Scott Technology

By Sally Murphy of RNZ

Farmers are being told to expect delays for this year’s peak lamb kill, with the season expected to be longer due to labour shortages.

Processors have been struggling with staff shortages for the past two years due to the border closure and staff being off sick with Covid-19.

AgriHQs latest market update said staff shortages had been a major problem for some processing plants and in some cases, lambs were sent back to the farm as there were not enough staff to process them all.

Alliance Group, which operates five meatworks in the South Island and two in the lower North Island, had not had to send lambs back, but farmers were experiencing wait times of 10 to 14 days.

General manager livestock and shareholder services Danny Hailes said plants were still processing old-season lambs.

Its Lorneville plant had been undergoing maintenance but would be up to speed next week and the Smithfield plant will ramp up quickly after a one-week maintenance shutdown from November 28, he said.

“Any backlog that we have will be cleared pretty swiftly.”

Lorneville would start on two chains and would be operating six by Christmas. There was a goal of getting a seventh processing chain operating in the new year, subject to labour.

Staffing had slightly improved with the border reopening but it was still not straightforward to bring in workers from overseas.

“We’re doing our best to get labour in from overseas in a way that suits our seasonal ramp-up, but the reality is that we won’t have the numbers of people at the time that we want.”

Farmers should have their lambs processed as soon as they’re ready, he said.

“Don’t hold off any longer than you need to.”

Silver Fern Farms chief supply chain officer Dan Boulton expected the labour situation to be marginally better than last season.

“However that’s coming off a relatively low base and so we still expect some disruption and delay in the season ahead.

“We’ve got to acknowledge that it’s been a long and challenging few seasons for many of our site staff, and our processing volumes will also be determined by how much sustainable overtime can be achieved without impacting our staff well-being.”

Numbers of overseas workers were still relatively small compared to its overall workforce and would not fully cover the expected shortfall, he said.

“Though we are not forecasting a repeat of the shocks experienced across February to April last year, our advice to suppliers is to make similar preparations to last season.

“We expect the season to be longer than has historically been the case, suppliers need to reach out to their livestock representatives early.”

ANZCO said it was not aware of any delays at its processing plants.