The only waste material will be manure from stockyards and paunch grass (stomach contents) which goes to a compost operation.
The Levin plant employs about 275 people and there had been no change in staffing levels as a result of the upgrade.
Alliance Group exports more than 15,000 metric tonnes of sheep and lamb inedible and edible offal to customers in 25 countries every year.
Specific volumes at Levin are commercially sensitive, Stevens said.
Its pet food raw material is destined for markets in NZ, US and Europe and these remained the current target markets. The worldwide pet food market is worth US$70 billion.
Alliance Group is a co-operative owned by about 5000 farmer shareholders and is the world's largest processor and exporter of sheep meat.
Its current turnover per annum is $1.5 billion.