Top executives and management from Sanford Limited met with employees on April 20 to confirm the closing of its mussel processing facility in Christchurch, New Zealand. Production at the location has now ceased.
The decision came after a period of consultation with the 232 staff employed at the Riccarton site, who were told on April 9 that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted the natural spat (offspring) supply to a point where the company needed to look at its South Island mussel processing capacity.
Sanford has another mussel processing facility in Havelock, near to its mussel farms in the Marlborough Sounds. The company will now combine its South Island mussel volumes at the Havelock site.
“The final decision to close has been a difficult one due to the number of staff impacted, however given the outlook of reduced greenshell mussel crop supply in the short to medium term, the Company needs one South Island location working efficiently at capacity, rather than two impacted by uncertain supply,” said CEO Volker Kuntzsch.
“This will eliminate the strong likelihood of intermittent processing interruptions, unpredictable shift patterns and two sub optimal manufacturing environments, which have been caused by spat shortages limiting crop supply. These supply conditions are expected to continue for the next two to three years,” he added.
Costs associated with the closure are expected to be over $2 million and will include payments to staff of notice period, redundancy and leave entitlements.
Sanford is currently investing $13 million into the SPATnz Primary Growth Partnership, which over the medium to longer-term will produce selectively bred mussels in a new Nelson hatchery. Currently the industry is reliant on wild-caught spat to supply mussel farms. “Wild spat supply is the single biggest constraint on the mussel industry with current spat shortages limiting future crop supply,” said Kuntzsch.
The Christchurch mussel processing facility became part of the company’s operations with the acquisition of Pacifica Seafoods in 2010. Sanford Limited, founded in 1881, is engaged in fishing, farming, processing, storage and marketing seafood products.
