Bold upgrade plan reflects sector confidence
Investing more than $100 million in new facilities at Finegand will deliver material operating savings and a more resilient earnings base with strong long-term returns at both site and network level, Silver Fern Farms says.
Plans to redevelop the South Otago meat processing plant include creating new freezing capacity, automated cold storage, sorting systems and modern load-out infrastructure.
Chief executive Dan Boulton says the project is the largest single capital investment ever undertaken by the company and signals a strong vote of confidence in the sector, community, and Silver Fern Farms’ site network.
“This is a capitalintensive investment with a rapid networklevel payback and a clear uplift in returns on capital employed,” he says.
The investment has been enabled by disciplined financial management after the company returned to profit following two years of operating losses. Retained earnings have strengthened the balance sheet and helped ensure capital was available for reinvestment.
“That approach has positioned us to invest at scale today, building durable, longterm value for shareholders,” Bolton says.
The project forms part of an ongoing programme of investment across the company's site network to strengthen resilience, efficiency and long-term competitiveness.
Boulton says the redevelopment will also deliver a step change in product quality and customer outcomes, supporting Silver Fern Farms’ premium market positioning.
“Customers will see tangible benefits, including improved carton presentation through reduced handling and damage, and greater shelflife utilisation through more accurate, responsive order fulfilment. “These improvements directly support our premium strategy and build longterm brand value,” he says.
Automation and modern facility design will significantly improve workplace safety and sustainability outcomes.
“Automation will reduce manual handling and forklift movements, creating a safer working environment for our people while supporting the transition into higherskill, technologyenabled roles,” Bolton says.
“Modern refrigeration systems and smarter layouts will also improve energy efficiency and reduce unnecessary handling and transport over time.”
Construction will be carefully staged to minimise disruption to existing operations, with commissioning planned from 2027 aligned with lower volume periods.
Silver Fern Farms Finegand, located five minutes south of Balclutha, is one of the largest sites in the company's network of 14 facilities. It employs up to 1200 people at peak season and processes beef, sheepmeat and veal. The site first opened in June 1912 under the South Otago Freezing Company.
Silver Fern Farms is New Zealand's largest processor and marketer of beef, lamb, mutton, venison and associated products. It exports to more than 60 countries and regions and employs more than 6000 staff at peak season.