AFFCO lays off seasonal workers as stock processing slows

By Paul McBeth

Thursday 8th January 2009

AFFCO Holdings, the North Island meat processor, laid off more than 100 seasonal meat workers at its Feilding plant amid dwindling stock, another sign of New Zealand's weakening job market.

The Feilding plant's night shift usually runs six to eight times per year, with staff numbers at the factory peaking at 280, the Manawatu Standard reported. The workers started the season in October, and may be rehired if rainfall in the region allows farmers to retain cattle for longer and stock numbers rise.

New Zealand's economy is mired in its first recession in a decade, prompting companies to cut costs and eliminate workers. The Westpac McDermott Miller employment confidence survey fell 17.2 points in the December quarter to 104, the lowest level in the history of the series, and close to the 100 point level that indicates pessimistic workers outnumber optimists.

Shares in the meat processor fell 2.6% to 38 New Zealand cents today, outpacing the NZX 50 Index's 0.8% slide. AFFCO's shares have increased about 15% in the past 12 months.

www.businesswire.co.nz

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