Expected processing delays due to Omicron 'perfect storm' for farmers

Friday, 28 January 2022

Alliance Group processing workers prior to the red light-setting. Alliance Group chief executive David Surveyor is asking farmers to prepare for longer waiting times and to ensure they have enough feed on hand leading into the Omicron outbreak. [File Photo]

Meat processors are warning Omicron could cause processing delays, creating a “perfect storm” for farmers during a dry summer season.

Alliance Group chief executive David Surveyor said it was “almost inevitable” that Omicron would affect its processing capacity as workers were required to self-isolate.

“The situation will compound with the industry’s existing labour shortage. The impact of this will mean we cannot run our plants to the desired capacity,” he said.

“While we currently have available processing capacity and can manage the flow of stock, if any of our plants or supply chain partners are impacted, it’s possible we may not be able to process all stock when required by farmers.”

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Silver Fern Farms chief executive Simon Limmer said its focus will be on moving animals off farm during the Omicron outbreak. [File Photo]

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Alliance had been utilising rapid antigen tests for workers for some time, with the cost of the test, the resources required to administer the test, and the time lost undertaking the process becoming “significant”, he said.

Silver Fern Farms chief executive Simon Limmer said it did not expect to be immune from Covid-19, and would be prioritising fully shared suppliers as well as areas with animal welfare risk.

Federated Farmers Southland president Chris Dillon said if Omicron causes processing delays during the dry summer season it could create a “perfect storm” for farmers who do not have the feed capital to keep animals on farm. [File Photo]

“Our focus will be moving animals off farm, although at times this may come at the expense of value … We’re asking all suppliers to reach out to their livestock rep early.”

In December, it was reported that shipping delays and industry shortages were already affecting livestock processing, with Silver Fern Farms 550 staff short across its network.

Federated Farmers Southland president Chris Dillon said reduced capacity coupled with a dry summer season could end up becoming a “perfect storm” for farmers.

The dry weather meant farmers did not want livestock hanging on farm longer than needed because of feed capacity, and Dillon encouraged farmers to plan ahead.

He was optimistic that Omicron may not hit rural areas as hard during the summer as most were isolated, but this could change as children returned to school in the coming weeks.

“The risk is if it [an Omicron outbreak] hits going into harvest … because harvest is weather dependant, you can’t just get new people on site,” he said.

Blue Sky Pastures chief executive officer Jim Goodall said it had been using rapid antigen tests as a mitigation method for anyone on site since before Christmas.

Staff were currently being tested weekly, but this would move to twice weekly and then daily as Omicron cases surge.

Goodall did not disclose the cost of the testing, but described it as “significant”.

There had already been issues with supply, although he could not ascertain if this was due to the Government’s decision to consolidate all forward orders of the tests before they reached businesses.

Meat Industry Association chief executive Sirma Kirapeeva said the meat industry has stringent safety protocols concerning Covid-19, which included rapid antigen testing. The concern was if demand would outstrip supply.

“That is a real concern, we can see how quickly it spreads …” she said.