The meat processing sector is being encouraged to evolve to ensure it captures future demand.

Alliance Group's confirmed Timaru's Smithfield meatworks will shut by the year's end due to declining sheep numbers – cutting up to 600 positions.

BusinessDesk reports rival Silver Fern Farms wants to be constructively involved as Alliance works through a capital raise.

Chief Executive Dan Boulton told Ryan Bridge he doesn't believe this downward trend will continue forever.

“Our sheep, beef and venison farmers deserve to thrive, but to do that, they’re going to need a really strong, efficient, and viable processing sector and that’s going to require investment.”

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