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Beef Jerky Manufacturer Confirms Job Losses

Beef Jerky Manufacturer Confirms Job Losses

South Auckland beef jerky manufacturer, Jack Links New Zealand Ltd, confirmed today it was making approximately 100 employees redundant.

“As a direct result of the strong New Zealand dollar, we have lost a major customer in the United States which has forced us to cease our bulk manufacturing business,” chief executive John Corner said.

“Unfortunately, that means we have no choice but to let people go. However, we will be retaining a staff of around 50 to continue our retail business, which is expanding internationally.”

Mr Corner said that when the company started making beef jerky almost four years ago, the New Zealand dollar was at 40c to the US dollar.

“Now it is sitting at 70c and has been for some time which makes it impossible for us to compete with manufacturers in South America.

“Our major customer in the United States, Link Snacks International, advised us last week that they will not continue buying our jerky at significantly higher prices than they pay in Brazil. That decision took effect immediately.”

Mr Corner said staff would receive redundancy payments in line with their contracts.

“This is a sad day for our company and our employees, who have been very loyal and hard-working.”

Mr Corner said that, while bulk manufacturing accounted for most of Jack Links New Zealand’s production, the retail side of its business was growing, now making up a third of total turnover.

“We are confident in the continuing growth of the retail business but unfortunately that cannot support our current total staff numbers.”

Jack Links’ retail products are now sold throughout New Zealand as well as several other countries around the world.

“We are also currently negotiating to supply several large retailers in Asia and are about to become licensed to supply the European market,” Mr Corner said.

- ends -

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