Silver Fern Farms, the country's biggest meat processor and exporter, plans to close its lamb cutting and its rendering and casings operations in Christchurch because not enough animals are being slaughtered.
More than 170 jobs could be lost.
Chief executive Keith Cooper says the company began a consultation process with workers and the union on Monday.
A final decision will be made on June 25th.
in 2008, more than 1000 jobs were lost at Silver Fern Farms when several processing plants were closed and the workforce cut back at others.
Bill Watt, NZ Meat Workers Union Canterbury President, says workers have been told they will be given counselling and help in finding other work.
In other Silver Fern Farms developments, chief executive Keith Cooper, just back from a trade mission to China, says the lamb industry faces a number of challenges selling its products there because Chinese consumers prefer cheaper cuts of meat.
Silver Fern Farms says it will adjust its marketing strategy and aim to establish joint ventures in China.
