The Alliance meat company has confirmed that lambs and sheep will no longer be processed at its Mataura plant in Southland.
Alliance is consolidating all sheepmeat processing at its Lorneville plant near Invercargill, because of falling sheep numbers in the south.
The decision takes immediate effect.
All 260 meat processors who worked on the sheep chains at Mataura have been offered redundancy or jobs at Lorneville.
Alliance says there will be some redundancies among the 65 management, supervisors and trades staff at Mataura, which will now operate as a beef-only plant.
The new season's lamb processing has yet to start at Lorneville.