Federated Farmers says over-capacity in the meat industry is a likely factor in the planned closure of a meat processing plant in Christchurch, which has 250 employees.
The Alliance Group has started a consultation process on a proposal to close its plant in the suburb of Sockburn at the end of the 2012 processing season.
Federated Farmers meat and fibre chairperson Jeanette Maxwell says there is less demand in the meat sector because of the rise of the dairy industry, and plants are being joined and condensed.
Alliance says the proposal will increase the company's overall processing capacity and make it more profitable.
