The Silver Fern Farms meat co-operative sees its purchase of another small processing plant as part of an aggregation process that needs to happen to reduce export competition.
Silver Fern bought the small Frasertown sheep plant in northern Hawke's Bay last week.
Chief executive Keith Cooper says it's part of an on-going rationalisation in the meat industry which can occur either via attrition or shrinkage or through amalgamations on good commercial terms such as with Frasertown.
He says that when Silver Fern Farms sees a good business opportunity it will acquire those assets where possible, which is good for the company and farmers, as well as decreasing the number of exporters competing in the international market place.
Mr Cooper says having the Frasertown plant means Silver Fern Farms will no longer have to cart sheep from the Gisborne - Wairoa region to the Takapau site in central Hawke's Bay, a journey that can take a stock truck five or six hours.