AFFCO is to close its South Auckland operation, with the loss of about 40 full and part-time jobs.
The meat company says it can make more money by exporting animal intestines unprocessed. It now plans to collect and freeze casings at individual plants for direct export overseas.
AFFCO says its decision has been prompted by the need to stay competitive and ensure its continued viability.
It says it's had to contend with rising fuel costs and transport surcharges as well as increases in water, waste water and basic compliance costs.