Ballance Agri-Nutrients is proposing to stop its manufacturing operations in Mount Maunganui and turn the site into a storage and distribution centre.

In a statement today, the company said it was consulting with staff on ceasing the manufacturing of sulphuric acid and single super phosphate at its Hewletts Rd site.

This would impact some specific roles associated with acid and phosphate manufacture. Sixty-eight roles would be disestablished and six new roles created, resulting in a net reduction of 62 roles, the statement said.

The nationwide farmer and grower co-operative intended to use the facility, which had direct access to the Port of Tauranga, for nutrient storage and distribution, and for its national support office.

Under the proposal, the co-operative would continue manufacturing phosphate in Invercargill and urea in Taranaki.

Ballance chief executive Kelvin Wickham said the proposal was part of a wider process the organisation had undertaken in the past year to get ahead of sector changes and identify future opportunities to support New Zealand farmers and growers.

“In the coming years, we expect to see an increased range of products and services that more efficiently and effectively deliver essential nutrients for farmers and growers, which will result in reduced overall demand for single super phosphate from historical peak volumes,” he said.

“The number of existing facilities currently making this product in New Zealand means there is an overcapacity of supply.”

Wickham said the Mount Maunganui facilities needed substantial investment to keep them operating reliably and would face increasing regulatory constraints to continue operating heavy manufacturing.

Consultation with Ballance people was the “immediate priority”, Wickham said, and was anticipated to take four to six weeks.

“At the end of the consultation period, we’ll take time to consider all feedback before we make a final decision and let everyone know where things have landed and what our next steps are,” he said.

The change would enable more “agility” in nutrient sourcing, and new ways to provide value to shareholders, exploring more blended fertilisers and other products being utilised from the Mount Maunganui site, Wickham said.

“Manufacturing remains an important part of how we supply New Zealand’s farmers and growers with reliable, secure and affordable access to nutrients.

“Keeping a presence in Mount Maunganui as a strategic location for nutrient supply through the Port of Tauranga and our home base for our national support office is also a priority,” he said.