Alliance Group will invest $1 million into an expansion of its Lorneville plant, which is expected to create 40 more jobs.
The new facility was expected to expand the scope of existing production at the plant by increasing the processing capacity of fresh and tempered lamb.
New lines for automatic slicing, dicing and mincing of products will be installed alongside a range of modern packaging technologies, offering a range of packaging options for its global customers.
One of the packaging technologies that would be on offer was skin packaging, an anaerobic packaging technology that hermetically seals right to the edge of the meat cut.
The packaging extend the meat cut's chilled shelf life for up to 11-weeks, retaining colour and optimising meat tenderness.
It was considered a good way to display smaller consumer-ready portions.
Alliance Group chief executive David Surveyor said "a key part of our business strategy is capturing greater market value for our products so that we can pass those gains onto our farmer-shareholders and create a stronger co-operative.
"This is an exciting development for the company, our farmer shareholders, our people and our customers. It reflects our continuing transition to becoming a world-class food and solutions co-operative and demonstrates we are delivering on our strategy."
The company would initially target the New Zealand domestic market, the United Kingdon food service sector and China.
"The co-operative is experiencing considerable growth in these sectors and we see significant opportunities in the future," Surveyor said.
Alliance had spent almost a year planning every product and its specification, the machines and technology requirements and plant layout to ensure the facility was effective from the start of production.
"This investment is also great news for the region. We are the largest employer in Southland with almost 2000 people at Lorneville alone. This new value-add facility will provide employment opportunities for 40 people and we have a range of other projects in the pipeline."
The announcement of the value-add facility follows the opening of the co-operative's $15.9 million venison plant at the Lorneville plant last year.