Alliance to transfer Mataura sheepmeat processing to Lorneville

Alliance Group announced this afternoon its intention to close its sheep and lamb processing operations at its Mataura plant and transfer them to its main Southland lamb plant at Lorneville, reports Allan Barber.

Mataura’s beef facility which has recently had a $15 million upgrade will continue to process beef with its remaining staff count of more than 400.

This decision is still up for final consultation with the workforce and union but, as always, this is a formality in as much as the decision has already been made. However, the media release indicates that other options could emerge during the consultation process. If the proposal remains unchanged, approximately 260 workers will be offered the chance to transfer to Lorneville with a further 65 engineering, administration and management staff also affected.

In a media release, Alliance’s chief executive Grant Cuff refers to the company’s status as one of Southland’s largest employers, emphasising its duty as a cooperative to its shareholders to operate the plant configuration most appropriate to the available stock numbers. Significant efforts had been made to retain complementary sheep, lamb and beef processing at Mataura, but declining stock numbers have made this unsustainable.

Cuff refers to the strength of Alliance’s balance sheet, which will enable it to withstand the challenge of a difficult period for the industry as a whole. He also says: “We are confident in the long-term outlook and these changes are essential to allow the company and its 5,000 farmer shareholders to benefit from the demand for New Zealand meat products in the global market.”

Today’s announcement confirms the rumours of industry rationalisation that have been circulating in recent days. The fact that Alliance has made the first move does not mean there won’t be further changes in due course affecting either the South Island’s other large cooperative Silver Fern Farms or ANZCO’s Canterbury Meat Packers operation near Ashburton.

However Alliance’s move will provide a small breathing space before further capacity or structural changes are necessary.

Fresh meat for Wedderburn Sharp Blacks

Six of New Zealand’s best butchers have been chosen to represent New Zealand in the 2013 Wedderburn Sharp Blacks team.

After a battle between the four remaining 2012 Wedderburn Sharp Blacks and six new challengers the best butchers overall were chosen.

The result was two new additions to the team, with all those from 2012 maintaining their positions. The 2013 team is: Paddy Kennedy, Allenton Meat Centre, Ashburton; Peter Martin, Mad Butcher Onehunga, Auckland; Peter Tuapawa, Victoria Park New World, Auckland; David Timbs, Peter Timbs Meats, Christchurch; Bruce van der Nett, Pak’nSave, Taupo; and Corey Winder, Ashby’s Fine Meats & Deli, Christchurch.

The Sharp Blacks compete annually and after two years of trans-Tasman rivalry, the new team will be competing in the first tri-nation competition  – New Zealand, Australia and Great Britain – in 2013.

Newcomers to the competition, Britain, will be raising the stakes making the 2013 test match the most competitive yet.

Competition organiser Kim Doran, from Retail Meat New Zealand, says with Britain entering the mix the competition has reached new heights for the industry.

“The test has become a highly anticipated event on the industry calendar and with the new addition of Britain things will only become more exciting.”

Building these international relationships can only be a good thing for the New Zealand meat industry,” says Doran.

Earlier this year, the current team lost by only a fraction to Australia which means the new team will be looking for redemption in 2013.

The 2013 tri-nation match will be held in Wanaka on 9 March.

Sustainable Business Network: awards open

Do you have a sustainable champion or project in your organisation?

If you do, or know someone who does, then you’ll be interested to learn that nominations are open for three national awards in this year’s NZI National Sustainable Business Network (SBN) Awards: Social Innovation Award, Sustainability Champion Award and Sustainable Design and Innovation Award.

The NZ National SBN Awards, now in their ninth year, are New Zealand’s pre-eminent sustainability awards, SBN chief executive Rachel Brown says, adding that anyone can nominate individuals or organisations in these three open categories.

“We really encourage people to put their thinking caps on and put forward names of people and organisations that deserve recognition for their efforts in sustainability,” she says.

“The awards recognise leaders in social innovation and individuals who are chamipioning sustainability and new sustainable market solutions. They support savvy organisations that are reshaping their business models for a more sustainable New Zealand. It’s easy to nominate someone via our website and entry is free!”

The awards will be presented at a ceremony at The Cloud, Queen’s Wharf, Auckland on 22 November 2012.

Entries close on Friday 26 October 2012.

For more information or to nominate a person, organisation or companies for these awards click here.

Meat Workers Union must report correct accounts by 12 October

The Registrar of Incorporated Societies, Neville Harris, has given the NZ Meat Workers Union (NZWMU) a deadline of 12 October to provide consolidated accounts for the 2011 financial year, reports meat industry commentator Allan Barber.

The union has been given more time to provide similar details for the previous five years which cover the period since the national union took over the branches which were previously Incorporated Societies in their own right, he writes.

Legally NZMWU is obliged to post its annual accounts by the end of April for the preceding 12 month period and these accounts should consolidate the annual balance sheets and profit and loss statements for the Canterbury, Otago/Southland, Wanganui and Aotearoa branches. However since 2006, the parent union has merely included the net capitation or member subscriptions transferred by the branches to the national union in its annual accounts without reporting total subscriptions, expenses, assets and liabilities.

The only accounts I could trace before 2006 were those of the Aotearoa branch, separately registered as an incorporated society which reported annually to the Registrar of Incorporated Societies. In its last annual report before it disbanded and joined NZMWU as a branch of the main union, it reported total contributions of $1.26 million, expenses of $1.2 million and total assets of just under $1.2 million including term deposits of $961k.

In 2010, NZMWU reported equivalent figures of $712,000 capitation fees, $656,000 expenses and total assets of $1.026 million. Aotearoa branch alone contributed capitation fees of $271,400, compared with the 2005 figure of $1.26 million, although it is understood the membership pre-merger comprised more than just meat workers.

In November last year, I asked the national union and its auditor about this large discrepancy and met a brick wall. I then wrote letters to the Registrar of Incorporated Societies and the Institute of Chartered Accountants asking why the NZMWU was allowed to misreport its total financial accounts.

The official legal position was obtained from the Ministry of Economic Development which administers the annual reporting by incorporated societies to the Registrar in accordance with the 1908 Incorporated Societies Act. The annual filing must be accompanied by a signed certificate which certifies the approval of the annual financial statement by members of the society at a general meeting. These statements do not have to be audited. However, the members must have the opportunity to view and question them and may also elect not to approve the statements, if they are deficient or fail to disclose relevant information.

Where a society has unregistered branches as part of its structure, each branch must supply full financial details for inclusion in the statement submitted to the Registrar. This procedure must follow the rules of the society at all times. But it was in following this procedure where there were serious gaps in NZMWU’s practice.

After following this matter up in the New Year with the Companies Office, I received an assurance that the Registrar would require the posting of correctly consolidated accounts. However, in contrast, the Institute was unimpressed by my persistence, told me the matter had been discussed by its Professional Conduct Committee which found nothing amiss with the auditing of the accounts and considered the matter closed.

So nearly a year after my first enquiry to the Registrar, providing the NZWMU complies with the request to provide correctly prepared accounts for the 2011 year by 12 October, it will be possible to see the actual state of the union’s finances including all branches. It will correct what appears to have been deliberate obfuscation of the NZMWU’s actual financial position.

Another area of doubt concerns the NZMWU’s justification for actually being a union at all, because this requires that it must be an incorporated society, which by definition must have a minimum of 15 members. It claims that it doesn’t have any members which all belong to the branches. However the branches are no longer registered as incorporated societies, hence the justification for not reporting to the Registrar.

When I started this investigation, Graham Cooke, now President of the NZMWU, accused me of talking a load of hogs..t and plotting the demise of unions in collaboration with my former colleagues at AFFCO more than fifteen years ago. To which I replied that I had nothing against a union’s right to represent its members, but I was also strongly of the opinion a union, like any other incorporated society which charges fees to its members in return for provision of services or facilities, has an obligation to comply with all its legal obligations.

It finally looks as though I will get my wish!

Iron Maidens + Sophie

London Paralympic Games champion swimmer Sophie Pascoe is the newest Beef+Lamb NZ Inc Iron Maiden, becoming the + between Sarah Walker’s ‘Beef’ and Lisa Carrington’s ‘Lamb’.

Announced first on the domestic promotion agency’s Facebook page this morning, the well anticipated news has since been covered at the NZ Herald, which says ‘It all adds up now Sophie has joined in‘.

The 19 year old swimmer from Christchurch, who lost the lower half of her left leg aged two following a lawnmower accident, scored three gold and three silver medals at the recent games in London – breaking two world records and setting a new Paralympic record in the process. She added those to her earlier hauls of ten medals at the Summer Paralympics and four medals at the 2008 Paralympics.

Sophie, who  was made a Member of the New Zealand Order of Merit earlier this year for her services to swimming, will appear alongside the other two B+LNZ ambassadors in a marketing campaign promoting the importance of a healthy diet, including red meat. Kiwis can expect to see Pascoe, Walker and Carrington on their television screens from November.

B+LNZ Inc chief executive, Rod Slater, says Pascoe completes the team.

“She has it all; the New Zealand public love her. Sophie fits seamlessly into the Beef + Lamb brand. We really are seeing the second generation of superstars following on from the original Iron Maidens” says Slater.

Pascoe says she’s really excited to be part of the team.

“I’m thrilled, especially to be working with two other amazing athletes. We all get on so well, it’s going to be great,” says Pascoe.

Congratulations Sophie and B+LNZ!

‘Agflation’ to hit animal protein

Skyrocketing agricultural commodity prices are causing the world to re-enter a period of ‘agflation’, with food prices forecast to reach record highs in 2013 and to continue to rise well into Q3 2013. Unlike the staple grain shortage 2008, this year’s scarcity will affect feed intensive crops with serious repercussions for the animal protein and dairy industries, according to Rabobank.

Luke Chandler global head of agri-commodity markets research at Rabobank comments, “The impact on the poorest consumers should be reduced this time around, as purchasers are able to switch consumption from animal protein back towards staple grains like rice and wheat.

MeatExportNZ covered this topic in a post last week ‘Global meat prices to surge’ but Chandler makes some additional points.

Firstly, that he does not anticipate the current period of agflation leading to the unrest witnessed in response to the shortage in 2008.

Rabobank estimates that the Food and Agricultural Organisation (FAO) Food Price Index will rise by 15 per cent by the end of June 2013. In order for demand rationing to take place, in turn encouraging a supply response, prices will need to stay high. As such Rabobank expects prices – particularly for grains and oilseeds – to remain at elevated levels for at least the next 12 months.

Chandler says that whilst the impact of higher food prices should be reduced by favourable macroeconomic fundamentals (low growth, lower oil prices, weak consumer confidence and a depreciated US dollar); interventionist government policies could exacerbate the issue.

“Stockpiling and export bans are a distinct possibility in 2012/13 as governments seek to protect domestic consumers from increasing food prices. Increased government intervention will likely encourage further increases in world commodity and food prices,” he warns.

Rabobank expects that localised efforts to increase stockpiles will prove counterproductive at the global level, with those countries least able to pay higher prices likely to see greater moves in domestic food price inflation. This is a vicious circle, with governments committing to domestic stockpiling and other interventionist measures earlier than usual – recognising the risk of being left out as exportable stocks decline further.

On top of that, Rabobank warns that global food stocks have not been replenished since 2008, leaving the market without any buffer to adverse growing conditions. Efforts by governments to rebuild stocks are likely to add to food prices and take supplies off the market at a time when they are most needed.

Let the science speak for itself

As epidemiologists go, Dr Dominik Alexander, is a surprise. He’s young, 39, doesn’t wear glasses or a white coat and is a previous professional kickboxer. However, the leading US epidemiologist also knows his stuff about cancer and nutrition research and he’s been over here in New Zealand sharing his expertise.

With extensive experience in health research methodology and interpretation of epidemiological studies, particularly nutritional epidemiology, Alexander is based in Boulder, Colorado, where he works for engineering and science consultancy firm Exponent Inc in its Health Sciences Centre for epidemiology, biostatistics and computational biology.

He delivers the sobering estimation that one in three people will be diagnosed with cancer in their lifetime. The strongest risk factor for cancer, generally, is age.

“With increasing numbers of older people, we are seeing higher rates of cancer and also diabetes and heart disease. This is also the case in developing countries, where the elimination of certain infectious diseases – which would have killed off more of the population early on – and lower infant mortality rates, means a higher rate of cancer and other age-related diseases in the population.”

Relating to nutrition, the types of cancer of concern are those associated with digestion, absorption and elimination such as the most common type, colorectal, through stomach/gastric to the less common oesophageal, pancreatic, liver and other cancers.

As an epidemiologist studying the patterns, causes, and effects of health and disease in defined populations, he’s involved in examining exposure and outcome.

“Food is a necessary exposure. All people have to eat,” he says, adding that the result of over-exposure leads to higher Body Mass Index (BMI) rates – overweight to obese – where there is an established increased risk for cancers such as colorectal, the most common cancer affecting the alimentary tract.

In his view, cancer prevention is all about control. The key is a health lifestyle. “It all starts with physical exercise and maintaining a healthy body weight.  In addition you need a well-balanced diet,” he says.

Opinions + assumptions + perception = confusion

Trouble is, as everyone eats, every single person has an opinion on it and the perceptions of the general public, the medical fraternity and the media vary. That’s why the ‘study of the moment’ is leapt on, over-hyped, over-analysed and consequently gets a lot of airtime leading to consumer confusion.

But, you can’t view a single study in isolation, he notes. “Every study needs to be viewed in the context of the available body of scientific views, otherwise it can be misinterpreted.”

Good science is at the heart of good communication, he believes. Dr Alexander’s advice for those communicating with the public is: “Don’t say anything that can’t be backed up by science. Let the science speak for itself and don’t make an interpretation outside the bounds of the scientific results. Given the complexity with this type of product, there needs to be a cautious approach.”

What media get hung up on sometimes is the people funding the research and conflicts of interest. That can negate the worth of the science itself, he believes. “It’s very important to get to the heart of the issue with science and then focus on the science and the scientific basis for comments.”

In his opinion, what makes good evidence is transparency, objectivity, justification for doing the research, rationale and a clear and open basis for research.

“A lot of problems come in when the research is not open and transparent. Say what you’re going to do, do it and show what you learned,” he advocates.

Looking to the future

Looking to the future, we have a long way to go on the preventative side, he says, and continuous updates of cohort studies, don’t always shed light.

“We also lack long-term evidence of differences between organic versus conventional products, for example.

“This all takes us back to the holistic approach and concentrating on the healthy body weights and lifestyle elements.”

Dr Alexander’s articulate delivery comes with a sense of humour and the surprising revelation that he was once a professional kickboxer in the 1990s, before he moved straight to science at the University of Alabama in Birmingham (UAB).

“You could call me the toughest epidemiologist in the world,” he laughs.

At UAB, he was awarded a National Cancer Institute Fellowship for Cancer Prevention and Control and worked closely with the Department of Pathology where he designed and implemented epidemiological studies pertaining to colorectal survival. He is also the 2010 recipient of the UAB School of Public Health Alumnus for scientific excellence.

Dr Dominik Alexander PhD MSHP was invited to Australia and New Zealand in September in a visit jointly organised by Meat & Livestock Australia and Beef + Lamb NZ Inc.

This article appeared in Pen & Palate (October 2012), the NZ Guild of Food Writers’ ezine.

The Kiwi dollar will rise further against the greenback

Bank of New Zealand economist Tony Alexander wrote an excellent piece this week and made some interesting observations that he says are important for exporters to understand as they struggle with a high New Zealand dollar. He says the Kiwi dollar is going to rise further against the greenback. He explains his thinking in a cutout from the BNZ’s Weekly Overview.