Nathan Guy new Primary Industries Minister

Nathan GuyNathan Guy has been appointed as the new Primary Industries Minister as a result of the Prime Minister’s re-shuffle of Cabinet today.

David Carter, the current Minister for Primary Industries, will be the Government’s nominee for Speaker of the House following the departure of Dr Lockwood Smith.

The Prime Minister, John Key, took the opportunity presented by the change of speaker to look at the Cabinet line-up as a whole, “in the context of the Government’s priorities,” he said.

Primary Industries changes

Former farm manager, Nathan Guy, MP for Otaki, is the current Associate MiJo Goodhewnister for Primary Industries and was widely tipped as a favourite for the position. The 43 year old is a Massey University agriculture graduate who has also undertaken a number of study scholarships including a Kelloggs Rural Leadership course, a Winston Churchill Fellowship to the US and has also won a number of farming awards. From the meat industry perspective he is a former member of the Meat Research Advisory Committee and a former chairperson of Central Districts and Wairarapa’s New Zealand Beef Council, for which he was also deputy chairperson.  Jo Goodhew, member for Rangitata and a former nurse, will assist Guy in the Associate Minister position.

Food Safety

Nikki KayeFormer Food Safety Minister Kate Wilkinson will leave cabinet and will be replaced by 33 year old Auckland Central MP Nikki Kaye. Kaye will take up the portfolios for Food Safety, Youth Affairs and Civil Defence. She will also be Associate Education Minister, reflecting her work as chair of the education select committee.

Other

Dr Nick Smith will return to Cabinet in the Housing and Conservation portfolios and Chris Tremain is to be appointed to Local Government.

The changes will take effect on 31 January, when the Governor-General appoints the new Ministers and all the necessary paperwork will have been completed.

“The refreshed Ministerial team is ready to continue the Government’s focus on is four key priorities for this term  – responsibly managing the Government’s finances, building a more competitive and productive economy, delivering better public services within fiscal restraints and supporting the rebuilding of Christchurch,” says Key.

Burger hell

Burgers feeling the heat. Photo iStockThe discovery of horse and pig DNA in frozen beefburgers manufactured primarily in Ireland this week has sent the UK and Ireland into a spin as experts try to track its source. While checks are in place here in New Zealand that should prevent a similar thing happening, it is a salutary lesson for the meat industry about what could happen if consumer trust is broken.

What happened in Europe, is that frozen burgers, supposedly made from beef by major EU meat processor ABP Food Group, were routinely DNA-tested by Food Safety Authority Ireland (FSAI) and found to contain meat/protein from other sources including horse and traces from pigs too. The affected burgers, produced in the company’s subsidiaries Liffey Meats and Silvercrest Foods in Ireland and Dalepak Hambleton in the UK are sold in Tesco, Aldi, Lidl and Iceland stores in the UK and in Dunnes stores in Ireland.

Though the FSAI stated in its announcement on Tuesday (15 January) that there was no food safety risk from the products, all retailers have all reacted quickly to remove the items from sale. Tesco, which has also removed all other products from the suppliers from its stores and online, has apologised to its consumers and is promising them that it will find out what has happened and when it does so, it will tell them.

Other supermarkets have also withdrawn similar meat products while answering the British Food Standards Agency’s urgent questions to all British retailers about the exact contents of those items. To date, a total of over 10 million burgers are estimated to have been withdrawn from sale.

The issue is accumulating column inches in the UK and comment from Jewish and Muslim religious groups, animal welfare groups and unions demanding more transparency and more regulation for the meat industry.

ABP is taking the matter “extremely seriously” and says it has “never knowingly bought, handled or supplied equine meat products.

“We are shocked by the results of these tests and are currently at a loss to explain why one test showed 29 percent equine DNA,” the company says, adding that it was checking thoroughly with the two concerned suppliers and “is considering its options”. ABP is conducting its own DNA analysis of the products and will be implementing a new testing regime for meat products which will include routine DNA analysis.

The company assures that its group companies only buy meat from licensed and approved EU suppliers. “These results relate only to where beef based products have been sourced by those suppliers from the Continent. Only a small percentage of meat is currently procured from outside the UK and Ireland. Fresh meat products are unaffected.”

The latest comment in The Guardian suggests that the horse DNA might have come from additives extracted from protein sources, rather than fresh horse meat directly.

NZ: legal requirements not to mislead

Here in New Zealand, there are legal requirements not to mislead the customer, says the Ministry of Primary Industries (MPI), which will be keeping a close eye on proceedings in the UK.

New Zealand processors are subject to performance-based verification by MPI and meat products are not permitted for export until they first comply with requirements for sale domestically. In addition, MPI provides export certificates that provide MPI-verified assurances on the species of animal  from which the exported products were derived.

Under its mandatory Species Verification Programme – which checks the effectiveness of the regulatory requirements in place to ensure truth in labelling with respect to species of origin – MPI samplers collect 300 samples of meat from randomly allocated cold stores all around the country. Each sample is tested and the test includes checks for contamination by other possible species, using the enzyme-linked immunosorbent assay (ELISA), which identifies proteins unique to a species. For example, a sheepmeat sample will be tested for the presence of cattle, deer, goat, horse or pig meat. These tests are conducted by an MPI contracted laboratory to do independent testing using an International Accreditation New Zealand (IANZ) method. The contracted laboratory operates under comprehensive quality systems that, as a minimum, comprise compliance with the ISO 17025 ‘Standard for technical competence of testing laboratories’.

In addition, the Australian/New Zealand Food Standards Code maintains standards for meat and meat products, specifying the proportions of fat free meat flesh and fat (sausages, for example, must contain no less that 500g/kg of fat free meat flesh and the proportion of fat in the sausage must be no more than 500g/kg of the fat free meat flesh content). There are also separate checks for contaminants and residues.

Together, these controls minimise the possibility of a meat not being mentioned in packaging being in the New Zealand product, says MPI, adding that there are no known incidents where a meat product in New Zealand was discovered not to be what it said it was.

 

 

 

 

Co-products return to centre-stage, says Rabobank

A recent Rabobank report, published in the Netherlands, shows what has been evident to New Zealand’s processors and exporters for some time: that by-products – more usually known as co-products here – are returning to centre-stage and becoming a more important part of the carcase.

Over the last few years, the valuation of the animal carcase has shifted from prime cuts to processing cuts and fifth quarter products, the bank says. This is driven by changing consumer preference for processed products, fast-rising economic welfare and preference for animal co-products in Asia, new applications for animal co-products and lower availability of sow meat. The report by analyst Albert Vernooij suggests the trend will be permanent and will impact the business models of almost all players in the global meat industry.

“The impact of this shift in carcase valuation will be different for slaughterhouses, the further processing industry and dedicated companies active in the different parts of the by-product industry,” he says. “For slaughterhouses, the focus will increasingly move towards capturing the value of fifth quarter products, which might lead to forward integration in these activities.”

Vernooij puts the rise in price of cuts and co-products of cattle and hogs down to five main developments: growing economies in developing countries including the opening of the Chinese market for imports; the economic crisis which has caused consumers to trade down to cheaper products; the growth of convenience products with more women entering the workforce; consumers having less time to cook, and increased grazing; the growing number of applications for animal co-products in the pharmaceutical and cosmetic industries; and the decline in the sow herd in both the US and the EU.

He suggests that the further processing industry could be forced to change their raw material sourcing to other products or enter into long-term supplier contracts to safeguard supply. For dedicated processors, competition will increase which will urge them to strengthen their positions in the chain.

Generally, as affluence rises consumers move towards cuts, rather than co-products. However, as most co-products are considered a delicacy in Asia they should remain on menus in the long-term. Coupled with the growing number of applications for fifth quarter products Rabobank believes this will result in continued strong demand and the shift in carcase valuation will be permanent.

May for US-NZ Pacific Partnership Forum

The US-NZ 2013 Pacific Partnership Forum will be held in Washington, DC from May 19 – 21 at the Grand Hyatt Hotel. The Forum will bring together New Zealand and US game-changing leaders from business, government, and non-profit organisations to explore the next opportunities for economic growth and cooperation.

Organised by the United States | New Zealand Council in Washington, DC and the NZUS Council in New Zealand, the two-day meeting will focus on the two countries’ shared interests and complementary visions for the future.

The success stories and vision of both NZ and US companies will be prominently featured.

“Today’s NZ – US relationship is about leadership, innovation and a readiness to be a catalyst for positive change in the world”, said William Maroni, president of the US | NZ Council.

“By showcasing examples of real innovation, next year’s Forum will help inform, inspire and shape the next generation of though leaders in business and public policy.”

The 2013 Forum will be the fifth gathering of its kind. It comes at a time when countries and companies will compete to discover, define and deliver the next opportunities in the Asia-Pacific region. The Forum also occurs at a time when newly-appointed Members of President Obama’s Cabinet and newly-elected Members of the U.S. Congress will be defining their goals for the next two to four years.

Stephen Jacobi“Next May is likely to be a particularly important time in the Trans-Pacific Partnership (TPP) negotiations,” said Stephen Jacobi, executive director of the NZUS Council.

“The 2013 Pacific Partnership Forum will foster the type of dialogue that can help move TPP to a successful completion.”

New Zealand and the United States are influential global voices for open markets, regional growth and stability, individual freedoms, and a sustainable environment.  The 2013 Forum will build on this legacy by focusing on Asia-Pacific issues.  The program will include dynamic keynote presentations, diverse panel discussions, valuable networking opportunities, executive-level exchanges, and a variety of social and cultural activities.

Exclusive sponsorship opportunities to host specific portions of the Forum are available, and the event is open to interested parties.  For more information, contact [email protected].

Record year for Beef and Lamb awards

Beef and Lamb Excellence Awards 2013A record number of New Zealand restaurants have been recognised for their top quality beef and lamb cuisine.

The 2013 Beef and Lamb Excellence Awards, presented by Beef + Lamb NZ Inc (B+LNZ), acknowledge consistency and quality in the preparation and presentation of beef and lamb cuisine.

Following anonymous assessments by culinary experts late last year, an impressive total of 194 restaurants nationwide received the Beef and Lamb Excellence Award, which offer an indication of supreme quality says B+LNZ Inc chief executive Rod Slater.

“If an establishment carries an Excellence Award, consumers are assured they can expect a delicious beef or lamb experience.”

Diners in New Zealand can locate Beef and Lamb Excellence Award restaurants easily, by looking for the gold-rimmed plate and window stickers. You can also find all the award-winning restaurants here.

American sheep farmers suffering even more than here

Allan BarberIt’s tougher in the US for sheepfarmers, Allan Barber has found.

An article headlined ‘Drought, high feed costs hurt sheep ranchers,’ appeared last Friday in the Northern Colorado Business Report, he writes in his latest blog posting. It makes the problems being experienced currently by New Zealand sheep farmers look comparatively pretty small.

This isn’t meant to denigrate the difficulties here, but it puts things in context. One rancher has cut his 2,000 head flock by a third and is losing US$80 on every lamb he sells. According to the article, drought, consolidation of the sheep-packing business, increased feed costs and plummeting lamb prices have created hardship among sheep ranchers across Northern Colorado. The situation has deteriorated so much for ranchers that the federal government is investigating whether meat packers have played a role in the market’s collapse.

In 2011 lamb prices soared above US$2 per pound, or about NZ$5.25 a kilo. But today the same lambs fetch only 85 cents per pound (NZ$2.20), while rearing a lamb costs more than $1.30 per pound (NZ$3.40 a kilo). Feed costs have also risen from $250 per ton of grain in 2011 to $400 in 2012.

As lamb prices declined in 2012 demand also softened, causing the US Department of Agriculture to buy $10 million worth of lamb as a drought relief measure. An insurance policy designed to insulate ranchers against fluctuating lamb prices is too expensive at present price levels.

There is also a suspicion that the packers may have been manipulating the market by buying lamb supplies and holding them on feedlots to guard against being caught with insufficient stock to process profitably. This is apparently in violation of the Packers and Stockyards Act which prohibits price manipulation.

A further disadvantage is the fact Japan has been closed as an export market for sheepmeat for 10 years because of mad cow disease – I’m not sure why this was the case, as sheep were not the problem and lambs are too young to pose a risk.

The USDA has asked for any evidence of price manipulation by the packers, as it ‘takes allegations of anti-competitive behaviour very seriously.’ But it doesn’t look as though there will be any relief for sheep farmers any time soon because of low consumer demand and the high cost of feed as a result of the drought.

None of this will be any comfort to New Zealand sheep farmers, especially with the implications for export demand from the USA, but at least our exporters have developed a much broader range of markets for sheepmeat and co-products. This spreads the risk for producers. Equally farmers here don’t have the same worries about feed costs, as the vast majority of sheep and lamb feed generally grows naturally as a result of regular rain.

That said, it is important for New Zealand’s sheep industry, as distinct from its beef industry, to develop a strategy which can ensure our industry doesn’t fall into the same hole as that of Colorado.

Allan Barber is a meat industry and agribusiness commentator. This article has appeared at www.interest.co.nz and also at Allan’s own blog Barber’s Meaty Issues.

Macauley to head NZIPIM

Stephen Macauley, Chief executive, NZ Institute of Primary Industry Management (NZIPIM)The former head of AGMARDT, Stephen Macauley, has been appointed by the New Zealand Institute of Primary Industry Management (NZIPIM)  to the newly created role of chief executive.

NZIPIM is a membership based association for rural professionals who provide professional services for the primary sector.

In announcing the appointment, NZIPIM president, Wayne Allan, said: “We are delighted that Stephen will be leading the organisation at a time when industry sectors and government agencies are looking to NZIPIM to help the farming community work through a number of important issues. These include increased regulation of land use with respect to water quality and environmental performance, as well as the continued development and profitability of farming systems.

“Stephen’s past experience as general manager of the Agricultural and Marketing Research and Development Trust (AGMARDT), and his previous role as General Manager of the Retail Meat Industry Training Organisation and Retail Meat New Zealand, has him well placed to meet these challenges.

“There will be an increased demand for more qualified rural professionals and better assurance to farming communities of high standards for advice and related services.”

Macaulay says he is excited about joining NZIPIM and is looking forward to “the opportunities to develop and build the capability of the organisation, and working with NZIPIM members and the wider rural sector.”

Outlook cloudy for 2013

Allan BarberHappy New Year to you all. Meat industry commentator Allan Barber has already had his head down thinking about what’s likely to pan out for the industry later in 2013.

His latest blog, which also appears at www.interest.co.nz, talks of a weak US dollar, weak export demand and low prices for Kiwi producers. However, Allan’s picking that there will be less effect on New Zealand beef than on sheepmeat and he foresees more pressure on lamb this year.

Looking globally, he sees aversion of the fiscal cliff in the US, will allow US economic recovery to emerge, will also allow recovery in China and for Europe to “move further back from its own economic disaster”. In turn, both New Zealand and Australia should avoid the worst impact of an extended downturn in main markets, he says.

His “big questions” for 2013 are whether all meat companies will survive the year and whether the increasing use of farm data will assist the co-operation between farmer and meat processor. Read more …