The Press’ Tim Cronshaw has written an interesting read on one of this country’s largest deer producers Graham Carr’s conversion to sustainability at his 9,000 deer Peel Forest Estate in South Canterbury. Read more …
The time for talking is over and the deer industry is about “to do the hard yards”, says Deer Industry New Zealand (DINZ) chairman, Andy Macfarlane.
Writing in the latest Deer Industry News, Macfarlane says the “industry prize of profitability should be enough to keep us focused on the job.”
The goalpost presented at the 2012 conference has been “determined, reviewed and confirmed as $1.27 per kg venison increase in EBIT by 2022″, achieved from productivity gains alone, Macfarlane explains.
“We also believe we can increase venison tonnage by 50 percent in that time, while simultaneously improving the market return from venison, hence adding to that $1.27 per kg.”
The 50 percent increase in tonnage takes venison output back to a little less than 2007 and 2008 levels, he says, but from an organised stable herd rather than from a reduction of capital stock. The Europe venison marketing strategy and formal access into China and Korea for venison co-products and velvet underpin the on-farm market return. Member processors are now putting together their three-year marketing plans for submission to access increased DINZ funds.
In addition, after consultation with farmers, AgResearch scientists, vets, farm management consultants, processors and educationalists, Primary Growth Partnership funding is being sought from government for on-farm productivity initiatives to deliver an integrated initiative “that we are confident will deliver the additional $1.27 per kg of venison sold,” says Macfarlane, adding that by his calculations it should generate additional industry EBIT of $42 million a year.
To show commitment “by purchasing some of our own ‘training gear’”, industry is being asked to contribute 4 cents per kg of venison fro seven years (initially $900,000 a year).
“The cost is temporary but the return – over $30 per $1 of levy money initially invested – is permanent.”
The title of the PGP bid is ‘The next generation – premium by nature and design’, which he says is significant.
“We have a premium product sold in premium markets. Our animals are pasture-fed and raised in a natural environment. We are poised for our third generation of deer products, produced by our third generation of deer farmers.”
The latest Deer Industry News magazine (Issue 56, October/November 2012), is out now.
Sheep and beef farmers can expect their income to be down six percent this season (2012/2013), compared to last year, while deer farmers are experiencing their third season of relatively stable prices, according to new figures issues by the Ministry of Primary Industries (MPI).
The 2012/2013 season is expected to be more subdued for pastoral farm businesses as product prices come off recent highs, MPI says.
The government departed has released the 2012 pastoral farm analyses as part of its annual Farm Monitoring Report series. The reports provide models and overviews of the financial performance of typical dairy, sheep and beef and deer farms, based on information gathered from a sample of farmers and industry stakeholders.
On sheep farms, lambing was up nearly 10 percent on last season. Improved prices for sheepmeat, beef and wool, combined with the higher productivity in 2011/2012, lifted net cash income for the sheep and beef farm model by 18 percent to $543,000.
For 2012/2013, sheep and beef income is expected to be down six percent due to lower returns for lambs and wool and farmers are cautious. However, while the profit before tax is forecast to fall around 15 percent, at $181,300 it is still the second-highest profit for the national sheep and beef farm model since 2000. Note that the 2011/2012 actual result was $213,841 profit before tax, which was an improvement of 44 percent on the previous season.
Deer farmers, meanwhile, experienced their third season of relative stability in product prices and good on-farm productivity in 2011/2012, which has enabled some capital expenditure and debt repayment and boosted confidence in their sector. Similar results are forecast for 2012/2013.
National dairy production was up nearly 10 percent on 2011/2012. However, this was offset by a declining payout so the farm income was similar to the previous year. In 2012/2013, however, total income from milksolids is expected to fall 20 percent for the national dairy farm model, resulting in a 57 percent drop in profit before tax.
MPI analysts have also noted some key developments for the pastoral sector, including the beginning of mandatory tagging of cattle under the National Animal Identification and Tracing (NAIT) programme, land-use change and succession for sheep and beef farmers, together with the need to reduce environmental impacts such as nutrient runoff into waterways and the Trading among farmers proposal for dairy farmers.
Congratulations to Central Hawke’s Bay deer farmers, Tim Aitken and Lucy Robertshawe, who have now been officially confirmed as the 2012 ‘Champion of Champions’ in the Marks & Spencer Farming for the Future Award.
Adding to comments made about the couple’s earlier International Producer category win Steve McLean, Head of Agriculture & Fisheries Sourcing at M&S, says: “Their efforts clearly resonated with our customers as well, as they secured the majority of our public votes, so we are delighted to crown them ‘Champion of Champions’!”
Tim and Lucy are key deer breeders for the Firstlight Venison Producer Group, farming 600 breeding hinds and their progeny at their property near Tikokino. Firstlight solely focuses on producing and marketing high quality young venison, and the 24 farmer-shareholders within the Producer Group work collaboratively to supply to the UK’s top retailers who prefer farm-assured product.
Gerard Hickey, managing director of Firstlight Venison says the company is proud to congratulate the pair. “This award is great news: it vindicates the investment Firstlight Venison has made in developing its UK retail market and we’re pleased to be able to support Marks & Spencer in raising their venison exposure and sales.”
Though it hasn’t been officially announced as yet, it seems that Hawke’s Bay deer farmers Tim Aitken and Lucy Robertshawe have taken out the Champion of Champions trophy in this year’s Marks and Spencer (M&S) Farming for the Future awards.
The Tikokino venison producers are said to have received a text from the gala dinner informing them and they are now awaiting the official confirmation of the “huge news”. They were earlier announced as the winners of the hard-fought International Producer section in September, which pitched them into a public vote for the supreme Champion of Champions award against winners of the England, Scotland, Wales and Ireland producer categories.
“Having been judged by the company and its customers as the most sustainable farm of five finalists, representing Ireland, Scotland, Wales and England, is a huge endorsement of the farming systems and philosophies we have developed over the years” says a proud Tim Aitken.
Aitken and Robertshawe are members of the Firstlight Venison Producer Group, a select group of deer farmers who work together to supply a small number of global producers supplying high-end retail customers like M&S. The British retailer strongly values sustainable production of the products it stocks and requires all suppliers to meet a set of environmental sustainability, animal welfare and ethical criteria known as ‘Plan A’. The annual awards aim to promote best practice throughout the supply chain and recognise those farmers who are making improvements to the sustainability of their business.
Commenting on the international category award on the Firstlight Foods website, Steve McLean, M&S head of agriculture and fisheries sourcing said that there were more than 50 entries this year for the international category and the standard was really high. “Our international entries came from a diverse range of businesses including fruit, vegetable and meat producers, in countries as winde-ranging as Greece, Brazil, Argentina, Thailand and New Zealand.”
The M&S judges were particularly impressed with the Aitken/Robertshawe entry, McLean said: “For the work they have done on enhancing the natural environment and water quality on their farm, for their involvement in R&D to improve the New Zealand venison industry and for their approach to animal welfare. They were also impressed that Tim and Lucy were sharing their knowledge with the wider farming community and had no hesitation in presenting them with the International M&S Farming for the Future award.”
Federated Farmers president Bruce Willis says the couple are excellent examples of Kiwi farmers leading the way on sustainable farming.
“Having the technical aspects of their business being judged was one thing, but winning the champion of champions award shows these people and their business really won the hearts and minds of a discerning British public who supported them in the popular vote.”
Willis is urging all New Zealand farmers to follow their example, “lead the world in innovative animal welfare and environmental management and to enter awards to let the world see the great work we are doing.”
The couple have won numerous previous awards including the Silver Fern Farms Hawke’s Bay Farmers of the Year and a New Zealand Deer Farmers Association (NZDFA) award for environmental and sustainable management in 2010. Their property, ‘The Steyning’ in Central Hawke’s Bay, has featured in the Focus Farms programme and Aitken is a producer representative on the NZDFA board.
Many congratulations to them both!
Lamb processor Craig Hickson was “chuffed” when he learned he was to be awarded the 2012 Allflex Federated Farmers Agribusiness Person of the Year in July. Adding a new Welsh meat plant to his business portfolio this year too, makes it one to remember in his business journey.
“It’s very pleasing to be recognised by your peers,” admits the managing director of Progressive Meats.
The astute Hawke’s Bay businessman’s speciality has lain in seeking solutions for plant processes that meet modern demands and also for challenging convention. Over most of the last 40 years (up to 2007) he has been in operation, the straight speaking Hickson has deliberately steered away from direct involvement in exporting leaving others to concentrate on that while he has focused on the niche of contract processing product for exporters.
Recognised as one of the meat industry’s leaders, he holds a seat on the Meat Industry Association (MIA) council and represents industry on the boards of Beef+Lamb NZ Ltd and the New Zealand Meat Board and an assorted array of other directorships.
Born in Canada to Kiwi parents, the young Craig Hickson was moved to Waipukurau when he was three months and later, at age seven, to Havelock North. His schooling was completed at Hastings Boys High, with vacations spent working at the Hawke’s Bay Farmers Meat Company Whakatu works, before he progressed on a HBMC scholarship to Massey University. There, he graduated with a B Tech in food technology, specialising in the engineering side – which has stood him in good stead through several new plants and plant renovations since. Later, he added a BA in economics and marketing to his list of accomplishments.
However, at that stage, pure food technology was not for the young red-headed Hawke’s Bay lad. In 1975, he found himself a job at the Meat Producers Board as product development officer, before leaving in 1980 to develop his own business – a small lamb packing plant in Hastings, Progressive Meats, which opened with his wife in October 1981.
In order to satisfy customer demand for contract services over the years, the Hicksons were involved with a few others in the ownership, design, planning, contruction and operation of Lamb Packers Feilding Ltd and Progressive Gisborne Ltd – and also with Lean Meats Oamaru through a minority shareholding in Lean Meats Ltd.
Having sold their 50 percent share in Feilding and Gisborne to Bernard Matthews NZ Ltd (BM) in 2005, Hickson was part of a syndicate that bought 100 percent back again in 2007 – the same slaughter and processing plant in Gisborne, and slaughter plant in Feilding plus a further processing plant in Waipukurau – when BM decided to withdraw from New Zealand to concentrate on its UK operations.
New meat plant in Wales
Matching supply to demand is also the reason for the purchase in April this year of a small Welsh meat processing plant Cig Calon Cymru (pronounced kig kalon – like talon – kumru, roughly translated as ‘Meat from the heart of Wales’), at Crosshands, near Lllanelli in South Wales. The plant is principally a beef processor, with a small lamb line.
Hickson explained that they had been looking for a suitable processing opportunity in the area to supply lamb year round to British consumers – the British and New Zealand lamb production is largely complementary for chilled. This enables New Zealand lamb to be supplied during the December to May period, when Welsh lamb is in short-supply and then Welsh lamb during the June to November period, when New Zealand lamb is in shorter supply benefiting both sets of producers. It will go into the same packaging with the country of origin clearly labelled.
The name of the company will remain as is and the plant will continue to process beef, but the branding for CCC product is yet to be determined. The management team will include New Zealander Jim Goodall who has the role of general manager. According to Hickson, plant staff are pleased that the company will have a new lease of life, while the local farmers are “reserving their judgement”.
Federated Farmers here have welcomed the initiative as it sees the move is an example of the vertical integration called for in several recent reports and shows there is life in New Zealand’s traditional markets. However, it is not novel, maintains Hickson pointing to Silver Fern Farms’ previous ownership of Brooks of Norwich, which enabled it to process frozen cuts to retailers’ exacting specification in-market, and other New Zealand companies, such as Alliance, Affco and Anzco, which have had in-market representation for many years and, in some instances, association with local processors.
He’s pleased there’s a ‘family’ connection too. The Hicksons own a 1,500ha farm in Hawke’s Bay and the farm manager’s wife, Denise, is Welsh, hailing from St Clairs which is near where the new plant is situated.
Slow product development
Hickson has observed very slow progress of new meat product development in terms of ready-to-eat products over the past four decades since his graduation.
“The major development area has been in the form of natural cuts and portion-size,” he says.
One fundamental reason he gives for the slow development of lamb ready meals is that lamb is a relatively high priced meat as a competing ingredient. Another is the fact that the nature of lamb fat means that it solidifies at a higher temperature than beef or pork making it tricky to work with. It is best served hot or cold, not warm.
One famous product victim of the rising price of lamb was the Bernard Matthews lamb roast, a frozen product that did very well in Britain. The concept was based on the company’s technology and marketing machinery for its famous turkey roast and was so successful it led to a plant being built here in Waipukurau to manufacture the lamb version.
The product did very well until the price of lamb increased beyond what this market segment would support, he explained, and volumes diminished to extinction. By then, BM had developed lines in chilled and frozen portion-controlled and weight-ranged lamb products for its range.
The new McDonald’s lamb burger, which has been trumpeted about recently, is one of only two examples of a commercial lamb ‘fast food’ item. The other being a doner kebab made from lamb flaps.
Contribution to processes
Hickson believes his most valuable contribution to industry has been to plant processes. Progressive Meats was at the forefront of changes to shiftwork, which though it had already been in place in the ‘follow on departments’ in plants, it was not utilised in slaughter and boning rooms. He gained union agreement in 1986, following a five week strike, just over a year before implementation in 1988.
“Shiftwork enabled small plants to be competitive, through the improved utilisation of capital,” he says.
It was its work on relationships with farmers that enabled Progressive to be the first company in 1987 to offer forward commitment arrangements for lamb supply. “At the time, other industry participants thought forward commitments were not viable and would fail,” Hickson said. But they didn’t.
Progressive was also one of the first companies to move away from the Meat Board’s grading system, which had been designed for carcase specifications, and adapt it for its own customers’ specifications for cuts.
“We talked to our farmers and encouraged them through payments to produce lambs to specification.”
After legislation changed to ban smoking in the workplace, he embarked on a lengthy court fight to establish whether a purpose-built, negatively-pressured smoking room next to the cafeteria at Progressive’s Hastings plant was outside the ‘workplace’. The challenge was lost, but had a silver lining.
“The legal wording was ambiguous and I thought, had the room been deemed not a workplace workers would not need to change clothes to go outside for a smoke, saving time, and their smoke wouldn’t disrupt other non-smoking employees.”
In the end, the court decided the room was ‘a workplace’ and workers did need to smoke outside the building. As Hickson himself is not a smoker, in fact he says he is “vitriocally opposed”, his support surprised his employees.
“Industrial relations have never been so good as just after that court decision,” he says, adding that the union financially contributed towards the defence of the case.
Looking to the future
Looking to the future, he commented that the Red Meat Sector Strategy (RMSS) is essentially a collation and synthesis of the views of industry participants.
“It didn’t deliver anything new but it is in a coherent form and advocates the development of future business along the lines of what, in many cases, is already going on,” he says.
However, ‘competition to buy’, tends to restrict the rate of progress to that of other competing companies in the field. While there is a high degree of consensus when interviewing participants one-on-one, it is a different matter when actions are observed in the cold commercial, competitive reality, he believes.
He sees the major challenge for the industry is for pastoral sheep, beef and deer farming to be a competitive land use option (at the margin) compared to dairying, forestry, viticulture and horticulture, among other uses.
“In 40 years, I’ve seen a dramatic change in the Hawke’s Bay Heretaunga plains, which was once prime finishing land for livestock and is now covered in apples, crops grapes, and other viticulture.”
Lifting prices is an obvious target, but is constrained by the fact that lamb is already a relatively high priced meat, he believes.
“Reduction in wastage getting the product to consumers is another target as is endeavouring to negotiate a larger share of what the consumer pays with supermarkets and food service people generally taking between 30 to 50 percent of what the consumer pays.”
“Sheep are a dual product animal and we neglect wool at our peril,” he says. ”We need to be actively seeking new applications to lift demand and hence returns, particularly for the mid-micron and strong wool,that are traditionally used in carpet making. Wool hasn’t kept pace with lambing percentage increases, or inflation and if we could arrest the decline, and reverse the trend, sheep farming will be more profitable and grow.”
During his spare time, hobbies include managing his 60 hectare farm around he and his wife’s home in Haumoana, where he keeps deer near to the house, “nice to look at and easy to keep.” He has a love of classic cars and still owns the first one he bought when he was 19, a 1954 MG TF. He plays tennis and cricket and enjoys sailing on Lake Taupo.
When asked what was his most proud moment over his career to date, Hickson paused to reflect and said he had difficulty picking one moment as they blend into each other.
“I’ve never felt as though I’ve climbed a mountain, I’ve always been on a journey.”
+++
Craig Hickson
Current directorships: Progressive Meats Ltd, Ovation New Zealand Ltd, Lean Meats Ltd,Te Kuiti Meats Ltd, Progressive Leathers Ltd, MIA Council, Beef + Lamb NZ Ltd, Meat Board Ltd, Ovita Ltd. The Hicksons also farm sheep, beef and venison on 1,500 hectares in the Maraetotara/Elsthorpe district in East Coast Hawke’s Bay.
An abridged version of this article appeared in Food New Zealand magazine (October/November 2012).
Moves are afoot to improve the productivity of New Zealand’s venison herd, which could result in an average carcase weight of 64 kg in ten years time, a better quality and improved supply of venison for exporters, along with improved earnings for producers.
A group of 40 participants have had input to the Productivity Improvement Programme report which was endorsed by the Deer Industry New Zealand (DINZ) board in mid-July, after having received support at the 2012 Deer Industry and CERVETEC conferences and endorsed by the New Zealand Deer Farmers’ Association.
Concluding that the venison industry’s productivity mantra ‘More deer, heavier, earlier and better‘ remains valid, the Productivity Leadership Group, lead by Wanaka veterinarian and farmer Dr Mandy Bell, realised that productivity improvements to date had taken place in the market. They determined that money will be better spent now achieving practice change in the deer industry, rather than generating new knowledge. The report has emphasised the importance of implementing new knowledge and best practice on farm and says that the goal of productivity improvement is to produce more profitably, rather than simply increase volume.
Critical areas of the programme of work are: to better manage deer to maintain and achieve optimal health; to look at improvements in feeding; and in the areas of genetics and physiology.
The PLG has calculated achievable targets and an understanding of ‘The Prize’, based on the successful implementation and reasonable levels and rates of adoption of the programme of work among deer industry participants. Targets include an additional nine kg to bring the average carcase weight to 64kg in 10 years time, an increase of 2.8 percent per year for kg output per hind and an additional $1.48 per kg output (earnings before interest and taxes) by 2022.
The draft programme of work is to be discussed with participants in the Productivity Improvement Programme. DINZ is currently planning the implementation of the work and how best to fund it.
You can read more about it in Deer Industry News (issue 55, pages four to five). Click on the photograph above for a pdf of the magazine.
It’s happened at last. New Zealand’s new National Animal Identification and Tracing (NAIT) scheme has gone live, which is welcome news for beef exporters, adding another level of traceability to their product lines
The new National Animal Identification and Tracing (NAIT) Act, which came into effect on 1 July, sets out the legal framework for the collection of information on livestock, their location and movement history throughout their lifetime. It also outlines the governance arrangement and powers for the NAIT organisation.
The scheme is mandatory for cattle from 1 July 2012 and for deer on 1 March 2013 and, according to MPI director general Wayne McNee, forms part of New Zealand’s world-class biosecurity system.
“In the event of a disease outbreak, NAIT and Farms Online will help give assurance to our export markets that New Zealand has identified and contained all of the affected animals.”
Under the NAIT scheme, cattle and deer are tagged with an electronic NAIT-approved RFID ear tag and the NAIT database stores information about each animal’s individual RFID number, its location and the contact details of the person in charge of the animal.
Announcing the news, Primary Industries Minister David Carter said: “NAIT is an important partnership between industry and the Crown which began eight years ago in recognition of the growing need for better animal identification and tracing systems.”
The Minister is delighted that over 30,000 producers and their properties are already registered on the database, which he says is a significant step in protecting New Zealand’s farmers in the international marketplace.
“Lifetime animal traceability is an asset that New Zealand can leverage as part of its international reputation for producing food to the highest standards. It is also an opportunity for farmers to increase productivity by identifying superior animals.”
MIA chief executive Tim Ritchie reiterated the MIA’s support for NAIT: “We see NAIT as an essential tool to minimise and manage risk and impact in the event of a biosecurity incursion and, also, to provide customers and regulatory authorities in our export markets with increased confidence and surety of the integrity of New Zealand’s meat and meat products,” he said.
This article appeared in Food NZ magazine (August/September 2012).
It’s happened at last. Today’s the day when New Zealand’s new National Animal Identification and Tracing (NAIT) scheme goes live, which will be welcome news for meat exporters.
The new National Animal Identification and Tracing (NAIT) Act, which comes into effect today, sets out the legal framework for the collection of information on livestock, their location and movement history throughout their lifetime. It also outlines the governance arrangement and powers for the NAIT organisation.
The scheme is mandatory for cattle from 1 July 2012 and for deer on 1 March 2013.
Under the NAIT scheme, cattle and deer are tagged with an electronic NAIT-approved RFID ear tag and the NAIT database stores information about each animal’s individual RFID number, its location and the contact details of the person in charge of the animal.
Announcing the news, Primary Industries Minister David Carter says: “NAIT is an important partnership between industry and the Crown which began eight years ago in recognition of the growing need for better animal identification and tracing systems.”
The Minister is delighted that over 30,000 producers and their properties are already registered on the database, which he says is a significant step in protecting New Zealand’s farmers in the international marketplace.
“Lifetime animal traceability is an asset that New Zealand can leverage as part of its international reputation for producing food to the highest standards. It is also an opportunity for farmers to increase productivity by identifying superior animals.”
In the case of a biosecurity outbreak affecting livestock, NAIT will enable a quick and efficient response reducing the impact on the agriculture sector and the entire NZ economy.
Winner of this year’s Deer Industry Photo Award is this superb shot ‘Fighting Stags’ taken by Maree Hogg-MacDonald of Bay of Plenty.
Judges commented on the outstanding technical quality, composition and drama and also liked the way the personality of the subjects shone through.
You can read all about the competition – and all of the deer industry news from the recent Deer Industry Conference in Wanaka – in the latest edition of Deer Industry News (54, pdf 2.3 MB).
