Tag Archives: Marks & Spencer

New venison plant for Alliance Smithfield

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Alliance Group’s $8.6 million new venison plant at its Smithfield site, near Timaru, is now operating at full capacity.

New Zealand’s leading meat processor and exporter is processing up to 420 carcases a day at the plant, which serves the company’s upper South Island suppliers.

Until now, Smithfield has only processed sheep and lamb, so the venison plant marks a major milestone for Alliance. More than 50 workers are based at the venison plant, which operates most of the year.

Murray Behrent, general manager of livestock says: “Alliance Group has invested in Smithfield as part of its dedication to delivering exceptional product quality and food safety standards. It is also a reflection of our confidence in the region and we have received great support from our suppliers, who are producing the quality livestock that we require.”

“Smithfield is yet another example of Alliance Group’s ongoing investment to ensure we meet the needs of our suppliers,” he adds.

The outlook for venison remains positive and the investment at Smithfield showed the company was focusing on processing a variety of products for global markets, says Behrent.

ViaScan to be installed at Smithfield in the next year

The new venison plant was built to accommodate Alliance’s innovative ViaScan meat scanning technology, which will be installed within the next 12 months at Smithfield, the company says.

ViaScan visually analyses carcases measuring the lean meat, fat and bone, to capture yield performance levels. It has been available since 2003 for analysing sheepmeat, and is already in use at eight Alliance Group plants. The company announced it was first to be extended to its venison suppliers at the Alliance Makarewa in Southland in July this year.

Along with providing suppliers with the opportunity of improving returns, ViaScan also aligns farmers with current market information and helps them with decision-making and the selection of good genetics.

“Exceptional product quality and food safety standards are vital for Alliance Group’s export market,” said Behrent when announcing the move. “We’re targeting high-end consumers with discerning palates who rate meat quality highly when making purchasing decisions and ViaScan helps our suppliers produce the quality livestock that is required.”

ViaScan will also mean suppliers can measure the performance of each individual carcase, particularly when the National Identification and Tracing Scheme (NAIT) is introduced in February 2013 for deer, says Behrent.

Smithfield is one of the three Alliance premises selected by Marks & Spencer to provide chilled New Zealand lamb for its UK retail stores. It is also one of the five first plants to introduce the new Ovine Post-Mortem Inspection system of sheepmeat carcase checks this year.

In 2011, Alliance Group completed a $15 million project to upgrade its Mataura beef plant in Southland.

Alliance group secures exclusive M&S deal

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Meat processor and exporter Alliance Group has confirmed it has secured an  exclusive deal to supply chilled New Zealand lamb to iconic UK retailer Marks & Spencer.

The South Island co-operative will be the sole supplier of chilled New Zealand lamb to Marks & Spencer from Christmas 2012, sourcing lambs from approved farms across the South Island for processing at the company’s Lorneville (Invercargill), Pukeuri (Oamaru) and Smithfield (Timaru) plants.

This supply arrangement is the first time Marks & Spencer has agreed to an exclusive deal for chilled lamb from a single New Zealand supplier.

Marks & Spencer supplies a wide range of lamb products to its UK customers, with its fresh lamb cabinet featuring a full selection of bone-in and boneless cuts. The retailer’s added-value lamb lines also include ‘ready to roast’ leg joints as well as other ‘oven-ready’ cuts sold under the premium in-house ‘Cook!’ label.

Alliance Group marketing manager Murray Brown says, “This exclusive contract marks a major milestone in Alliance Group’s 20 year relationship with Marks & Spencer. As they have a loyal customer base for lamb, coupled with the fact that our chilled lamb programme runs counter-cyclical to the UK domestic supply season, we’re very excited about the growth opportunities it offers for everyone involved. This deal is good news for our farmer suppliers.”

Brown added: “As a result of the strengthened relationship, Alliance Group is also now actively exploring a number of other initiatives in our agricultural, technical and commercial divisions with Marks & Spencer to maximise the benefits of this partnership.”

Steve McLean, head of agriculture and fisheries sourcing at Marks & Spencer, says: “We are looking forward to growing our partnership with the Alliance Group and strengthening our links with their producers. We are impressed with Alliance Group’s commitment to high quality lamb production, and I am confident they will meet the taste and tenderness requirements of our discerning customers.”

All Alliance Group products supplied to Marks & Spencer will be sourced from registered M&S Select farms so that the co-operative can trace lambs back to their farm of origin.

The M&S Select Farm scheme sees supplying farmers registered on M&S TRAK, a traceability management system launched by Marks & Spencer in 2009. The programme, which includes lamb suppliers from both New Zealand and the UK, features a database that monitors farm-management, animal origin and livestock records.

Meanwhile, in conjunction with AbacusBio (UK), Alliance Group is progressing with the introduction of its Hoofprint programme to a group of selected UK farmers supplying lambs to Marks & Spencer.

Hoofprint helps farmers monitor the carbon footprint associated with their farm, whilst also focusing on improving productivity. The web-based farmer-friendly programme analyses performance information based on the data collected from each farm in order to determine the size of its carbon footprint. The Hoofprint model will be released to all registered TRAK suppliers in New Zealand.

Marks & Spencer uses two UK based meat processors, Dawn Meats Ltd and Scotbeef Ltd, to cut and retail pack their New Zealand chilled lamb in the marketplace. Both of these companies are already well known to Alliance Group, with personnel from each processor having visited Alliance on a number of occasions in recent years.

Marks & Spencer is one of the UK’S leading retailers with more than 21 million customers every week. The company employs over 78,000 people in the UK and abroad, and has over 700 UK stores, plus an expanding international business operating in 43 different territories around the world.

 

Optimistic signs for coming season’s red meat trade

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After some harrowing experiences last season for the meat industry, both processors and farmers, 12 months on things are looking up. This sense of optimism hasn’t yet been reflected in prices from the meat companies, but statements from those in the know strike a perceptibly more positive note, writes industry commentator Allan Barber.

Last year, the lamb kill was down by a million, there was drought in significant livestock areas, the dollar was too high and so was the procurement price for lamb. While beef remained relatively unaffected by the hype, the price really not changing much in a year, sheepmeat was a completely different story. Driven by the unholy combination of scarcity and tight shipping deadlines for the Christmas trade, the procurement price hit $8 a kilo and struggled to get down from that level.

The net result was too many buyers chasing too few lambs which were also allowed to put on too much weight. The export markets got a severe dose of indigestion and inevitably inventories built up fast on both sides of the world. All this time, the New Zealand dollar stayed obstinately high.

We will find out in November how badly this set of circumstances affected the profit and balance sheet performance of the meat exporters, although Blue Sky’s result to the end of March gave a pretty good indication of the effect of the first six months of the season.

Farmers won’t be as unhappy as the processors and exporters because they received more for their stock than it was worth and, although the lamb price has now dropped from $150 to below $100, this is still better than in many previous years. According to Keith Cooper in Silver Fern Farms’ (SFF) news release last week, he predicts the price will bottom out at about $4.80 per kilo after Christmas, equivalent to $90 for an 18.75 kg lamb. It will then rebuild to $5.80 or $109 by this time next year. Cooper has also said last year’s pricing got way out of kilter and won’t happen again this year.

Cooper’s optimism is based on favourable European buyer response in the last couple of weeks, culminating in the European food fair at SIAL in Paris last weekend. UK supermarket chains also seem to be positive about the forthcoming chilled New Zealand lamb season which starts with Christmas and continues until British lamb starts to appear in the chillers after Easter.

SFF’s news release provided an interesting, if slightly puzzling, piece of information which stated that Marks & Spencer had awarded their new contract for chilled lamb to Alliance, having dealt exclusively with SFF for five years, because “we could not offer Organic lamb to M&S.” As far as I can understand, and from memory, M&S have always insisted on knowing where their lamb came from, eventually insisting on identifying the lambs’ farms of origin and traceability, but organics have never been a requirement in the past.

Cooper subsequently confirmed to me that the M&S tender specified a proportion of organic supply as part of the supply which SFF couldn’t guarantee to fulfil.

Alliance suggested that it was not required to supply certified organic lamb under its new contract, although all suppliers involved belong to the company’s Hoofprint programme which measures their carbon footprint. In fact, it’s hard to see how enough organic lamb could be available, especially in the pre-Christmas period, while there is little evidence the UK supermarkets are willing to pay a sufficient premium for organic supply.

In contrast, beef prices appear set to continue stable, underpinned by drought conditions which have affected feed supply and cost in the USA; however, any weakness in the New Zealand dollar would inevitably flow through to better livestock prices, much as meat companies might want to hang onto any bonus they receive.

I imagine meat exporters will be keen to put what was reasonably torrid 2011/12 season behind them and bed in the capacity changes they have decided on, so their new season’s performance can benefit. Sheep farmers can’t aspire to the $150 lamb, but they can expect more certainty and consistency on which to base their farm business.

This article has also appeared at www.interest.co.nz.