Tag Archives: Silver Fern Farms

Positive signs in Europe

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There are positive signs in Europe for New Zealand lamb, beef and venison meats and co-products according to Silver Fern Farms which has finalised its plans for Christmas chilled lamb sales and completed its overall sales plan for 2012/2013 with positive outcomes, it says.

The company’s sales teams have been active in Europe over the past two weeks, culminating in the European food fair SIAL in Paris last weekend.

“Working with our Aalst office team in Belgium, we have met and concluded business with many European customers who appear to have regained confidence based on supply and stability of value, which is underpinning the overall market sentiment from European customers,” says chief executive Keith Cooper.

For general manager sales and marketing Glenn Tyrrell, this early confidence is a healthy sign. “It will likely lead to sustained demand and relising on food service delivery cards, something which has been lacking lately due to the price hike in 2011,” he says.

In the UK, Marks and Spencer (M&S) recently put up their annual six month supply of chilled NZ lamb for sole tender. “As we could not offer organic lamb to M&S, the Alliance Group picked up this tender. While unfortunate, given the effort from both Silver Fern Farms and suppliers who have supported M&S for the last five years, our priority is to maximise organic and overall chilled supply to Tesco which has fully supported development of our branded retail packs in their store,” says Tyrrell.

Silver Fern Farms continues to be optimistic on beef with a prediction for schedule prices to farmers of $3.60 a kg during the season heading to $4.20 per kg, according to Cooper. “Venison is forecast to track up from a low of $6.70-8.00 per kg next October and lamb is likely to bottom out at peak season post-Christmas at $4.80 per kg and will progressively build to $5.80 per kg this time next year,” he says.

“It is clear the European market cannot be taken for granted,” comments Cooper. “Market forces over 2011/2012 saw a downturn in sales and a major price correction, in market and at farm gate. Now this has passed, many customers are looking to relist products but they are also looking for marketing support and price stability. These opportunities fit particularly well with Silver Fern Farms’ strategy of creating value in the way of a truly integrated value chain – linking consumers to farmer suppliers.”

 

Season just ended could produce messy results, says Barber

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The season just ended could produce messy results, according to meat industry commentator Allan Barber.

The two largest processors and exporters, Silver Fern Farms and Alliance, have captured the headlines in the last couple of weeks.

Hot on the heels of its announced intention to close its sheepmeat chain at Mataura, Alliance has come out with an offer to suppliers of $20 in November per lamb contracted before the end of October.

From the other cooperative camp Keith Cooper, chief executive of Silver Fern Farms, last week sent an email out to suppliers which highlighted the disappointing financial result for the year ended 30 September because of the exchange rate and declining sheepmeat values in January and February not being reflected in procurement prices.

The final results will be declared in about two months when the market will be able to see just how disappointing the performance of the two companies actually was. Rumours of multi-million dollar losses have been prevalent, but rumour is just what they are until we see the actual figures. There is no doubt the problem has been almost entirely with sheepmeat in spite of the exchange rate, because exporters have been far more successful at reining in beef procurement costs.

It doesn’t take an Einstein to work out that the shortage of lambs for Mataura and the procurement competition are just two aspects of the same problem. The lowest national lamb kill for 51 years at 18.6 million, 15 percent down on the five year average will have made it very difficult for any company to get sufficient capacity utilisation to come close to making a profit. With Alliance’s largest sheep plant outside Invercargill, Mataura just over 50 km up the road was always under threat from declining volumes.

Blue Sky Meats, which balances in March, presaged the 2011/12 season’s problems in its declared annual result – a pre-tax loss of $604,000 and no dividend paid. The company termed this the most disappointing result in its history and drew attention to the excessive prices paid for stock through the turn of the year, both because of the high dollar and the drought in Southland.

It will be interesting to see how successful Alliance will be in securing committed lambs from suppliers stimulated by the $20 cash advance. Keith Cooper’s reaction was to say Silver Fern Farms had tried it six years ago with no success because some suppliers were affronted by the implication they were short of cash and didn’t want to close out their slaughter options. He prefers to rely on the company’s suite of supply plans rather than to repeat the cash in advance offer.

In his email to suppliers, Cooper sounds quite bullish about the new season’s prospects with a ‘fully configured operating platform’ and some exciting new marketing initiatives, even being bold enough to state that realistic livestock values are being established. If that is the case, it will either be because there’s enough livestock around to satisfy all processors or he is confident Silver Fern Farm’s overhead structure is competitive enough to guarantee filling their requirements.

Either way that is a big call in spite of the gains Silver Fern Farms has made in recent years, notably the closure of the Belfast sheep chain, improvements to its Finegand sheep processing and the rebuild of Te Aroha in the heart of the dairy farming Waikato/Bay of Plenty region. There are expected to be another 1.5 million lambs, but not enough to change processing dynamics much, while the market is another factor.

The meat industry is unique in that it has to compete at both ends of its supply chain. While livestock procurement has the most obvious impact on company profitability, demand from the market is also critical. Last season’s disappointments and losses have been as much about carrying too much inventory which the market couldn’t digest as the cost of the livestock to produce it.

When companies fail to manage both ends of the chain properly, things get messy. Just how messy they were last season will become clearer at the beginning of December when Alliance and Silver Fern Farms publish their results.

Chuffed to be recognised by peers

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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.”

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Craig Hickson

  • 1970 to 1973 – B Tech (Food), Massey University.
  • 1973 – Management trainee at Hawke’s Bay Farmers Meat Company, Whakatu.
  • 1975 – Joined Meat Producers Board staff as product development officer. Completed BA in Economics and Marketing Victoria University.
  • 1981 – Hicksons start small meat packing house Progressive Meats.
  • 1982 – Designs , builds and commissions small venison plant alongside Progressive Meats for ‘start up’ local farmer company, East Coast Venison.
  • 1987 – Plan and design venison plant in Feilding for East Coast Venison.
  • 1987 – Design, build and commision lamb slaughter at Progressive Hastings.
  • 1990 – Takes a minority interest in Lean Meats Ltd.
  • 1993 – Takes a minority interest in Te Kuiti Meats Ltd.
  • 1994 – Buys venison plant in Hastings and, with partner John Signal, the venison plant in Feilding from Venison New Zealand (formerly East Coast Venison).
  • 1995 – Builds Lamb Packers Feilding Ltd.
  • 1998 – Builds Progressive Gisborne Ltd.
  • 1999 – Builds replacement slaughter plant at Hastings (original only 13 years old).
  • 2003 – A principal in setting up Progressive Leathers Ltd at Whakatu.
  • 2005 – Sells Feilding and Gisborne Lamb interests to Bernard Matthews.
  • 2006 – Takes a majority interest in Te Kuiti Meats Ltd.
  • 2007 – Syndicate, including Hickson, purchases Bernard Matthews NZ Ltd’s lamb-processing and exporting operations in New Zealand and renames it Ovation New Zealand Ltd (plants at Gisborne, Waipukurau and Feilding).
  • 2012 – Allflex Federated Farmers Agribusiness Person of the Year.
  • 2012 – Hicksons purchase Welsh meat processor Cig Calon Cymru.

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).

 

First meat plant introduces new carcase inspections

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In early September, Affco’s Imlay meat processing plant in Whanganui became the first plant to introduce the new ‘Ovine Post-Mortem Inspection’ regime.

The new  inspection regime involves company staff, rather than AsureQuality personnel, checking carcases for non-food safety or quality aspects (see Food NZ, December/January 2011). The move came after trials of the new system at the Affco plant proved successful and overseas authorities approved the equivalence of the new inspection regime.. Four other plants  – Alliance Smithfield, Silver Fern Farms Pareora, Riverlands Blenheim and Affco Manawatu – are expected to introduce the new system later this year.

AsureQuality meat inspectors will still be onsite to undertake food safety post-mortem inspections on all meat products. Final oversight of the products remains the responsibility of the Ministry of Primary Industries Verification vets on the plant.

This article appeared in Food New Zealand magazine (October/November 2012).

Alliance to transfer Mataura sheepmeat processing to Lorneville

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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.

Meat inspection no longer exclusively provided by AsureQuality

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Last Tuesday, AFFCO’s Imlay plant in Whanganui was the first to be allowed to introduce meat inspection by its own employees. Till then this function has been performed exclusively by government employed meat inspectors, originally employed by MAF, subsequently by the state-owned-enterprise AsureQuality, writes Allan Barber.

The proposal to allow meat companies to have a hand in meat inspection finally saw light of day about two years ago, although the companies have been dissatisfied with the government monopoly for many years. I can remember the issue raising its head in the early 1990s when the meat inspectors went on strike because of pay and conditions.

AFFCO, for whom I worked at the time, had its production disrupted by a group of employees on its plants, employed by a different employer on different terms from its own workforce and belonging to a different union, the Public Service Association (PSA). Not surprisingly, AFFCO was unhappy at this state of affairs.

But 20 years later, after negotiations and discussions with MAF, then the Ministry for Primary Industries (MPI) and a trial at Imlay, overseas regulatory authorities (notably USDA and EU) have approved the equivalence of the proposed inspection procedure.

There will still be at least two AsureQuality food safety assessors monitoring each shift and final oversight of the product remains the responsibility of the MPI Verification vets on the plant. The most significant difference will be in the total number of employees, because on all plants there have been up to 12 meat inspectors and supervisors across a two shift operation.

In future, meat workers on the chain will be responsible for their own inspection, supervised by official inspectors who must be trained to the same level and subject to the same performance checks as AsureQuality’s inspectors. There will be considerable savings from the new system which the PSA argues will place an undue emphasis on production at the expense of food safety.

MPI released the proposed Post Mortem Inspection regulations for cattle, sheep and goats and asked for submissions by 13 July this year. The response, from what I assume was the PSA, raised several concerns about the risks to New Zealand’s reputation for safe food which the current inspection model had guaranteed for more than three decades. MPI’s replies to the objections indicated its satisfaction with the proposed process which overseas authorities had already approved.

In its submission, the PSA also stated its willingness to discuss opportunities for more flexibility and productivity gains. This all sounds constructive, until one realises the meat companies have been trying for at least 20 years to do just that without success.

A further four meat plants – Alliance Smithfield, Silver Fern Farms Pareora, Riverlands Blenheim and AFFCO Manawatu – will adopt the new company meat inspection procedure by the end of January 2013. At this point, a review will be conducted before approval for a rollout across the industry over the next two seasons.

Kelvan Smith, AsureQuality’s group manager operations, says that the SOE accepts what is happening is inevitable, but wants to make sure it has a clear understanding of the industry’s timetable for the change. His main concern is to manage the impact on employees of what is likely to be a 50 percent reduction in staff numbers by the end of the process.

It is possible that not all meat processors will want to change from the present system, especially if they have a good working relationship with the meat inspectors working at their plants. However, cost pressures make this unlikely, if the new arrangements work well. The PSA and its affected members will be keeping their fingers crossed.

 

Sheep scanning recognised as revolutionary tool

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A revolutionary tool for reproductive management of sheep in New Zealand, which has contributed to the country’s improved meat production over the past two decades, has been recognised in the inaugural Sheep Industry Awards, alongside the top flocks and sires for genetic merit.

About 200 people attended an event in Invercargill earlier this month to celebrate sheep farming excellence and to witness the presentation of nine awards covering genetics, production and business innovation. Results of the genetics-related awards were calculated based on breeders’ performance in SIL-ACE (Advanced Central Evaluation) – the large-scale, across flock and breed genetic evaluation of more than 280 ram breeding flocks.

The Silver Fern Farms award for sheep industry innovation went to Rowan Farmer, who was responsible for introducing and promoting sheep pregnancy and eye-muscle scanning technology to New Zealand.

Farmer set up Stockscan in 1991. The primary aim was to scan sheep for eye muscle area, but Farmer’s experience with quarantined sheep at Invermay gave him an insight into the management benefits of pregnancy scanning. Since then, the practice has expanded to include the identification of twins and triplets. Scanning has revolutionised the reproductive management of sheep throughout New Zealand.

In addition, the country’s top performing breeders of meat yielding sheep were honoured. Joseph and Judy Barker’s terminal sire flock ‘The Burn’ Texel stud in Mid-Canterbury rated highest for genetic merit across the SIL-ACE evaluation, The dual purpose (ewe breed) flock rated highest for genetic merit was ‘MNCC’, Edward Dinger’s Coopworth stud in the Waikato. The same flock also won the Alliance High Performance Flock award.

B+LNZ geneticist Mark Young says the process of identifying the top-performing flocks involved analysing the top 25-50 percent of rams for each specified set of traits, before then adjusting the results to account for variatons in flock size.

“This exercise also identified highly-rated sires that were making a big impact in industry. The B+LNZ Super Sires are rated in the top 10 percent for genetic merit in indexes of merit across key traits. They are also rams which have been used a lot, so have the most progeny,” says Young.

The B+LNZ Ltd Award for an individual or business making a significant contribution to the New Zealand sheep industry went to Dr Jock Allison ONZM. Two of the highlights of his career, from the sheep industry viewpoint, have been his work with the Booroola Merino which led to the discovery of a major gene fecundity gene and for importing the East Friesian sheep to this country.

The idea to hold an awards ceremony was initiated by B+LNZ Farmer Council Member and ram breeder Russell Welsh. Welsh says the dairy industry’s track record of celebrating success promoted him to suggest the awards ceremony. “It highlights best practice and,by default, that lifts all farmers.

B+LNZ Ltd chairman Mike Petersen says it is great to see farmers driving an initiative which celebrates the sheep industry, while also highlight the immense value of SIL’s database to the sector.

Other award winners on the night were:

  • AgITO Business Farm Trainer of the Year –Smedley Station and Cadet Training Farm.
  • Dual Purpose plus Worm FEC Flock (Index: Reproduction + lamb Growth + Adult Size + Wool + Parasite Resistance) – Nithdale Romney flock, owned by A Tripp of Gore.
  • Dual Purpose plus Facial Eczema Flock (Index: Reproduction + lamb Growth + Adult Size + Wool + FE Tolerance) – ARDG Romney Flock, R & G Alexander of Tirau.
  • Beef + Lamb New Zealand Super Sires – in addition, top sires were also picked out in six categories: terminal; dual purpose*; dual purpose high performance*; dual purpose plus meat yield*; dual purpose plus worm FED; and dual purpose plus facial ezcema tolerance. A Coopworth Ram owned by Steve Wyn-Harris of Waipukerau won three of those spots (marked *), really making it the Super Sire.

For more information see www.beeflambnz.com.

 

Fast Fresh n Tasty

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Silver Fern Farms’ lamb and venison are two of the ingredients being used in a handy dandy, recipe-to-shop smartphone application produced here in New Zealand, by Wellington-based digital media company ClickSuite.

The company’s research showed a large number of people surf the web for culinary inspiration when they are in the supermarket and are hungry for new recipe ideas to add to their average five to seven recipe repertoire. The app, which was developed with plenty of hands on consumer testing (and tasting), features local producers and introduces new recipes each season incorporating relevant produce.

Just one example of what the users see to tempt them into trying Silver Fern Farms’ retail packs of venison medallions.

“It took real vision for Silver Fern Farms to jump on board before the app was launched,”  says ClickSuite’s managing director Emily Loughnan, adding that she’s excited now that the use of the app “is truly bringing in extraordinary stats.”

Reportedly selling like hot cakes – the Fast, Fresh n Tasty app was said to be recently at the top of the Apple App Store list outselling Jamie Oliver’s and Nigella Lawson’s own – and, more importantly, being used regularly, with over 12,000 accessing it last month. Nominated for three awards in the 2012 TVNZ Marketing Awards – best new emerging business, best technology and best marketing awards – Loughnan says it’s still early days but plans are to take it global, using seasonal produce in other markets.

The NZ$5.29 app was reviewed recently at sciblogs.

 

In the news this week (3)

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People are key to the success of Riddet Institute’s Agri-Food Strategy wrote Jon Morgan in a Dominion Post opinion piece early on last week. “The prize is too great to abandon,” he said.

So, focus is now shifting to the week-long chief executives’ Primary Sector Boot Camp at Stanford University in California later this month, which will be attended by over 20 chief executives including meat industry leaders Keith Cooper of Silver Fern Farms and Mark Clarkson of ANZCO Foods, alongside Minister of Primary Industries David Carter. On the table for discussion will be the Agri-Food Strategy.

Agmardt is principal sponsor of the private sector-led chief executive forum designed to unlock the global potential of New Zealand’s primary sector. At the time of the sponsorship announcement at the end of April, Jeff Grant chairman of the Agmardt board of trustees said he regarded the boot camp as an ideal fit under the grant body’s new strategic priorities.

“A key outcome of the boot camp is to explore and drive in-market collaboration within New Zealand’s primary sector, which is strongly aligned with Agmardt’s new strategy to fund activities that enable New Zealand agribusiness to identify and explore potential opportunities within the global marketplace.”

Grant said the willingness by senior industry leaders to be involved in the camp to discuss and explore strategies for greater collaboration and alignment across a wide range of primary industries, “is extremely encouraging.”

Other supporters of the Primary Sector Boot Camp, which will comprise leaders from the dairy, beef, sheep, seafood, viticulture and horticulture sectors, include the Ministry of Science and Innovation, the Ministry for Primary Industries and NZ Trade and Enterprise.

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Other news appearing over the week included:

Protein sources of the future –A new New Zealand/Dutch study has outlined the coming challenges to meeting future demand for protein. In a review published this week in the journal Trends in Food Science and Technology, Dr Mike Boland from the Riddet Institute and his colleagues at the Wageningen University in the Netherlands have drawn on a range of research sources to peer into the future of the world’s food supply. They say, as demand is outstripping supply of meat, mankind will “need to get creative” with its protein sources, considering competition between humans and pet food industries, noting that rabbits and other novel animal species, “should not be discounted as having an important part to play in future animal protein production systems,” and speculate that there may be ways to derive dietary protein from food waste from biofuel crop leftovers. Whatever happens, consumer acceptance will be key, say the authors.

New NZTE chairman – Interesting to note that former Fonterra chief executive, Andrew Ferrier, has been named as the new chairman of the New Zealand Trade & Enterprise (NZTE) board. Replacing Jon Mayson, he will commence his three year term on 1 November. Announcing the appointment, Economic Development Minister Steven Joyce says that Ferrier will bring “strong governance and strategic capability to the NZTE board”. Ferrier is a director of Orion Health Ltd and CANZ Capital Ltd. He was appointed to the University of Auckland Council in March 2012. Prior to his work with Fonterra, he was involved with the global sugar industry. Born in Canada, he has been a New Zealand citizen since 2008.

A new Code of Welfare for Meat Chickens came into effect on 26 July, setting out the minimum standards and best practice guidelines for the poultry industry. The new Code replaces the Code of Welfare for Broiler Chickens that was released in 2003. The new Code has a broader scope and includes chickens that have access to the outdoors, says the National Animal Welfare Advisory Council (NAWAC). “Another key change is that farmers will have to take the environment of the chicken into account when deciding how many chickens to keep in a designated area,” NAWAC chair John Hellström says. “Farmers will also be required to stay within the minimum standards for stocking density, but they will now have to also consider things like litter quality, lighting, air quality and temperature when deciding how to house their chickens.” Find out more here.

NZUS Council sponsors MPs visit to Washington – Two MPs Peseta Sam Lotu-Liga and Hon Shane Jones, co-chairs of the New Zealand US Parliamentary Friendship Group, recently returned from a successful NZUS Council sponsored visit to Washington DC. The visit – particularly timely given the stage of the Trans Pacific Partnership negotiations – raised NZ’s profile and also gave the MPS the chance to gain valuable insights about US negotiating interests. In a full programme over a four-day visit, the MPs met with members of the Friends of NZ Congressional Caucus and a range of Congressional representatives and had meetings with senior officials in the State Department, Treasury and US Trade Representative’s office. They were also guests of honour at a well-attended lunch hosted by the US NZ Council. Other guests included Congressional staff, senior US company executives and Council members and supporters. The NZ US Council met the costs of the MPs domestic travel in the US and related on-the-ground costs. Arrangements in Washington were made by the New Zealand Embassy.

World price slump put lamb back on Kiwi menus – the NZ Herald reported over the weekend on the news that prices for Kiwi consumers are down too and they are responding enthusiastically. Read more… 

Finally, with the London Olympics in full swing this week, it seems only right to congratulate all of the Kiwi athletes, but particularly B+LNZ Inc’s bronze medal award-winning Iron Maidens Rebecca Scown and Juliette Haigh for their  success in the women’s pairs (rowing) and Alison Shanks (cyclist) for her tremendous efforts in the team event. All the best now to Sarah Walker (BMX) for her event yet to come on the world sports stage. Go Team NZ!!


 

 

 

 

 

Nearly quarter of a billion being invested in red meat

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Nearly a quarter of a billion dollars is being invested by the meat industry and the government in projects aimed at adding a potential $3 billion to returns over the next decade.

Ministry for Primary Industries (MPI)’s director-general Wayne McNee took the opportunity at the Red Meat Sector Conference to announce approved funding for the latest Primary Growth Partnership programme, which will enable the production of high-value marbled grass-fed New Zealand beef for premium export and domestic markets.

The initiative will develop marbling in grass-fed beef in the New Zealand beef herd, using Wagyu beef genetics, McNee explained. “MPI will invest in this programme with Brownrigg Agriculture and Firstlight Foods. The PGP is committing $11 million over seven years, for a programme worth a total of $23.7 million.”

Marbling, the distribution of fat through meat, is a primary determinant of quality in table beef in international markets such as Japan, China and the United States. Internationally, such high quality beef is produced mainly from cattle housed in pens and fed grain. ANZCO Foods has been producing a supply of hand-selected steers for Japan, raised on grass but finished on Canterbury grain at the Five Star beef feedlot near Ashburton for over 20 years.

To produce a comparable meat fed using New Zealand grass, the new PGP programme is aiming to develop an integrated value chain for the beef. It will combine high marbling Wagyu sires for the yearly mating of dairy heifers and cows and the development of rearing and grazing systems that will support year-round growth of the cattle.

McNee said the programme aligns well with the Red Meat Sector Strategy.

“The programme will produce unique New Zealand high-value beef for discerning consumers. It will link specialists in dairy farming, cattle breeding, finishing, processing and marketing and deliver market signals effectively right through the value chain,” he said.

David Brownrigg of Brownrigg Agriculture says it will be a significant opportunity for beef and dairy farmers to lift the quality and value of their calves and finished cattle.

“The New Zealand dairy sector represents an under-utilised resource for producing quality beef calves. Brownrigg’s Wagyu crossed with ‘Kiwi’ dairy cows and Angus beef cows will produce outstanding beef and help us lift our game in international markets,” according to Brownrigg.

Gerard Hickey, managing director of Firstlight Foods says a planned marketing programme to selected high-end global consumers will enable beef farmers to build their businesses with confidence.

Minister welcomes announcement

Welcoming the announcement, Minister for Primary Industries David Carter says, “The Government’s total investment so far of more than quarter of a billion dollars in PGP programmes, demonstrates its firm commitment to boosting economic growth through primary sector research and innovation.

“All New Zealanders stand to gain from the partnership because, alongside our internationally prized lamb, our beef sector is pivotal to the success of our economy.”

The announcement lifts the total government-industry PGP spend over the past three years to nearly $600 million. Nearly $86 million of government PGP funding has been allocated to three meat industry projects worth a total of nearly a quarter of a billion dollars to date. These are estimated to potentially put over $3 billion more on the country’s GDP by the mid-2020s.

To date, PGP-supported meat projects include funding of up to $59.5 million over seven years for the $151 million Farm IQ project with partners Silver Fern Farms, PGG Wrightson and Landcorp Farming aimed at creating a demand-driven integrated value chain for red meat. Seven project streams and 18 sub-projects are working to improve the capture and utilisation of both market and farm production information. The information will then support the development of new value-driven genetics and extension work that underpin the programme.

Another $36.6 million PGP project with NZ Merino, including $15.15 million of PGP funding, is looking to develop merino sheep with meat, wool and other products suitable for market demands over the next seven years.

Also in the wings, is a project that has been approved to business plan stage and will potentially to be funded to the tune of $37 million, led and matched by funds from Beef + Lamb NZ Ltd focused on implementing a number on-farm elements of the Red Meat Sector Strategy. Other meat industry projects are also in the pipeline, according to MPI.

The PGP is expected to be fully subscribed by next year, says McNee.

An abridged version of this article appeared in Food NZ magazine (August/September 2012).