Meat inspection no longer exclusively provided by AsureQuality

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.

 

Grass fed NZ beef a hit at music festival

Grass-fed New Zealand beef struck a chord with the crowds at one of Japan’s largest dance and music festivals, Super Yosakoi, held in Tokyo on the weekend of 25 and 26 August.

Beef + Lamb New Zealand (B+LNZ Ltd) was at the festival for the second year in a row, as part of its programme of activities to boost a taste for grass-fed New Zealand beef among Japanese consumers.

Organisers estimate that around 800,000 visitors took part in this year’s festival. Over the course of the two days, nearly 700 kilograms of grass-fed beef was served off the B+LNZ stand, which equated to more than 4,000 servings. To enable people to appreciate its true flavour, the beef was cooked simply in oil and seasoned only with salt and pepper.

A wide range of foodstuffs was on offer, but there was little doubt New Zealand beef was the most popular with festival-goers. While sampling on the Saturday was steady throughout the day, on the Sunday, a queue formed as soon as the first plate of piping hot beef was served at 10am and did not ease until the grills were turned off at 5.30pm.

The overwhelming on-the-spot response from people eating the beef was how juicy, tender and tasty it was, says B+LNZ market manager for Japan John Hundleby, adding that many were trying grass-fed beef for the first time and were not certain what to expect.

“However, once they put the beef in their mouths and tasted it, their delighted expressions conveyed very clearly their reaction.”

Others remembered sampling the beef at the festival in 2011 and actively sought out the B+LNZ stand again this year so they could enjoy the beef’s taste one more time.

Commenting on Beef + Lamb New Zealand’s participation in the festival, Hundleby said: “As was the case in 2011, Super Yosakoi provided us with an opportunity to put delicious, healthy and nutritious New Zealand grass-fed beef directly in front of consumers not only from Tokyo but from surrounding cities and prefectures. The highly positive response was gratifying, as was their interest in finding out more about the beef. In particular, the healthiness, nutritional merits and safety of the grass-fed beef seemed to strike a chord.”

Boot camp stimulates insights

The outcome of the Boot Camp, which was held two weeks ago at Stanford University, has not – for obvious reasons – been widely trumpeted, writes industry commentator Allan Barber.

 

After all, the objective was never to produce yet another sector strategy, long on analysis of the problem and short on achievable actions to produce a state of nirvana.

Bill Falconer, chairman of the Meat Industry Association, was chosen as the spokesperson for the Boot Camp because he did not represent a single company, but an industry body. The senior executives who attended did not see the merit of or justification for purporting to speak on behalf of their peers from a wide range of rural sector businesses. Therefore, Falconer was the obvious person to speak on their behalf.

The Boot Camp’s objectives, simply stated, were seen as:

  1. To allow the attendees to learn from the professors and to visit US companies in different industries, which would enable them to see how to become consumer driven.
  2. To take six days out of day -to-day business and examine their business from a different perspective.
  3. To see how or whether individual companies could collaborate to their mutual advantage.

Falconer told me that is was one of the most stimulating and encouraging gatherings he had attended, with 20 CEOs and top managers from across the agricultural sector learning from six outstanding marketing professors how to lift their game for the benefit of their companies, industry sectors and agribusiness as a whole.

The conclusions from the Boot Camp can be looked at against the backdrop of the Government’s growth agenda to double exports or otherwise expressed as lifting exports from 30 percent to 40 percent of GDP by 2025.

The visits to companies near Stanford were immensely helpful in gaining an understanding of how the export target might be achieved. The first important conclusion is that there is no point in increasing production on-farm, or in any other environment for that matter, unless you can sell it.

In order to start working out how to sell the extra production, an understanding of consumer demand is necessary, becoming market- not production-driven and planning how to lift performance accordingly. A major insight was the scale of social media used by all the companies visited, a country mile ahead of any New Zealand company, including Icebreaker, which is seen as a leader in the New Zealand context.

I suspect, although Bill Falconer didn’t say so, that tangible results from the Boot Camp will of necessity be slow to eventuate. Nor is it likely that companies will feel the need to make a lot of noise about any specific programmes they develop, either in collaboration or on their own, until there is something concrete to report.

However, if the Boot Camp has achieved a change in attitude about the nature of the task and provided a blueprint of how to go about lifting sales and marketing performance, this will prove to be the best outcome. There has been too much navel-gazing analysis of the size of the problem and the same old strategies to solve it, without any real change in behaviour.

Ideally, agribusiness needs a Messiah to preach the new marketing gospel until the sector as a whole becomes customer- or consumer-driven.

Hickson buys Welsh meat plant

A meat processing plant in Wales is under new ownership. Progressive Meats’ Craig Hickson and his wife have just bought Cig Calon Cymru (CCC), a meat processor close to Llanelli in South Wales.

CCC is a multi-species plant, primarily processing Welsh Black and cattle and also lambs, employing over 30 staff. The British Farmers Guardian newspaper reports that the deal includes an all new management team, as well as an export partnership for beef. New Zealander Hugh Brown is to take the role of general manager and there is a newly created livestock supply manager.

New Zealand Federated Farmers has supported the move and says that while a recently released PricewaterhouseCoopers (PwC) report for New Zealand Trade & Enterprise (NZTE) points towards growing New Zealand agribusiness in newer markets such as South America and China, Hickson has proven there is opportunity left in New Zealand’s traditional markets.

“While we must maximise the potential of New Zealand’s land resource, there is an inescapable logic about taking our intellectual property and skills globally,” says Jeanette Maxwell, Federated Farmers meat and fibre chairperson.

“If we take a leaf from the automotive industry, Toyota now makes most of its vehicles outside Japan. The challenge is in having capital markets which can help us seize these opportunities. We also need to be mindful there is still a lot of life left in our ‘old’ markets.”

Maxwell says this is an example of a progressive New Zealand meat company investing offshore. “There are others and they are not intended to simply be a meatpacker for our red meat, but to work in-market with local farmers to build their businesses and the overall market.

Getting inside markets, is what PwC/NZTE is calling for, she says.  “It is not dissimilar to how Fonterra works globally, or how Brazilian meat processors have become strong through global logistics and supply chain management.

“As New Zealand is a leading global exporter of red meat, we start to match that by becoming a leading global processor and marketer as well.”

The move maximises opportunities, markets and above all, returns, Maxwell believes.

In addition to owning Progressive Meats, Craig Hickson, who was named Federated Farmers’ 2012 Agribusiness Person of the Year in July, is also a B+LNZ Ltd director and a major shareholder of sheepmeat processor and exporter Ovation New Zealand. He and his wife also own a 1,500 hectare sheep, beef and venison farm.

Tesco to run hybrid nutritional labelling scheme

UK retail chain Tesco, a major customer for New Zealand’s meat exporters, has had a change of heart over traffic-light nutritional labelling,  says online food trade magazine Just-Food.

This is a major change in strategy for Tesco which up to now has supported the Guideline Daily Amounts (GDA) approach, the magazine says. Responding to consumer research, Tesco made the announcement last week that it will now be using a hybrid labelling system, including both GDA and traffic light systems.

Philip Clarke, Tesco’s chief executive said Tesco has led the way by giving shoppers clear information about the food they eat and was the first retailer to put nutritional information on the front of its packs in 2005 when it rolled out its GDA labels.

“We always listen to our customers and they have told us by combining our popular GDA labels with traffic light colour coding we can make it even easier for them to make informed and healthy choices about the food they buy,” he said.

The news has been welcomed by British health minister Andrew Lansley, NGOs and public health groups.

The consumer research was conducted by Penn Schoen and Berland and involved 1,002 UK adults aged over 18 in a quantitative online survey.

 

Burgerfuel’s growth in Middle East

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Auckland-based meat exporter and franchisor Burgerfuel is using its range of halal menu options to fuel its growth in the Middle East, according to a halal market article in NZ Trade & Enterprise’s latest Export News e-newsetter. The company has recently opened outlets in Iraq, the United Arab Emirates and Saudi Arabia and is now looking further afield in the region. Marketing manager Alexis Lam says the fact that grass-fed New Zealand beef has been halal for some time made the initiative viable in the first place.  “There seems to be a healthy respect for the Halal certification we have in New Zealand,” says Lam. Read more …

Venison industry planning productivity improvement

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 betterremains 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.

Trading with Russia

Exporters trading with Russia will be focusing on Vladivostok as trade talks take place there next week.

A delegation of business people is participating in the Asia-Pacific Economic Co-operation (APEC) Chief Executive Summit and related meetings in Vladivostock, Russia, during the week of 3 September, according to the NZ International Business Forum (NZIBF).

“The Vladivostock meeting takes place as Russia takes up its long-awaited and welcome entry into the World Trade Organisation (WTO) and as further progress is made to build the foundations for future growth in the Asia-Pacific region,” says NZIBF executive director Stephen Jacobi.

“New Zealand has a major stake in the future economic success of the Economic APEC region which takes over 70 percent of our exports. Negotiations now underway amongst eleven APEC economies to complete the Trans-Pacific Partnership (TPP) are aimed at eliminating trade barriers, reducing the cost and complexity of doing business and providing a pathway to a future Free Trade Area of the Asia Pacific (FTAAP). New Zealand is also negotiating a free trade agreement with the Customs Union of Russia, Belarus and Kazakhstan.”

Russia’s 2012 chairmanship in APEC is promoting the domestic economy’s organic integration into the system of economic ties in the Asia Pacific Region (APR) in the interests of modernisation- and innovation-driven economic development, primarily in Siberia and the Russian Far East.

The fourth and final meeting this year of the APEC Business Advisory Council (ABAC) will take place in Vladivostock 3-6 September. ABAC members will present their views and recommendations directly to APEC Economic Leaders, including Prime Minister John Key, on 8 September. They will be joined at the APEC CEO Summit 7-8 September by several New Zealand chief executives.

This year’s Summit – under the theme Addressing Challenges. Expanding Possibilities. – will explore how business can contribute to future prosperity in the region through trade liberalisation, safe food and water supply, infrastructure development, the fostering of innovation and new transportation routes.

In the year ending December 2011, Russia was 14th on the list of New Zealand’s top trading partners. The country imported $44 million (fob) worth of New Zealand sheepmeat and about $11 million worth of frozen New Zealand beef.

Try lamb, says joint promotional group

A joint promotional push is getting United States consumers to try lamb.

Project partners involved with the Tri-Lamb Group, which has a goal to get more Americans eating lamb, are meeting with two Beef + Lamb New Zealand (B+LNZ Ltd) farmer directors.

Central South Island director, Anne Munro and Southern South Island director, Leon Black are in Idaho, representing New Zealand sheep farmers alongside their fellow Tri- Lamb Group representatives from Australia and the United States.

B+LNZ Ltd chief executive Dr Scott Champion says the collaborative promotion by the three sheep producing nations is built around the understanding that the profitability and sustainability of the lamb market in the US is important for farmers in all three countries.

“If more Americans are eating lamb, then each country stands to gain from the opportunities that increased consumption will provide.

“The programme includes online food and nutrition blogs that share lamb recipes and podcasts showing how to build simple and healthy lamb meals for the family. They’re tracking a lot of interest.

“This week the Group reviewed last year’s programme and considered continuing support for the initiative, called ‘Making Lamb Famous in the United States’.”

For the year ended 30 June, the United States was New Zealand’s third largest sheepmeat market by value (NZ$256 million), behind the United Kingdom (NZ$534 million) and Germany ($NZ275 million) and ahead of China (NZ$247 million).

View Lean on Lamb online food blog.