Author Archives: Editor

About Editor

Hailing originally from the UK, Ali Spencer has spent over 25 years working with the New Zealand trade not only here in New Zealand, but also in the UK and Europe. She regularly contributes meat industry material for Food New Zealand and more occasionally for Vetscript. In the past, she has also contributed material for Deer Industry News, NZ Meat Producer and European News (the former NZ Meat Board’s European newsletter).

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!!


 

 

 

 

 

Lever for high standard food production

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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).

New meat inspection programme gets thumbs up

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Successful trials of a new meat inspection programme have resulted in the thumbs up from major overseas regulators, reducing costs for meat exporters, but not at the expense of food safety.

The Ministry for Primary Industries (MPI) has received advice from regulatory authorities in Europe and the United States, two of the industry’s major export destinations, that the proposed new meat inspection programme meets their requirements and can be used for products exported to these markets.

The proposed programme is based on successful trial work (profiled in Food NZ, Dec 2010/Jan 2011) and would allow for fully trained meat company staff to carry out some non-food safety aspects of meat inspections, known in the industry as ‘suitability’ or quality aspects.

Official government inspectors will continue to carry out food safety-related functions.

MPI, the Meat Industry Association (MIA) and AsureQuality have formed a team to develop a plan to implement the new inspection programme. This will require some changes to MPI standards, on which MPI will be consulting.

This article appeared in Food NZ magazine (August/September 2012).

Food’s changing world and demands

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Hyperglobalisation, China, mega cities, urbanisation and water are some of the big issues that will play their part in the future of the New Zealand and global export meat industry, according to several Red Meat Sector Conference speakers.

In his presentation about the political and economic environment facing the industry, Colin James of the Hugo Group said it is becoming more and more difficult for a nation to act independently these days. ‘Hyperglobalisation’ refers to the increasing global interdependence and interconnectedness, which make protection from global economic forces more difficult, he said.

We can expect more of the same over the next 20 to 25 years, he explained. “It’s going to need a fair amount of resilience.”

Water, along with fossil fuels, will be the big issues, he predicts. Multinationals are rebranding and adopting a “fresh, clean, natural” stance rather than ‘clean, green’ approach to capitalise on the emergence of an affluent middle class in emerging markets. This growing middle class around the globe is calculated to encompass more than 210 million new households with income of US$20,000 or more by 2025, which he believes New Zealand is well placed to serve.

Four percent global GDP growth predicted

New Zealand’s top ten trading partners are projected to grow roughly four percent a year in 2012 as weighted by the goods trade. “Modest, but not boom time,” James commented.

Four percent in global GDP growth also stood out for Richard Brown of market research company GIRA, who admitted to being surprised that the forecasts were so positive. The leader is China, whose GDP is anticipated to grow in 2011/2012 by 8.5 percent, “not as good as expected but still OK”, followed by Indonesia (6.5 percent). He anticipates similar growth in 2012.

In his detailed look at the outlook for various meats, including beef and sheepmeat, he said that global prices for meat are generally, “fundamentally more exciting than they have been.” He was reassured with the direction of the trends, which he said were, “very good news for the producing sector.”

In 2011, prices had gone up boosting producer morale, because total global meat production was down – largely as a result of the outbreak of the pig disease PRRS in China, Brown explained. “What that illustrates is the Chinese effect on global trade is profound.”

This point was echoed in a later presentation from McDonald’s senior director and head of strategy for China and Hong Kong Arron Hoyle, who said that China is having a dramatic effect on global commodities.

“We don’t sell beef at McDonald’s, we sell a burger, so other commodities have to be taken into account.”

Rise of the dragon

Both James and Brown pointed to the current difficulties in the US and in Europe, which is facing big problems with the Euro. Europe had a “spectacularly fragmented meat industry,” Brown said and pointed to problems with the region’s biggest meat company, Vion, which is now in trouble after a period of rapid acquisition. This reflects a lower rate for now for global corporate processor consolidation “with a long way to go and an unproven success record.”

Arron Hoyle also pointed in his presentation to the ‘rise of the dragon’, the lean away from the west to the East, with McDonald’s choosing to target consumers in what it calls the APMEA (the Asia Pacific, Middle East and East Asian) region.

Unprecedented urbanisation

Hoyle talked about urbanisation in those emerging markets, such as China and India, “like we’ve never seen it before.” In the APMEA countries populations are moving from rural to urban settings in a similar manner to Britain’s Industrial Revolution, “but it’s happening 20 times faster and involves about 800 times more people,” he explained.

“We’re living in an era where we’re seeing different dynamics to the previous 50 years,” he said, adding that volatility will be more extreme than ever before.

‘Mega Cities’, those with populations of more than 10 million, are on the rise and currently count Shanghai, Mexico City, Sau Paolo, Beijing, Mumbai and Delhi as the top six.

“In addition, emerging market cities will be a key driver of global food demand with key 440 cities identified across Asia. With this explosion in urbanisation we see many ‘tier two cities’ with populations over one million evolve: By 2020 it is projected China will have 221, India 50, Indonesia 15 and Korea nine.”

With this trend comes a “massive” transport and infrastructure need, but also a forecast quadrupling of per capita of GDP by 2020, said Hoyle.

“It’s a world of opportunity for years to come,” he said cautioning that it also comes with higher rents and increased pressure on costs for McDonald’s stores or other businesses that target Asia as a key future growth driver.

This article appeared in Food NZ magazine (August/September 2012).

 

Tribute to a pioneer

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Friends and colleagues paid their respects at the conference welcome cocktail party to one of the industry’s inspirational leaders Graeme Lowe CNZM QSM, 77, who had passed away earlier that day in Havelock North after a long illness.

Marking the sad news just as Graeme would have wanted it, “with the minimum of fuss and to get back to business”, MIA chairman Bill Falconer asked delegates to raise their glasses to the legendary meat industry leader and his family.

B+LNZ chairman Mike Petersen spoke of him as “one of our pioneers”, a sentiment echoed by the Minister for Primary Industries David Carter who also paid tribute to the “hugely respected” businessman.

“Graeme led Lowe Corporation from its inception in 1964 to become a major animal by-product processor and exporter,” the Minister said.

“As an entrepreneur, Graeme was not afraid of taking risks and his innovative ideas brought a new level of business thinking and technology to the modern meat industry.”

Meat Acts, the history of the meat industry from 1972 to 1997 written by Janet Tyson and Mick Calder, talks of Graeme’s “formidable lobbying skills”, the fact that he was an innovator, a “persistent agitator for deregulation of the industry” and a “trend setter”.

The founder president and managing director of Lowe Corporation – which now employs about 400 nationwide at the peak of the season and has three tanneries, two fellmongeries and two rendering plants around the country and a turnover of $300 million – started his professional life in a tannery before joining the Royal Navy. After rising to the rank of sub-lieutenant, the British-born 21 year old returned to the tannery before taking on a new adventure on the high seas as crew on a yacht heading for New Zealand, where his mother and new step-father had recently immigrated.

On his arrival on this side of the world, he worked for Unilever subsidiary Birds Eye Foods, before branching out into his own butcher’s shop in Hastings. From there, over the next forty years and via the acquisition of Dawn Foods, he built the Lowe Corporation to where it is today.

On the way, Graeme introduced a number of technological innovations into the meat industry that have saved millions of dollars and improved efficiency. One of these is the ‘Jarvis electric stun box’ for halal stunning, which he and his engineers developed and patented. Another is ‘hot boning technology’ which enables a carcase to be broken down and into boxes within half an hour, side-stepping chillers and shaving two to three days off the process.

Graeme remained committed to Lowe Corporation to the end of his life, although suffering from Parkinson’s disease which affected his speech and mobility. Graeme’s son, Andy, who is also Lowe Corporation’s general manager will now steer the Hastings-based ship.

Also a generous supporter of Hawke’s Bay charities and organisations, Graeme had recently been inducted into the NZ Business Hall of Fame (see Food NZ, June/July 2012). In making their decision, the judges looked beyond business attributes to how the nominated individual has assisted their communities in various ways. For Lowe Corporation, it was sponsorship of the Hawke’s Bay Helicopter Rescue Trust for over two decades, along with support for many charities, including the Kids at Risk Charitable Trust. The family also devotes a lot of resources to conservation. Graeme joined two other  meat industry laureates already in the Hall: Amy Maria Hellaby, founder of R&W Hellaby; and ‘Mad Butcher’ Sir Peter Leitch KNZM QSM.

Our condolences go out to his widow Jenny, son Andy, daughters Sarah and Kate and their families, including seven grandchildren.

This article appeared in Food NZ magazine (August/September 2012).

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).

Telling the story

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The meat industry needs to market itself better and tell its story, according to several presenters at the Red Meat Sector Conference.

Marketing of industry is all about building trust in the integrity of the brand, Meat and Livestock Australia’s managing director Scott Hansen told delegates.

“We’ve learned the best defence against attacks on the industry is  the farmers themselves to become advocates for their industry and their own businesses.”

“Not only do we have to sell a product, we have to sell the industry.”

Keeping consumers informed, however, has become way more complex. Consumer-driven US company Agri Beef has identified that, in the US, the 28-45 year age group – the “Digital Moms” – go online first to make decisions.

They don’t want to know how animals are slaughtered, but they do want to know the animals are treated well and that the product is safe to eat, said the company’s executive vice-president Rick Stott.

Blogs and videos are two weapons in the armoury. Three young US farmers produced a low-cost home-produced rap video about their work on the family farm that went viral after being posted on You Tube and, at the time of his speaking, Stott said had received over 4.5 million views.

The rapid rise and uptake of social media and the use of smartphones around the globe in the past couple of years is changing the way businesses communicate with consumers and was remarked on by several of the presenters.

New communication channels that retailer Progressive Enterprises is using here in New Zealand to directly interact with its consumers include Facebook, You Tube, smartphone applications and QR Codes alongside tailored emails and promotions aimed at loyal consumers, according to its general manager for merchandise Murray Johnston. This all runs alongside print and TV advertising.

Through the use of interactive technology, for a consumer, “brands are now yours. You make them,” he said.

Pinterest’s bulletin boards were also pointed to by Stott and MLA’s Scott Hansen, while B+LNZ Inc chief executive Rod Slater talked of PLUCK, which smartphone-enabled consumers can use in conjunction with television advertisements.

This article appeared in Food NZ magazine (August/September 2012).