Tag Archives: Brazil

Global meat industry hurting, signs show …

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The New Zealand meat industry isn’t the only one suffering around the globe as news reports this week are showing signs of hurting businesses and a changing global scene.

In addition to Vion pulling out of the UK – a reflection of the tough trading conditions, says an item in meatinfo.co.uk – the Canadian pork industry has been warning of massive losses, according to an item in Globalmeatnews.com.

In the US, concern was also noted in a recent Wall Street Journal article “Meat firms face hit to plump profits’ as massive global meat processor Tyson Foods prepared to report its quarterly figures. However, Tyson’s results came out on Monday carrying an optimistic note for the next three years and shares rallied by nearly 10%. The company says it will focus on prepared foods and value-added poultry to “weather the anticipated increase in feed costs during the coming year” (meatandpoultry.com).

In the UK, a management buy-in from previous owner ANM has saved struggling meat processor Yorkshire Premier Meats, says foodmanufacture.co.uk, while another ANM-owned company, Scotch Premier Meats, cut 30 jobs in May.

Meanwhile, JBS SA is planning to build six more plants in Brazil on the basis of growing global demand, with a focus on grass-fed beef, reports MENAFN.com. However, foot and mouth disease continues to hold Brazilian beef exports back from Asian markets.

India was forecast by Rabobank’s global arm last week to become the world’s biggest beef exporter next year. Basing its claim on United States Department of Agriculture (USDA) figures, exports of buffalo meat from India are expected to rise to two million tonnes as Indian dairy farmers slaughter unproductive animals from their large and expanding dairy herd in response to high prices for meat.

Greener pastures

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New Zealand has the potential to capture $1.3 trillion more in agricultural exports between now and 2050 if targeted actions are taken, according to a new report recently released by ANZ.

An ANZ Insight report Greener Pastures: The Global Soft Commodity Opportunity for Australia and New Zealand quantifies the size of the opportunity open to New Zealand and Australian agriculture as a result of the shift in global economic growth to Asia.

Key findings from the report are that rising incomes and changing diets in developing countries mean the world will demand at least 60 percent more agricultural output by 2050, compared with 2005-2007. New Zealand could stand to gain an additional $550 million, which could increase to $1.3 trillion with favourable conditions and targeted actions, the report says. However, intense competition from emerging players with countries like Brazil, Malaysia and Indonesia becoming major threats. It also determines that $340 million in additional capital is needed to drive production growth and support NZ farm turnover between now and 2050.

Capturing the opportunities offered to the potential “food bowl of Asia” will not happen of its own accord, says Graham Turley ANZ’s managing director commercial and agriculture. “Significant barriers exist that will have to be overcome at every step of the supply chain.”

Sourcing capital to find growth, attracting skilled labour, intensified focus on national agricultural R&D, improving supply chains and targeting key markets are among those barriers.

“The danger we face is that we are not alone in seeking to exploit the global soft commodity boom and countries, like Brazil with its highly successful soy industry, are leading the charge.”

“If we are serious about wanting to develop vibrant, globally dominant and highly profitable industries, we need all stakeholders in the industry to work together to bring about change.

“There are environmental issues and foreign and domestic investment comfort levels that New Zealanders also need to consider in making these choices. These are the choices facing policy makers as they strive to make New Zealand more economically successful,” says Turley.

 

 

Games legacy, global campaign against hunger starts

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British Prime Minister David Cameron with Michel Temer, Vice-President of Brazil, Football legend Pele (left) and Olympic double gold medallist Mo Farah (right) at the Olympic hunger summit in Downing Street, 12 August 2012. Photo: Foreign & Commonwealth Office (some rights reserved).

A more serious tone is emerging post-Games, with Britain’s Prime Minister David Cameron and Brazilian Vice-President Michael Temer taking the opportunity to put the spotlight on helping millions of children suffering from malnutrition in the the world’s poorest countries.

Olympic double gold medallist Mo Farah, Olympic great Haile Gebrselassie and football legend Pele, who have all campaigned to end the cycle of hunger and poverty by tackling their root causes, joined the leaders, along with others including non-governmental organisations and private sector, at Number 10 Downing Street last Sunday – the closing day of the Games – to highlight a push to tackle global hunger ahead of the next Olympics to be held in Rio de Janeiro in 2016.

Long term exposure to a poor and inadequate diet and repeated infections have left 170 million children in the world suffering from stunting – a condition which stops children from fulfilling  their potential because their bodies do not grow and develop properly. The United Nation’s World Health Assembly recently agreed a new global target of a 40 percent reduction in the number of stunted children by 2025.

The ‘hunger summit’ has been inspired by a declaration by the G8 at its last summit in the US in May, where President Barack Obama announced the creation of a new alliance on food security with African leaders and the private sector as part of an effort to lift 50 million people out of poverty over the next decade. Alongside three initiatives announced by the UK at the London summit. other initiatives are underway by India, the EU, the World Food Programme and the Children’s Investment Fund Foundation to make an impact on global levels of undernutrition, according to Downing Street. The UK will take up G8 chairmanship from next year.

An article in The Guardian newspaper says that the initiative has received ‘cautious welcome’. Campaigners argue that while control rests with the larger companies, it takes away the power of small farmers to feed their people.

The article quotes the Gates’ Foundation head of agriculture, Sam Dryden, who attended the summit, acknowledging the pressure of large corporations – as well as agricultural subsidies in the West – in squeezing out smallholder farmers in Africa.

“Agriculture is a local experience, eating is a local experience,” he is quoted as saying. “It is important that African countries develop their own systems and that smallholder farmers grow the crops they want to grow.”

 

 

New blueprint for sustainable beef production

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A new blueprint that potentially could be used for sustainable beef production in New Zealand has recently been brought into reality in Brazil and is being trialled in tropical northern Australia. However, its usefulness in temperate zones as a sole certification stamp is being questioned by one sustainability expert.

A group of four cattle ranches in Brazil, Fazenda São Marcelo Ltda, has just been announced as the first to earn Rainforest Alliance certification under a new standard – Standard for Sustainable Cattle Production Systems – developed and first published in July 2010 by the Sustainable Agriculture Network (SAN).

The ranches all met a rigorous set of standards that promote the humane treatment of livestock, the conservation of natural resources and the rights and well-being of workers. The standards were developed by SAN in response to the vast destruction of rainforest that results from cattle farming. IMAFLORA – the SAN representative in Brazil – carried out the certification.

According to Amaldo Eljinsk, chief executive of Grupo JD which manages the enterprise, the standards support the company’s values and management approach, helping it add value to its products, stay ahead of trends and attract buyers.

IMAFLORA is promoting the cattle certification programme in Brazil through its work with other local non-governmental organisations (NGOs, including Amigos da Terra), government agencies and international NGOs (including the National Wildlife Federation).

The current standard covers a summary of the principle of an integrated cattle management system, sustainable range and pasture management, animal welfare, reducing the carbon footprint and additional environmental requirements.

Input from sustainable standards expert Kevin O’Grady of Pinnacle Consulting, in the early stages of the standard, enabled the change of rules to allow the use of natural hormone replacement and de-horning. Since that time, O’Grady, who previously worked in the New Zealand meat industry, has been involved with the development of the standard and its trials in Northern Australia. He has been looking at the feasibility of extending it into temperate regions such as other parts of Australia and New Zealand.

“The way Rainforest Alliance works is that specific clients, such as McDonald’s in the specific case of South America, adopt the standard and suppliers then have to follow it,” he explains.

However, it would take a lot to adapt the standard for temperate zones and some of the issues for tropical farming , like tree cover and protecting livestock from predators, are not relevant, he says.

O’Grady also questions the advantage of this sort of standard for the New Zealand meat industry. “Many customers’ suppliers and investors are looking to independent certification to mitigate reputational risk so it’s not just about meeting a certification requirement for a customer like MacDonald’s.”

Want to find out more? Contact Kevin O’Grady.