May for US-NZ Pacific Partnership Forum

The US-NZ 2013 Pacific Partnership Forum will be held in Washington, DC from May 19 – 21 at the Grand Hyatt Hotel. The Forum will bring together New Zealand and US game-changing leaders from business, government, and non-profit organisations to explore the next opportunities for economic growth and cooperation.

Organised by the United States | New Zealand Council in Washington, DC and the NZUS Council in New Zealand, the two-day meeting will focus on the two countries’ shared interests and complementary visions for the future.

The success stories and vision of both NZ and US companies will be prominently featured.

“Today’s NZ – US relationship is about leadership, innovation and a readiness to be a catalyst for positive change in the world”, said William Maroni, president of the US | NZ Council.

“By showcasing examples of real innovation, next year’s Forum will help inform, inspire and shape the next generation of though leaders in business and public policy.”

The 2013 Forum will be the fifth gathering of its kind. It comes at a time when countries and companies will compete to discover, define and deliver the next opportunities in the Asia-Pacific region. The Forum also occurs at a time when newly-appointed Members of President Obama’s Cabinet and newly-elected Members of the U.S. Congress will be defining their goals for the next two to four years.

Stephen Jacobi“Next May is likely to be a particularly important time in the Trans-Pacific Partnership (TPP) negotiations,” said Stephen Jacobi, executive director of the NZUS Council.

“The 2013 Pacific Partnership Forum will foster the type of dialogue that can help move TPP to a successful completion.”

New Zealand and the United States are influential global voices for open markets, regional growth and stability, individual freedoms, and a sustainable environment.  The 2013 Forum will build on this legacy by focusing on Asia-Pacific issues.  The program will include dynamic keynote presentations, diverse panel discussions, valuable networking opportunities, executive-level exchanges, and a variety of social and cultural activities.

Exclusive sponsorship opportunities to host specific portions of the Forum are available, and the event is open to interested parties.  For more information, contact [email protected].

American sheep farmers suffering even more than here

Allan BarberIt’s tougher in the US for sheepfarmers, Allan Barber has found.

An article headlined ‘Drought, high feed costs hurt sheep ranchers,’ appeared last Friday in the Northern Colorado Business Report, he writes in his latest blog posting. It makes the problems being experienced currently by New Zealand sheep farmers look comparatively pretty small.

This isn’t meant to denigrate the difficulties here, but it puts things in context. One rancher has cut his 2,000 head flock by a third and is losing US$80 on every lamb he sells. According to the article, drought, consolidation of the sheep-packing business, increased feed costs and plummeting lamb prices have created hardship among sheep ranchers across Northern Colorado. The situation has deteriorated so much for ranchers that the federal government is investigating whether meat packers have played a role in the market’s collapse.

In 2011 lamb prices soared above US$2 per pound, or about NZ$5.25 a kilo. But today the same lambs fetch only 85 cents per pound (NZ$2.20), while rearing a lamb costs more than $1.30 per pound (NZ$3.40 a kilo). Feed costs have also risen from $250 per ton of grain in 2011 to $400 in 2012.

As lamb prices declined in 2012 demand also softened, causing the US Department of Agriculture to buy $10 million worth of lamb as a drought relief measure. An insurance policy designed to insulate ranchers against fluctuating lamb prices is too expensive at present price levels.

There is also a suspicion that the packers may have been manipulating the market by buying lamb supplies and holding them on feedlots to guard against being caught with insufficient stock to process profitably. This is apparently in violation of the Packers and Stockyards Act which prohibits price manipulation.

A further disadvantage is the fact Japan has been closed as an export market for sheepmeat for 10 years because of mad cow disease – I’m not sure why this was the case, as sheep were not the problem and lambs are too young to pose a risk.

The USDA has asked for any evidence of price manipulation by the packers, as it ‘takes allegations of anti-competitive behaviour very seriously.’ But it doesn’t look as though there will be any relief for sheep farmers any time soon because of low consumer demand and the high cost of feed as a result of the drought.

None of this will be any comfort to New Zealand sheep farmers, especially with the implications for export demand from the USA, but at least our exporters have developed a much broader range of markets for sheepmeat and co-products. This spreads the risk for producers. Equally farmers here don’t have the same worries about feed costs, as the vast majority of sheep and lamb feed generally grows naturally as a result of regular rain.

That said, it is important for New Zealand’s sheep industry, as distinct from its beef industry, to develop a strategy which can ensure our industry doesn’t fall into the same hole as that of Colorado.

Allan Barber is a meat industry and agribusiness commentator. This article has appeared at www.interest.co.nz and also at Allan’s own blog Barber’s Meaty Issues.

ANZCO starts energy management programme

One of New Zealand’s largest exporters is set to save more than $2 million a year and enhance its global reputation as a sustainable producer through a company-wide energy management programme.

The Energy Efficiency Conservation Authority’s EECA Business announced yesterday it would support the initiative over two years to help meat processor and exporter ANZCO generate long-term energy savings in its New Zealand plants.

With annual sales of $1.25 billion, ANZCO Foods Ltd processes and markets New Zealand beef and lamb products around the world. The firm employs over 3,000 staff world-wide and has 11 meat processing plants in New Zealand.

This programme will target a reduction in its processing plant energy use by 25 gigawatt hours (GWh), returning ongoing annual savings of $2.45 million after two years.

EECA Business general manager Ian Niven says that making better use of its energy will provide far-reaching benefits for the company and congratulated the company on its vision.

“Globally New Zealand is recognised for sustainably produced, premium quality meat products. And energy efficiency is one of the best ways to strengthen environmental credentials.

“By taking a lead in energy efficiency, ANZCO is making significant energy cost savings and signaling to its customers that it is committed to sustainable production,” he says.

Mark Clarkson, ANZCO Foods.

ANZCO managing director, Mark Clarkson says the programme will deliver on many levels for the company.

“Sustainability is key to the ANZCO brand and we are always looking for new ways to build on our reputation for environmentally responsible production, so reducing energy costs is a priority.”

The programme involves the establishment of a group-wide energy management plan, led by a team responsible for putting in place up to $5 million of identified energy efficiency projects.

With the assistance of one of EECA Business’ industrial programme partners, ANZCO will set up a system to help keep the programme on-track, measure efficiency outcomes, and develop case studies for a number of the projects.

Ian Niven says management commitment is key to the programme achieving its objectives.

“From the Board of Directors through to site operations, ANZCO leadership has indicated it wants to foster a culture of efficient energy use throughout the company.

“Such commitment is important to the success of making enduring improvements to energy management.”

EECA Business funding of up to $450,000 will be made available in stages upon achievement of various programme milestones.

TPP negotiations need to deliver for agriculture

New Zealand’s red meat sector is encouraging all negotiating parties in the Trans-Pacific Partnership to work tirelessly to ensure this agreement can be completed by October 2013.

Key outcomes from the completion of TPP must be the elimination of agricultural trade barriers and the opportunity for greater economic integration across the Asia Pacific region, says Beef + Lamb New Zealand (B+LNZ Ltd) and the Meat Industry Association (MIA).

The B+LNZ and MIA chairmen, Mike Petersen and Bill Falconer (respectively) reinforced the need for reduced barriers to agricultural trade, including the elimination of tariffs and other technical barriers as a priority. Achieving that would create benefits and opportunities for all TPP members exporting red meat products.

“The TPP agreement has the potential to create new opportunities for all red meat exporting countries through improved market access, reducing both tariff and non-tariff barriers, and trade facilitation in the Asia-Pacific region,” Falconer says.

The TPP agreement also offers the opportunity to do business more easily and transparently.

B+LNZ and MIA are present at the TPP negotiating round in Auckland, meeting with the agricultural trade negotiators and talking with agricultural and meat producer representative organisations from partner countries.

Petersen says the New Zealand red meat sector had well established links with a number of producer organisations, including the Canadian and Mexican beef producers.

“Both Canada and Mexico are part of the Five Nations Beef Alliance along with Australia, the United States and ourselves. Together, we represent producers from countries that account for one-third of global beef production and approximately half of global beef exports.

“The Alliance will be presenting its views on what it considers would be a successful outcome for the beef trade from these negotiations. Our view is that we must achieve a high quality comprehensive agreement that acknowledges the importance of beef production and consumption for all participating countries.”

B+LNZ and the MIA will continue to monitor progress over coming months and, where desired, assist negotiators to address the key issues relevant to the red meat sector in order to achieve a satisfactory outcome.

Robotic technology off to Australia

Dunedin-based production equipment specialist and MIA affiliate member Scott – in association with Robotic Technologies (a joint venture between it and meat processor Silver Fern Farms) – has won an $11 million contract to provide lamb boning room automation technology to two Australian meat processors.

The Australian Lamb Company (ALC) and JBS Australia, a division of the world’s biggest meat processor, will take receipt of the new equipment, which will be installed and in operation before the end of next year.

After installing a fully automated X-Ray Primal system from Scott in 2010, ALC noticed more accurate cutting through use of the x-ray image on each individual carcase, a significant reduction in bandsaw meat dust and a consistent room product flow. In addition, with two less operational staff operating bandsaws, the company anticipates that that there will be a reduction in Occupational Health and Safety claims.

The biggest surprise, however, for ALC general manager of operations Darren Verrall was the consistent room product flow, which has resulted in an extra 250 carcases being processed each shift.

The X-Ray Primal accurately dissects the lamb carcase into forequarter, middle (rack and loin) and hindquarter segments with the use of the x-ray image to define every bone position. Along with the powered rotary cutting knives that can pitch and yaw at the required angles, the entire system can produce accurate cuts that are just not possible using a traditional manual bandsaw.

On viewing the system in operation at ALC, JBS chief executive Don Jackson contracted Scott to deliver a full automated and integrated X-Ray Primal Middle System for its Bordertown facility in South Australia.

Scott is now working with both companies to determine how to use the individual carcase data obtained from the x-ray system to benefit their producers, in addition to bone-in and boneless forequarter automation developments.

The successful contract assisted Scott’s rise in the 2012 TIN100 Report, which is produced by the Technology Investment Network in association with Industrial Research Ltd to showcase New Zealand’s top high-tech companies. Scott grew an impressive 15.1 percent and graduated from the $20m-$49m category into the $50m-$99m set, with revenues of $53.6 million. In its latest August year-end results, the company has reported a further 19 percent revenue growth to $63.8 million.

In addition, Scott has been recently announced as a finalist in the 2012 Westpac Otago Business Excellence Awards.

More information about the vision for Stage 1 of the technology’s development can be found about the system in the video below. For more information about Scott visit the website www.scott.co.nz.

This article appeared in Food NZ magazine (December 2012/January 2013).

 

Ministry for Primary Industries’ Strategy 2030

The Ministry for Primary Industries (MPI) has set itself an ambitious strategy to 2030 with the subtitle ‘Growing and protecting New Zealand,’ writes Allan Barber.

In its introduction, the Ministry asks ‘Why this strategy?’ which it answers by saying a re-balancing of the economy towards more productive sources of growth is required and New Zealand must trade itself to greater growth and prosperity.

When one considers that 71 cents in every dollar of merchandise export earnings come from the primary sector, there are no prizes for guessing where most of this is expected to come from. The Government’s strategic growth agenda contains the goal of increasing the ratio of exports to GDP from 30 percent to 40 percent of GDP by 2025, so clearly agriculture will be expected to generate the majority of this increase.

MPI, which now incorporates the functions of MAF, as well as the Ministry of Fisheries and New Zealand Food Safety Authority, has a major role and responsibility for helping to achieve these goals. Having always believed that government agencies must provide the framework and environment within which business has to perform and achieve, it’s expecting too much of MPI and its strategy, if we believe that this will be easy.

Strategy 2030 contains two points of focus: first to ‘maximise export opportunities and improve sector productivity’ and second to ‘increase sustainable resource use, and protect from biological risk.’

Key strategies to achieve these are:

  • Partnering with the primary sectors to identify and seize opportunities for improved productivity and market returns;
  • Removing unnecessary barriers to trade and increasing our use of international standards to enhance value;
  • Encouraging and co-investing in industry innovation and adoption;
  • Identifying and managing risks to New Zealand’s natural resources;
  • Partnering innovative approaches to environmental challenges; and
  • Better understanding the challenges to sustainable use of New Zealand’s natural resources.

The Ministry’s approach will concentrate on enabling and partnering by cooperating, facilitating, providing information and tools, using a whole-of-government approach across the primary sector and connecting primary sectors with one another. A key aspect of this is to engage with Maori which MPI sees as a core obligation.

Before jumping to the conclusion that this obligation is yet another example of political correctness, which is tempting, one must realise that Maoridom has $10.6 billion invested in primary sector assets including 1.5 million hectares of land of which MPI says 80 percent is underutilised. This degree of underperformance certainly needs to be improved and will produce economic returns for both Maori and the country as a whole.

MPI’s structure to deliver its strategy consists of five branches across the whole operation: Policy, Standards, Verification and systems, Compliance and response, and Resource management and programmes. These five branches encapsulate the total range of activities which the Ministry undertakes. The ones with the highest profile are food safety, animal welfare and biosecurity, but these are just the tip of the iceberg.

MPI has responsibility for literally everything and everybody leaving and entering the country. It negotiates standards with the regulatory authorities of our trading partners; it establishes the systems and maintains surveillance to ensure compliance with these standards. It also develops and implements policies across the whole gamut of New Zealand’s agriculture, horticulture and aquaculture sectors.

It is staggering to reflect that in 1987 David Lange saw agriculture as a sunset industry with New Zealand’s future lying in becoming the Switzerland of the South Pacific.

Now more than ever, the primary sector is the engine of our economic growth. MPI’s core responsibilities of setting and applying systems and standards for food safety, animal welfare and biosecurity, while ensuring effective response to pest incursions and non-compliance, are absolutely fundamental to our future place in the world.

The Ministry has an enormous responsibility for ensuring the protection and security of our whole primary sector which is a critical part of our economic growth.

Provided it doesn’t lose its focus on the clearly defined essential outcomes listed in its strategy, this is how it will make its major contribution towards ensuring New Zealand’s future prosperity.

Allan is an agribusiness commentator with particular interest in the meat industry and has his own blog Barber’s Meaty Issues. This article also appears at interest.co.nz.

MIA signs biosecurity MoU

Last week, the Biosecurity Reform Bill passed into law. As it announced in June, the Government wants primary sector groups to participate in the Government Industry Agreement (GIA) for biosecurity decision-making and cost-sharing. The Primary Production Committee, which was responsible for the final draft of the Bill, received more than 40 submissions.

A Memorandum of Understanding (MoU) has been drawn up describing how individual industry groups and Government will develop a business case for participation in joint decision-making and cost-sharing, writes Allan Barber. He finds that, despite initial caution, the Meat Industry Association, has signed the Government’s GIA proposal “provided the value proposition is acceptable.”

Read more …

Smol confirmed as permanent MBIE head

David Smol has been appointed as the first chief executive of the new Ministry of Business, Innovation and Employment (MBIE), it has been announced by the State Services Commissioner Iain Rennie.

Smol (pictured right) has been acting chief executive of the super ministry since April this year and prior to that he was the chief executive of the former Ministry of Economic Development. His new contract runs until June 2017.

The Government established MBIE on 1 July 2012, bringing together all the existing functions of the former Ministry of Economic Development, Ministry of Science and Innovation, Department of Labour and Department of Building and Housing.

The Commissioner says that Smol has the skills and experience to “step up” to successfully lead the transformational change required in MBIE.

Smol will lead approximately 3,500 staff located in offices throughout New Zealand and overseas. MBIE has an annual expenditure of around $660 million and administers non-departmental appropriations of $4 billion.

Asia-Pacific business organisations urge TPP completion

As the Asia-Pacific Economic Co-operation (APEC) Economic Leaders Meeting opens in Vladivostok, Russia, today business organisations from around the APEC region have once again joined together to urge participants in the Trans-Pacific Partnership (TPP) to complete negotiations as soon as possible in 2013 and to hold to the ambitious aims set for the final agreement.

According to a joint statement, the Asia-Pacific business organisations from New Zealand, Chile, Canada, Peru, Singapore and the US, urge the negotiators to maintain the momentum in the negotiations to achieve the vision of TPP. “While substance will need to drive the negotiating agenda, we urge that all steps be taken to bring the negotiations to a conclusion in early 2013.”

Asia-Pacific business organisations have reaffirmed their view that a successful TPP will be comprehensive, high quality, ambitious “with the elimination of tariffs and non-tariff barriers on trade in goods and services and investment no later than 2020″, innovative, enforceable and a living agreement.

Amongst business leaders at APEC Vladivostok are Erica Crawford of Kim Crawford Wines, Malcolm Bailey of Fonterra and Ian McCrae, Orion Health. Members of the APEC Business Advisory Council also attending the talks are Tony Nowell of Valadenz, Wayne Boyd (Vulcan Steel Ltd), Maxine Simmons (NZBio) and Stephen Jacobi of the NZ-US Business Council who is an alternate member.

“TPP provides a potential pathway for making progress towards the Free Trade Area of the Asia-Pacific,” says Jacobi. “TPP is a complex undertaking but the potential gains to growth and jobs are simply too big to be left on the table.”