A new Te Aroha emerges from the ashes

Silver Fern Farms' Te Aroha exterior.Two years after Silver Fern Farms’ Te Aroha beef processing operation was destroyed by fire in December 2010, a state of the art facility opened in December and is up and running in its place.

Silver Fern Farms’ new $67m Te Aroha plant is a hot-boned beef processing operation designed for best practice processing of manufacturing cows, bulls, steers and heifers from farmer suppliers across the Waikato region.

It joins a network of 23 Silver Fern Farms processing facilities employing over 7,000 staff throughout the country. Te Aroha will employ up to 380 staff when operating at full capacity with two shifts in peak season with an annual capacity of 125,000 cattle.

At the plant’s official opening in December last year, Silver Fern Farms chief executive, Keith Cooper, said the new design reflected the company’s focus on plant economics and best practice processing and the investment was testament to the co-operative’s strong confidence in the sector.

The plant has been designed in consultation with internationally recognised experts in process layout and ergonomics. It is compliant with New Zealand, EU, US Department of Agriculture (USDA), and Chinese hygiene requirements and also to halal standards for the Middle East, Malaysia and Indonesia.

Te Aroha incorporates the latest meat processing technologies; including sophisticated traceability and yield measurement systems.

Te Aroha, December 2013: Computerised Marel Streamline technology monitors meat as it passes through slaughter, grading and boning processes. The plant is configured with a custom-designed two-level Milmeq slaughterboard. Extensive use is made of RFID tags, with scanning stations at slaughter, grading and boning stages, monitored through the new Marel Streamline computerised deboning and trimming system. The process has been designed for complete traceability and to enable Silver Fern Farms to closely monitor key production indicators.

Rapid feedback

This system has the capability to deliver rapid feedback to plant staff on how closely they are meeting customer requirements for particular cuts. This fits with Silver Fern Farms’ plate-to-pasture strategy where consumer requirements are driving process improvements in order for the company to extract higher value returns from products.

This data collection is underpinned by the Primary Growth Partnership FarmIQ joint venture programme – an investment of $151 million by Silver Fern Farms, Landcorp Farming, Tru-Test Group and the Ministry of Primary Industries.

Over the seven years of the programme the aim is to integrate the red meat value chain to maximise returns to farmer partners.

For farmers, information collected at the Te Aroha plant on meat yield and quality can be used to inform farm management decisions as they look for avenues to lift farm system performance. This information can also be married with information from the insights FarmIQ will bring from consumers so farmers can produce to target higher-value returns from specific consumers.

Trimming to specification

Boning room technology at SFF Te Aroha.Following break-down and deboning, the primal cuts are distributed to work stations on the trimming line, based on operator availability. They are then trimmed according to individual specifications and all cuts are fully traceable. The automated conveyor system will enable Silver Fern Farms to closely monitor and control critical key production indicators in real time throughout the complete processing cycle. These include yield, throughput, cutting performance, giveaway and loss of sales. These are automatically registered and monitored for the entire line as well as for the individual operator, using Innova intelligent production control software.

Provision has been made for future installation of technologies including robotic bagging.

Sustainability top-of-mind

Eco-efficiency and sustainability were top-of-mind considerations. As a result, the new plant uses significantly less electricity and water per head and discharges less effluent per animal processed, setting new benchmarks in line with global customer requirements.

Keith Cooper says the rebuild gives the company an opportunity to review the environmental footprint of the operation. “Our focus is improving environmental efficiency while reducing costs through better use of resources and reduction of waste.”

The plant has also been orientated to ensure noisy areas and truck movements are at the centre or the rear of the plant, away from neighbours. Every effort has been made to reduce noise coming from the plant, even to the point that refrigeration equipment, undamaged by the fire, was relocated.

Health and safety focus

Te Aroha, December 2013: Trim stations are individually tailored for each workeer's reach to meat, height and access to work stations.Health and safety was another major focus for the company when developing the specifications for the new facility. Process areas have been designed to minimise workstation hazards. A suite of solutions to minimise lifting, turning and carrying were factored into the design. The boning room has European-designed workstations intended to maximize productivity by minimising operator fatigue and discomfort. At trim stations adjustable work heights, reach to meat and easy access to work positions make for a safer and more comfortable work environment for staff.

Separate viewing areas let people observe the slaughter and boning processes without interfering with workers on the floor. The plant layout also factors in separation between pedestrian and heavy vehicle movement areas to provide a safer environment for people.

Throughout the rebuilding process, Silver Fern Farms endeavoured to provide alternative options for staff whose livelihoods were affected by the fire, to the extent of making positions available at other company plants in the North Island and providing accommodation supplements in the early stages. The company’s significant capital spend also has provided positive spin-offs to the local economy as a result of the number of contractors throughout the region engaged during the course of construction.

Cooper says the co-operative’s loyal farmer-suppliers in the area were particularly supportive of the company through the re-build.

“We are grateful to those suppliers who have stood by us and persevered while we got the new plant up and running – we know the disruption has been an inconvenience for many. But we are enthusiastic about the service levels and advantages we can now offer them as a result of our investment.”

Pictured at the Te Aroha opening are (left to right): local MP Scott Simpson; John Key; Eoin Garden chairman Silver Fern Farms; Keith Cooper, chief executive Silver Fern Farms; Kevin Winders, chief operating officer Silver Fern Farms.

Pictured at the Te Aroha opening are (left to right): local MP Scott Simpson; John Key; Eoin Garden chairman Silver Fern Farms; Keith Cooper, chief executive Silver Fern Farms; Kevin Winders, chief operating officer Silver Fern Farms.

 

This article has appeared in Food NZ magazine (February/March 2013) and is reproduced here with permission.

Alliance getting ready for new season

Meat processor and exporter Alliance Group, like many others, has been busy getting ready for the new meat export season. The company has announced new plant and process modifications at two of its South Island plants, Pukeuri and Lorneville, recently. 

Additional shift and modifications at Pukeuri

Alliance is to provide an additional shift at its Pukeuri plant as it ramps up cattle processing in the peak period, the company announced last week.

The third shift at the plant north of Oamaru will enable the company to process 880 extra cattle a week through May and June when the cattle throughput traditionally hits its peak. the third shift will also offer about 80 existing employees from the sheep and lamb processing shifts a longer season.

Alliance Group is currently undertaking a number of modifications to the plant, including extending the cattle yards ahead of the change.

John Brader, general manager of processing at Alliance Group, says the additional third shift was necessary to ensure Alliance continues to meet the needs of its suppliers.

Alterations have been made in Alliance’s systems to accommodate the additional cartons, giving more flexibility to which blast freezers or equilibration chillers the product can be directed, he explained.

Pukeuri processes more than 10,500 sheep and lambs a day. More than 900 staff work at the plant, which is the largest employer in North Otago. It is estimated the plant injects around $100 million into the local economy each year.

New rendering plant at Lorneville

In addition, Alliance announced that it has also completed the construction of the building for a new $13 million rendering plant at it’s Lorneville plant near Invercargill. Rendering machinery is now being installed in the 1,121 square metre building. The facility, which is designed to reduce Alliance’s energy and operating costs, as well as improve product recovery, is expected to be commissioned in October.

The new plant incorporates the latest technology, including a Press Dewatering System, which uses less energy and produces high quality products. When fitted with a waste heat evaporator, the process is virtually ‘zero waste’, resulting in high product yields and low wastewater output.

The first stage in a larger rendering redevelopment project, two further stages are proposed in the future. The complete project is said to save 9,000 tonnes of lignite and more than 1.5 million hours of electricity a year, enough to power 170 homes a year, the company says.

John Brader says the new rendering plant represented the largest single investment at the Lorneville plant for more than a decade.

“Completion of the building marks a major milestone for the development. Rendering remains a significant contributor to Alliance Group’s income and the investment in the latest technology will ensure we maximise revenue in this area.

“Alliance measures energy use and the associated greenhouse gas emissions from its plant to assist in making good business decisions.

“Since 2000, Alliance Group has reduced greenhouse gas emissions from energy use at its processing plants by 26 percent per unit of production and total fuel use has been reduced by 32 percent.”

Almost 2,000 people are employed at Lorneville, which is New Zealand’s largest sheepmeat processing plant.

Lever for high standard food production

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).

Stock numbers holding

The good pastoral production year has seen New Zealand sheep numbers increase by 2.6 percent and beef cattle numbers increase by one percent for the year to 30 June 2012, according to Beef + Lamb NZ Ltd’s Economic Service.

“This partly makes up for the 4.4 percent decline in sheep and 2.6 percent decline in beef cattle the year before,” says executive director Rob Davison.

B+LNZ’s annual stock number survey, which establishes the productive base of livestock for 2012-2013 shows that while sheep numbers were up 2.6 percent most of this increased will be stock carried over for slaughter in July-September.

Ewe condition is good across the country, he noted. “Scanning results for most regions show in-lamb ewes are carrying more multiple lambs with the general comment that scanning percentages are up five to 10 percent on last year. All we need now is an excellent sprint to ensure high survival of the lambs born.”

The scanning results lead to expectations that the 2012 lamb crop could be up on last Spring by one million lambs (+ four percent). This outcome would lift the ewe flock performance measured by lambing percentage to around the highest achieved, which in 2009-2010 was 123 percent. There is potential to exceed this performance level, Davison says. Each one percentage point change in lambing percentage, equates to about 200,000 lambs.

 

 

 

 

 

Transformational change (and how to make it)

One farmer who has made transformational change to his farm business is Marlborough farmer Doug Avery.

In an inspirational and entertaining presentation at the Red Meat Sector Conference, he talked of working “smarter and harder” and the need to “lift yourself up above and see what’s going on around you.”

The tipping point that made him see that he needed to change was sustained drought in the region, over a period of eight years,  which meant that Bonavaree Farm and the Avery family were facing a very uncertain future. In 1998, Doug Avery attended a seminar where Lincoln University pasture Professor Derrick Moot proposed using lucerne as a primary grazing pasture plant. Using that idea started change.

In 2004, with the area still gripped with drought, the NZ Land Care Trust answered a call for help from Avery and a few other farmers. A six-pronged attack on failed systems was engaged with science and the help of funding from the Sustainable Farming Fund and others. This saw the transformational change of the operation from one of failure to one of success.

Having run the emotional gamut of the ‘Three Ugly Sisters’ – envy, anger and blame – Avery realised, when he started looking, that there were some things he could control and others he was concerned about – climate change, weather and the value of the dollar – that he had no control over at all.

Avery realised three things: that the farm business could run 44 percent less sheep but only produce five percent less product; also, that a one percent increase in soil carbon can increase water holding capacity by 144,000 litres per hectare; and, finally, “how much time do we spend telling our story?”

Change of mindset

A change of mindset was also needed, he decided. He would work in what he calls the influence circle, become proactive not reactive, move to solution and enquiry (away from blame and excuse), he would influence thinking and adapt his business systems to the changing climate.

Better practice influenced the systems in place at Bonavaree, says Avery. The year was broken down into three periods: the risk period from mid-December to mid-February where they farm as little as possible; the recovery period from mid-February to late winter, when crops are grown on summer-fallowed land and ewes and hoggets are mated on lucerne and the system charges back into life; and the revenue period, from late summer till mid-December.

“We grow our stock at fast rates to finishing weights before the summer dry,” he said, adding that ewes wean fat and the ewe weights are heavy.

Precious water was conserved by using summer fallow, which intercepted the weed cycle, storing water and creating a water reservoir. Organic matter was built into the soil by stopping tillage. Plants were used that could tap water from deeper layers and also create rapid animal growth and performance. Finally, animals were made for performance, using designer genetics.

Results

The results today speak for themselves. “Lots of wonderful lambs that grow like mushrooms”, and “hogget scanning gone from 40 percent to 165 percent”.

Today, Bonavaree has 1,500 hectares owned and 280 ha leased which will be wintering 13,000 stock units this year (5,000 sheep, 1,650 cattle), growing 90 ha of lucerne for seed and the family is retiring an increasing number of natural areas production. The property has six full-time staff and lots of busy contractors.

Better practice

Better practice for Avery is about using quality contractors, rather than trying to purchase expensive machinery and do it himself, using smart systems like Farmax, inspiring the young who learn by what they see, working with good value chains and smart brands, growing top crops and lambing onto top quality feed, he said.

Reminiscing to the start of his transformational journey, Avery said: “I always wondered why somebody didn’t do something about that, then I realised I am somebody.”

His message for farmers looking to create resilient businesses is to create relationships, manage the soil and water “more crop from every drop”, look at the plant selection for sites and purpose, manage feed supply and demand, work with the natural forces of the local climate, collaborate with science, agency and industry, engage in processes which create financial reward and to create a culture of excitement and fun in the work place.

Bonavaree is now looking to build on its successes through improved management structures, more measuring and collaboration through FarmIQ, better feed conversion in the rumen, improved plant mixes and genetics (plant and animal) and enhanced native plantings and over lay business, says Avery.

Doug Avery has received a number of award for his work at Bonavaree including the 2008 Green Ribbon from the Ministry for the Environment, 2010 Lincoln Foundation South Island Farmer of the Year, 2011 Marlborough District Council Farm Environment Award and the 2012 New Zealand Land Care Trust Ambassador title.

Livestock tracing scheme live

David Carter, NZ Primary Industries MinisterIt’s happened at last. Today’s the day when New Zealand’s new National Animal Identification and Tracing (NAIT) scheme goes live, which will be welcome news for meat exporters.

The new National Animal Identification and Tracing (NAIT) Act, which comes into effect today, 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.

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 says: “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.”

In the case of a biosecurity outbreak affecting livestock, NAIT will enable a quick and efficient response reducing the impact on the agriculture sector and the entire NZ economy.

NZ export revenue expected to decline in 2012/2013

New Zealand’s primary sector export revenue is expected to decline in 2012/13, as prices for commodities, such as New Zealand lamb, beef and venison, continue to come under pressure, according to a new report from the Ministry for Primary Industries (MPI).

Releasing its latest annual review of the sector, Situation and Outllook for Primary Industries 2012, MPI deputy director-general Paul Stocks noted that the prices for New Zealand’s primary industries are falling from relatively high levels but in general remain quite favourable. “Production this season has been generally good – even great for some – due to favourable climatic conditions.”

Summarising the sector, the review notes that meat and wool export revenues are expected to increase by 5.8%, to reach $7.2 billion, in the year ending 30 June 2012, owing to increased meat volumes and wool prices. Prices have been at high levels but now lamb schedule prices are falling back faster and further than the normal seasonal decline, says MPI. “This is because price-conscious consumers in Europe have shifted to less expensive meats. Some further falls are expected, but these should be modest because of lower stock numbers here and overseas.”

For beef, demand and schedule prices have held up better because of robust demand from Asian markets and falls in supply in the US and Australia.

Prices for venison have been falling since September 2011 and are forecast to bottom out in the first six months of 2012 and then rise slowly over the outlook period, reflecting decreasing supply from New Zealand and continuing demand.

The report shows that the meat sector has seen increased meat production this year as a result of favourable climate and pasture conditions.

Exchange rates continue to be of concern – and the greatest area of forecast uncertainty – says MPI.

A pdf copy of the report can be downloaded at the MPI’s website (Publications, News and Resources), where you can also order a hardcopy.

First international standards adopted for animal welfare in livestock production

The World Organisation for Animal Health (OIE) has adopted new generic guiding principles on animal welfare relating to livestock production systems and a new chapter on the welfare of cattle bred for meat production.

Agreement was reached at the OIE’s 80th General Session, held in Paris and was said to be siginficant by the OIE’s director general Bernard Vallet after delegates’ failure in 2011 to reach agreement on animal welfare of broiler chickens. “This is an historical event that opens the way to adoption of animal welfare standards of other farm animal production,” he said.

The new adopted texts provide for criteria and indicators to measure the welfare of beef cattle, nutritious quality of feed, supplementary lighting for cattle that do not have access to natural light, bedding and many other aspects of cattle breeding conditions.

Other key decisions reached by delegates include new texts on the responsible and prudent use of antibiotics in animals for consumption purposes.

 

Eyes on US BSE case

A case of the cattle brain disease bovine spongiform encephalopathy (BSE) was diagnosed in a cow in the US in April, holding global meat industry attention, but producing cautious response to date.

The United States Department of Agriculture (USDA) reported that as part of its targeted surveillance system, its Animal and Plant Inspection Service had confirmed a case of BSE in a dairy cow from central California, the first such case since 2006. USDA chief veterinary office John Clifford confirmed that it was never presented for slaughter for human consumption, so at no time presented a risk to the food supply or human health.

Clifford said tests, using immunohistochemistry and western blot tests, “confirmed that the animal was positive for atypical BSE.” Atypical BSE is a rare form of the disease that appears to occur spontaneously. It is different from classical BSE, which is associated with the consumption of ruminant protein.

The US industry leapt into action to reassure markets and consumers that the beef and dairy in the American food supply is safe with US agriculture secretary Tom Vilsack saying that USDA remained confident in the health of US cattle.

When BSE was discovered in animal in 2003, it had a major impact on the US beef industry, as a number of countries banned imports of beef from the US, including Japan and Korea, which had been major US markets.

According to the US International Trade Commission, losses to the industry ranged from $US2.5 billion to $US3.1 billion annually from 2004 through 2007.

Although most markets slowly re-opened their borders, many still impose restrictions on US and Canadian beef. For example, Japan only allows imports of U.S. beef from cattle aged 20 months or less, but its Food Safety Commission is assessing the risk of easing the limit to 30 months.

So far, the response from other countries to the current case has been cautious. Only one country, Indonesia, has banned all US beef imports and, while two major South Korean retailers were reported to have suspended sales of US beef immediately following the announcement, at the time of writing one has since resumed sales.

 Published in Food NZ (June/July 2012).

Mandatory livestock tracing one step closer

A Bill to deliver electronic national identification and tracing of livestock passed its third and final reading in Parliament In February.

Primary Industries Minister David Carter says the National Animal Identification and Tracing (NAIT) Bill is a significant step in protecting farmers in the international marketplace and strengthening New Zealand’s biosecurity system.

The NAIT bill 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.

“NAIT needs to be mandatory to be effective,” the Minister says. It will begin with cattle on 1 July this year and deer by 1 March 2013.

“With most other agricultural producing nations already having computerised tracing of individual animals, New Zealand simply cannot afford to lag behind,” he said, adding that NAIT is essentially an insurance policy to support New Zealand’s high livestock health status and biosecurity infrastructure, but can also be used to further improve productivity and on-farm management.

The meat industry supports the introduction of NAIT as it will give greater assurance to customers of the wholesomeness of New Zealand meat products.