The UK meat industry body Eblex is refuting the Daily Mail‘s NZ lamb and emissions claim in an article today in Britain’s meatinfo.co.uk, the online edition of the respected Meat Trades Journal. Read more …
Global meat prices could face a surge next year, bringing mixed blessings for New Zealand’s meat exporters and producers, and potentially bad news for consumers around the world.
The main concern is the severe drought in the US – the worst for half a century – which has caused US wheat, corn and soyabean crops to fail. At the same time, adverse weather conditions are also said to be affecting grain harvests in Russia, Ukraine and Kazakhstan. Responding to the shortages, grain prices have surged.
This is good news for New Zealand’s arable farmers – recent figures released by the Ministry of Primary Industries shows that arable farm profit has risen by 136 percent on the previous poor season and forward contract prices for wheat and barley have been going up in recent months because of the US drought.
However, the higher grain prices are impacting on feed prices and will, ultimately, force up downstream prices of foods dependent on grain, including grain-fed meats, in particular beef, poultry and pork. This is the bad news for consumers around the world, with huge numbers potentially finding some foods out of their reach financially, and causing concern for governments and non-governmental organisations (NGOs).
Speaking at the Red Meat Sector Conference in July, GIRA’s Richard Brown had pointed to the fact that global feed prices were at that point already trending higher “with almost the opposite weather conditions to 2011 in the Northern Hemisphere”. He said that this was leading to producer caution around the world.
Now, as supplies dwindle further, US farmers are killing off stock they cannot feed in drought ravaged areas – according to the United States Department of Agriculture (USDA)’s US Drought Monitor, 63 percent of the nation’s hay acreage and 72 percent of the cattle acreage is in areas experiencing drought.
US beef is being bought, frozen and stored for later use. meatpoultry.com reports that the US Defense Logistics Agency (DLA) is procuring US$100 million worth of supplies of meat poultry and fish, to provide drought relief for the US agriculture industry. These supplies will be stored and distributed to American troops around the world, including Afghanistan.
B+LNZ Ltd chairman Mike Petersen reports that US corn yields are being revised down daily and, while there is good confidence in the future of beef, returns generally are going to be dampened in the short-term.
“Reports are predicting an increased flow of US beef on the markets through November and December as a result, but for prices to increase strongly by January with dwindling supplies and the effects of sharply increased grain prices for feedlots,” he says.
Grass-fed beef will not face higher grain input costs
The good news for New Zealand meat exporters is that, with this country’s grass-fed production system, the sector will not face these higher grain input costs, says Meat Industry Association (MIA) chief executive Tim Ritchie.
“All other things being equal, the predicted – grain induced – rising tide of prices later this year should benefit New Zealand at least in the short-term.”
Of more concern to Ritchie and meat exporters are the structural changes to the global meat system, as in recent years China has turned to become a net importer of grain, as opposed to a net exporter.
Ultimately though, it’s New Zealand meat consumers in markets overseas, such as those facing economic pressure in Europe and where demand is expanding such as in Asia, who will make or break the fortunes of the industry.
“It all comes down to the person on the street being more careful with their discretionary dollar,” he says. That, in turn, reinforces the need for the meat industry to continue to develop market-driven products that fit with the needs of the targeted consumer.
“The ‘new norm’ for meat price prediction is ‘volatility’, which makes short-term predictions of price and demand dangerous,” says Ritchie.
“However, the long-term forecast is for meat demand to grow, particularly in Asia.”
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.”
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.
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.
+++
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!!
New Zealand lamb and venison were in such hot demand at Northern Europe’s biggest summer festival, the organisers had to get in extra chefs to satisfy the hungry queues.
Beef + Lamb New Zealand and Deer Industry New Zealand were invited to take part in this year’s Kieler Woche celebrations – the first time in the festival’s 130-year history New Zealand has been represented at the international market.
Cristian Hossack, seen here plating up for Kiel Woche, is the former head chef at Peter Gordon’s Providores restaurant in London. He is returning to New Zealand.
The market in Kiel’s picturesque main square is at the hub of more than 2,000 sports and cultural events which attract around three million visitors annually to a city with a population not much bigger than Hamilton’s.
Working 16 hours a day for 10 days, the Kiwi culinary team led by Marton-born chef Cristian Hossack (pictured right) served 7,000 lamb burgers, venison wraps and lamb salads, complemented by wines from Hawke’s Bay vineyard Coopers Creek.
Nick Beeby, B+LNZ Ltd manager for emerging markets and strategic projects, says it was great to be working alongside a chef of Cristian’s stature. A food critic who ‘mystery dined’ the festival rated the New Zealand offering top for food, service and value for money, stating “it was like eating at a restaurant.”
“It’s hardly surprising the food was so popular or received the plaudits it did,” Beeby says. “With a top chef and top produce, you can’t go wrong. But it’s even more impressive when you realise the chefs were juggling questions as well as pans.
“There was a constant queue of festival-goers lined up not only to taste our lamb and venison, but to find out more about its production, how to cook it and where to buy it; asking questions about everything from knife sharpening to sustainable farming practices. People loved it and we’ll definitely be going back again.”
The joint venture aimed to raise awareness of New Zealand lamb and venison in Germany, where consumers do not traditionally eat much of either.
Innes Moffat, venison marketing services manager at DINZ says the novelty was a bonus. B+LNZ and DINZ both run comprehensive marketing programmes in Germany. However the Kiwi presence at the festival for the first time generated lots of media interest and free publicity on television and radio, and in the press.
B+LNZ and DINZ attended in conjunction with a major Northern European retailer which sells New Zealand lamb and venison 12 months of the year – so festival-goers knew where to go to get it.
The two organisations will come together again in August for a three-day festival in Frankfurt, where around 40,000 visitors are expected through the New Zealand pavilion.
Photos below are courtesy of B+LNZ Ltd.
We’re keeping an eye on a series of debate-provoking articles appearing in PLoS Medicine, an international open access medical journal on the topic of ‘Big Food’ – essentially the power of big multinational food and beverage companies.
Several articles commissioned by the magazine are scheduled to appear over the next three weeks. The first, entitled Big Food, Food Systems and Global Health and written by series guest editors David Stuckler of Cambridge University and Marion Nestle of New York University, asks ‘Who rules global food systems?’
“By and large it’s Big Food, by which we refer to multinational food and beverage companies with huge and concentrated market power,” they answer, describing the international public health response so far to Big Food as a “failure to act.”
Another article draws parallels between the public relations efforts of some soda drink companies and those used by tobacco product manufacturers, highlighting several ‘Corporate Social Responsibility’ (CSR) campaigns that distract from their products’ health risks.
Stuckler and Nestle’s article focuses on the spread of energy-dense, nutrient poor (EDNP) foods around the globe to which several New Zealand experts have responded.
Get the food industry out of policy making
Dr Gabrielle Jenkin of the Department of Public Health, University of Otago Wellington agrees with the papers and is highlighting key areas where there needs to be urgent action here in New Zealand. This includes the introduction of traffic light labelling on the front of food, getting junk food out of schools, banning junk food marketing to children at least (including sponsorship of sport) and the regulation of food composition (fat, salt and sugar and, where possible, regulate portion sizes).
She also calls to “Get the food industry out of policy making,” adding that health policy is a conflict of interest for much of the food industry.
“We also have the food industry co-opting nutrition experts and commissioning their own research (some of this was presented to the Health Select Committee Inquiry into obesity).”
By framing the issue as ‘unhealthy food’ (EDNP foods), rather than ‘obesity’ you avoid “stigmatising the impact of the obesity frame and its individualising implications. This turns the focus to the real problem … the food industry,” she says.
Develop supportive policy environments
The opposition shown by some food manufacturers to the traffic light-labelling scheme is reminiscent of tobacco manufacturers’ opposition to health warnings and plain packaging, says Professor Janet Hoek of the University of Otago’s Department of Marketing.
“We should develop supportive policy environments that restrain the more rampant marketing activities known to influence people’s choices and, at the same time, introduce measures that help consumers make better food choices. We need first to change the food marketing environment so healthy eating (or unhealthy food avoidance) campaigns can have more effect.
“As Stuckler and Nestle point out in their essay, food manufacturers have a goal of maximising the profit they deliver to their shareholders, so it is unrealistic to expect them to be accountable for public health goals as well as profit goals. The best option is for governments to show leadership, drawn on the available research evidence, restrain the marketing that can be undertaken and provide consumers with information they can actually see and use.”
Consumers, rather than politicians or regulation will determine the future of New Zealand farming, according to ANZ New Zealand.
“Demand for safe, high quality agricultural products from the growing economies of China, India and Asia will increasingly determine what agricultural products are produced by New Zealand and how we produce them, says ANZ’s managing director commercial and agri, Graham Turley.
“Supplying these markets will be the lifeblood of the New Zealand economy for the foreseeable future. It is crucial that the focus of the farming sector now is producing the right products at the right price and getting them to those markets.”
Turley’s comments were made to coincide with National Fieldays 2012, for which ANZ New Zealand was a strategic partner. The event was held at Mystery Creek, near Hamilton (12-15 June 2012). Over half of New Zealand’s farmers bank with either ANZ or the National Bank, the bank says.
Nearly 128,300 visitors attended the 44th New Zealand National Agricultural Fieldays this year. Organisers say 40 percent more people went through the gate on the final Saturday, compared to the previous year. “Overall attendance was a nine percent improvement on the 2011 event, leaving exhibitors and organisers exultant with the four days effort.”
&media=http://meatexportnz.co.nz/wp-content/uploads/2012/08/Agri-food-chief-executives-are-getting-their-boots-on.-300x199.jpg){kind=link}
