PGP programme being welcomed by industry

Grant Cuff, Alliance Group.The new PGP programme, Collaboration for Sustainable Growth, announced yesterday is being welcomed by the industry.

Leading meat processor and exporter Alliance Group has welcomed the initiative designed to improve farmer profitability.

Grant Cuff, chief executive of Alliance Group Limited, one of the founding organisations taking part in the initiative says the new co-ordinated collaborative initiative will enhance the knowledge and capability in the sheep and beef sector and help improve farm performance, productivity and profitability.

“New Zealand can make significant gains in its export earning by ensuring all parts of the value chain collaborate so suppliers are using the best available farm and business practice and tools,” he says, adding that the initiative is an important step in the implementation of the Red Meat Sector Strategy (RMSS). “We’re supportive of any steps to lift the industry’s game and improve on-farm profitability.”

Alliance Group is already implementing many of the RMSS recommendations “as we strive to improve sustainable profitability for the sector,” Cuff says.

Alliance Group has invested significantly in technologies such as Hoofprint, VIAscan and Central Progeny Test trials and research into sheepmeat eating quality, which all aim to assist suppliers to produce high quality livestock and improve farm productivity, he says.

Mike Petersen, B+LNZ Ltd chairman.Another programme partner Beef + Lamb NZ Ltd (B+LNZ)’s chairman Mike Petersen has also welcomed the initiative which he says “will be a huge boost for the sector and will accelerate progress in an increasingly collaborative approach across a range of issues that are important for sheep and beef farmers.”

B+LNZ has been working increasingly closely with meat processors in recent years through its joint venture market development programmes and collectively with processors and exporters via the Meat Industry Association (MIA). The Collaboration programme goes behind the farm gate to help improve productivity and profitability and addresses a number of the issues highlighted in the RMSS, developed by B+LNZ Ltd, the Meat Industry Association and the government in 2011.

Meat industry leaders support TPP negotiations

Heads of various meat industry organisations  have shown their public support for the Trans Pacific Partnership (TPP) trade agreement negotiations underway in Auckland this week between eleven APEC economies.

They are amongst more than 50 business leaders from some of New Zealand’s largest and most successful companies and business organisations to have signed an open letter to Prime Minister John Key, underlining the importance of international trade and investment for New Zealand.

Among the signatories are Alliance chief executive Grant Cuff, ANZCO Foods’ managing director Mark Clarkson, Silver Fern Farms’ Keith Cooper, Greenlea Premier Meats’ Tony Egan and Sir James Wallace chairman of Wallace Corporation alongside Meat Industry Association chairman Bill Falconer and Beef + Lamb NZ Ltd’s chairman Mike Pedersen and chief executive Scott Champion.

“The signatories to the open letter represent a cross section across all major export sectors in New Zealand, including agriculture, forestry, fishing, horticulture, wine, manufacturing, technology and Maori business. Together they either directly employ, or their members employ, an enormous number of Kiwis,” says the chairman of the New Zealand International Business Forum (NZIBF), Sir Graeme Harrison.

“These business leaders welcome the TPP round taking place in Auckland this week and commend negotiators from the TPP economies for their efforts to conclude a future agreement which should bring benefits for all member economies”.

“The group is aware the negotiation poses challenges for New Zealand policy settings in a number of areas and that the negotiation is complex. We have confidence that Trade Minister Tim Groser and his officials will seek solutions that meet New Zealand’s national interests.”

“We see great advantages for New Zealand arising from a future agreement that is high quality, comprehensive and ambitious, one that eliminates trade barriers, lowers the cost of doing business and makes improvements to the way regional supply chains can link producers and consumers in the region.”

The open letter coincides with the launch of a new business-led initiative, Trade Works, a website (www.tradeworks.org.nz) to help Kiwis better understand the benefits of trade and investment for New Zealand, and understand the potential benefits of TPP.  Funding for the website has been provided by the NZ US Council and the website has been built with the support of thirteen business organisations representing the main export sectors.

“The Council and its partners see value from an effort to create a TPP which meets business and wider needs and reflects the way business is being done today and will be done in the future.  This will assist economic growth and job creation in New Zealand.  Our new website signals that we are also ready to participate with other members of civil society in a dialogue about how TPP can contribute to what it is best for New Zealand,” says the chairman of the NZ US Council, Rt Hon James Bolger.

 

Alliance to transfer Mataura sheepmeat processing to Lorneville

Alliance Group announced this afternoon its intention to close its sheep and lamb processing operations at its Mataura plant and transfer them to its main Southland lamb plant at Lorneville, reports Allan Barber.

Mataura’s beef facility which has recently had a $15 million upgrade will continue to process beef with its remaining staff count of more than 400.

This decision is still up for final consultation with the workforce and union but, as always, this is a formality in as much as the decision has already been made. However, the media release indicates that other options could emerge during the consultation process. If the proposal remains unchanged, approximately 260 workers will be offered the chance to transfer to Lorneville with a further 65 engineering, administration and management staff also affected.

In a media release, Alliance’s chief executive Grant Cuff refers to the company’s status as one of Southland’s largest employers, emphasising its duty as a cooperative to its shareholders to operate the plant configuration most appropriate to the available stock numbers. Significant efforts had been made to retain complementary sheep, lamb and beef processing at Mataura, but declining stock numbers have made this unsustainable.

Cuff refers to the strength of Alliance’s balance sheet, which will enable it to withstand the challenge of a difficult period for the industry as a whole. He also says: “We are confident in the long-term outlook and these changes are essential to allow the company and its 5,000 farmer shareholders to benefit from the demand for New Zealand meat products in the global market.”

Today’s announcement confirms the rumours of industry rationalisation that have been circulating in recent days. The fact that Alliance has made the first move does not mean there won’t be further changes in due course affecting either the South Island’s other large cooperative Silver Fern Farms or ANZCO’s Canterbury Meat Packers operation near Ashburton.

However Alliance’s move will provide a small breathing space before further capacity or structural changes are necessary.