Tag Archives: Mike Petersen

PGP programme being welcomed by industry

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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.

TPP negotiations need to deliver for agriculture

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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.

Global meat prices to surge

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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.”

Sheep scanning recognised as revolutionary tool

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A revolutionary tool for reproductive management of sheep in New Zealand, which has contributed to the country’s improved meat production over the past two decades, has been recognised in the inaugural Sheep Industry Awards, alongside the top flocks and sires for genetic merit.

About 200 people attended an event in Invercargill earlier this month to celebrate sheep farming excellence and to witness the presentation of nine awards covering genetics, production and business innovation. Results of the genetics-related awards were calculated based on breeders’ performance in SIL-ACE (Advanced Central Evaluation) – the large-scale, across flock and breed genetic evaluation of more than 280 ram breeding flocks.

The Silver Fern Farms award for sheep industry innovation went to Rowan Farmer, who was responsible for introducing and promoting sheep pregnancy and eye-muscle scanning technology to New Zealand.

Farmer set up Stockscan in 1991. The primary aim was to scan sheep for eye muscle area, but Farmer’s experience with quarantined sheep at Invermay gave him an insight into the management benefits of pregnancy scanning. Since then, the practice has expanded to include the identification of twins and triplets. Scanning has revolutionised the reproductive management of sheep throughout New Zealand.

In addition, the country’s top performing breeders of meat yielding sheep were honoured. Joseph and Judy Barker’s terminal sire flock ‘The Burn’ Texel stud in Mid-Canterbury rated highest for genetic merit across the SIL-ACE evaluation, The dual purpose (ewe breed) flock rated highest for genetic merit was ‘MNCC’, Edward Dinger’s Coopworth stud in the Waikato. The same flock also won the Alliance High Performance Flock award.

B+LNZ geneticist Mark Young says the process of identifying the top-performing flocks involved analysing the top 25-50 percent of rams for each specified set of traits, before then adjusting the results to account for variatons in flock size.

“This exercise also identified highly-rated sires that were making a big impact in industry. The B+LNZ Super Sires are rated in the top 10 percent for genetic merit in indexes of merit across key traits. They are also rams which have been used a lot, so have the most progeny,” says Young.

The B+LNZ Ltd Award for an individual or business making a significant contribution to the New Zealand sheep industry went to Dr Jock Allison ONZM. Two of the highlights of his career, from the sheep industry viewpoint, have been his work with the Booroola Merino which led to the discovery of a major gene fecundity gene and for importing the East Friesian sheep to this country.

The idea to hold an awards ceremony was initiated by B+LNZ Farmer Council Member and ram breeder Russell Welsh. Welsh says the dairy industry’s track record of celebrating success promoted him to suggest the awards ceremony. “It highlights best practice and,by default, that lifts all farmers.

B+LNZ Ltd chairman Mike Petersen says it is great to see farmers driving an initiative which celebrates the sheep industry, while also highlight the immense value of SIL’s database to the sector.

Other award winners on the night were:

  • AgITO Business Farm Trainer of the Year –Smedley Station and Cadet Training Farm.
  • Dual Purpose plus Worm FEC Flock (Index: Reproduction + lamb Growth + Adult Size + Wool + Parasite Resistance) – Nithdale Romney flock, owned by A Tripp of Gore.
  • Dual Purpose plus Facial Eczema Flock (Index: Reproduction + lamb Growth + Adult Size + Wool + FE Tolerance) – ARDG Romney Flock, R & G Alexander of Tirau.
  • Beef + Lamb New Zealand Super Sires – in addition, top sires were also picked out in six categories: terminal; dual purpose*; dual purpose high performance*; dual purpose plus meat yield*; dual purpose plus worm FED; and dual purpose plus facial ezcema tolerance. A Coopworth Ram owned by Steve Wyn-Harris of Waipukerau won three of those spots (marked *), really making it the Super Sire.

For more information see www.beeflambnz.com.