Deer industry about to do “hard yards’

The time for talking is over and the deer industry is about “to do the hard yards”, says Deer Industry New Zealand (DINZ) chairman, Andy Macfarlane.

Writing in the latest Deer Industry News, Macfarlane says the “industry prize of profitability should be enough to keep us focused on the job.”

The goalpost presented at the 2012 conference has been “determined, reviewed and confirmed as $1.27 per kg venison increase in EBIT by 2022″, achieved from productivity gains alone, Macfarlane explains.

“We also believe we can increase venison tonnage by 50 percent in that time, while simultaneously improving the market return from venison, hence adding to that $1.27 per kg.”

The 50 percent increase in tonnage takes venison output back to a little less than 2007 and 2008 levels, he says, but from an organised stable herd rather than from a reduction of capital stock. The Europe venison marketing strategy and formal access into China and Korea for venison co-products and velvet underpin the on-farm market return. Member processors are now putting together their three-year marketing plans for submission to access increased DINZ funds.

In addition, after consultation with farmers, AgResearch scientists, vets, farm management consultants, processors and educationalists, Primary Growth Partnership funding is being sought from government for on-farm productivity initiatives to deliver an integrated initiative “that we are confident will deliver the additional $1.27 per kg of venison sold,” says Macfarlane, adding that by his calculations it should generate additional industry EBIT of $42 million a year.

To show commitment “by purchasing some of our own ‘training gear’”, industry is being asked to contribute 4 cents per kg of venison fro seven years (initially $900,000 a year).

“The cost is temporary but the return – over $30 per $1 of levy money initially invested – is permanent.”

The title of the PGP bid is ‘The next generation – premium by nature and design’, which he says is significant.

“We have a premium product sold in premium markets. Our animals are pasture-fed and raised in a natural environment. We are poised for our third generation of deer products, produced by our third generation of deer farmers.”

The latest Deer Industry News magazine (Issue 56, October/November 2012),  is out now. 

 

 

First meat plant introduces new carcase inspections

In early September, Affco’s Imlay meat processing plant in Whanganui became the first plant to introduce the new ‘Ovine Post-Mortem Inspection’ regime.

The new  inspection regime involves company staff, rather than AsureQuality personnel, checking carcases for non-food safety or quality aspects (see Food NZ, December/January 2011). The move came after trials of the new system at the Affco plant proved successful and overseas authorities approved the equivalence of the new inspection regime.. Four other plants  – Alliance Smithfield, Silver Fern Farms Pareora, Riverlands Blenheim and Affco Manawatu – are expected to introduce the new system later this year.

AsureQuality meat inspectors will still be onsite to undertake food safety post-mortem inspections on all meat products. Final oversight of the products remains the responsibility of the Ministry of Primary Industries Verification vets on the plant.

This article appeared in Food New Zealand magazine (October/November 2012).

Meat inspection no longer exclusively provided by AsureQuality

Last Tuesday, AFFCO’s Imlay plant in Whanganui was the first to be allowed to introduce meat inspection by its own employees. Till then this function has been performed exclusively by government employed meat inspectors, originally employed by MAF, subsequently by the state-owned-enterprise AsureQuality, writes Allan Barber.

The proposal to allow meat companies to have a hand in meat inspection finally saw light of day about two years ago, although the companies have been dissatisfied with the government monopoly for many years. I can remember the issue raising its head in the early 1990s when the meat inspectors went on strike because of pay and conditions.

AFFCO, for whom I worked at the time, had its production disrupted by a group of employees on its plants, employed by a different employer on different terms from its own workforce and belonging to a different union, the Public Service Association (PSA). Not surprisingly, AFFCO was unhappy at this state of affairs.

But 20 years later, after negotiations and discussions with MAF, then the Ministry for Primary Industries (MPI) and a trial at Imlay, overseas regulatory authorities (notably USDA and EU) have approved the equivalence of the proposed inspection procedure.

There will still be at least two AsureQuality food safety assessors monitoring each shift and final oversight of the product remains the responsibility of the MPI Verification vets on the plant. The most significant difference will be in the total number of employees, because on all plants there have been up to 12 meat inspectors and supervisors across a two shift operation.

In future, meat workers on the chain will be responsible for their own inspection, supervised by official inspectors who must be trained to the same level and subject to the same performance checks as AsureQuality’s inspectors. There will be considerable savings from the new system which the PSA argues will place an undue emphasis on production at the expense of food safety.

MPI released the proposed Post Mortem Inspection regulations for cattle, sheep and goats and asked for submissions by 13 July this year. The response, from what I assume was the PSA, raised several concerns about the risks to New Zealand’s reputation for safe food which the current inspection model had guaranteed for more than three decades. MPI’s replies to the objections indicated its satisfaction with the proposed process which overseas authorities had already approved.

In its submission, the PSA also stated its willingness to discuss opportunities for more flexibility and productivity gains. This all sounds constructive, until one realises the meat companies have been trying for at least 20 years to do just that without success.

A further four meat plants – Alliance Smithfield, Silver Fern Farms Pareora, Riverlands Blenheim and AFFCO Manawatu – will adopt the new company meat inspection procedure by the end of January 2013. At this point, a review will be conducted before approval for a rollout across the industry over the next two seasons.

Kelvan Smith, AsureQuality’s group manager operations, says that the SOE accepts what is happening is inevitable, but wants to make sure it has a clear understanding of the industry’s timetable for the change. His main concern is to manage the impact on employees of what is likely to be a 50 percent reduction in staff numbers by the end of the process.

It is possible that not all meat processors will want to change from the present system, especially if they have a good working relationship with the meat inspectors working at their plants. However, cost pressures make this unlikely, if the new arrangements work well. The PSA and its affected members will be keeping their fingers crossed.