Category Archives: New Zealand At Home

Meat activity in New Zealand, of interest to exporters and importers.

Investment and innovation needed for food export growth

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Steven JoyceMore investment and more innovative processed foods are going to be needed to double New Zealand food exports by 2025 according to a new report released earlier this week by Economic Development Minister Steven Joyce.

The report, Driving Growth in the Processed Foods Sector says that doubling export sales in the food sector by 2025 will require an export growth of 7.7 per cent to 9.3 per cent per annum for 15 years, leading to approximately $30 billion in new exports.

“The report says that doubling our foods exports by 2025 is achievable. New Zealand’s food industry has seen significant growth over the last 16 years – outperforming a wide range of our competitors – but there are still challenges to overcome if we are to reach our goal,” says Joyce.

The report suggests that with investment, the processed foods industry can build on New Zealand’s existing competitive advantage in food and agriculture, and growth can continue to be driven through developing premium, innovative and niche products that are well-branded.

“New Zealand has good food and beverage exports per capita but we need to move beyond our traditional mix of meat and dairy. Processed value-added foods, like infant formula, nutraceuticals and baked goods, have the best potential for achieving the growth we need.”

Petfoods’ potential is also pointed to in the report.

The project is part of the Government’s Business Growth Agenda, to build a more productive and competitive economy. The Agenda sets an ambitious goal to increase the ratio of exports to GDP from the current 30 per cent to 40 per cent of GDP by 2025.

Designed to prompt discussion, the Driving Growth in the Processed Foods Sector report, by Coriolis Research, is part of a suite of reports released under the Food & Beverage Information Project – the most comprehensive analysis of New Zealand’s food industry ever undertaken.

A new Te Aroha emerges from the ashes

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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.

$38 million funding for greenhouse gas research

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Allan BarberThe Pastoral Greenhouse Gas Research Consortium (PGgRc) has just announced that it has secured funding for a further seven years’ research into greenhouse gas (GHG) mitigation. $2.3 million per annum will be contributed by industry partners to be matched by the Ministry of Business, Innovation and Employment with the balance to come from AgResearch in its capacity as leader of the research project. Meat industry commentator Allan Barber has taken a look in his latest blog post.

The consortium has been in existence since 2002 and to date has spent about $45 million of 50/50 joint venture funding from industry and government. Its members are Fonterra, Beef & Lamb New Zealand, DairyNZ, AgResearch, Landcorp Farming, DEEResearch, PGG Wrightson Ltd and Fertiliser Association Joint Venture.

As its name indicates, the consortium’s sole focus since it started 11 years ago has been on finding ways to mitigate greenhouse gas emissions and during that period it has made some significant advances. It has developed knowledge specifically in sequencing the first rumen methanogen genome, developing a low emission sheep flock and finding feeds that can reduce methane emissions.

Mark Aspin, consortium manager, told me that a continuation of the funding will enable the programme to focus on five key areas of research:

  •  Refining  animal breeding tools for low emission livestock
  • Identifying more low greenhouse gas feeds
  • Identifying inhibitors that reduce ruminant emissions
  • Developing a vaccine to reduce ruminant emissions
  • Understanding the productivity effects and enhancing the adoption of mitigations.

The refreshed research programme, while recognising the long term commitment required, will be strongly focused on delivery of mitigation solutions, developed through an increased partnership between the consortium and the New Zealand Agricultural Research Centre (NZAGRC). Both of these organisations will coordinate their operations to ensure rapid delivery of effective options for farmers.

While New Zealand’s greenhouse gas emissions would constitute a significant proportion of our obligations under any future commitment to reduce emissions, political points scoring tends to obscure why it is so critical to get it right. Our economy and our agricultural sector in particular both depend on deciding on the correct entry point which is, I suspect, why the present Government has been so reluctant to commit itself.

Agriculture contributes 46 percent of New Zealand’s greenhouse gas emissions, a proportion no other country comes even remotely close to producing. Ireland with 27 percent is the closest and all other first world economies are in single figures.

The PGgRc has set itself an ambitious goal, stating in its press release “The new work aims to develop a suite of ready-made tools that will reduce greenhouse gases by 30 per cent by 2030 while supporting the agricultural industry’s growth targets of two per cent each year.” The benchmark year is 2008 when I understand emissions were at 1990 levels. As Aspin said “it’s a big challenge, but we think we can get there.”

I suspect the Green party won’t be satisfied with this progress, because anything short of total commitment to eliminating greenhouse gases is unacceptable, whatever it costs the country. But it is a very solid programme of work backed by science and industry and public money which has some challenging, but achievable goals.

The best thing about it is that it won’t send agriculture and the country into a state of bankruptcy, but it should produce some real improvements in our GHG emissions.

Allan Barber is a meat industry commentator and has his own blog Barber’s Meaty Issues. This item has also appeared at www.interest.co.nz.

 

Callaghan Innovation opens

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callaghan-logoExciting times for future innovations in the New Zealand meat industry. Callaghan Innovation, New Zealand’s new innovation organisation – named after the late Sir Paul Callaghan – opened and was officially launched last Friday in Auckland and Wellington.

The new organisation will accelerate the commercialisation of New Zealand innovation, according to Science and Innovation Minister Steven Joyce.

“Callaghan Innovation will be a one-stop shop for business innovation support, whether it be in science, engineering, design or technology. It will be a high-tech HQ for New Zealand businesses,” he says.

Callaghan Innovation brings together the former crown research institute IRL, the Ministry of Business, Innovation and Employment (MBIE)’s business investments team, the Auckland Foodbowl and NZ Trade & Enterprise’s Lean Manufacturing programme. It will commence operations with 400 staff and offices in Auckland, Wellington and Christchurch.

The organisation will work across industries as diverse as food and beverage manufacturing, agri-tech, digital technologies, health technologies, therapeutics and high value wood products.

“The common theme is encouraging innovation and higher value products and services,” says Joyce.

The organisation is being led initially by acting chief executive Murray Nash. Over the coming months, the new Board of directors, chaired by Sue Suckling, will complete the appointment of a permanent chief executive and oversee the bedding in of the organisation’s operations in Auckland, Wellington and Canterbury. Other board members includer former Game Industry Board chief executive Richard Janes, currently an IRL board member, Auckland Transport director Paul Lockey and Dr Michele Alan. They are joined by new board members Robin Hapi, Professor Peter Hunter from Auckland University,Sir Peter Maire and Craig Richardson.

The news has been welcomed by an array of science leaders for its expected ability to boost private sector innovation.

Professor Shaun Hendy, President of the New Zealand Association of Scientists, commented that he thinks Callaghan Innovation will have to do two things to succeed.

“Firstly it must develop the science and technology that New Zealand’s manufacturing sector will need in the decades to come. As Sir Paul Callaghan pointed out in his book, Wool to Weta, New Zealand has not put enough effort into the science that underpins high-value manufacturing.Callaghan Innovation represents a great opportunity to close the knowledge gap between New Zealand and the other advanced economies.

“Secondly, the organisation needs to develop effective new ways of bringing together researchers, entrepreneurs and businesses. New Zealand doesn’t enjoy the benefits of agglomeration that Sydney or Tokyo do, so Callaghan Innovation will need to find scalable, smarter ways to make these connections. This will largely involve making better use of the information we already have about the innovation sector in New Zealand.

“We will be able to tell if Callaghan Innovation is on track in a year or two by whether it has been able to significantly grow the numbers of scientists and decrease the number of bureaucrats that work there,” says Hendy.

Callaghan Innovation is a key part of the Government;’s Business Growth Agenda and received funding in Budget 2012 of $166 million over four years.

 

 

 

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.

Red meat industry to work together

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Wayne McNee, MPI.The red meat industry has agreed to work together to promote and assist in the adoption of best practice by sheep and beef farmers, as part of a new $65 million dollar sector development project with Government co-funding.

Wayne McNee, director-general of the Ministry for Primary Industries (MPI), has just approved a commitment of up to $32.4 million from MPI’s Primary Growth Partnership Fund (PGP) for the red meat sector’s new Collaboration for Sustainable Growth programme.

This seven-year programme will bring together a number of participants in New Zealand’s red meat sector including co-operatively owned and privately owned processing companies that together account for a substantial majority of New Zealand’s sheep and beef exports, two banks and Beef + Lamb New Zealand Ltd.

It aims to ensure that red meat producers consistently have access to and are able to effectively use the best-available farm and business management practices, by addressing gaps in technology transfer and ensuring stronger co-ordination between organisations and individuals working with farmers.

MPI Director General, Wayne McNee says the new PGP programme will transform the delivery of knowledge and capability within the sheep and beef sector.

“Importantly this is the most comprehensive collaboration of its type ever seen in the red meat sector, and the opportunities are very exciting. The Collaboration programme will build base capability, delivering benefits across the sector and aligned with other PGP programmes.”

The next step to establish this PGP programme is to develop the contract with the Crown and to seek farmer support for their portion of the investment. It is anticipated that once the required farmer and company approvals and contracts are in place programme delivery can begin, expected to be in the third quarter of this year.

Organisations presently in this initiative are: AFFCO, Alliance Group, ANZCO Foods, ANZ Bank, Beef + Lamb New Zealand, Blue Sky Meats, Deloitte, Progressive Meats, Rabobank and Silver Fern Farms. The programme is designed to be open, enabling others to invest. Participants will establish a formal partnership to run the Collaboration programme.

Chairman of the programme’s Steering Group, Dr Scott Champion says the Collaboration programme is built on the findings of the Red Meat Sector Strategy and will deliver significantly on the Strategy’s sector best-practice theme.

“This initiative is evidence that the industry is committed to delivering on the recommendations of the sector strategy. More industry collaboration is high on the list of Strategy actions, and so to have the red meat industry focused on supporting farmers and united in this programme is of major significance. Importantly, the Strategy also underlined the returns available to all farmers by lifting productivity and management towards that of the country’s highest performing farms.”

The PGP programme comprises several elements, including investigating how farmers prefer to receive and use new information and what drives their profitability, as well as benchmarking and integrating relevant databases. New tools, services and knowledge will be packaged and delivered in a range of ways by programme partners.

“With a new awareness of what drives farm profitability, the Collaboration programme will change the sector’s focus from one that is dominated by price to one focused on performance, productivity, profitability and the factors we can control,” Champion said.

“This investment will support the sector to better control its future and ensure confidence for continued investment.”

The Red Meat Sector Strategy was jointly developed by Beef + Lamb New Zealand and the Meat Industry Association, with funding support from the Government. It was released in May 2011.The Strategy identified a range of activities that, when implemented, will improve sector productivity and profitability, and provide greater certainty for participants.

 

Nathan Guy new Primary Industries Minister

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Nathan GuyNathan Guy has been appointed as the new Primary Industries Minister as a result of the Prime Minister’s re-shuffle of Cabinet today.

David Carter, the current Minister for Primary Industries, will be the Government’s nominee for Speaker of the House following the departure of Dr Lockwood Smith.

The Prime Minister, John Key, took the opportunity presented by the change of speaker to look at the Cabinet line-up as a whole, “in the context of the Government’s priorities,” he said.

Primary Industries changes

Former farm manager, Nathan Guy, MP for Otaki, is the current Associate MiJo Goodhewnister for Primary Industries and was widely tipped as a favourite for the position. The 43 year old is a Massey University agriculture graduate who has also undertaken a number of study scholarships including a Kelloggs Rural Leadership course, a Winston Churchill Fellowship to the US and has also won a number of farming awards. From the meat industry perspective he is a former member of the Meat Research Advisory Committee and a former chairperson of Central Districts and Wairarapa’s New Zealand Beef Council, for which he was also deputy chairperson.  Jo Goodhew, member for Rangitata and a former nurse, will assist Guy in the Associate Minister position.

Food Safety

Nikki KayeFormer Food Safety Minister Kate Wilkinson will leave cabinet and will be replaced by 33 year old Auckland Central MP Nikki Kaye. Kaye will take up the portfolios for Food Safety, Youth Affairs and Civil Defence. She will also be Associate Education Minister, reflecting her work as chair of the education select committee.

Other

Dr Nick Smith will return to Cabinet in the Housing and Conservation portfolios and Chris Tremain is to be appointed to Local Government.

The changes will take effect on 31 January, when the Governor-General appoints the new Ministers and all the necessary paperwork will have been completed.

“The refreshed Ministerial team is ready to continue the Government’s focus on is four key priorities for this term  – responsibly managing the Government’s finances, building a more competitive and productive economy, delivering better public services within fiscal restraints and supporting the rebuilding of Christchurch,” says Key.

Record year for Beef and Lamb awards

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Beef and Lamb Excellence Awards 2013A record number of New Zealand restaurants have been recognised for their top quality beef and lamb cuisine.

The 2013 Beef and Lamb Excellence Awards, presented by Beef + Lamb NZ Inc (B+LNZ), acknowledge consistency and quality in the preparation and presentation of beef and lamb cuisine.

Following anonymous assessments by culinary experts late last year, an impressive total of 194 restaurants nationwide received the Beef and Lamb Excellence Award, which offer an indication of supreme quality says B+LNZ Inc chief executive Rod Slater.

“If an establishment carries an Excellence Award, consumers are assured they can expect a delicious beef or lamb experience.”

Diners in New Zealand can locate Beef and Lamb Excellence Award restaurants easily, by looking for the gold-rimmed plate and window stickers. You can also find all the award-winning restaurants here.

Macauley to head NZIPIM

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Stephen Macauley, Chief executive, NZ Institute of Primary Industry Management (NZIPIM)The former head of AGMARDT, Stephen Macauley, has been appointed by the New Zealand Institute of Primary Industry Management (NZIPIM)  to the newly created role of chief executive.

NZIPIM is a membership based association for rural professionals who provide professional services for the primary sector.

In announcing the appointment, NZIPIM president, Wayne Allan, said: “We are delighted that Stephen will be leading the organisation at a time when industry sectors and government agencies are looking to NZIPIM to help the farming community work through a number of important issues. These include increased regulation of land use with respect to water quality and environmental performance, as well as the continued development and profitability of farming systems.

“Stephen’s past experience as general manager of the Agricultural and Marketing Research and Development Trust (AGMARDT), and his previous role as General Manager of the Retail Meat Industry Training Organisation and Retail Meat New Zealand, has him well placed to meet these challenges.

“There will be an increased demand for more qualified rural professionals and better assurance to farming communities of high standards for advice and related services.”

Macaulay says he is excited about joining NZIPIM and is looking forward to “the opportunities to develop and build the capability of the organisation, and working with NZIPIM members and the wider rural sector.”