Category Archives: Global Trade

International trade decisions or issues affecting, or with the potential to affect, New Zealand meat.

Polish meat filler at centre of burger scandal

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Burgers feeling the heat. Photo iStockResults back from the meat at the centre of the European horsemeat scandal revealed earlier this week that a Polish supplier of filler product for the burgers is the source of the equine DNA.

Tests by the Irish Food Safety Authority (FSAI) showed positive for equine DNA against meat filler – supposedly beef – imported from Poland for use in the production of burgers at the ABP-owned Silvercrest food processing plant in Ireland.

The Irish minister for agriculture, food and the marine Simon Coveney TD said the investigation had established a direct correlation between burgers in which a high level of equine DNA was detected and this raw material product. He was confident that the raw material in question was the source of equine DNA introduced into burgers manufactured at Silvercrest.

Ireland and the UK have conducted an exhaustive investigation into the source of the DNA – vital to reassure consumers and trade about the safety of the food chain.

In Ireland, over 140 samples of primary products and ingredients were tested for equine DNA at the Silvercrest plant, with three burgers and one imported ingredient testing positive for significant levels of equine DNA. The current findings of the official investigation do not show any evidence that Silvercrest deliberately used horsemeat in their production process, said the Minister.

ABP’s Yorkshire-based plant Dalepak was cleared by the British Food Standards Agency (the FSA), after samples comprising all the meat being used in the production of the suspect lines showed there was no horse or pork DNA present in any of them.  Investigation continues, however, into the origin of the DNA in some Dalepak products manufactured in 2012. The FSA has been answering questions at the British Parliament’s environment select committee this week.

ABP Group management has assured the Irish Minister that it will fully comply with conditions the Minister will apply to continued production standards at Silvercrest.

Silvercrest has commenced a deep cleansing of the plant, under new management, and will be submitted to a six-moth period of scrutiny by FSAI inspectors, after which it will be reviewed, advised Coveney.

“As part of this supervision, the Department will carry out weekly sampling of production in order to provide the necessary reassurance to its customers on the integrity of the production chain. A key component of this is the company’s commitment to source all its raw material from Ireland and the UK.”

The Polish authorities have been advised and the matter is now with them, said Coveney.

It is thought  that the situation has been in place for a year, as that’s the length of time the Polish supplier has been providing the filler products.

Changes at ABP

Apologising for the impact the issue had caused, Paul Finnerty, group chief executive for Silvercrest’s owner ABP Food Group said he was relieved the that the source of the problem had been identified.

“As previously stated, the company has never knowingly bought or processed horse meat and all of our purchases are from approved and licensed EU plants.”

In addition to the deep cleansing and new Silvercrest management team, ABP had undergone a Group reorganisation with responsibility for Silvercrest transferring to ABP Ireland. Its sister business in the UK, Dalepak Foods, will come under the immediate control of ABP UK. The Group is independently audting all its third party suppliers.

He noted that the source of the contaminated meat from Poland is not related to ABP’s plant in Poznan. As with all other parts of the Group, this plant does not process any horsemeat, said Finnerty.

Rippes spreading wider

Meanwhile, the ripples are spreading wider. News reports this week showed that ASDA and the 2,800 store Co-op had joined Tesco, Lidl, Aldi, Iceland and BurgerKing in ditching Silvercrest as a supplier. In addition, Spanish burgers have been said to also contain horse DNA after testing by a consumer group there. The group, Organizazión de Consumidores y Usuarios (OCU), has approached the Spanish food safety body to ask it to investigate.

Breach of trust too great

As promised, Tesco Group technical director Tim Smith has been telling his customers what had happened. He said the evidence tells him that Silvercrest, its frozen burger supplier, used meat in their products that did not come from the list of Tesco approved suppliers they were given. “Nor was the meat from the UK or Ireland, despite our instruction that only beef from the UK and Ireland should be used in our frozen beef burgers. Consequently, we have decided not to take products from that supplier in future. We took that decision with regret but the breach of trust is simply too great.”

Adding that Tesco will not take anything for granted in future after the incident, he said: “It has shown that in spite of our stringent tests, checks and controls there remained a small possibility that something could go wrong and it did. We want to stop it ever happening again, so we are taking action to reduce that possibility still further.”

The retailer is introducing a comprehensive system of DNA testing across its meat products, which will set a new standard according to Smith. “It will be a significant investment for Tesco, borne by Tesco,” he said.

“We want to leave customers in no doubt that we will do whatever it takes to ensure the quality of their food and that the food they buy is exactly what the label says it is.”

 

Vaccination theme for World Veterinary Day 2013.

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Vaccination, one of the greatest scientific achievements according to veterinary leaders, is the selected theme for this year’s World Veterinary Day, to be celebrated on Saturday 27 April.

Vaccination of animals helps people to protect their livestock and their companion animals, as well as themselves in case of zoonotic diseases, says the World Organisation for Animal Health (OIE). A successful vaccination programme depends mainly on the use of high quality vaccines, appropriate infrastructure to ensure the rapid and safe delivery of vaccines, monitoring of vaccinated flocks, movement control of animals, and adequate financial resources. The veterinary profession, through effective and efficient veterinary services is crucial for the success of vaccination in animal health.

The Day was instigated by the World Veterinary Association and OIE to reward the most successful celebration of the veterinary profession by national veterinary associations, alone, or in cooperation with any other selected body.

The winner of the 2013 Award will be announced at the opening ceremony of the OIE’s 81st General Session to be held in Paris, France on 26 May 2013. The winner will be invited to the World Veterinary Congress 17-20 September in Prague in the Czech Republic to receive the US$1,000 prize.

For more information visit www.oie.int

Burger hell

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Burgers feeling the heat. Photo iStockThe discovery of horse and pig DNA in frozen beefburgers manufactured primarily in Ireland this week has sent the UK and Ireland into a spin as experts try to track its source. While checks are in place here in New Zealand that should prevent a similar thing happening, it is a salutary lesson for the meat industry about what could happen if consumer trust is broken.

What happened in Europe, is that frozen burgers, supposedly made from beef by major EU meat processor ABP Food Group, were routinely DNA-tested by Food Safety Authority Ireland (FSAI) and found to contain meat/protein from other sources including horse and traces from pigs too. The affected burgers, produced in the company’s subsidiaries Liffey Meats and Silvercrest Foods in Ireland and Dalepak Hambleton in the UK are sold in Tesco, Aldi, Lidl and Iceland stores in the UK and in Dunnes stores in Ireland.

Though the FSAI stated in its announcement on Tuesday (15 January) that there was no food safety risk from the products, all retailers have all reacted quickly to remove the items from sale. Tesco, which has also removed all other products from the suppliers from its stores and online, has apologised to its consumers and is promising them that it will find out what has happened and when it does so, it will tell them.

Other supermarkets have also withdrawn similar meat products while answering the British Food Standards Agency’s urgent questions to all British retailers about the exact contents of those items. To date, a total of over 10 million burgers are estimated to have been withdrawn from sale.

The issue is accumulating column inches in the UK and comment from Jewish and Muslim religious groups, animal welfare groups and unions demanding more transparency and more regulation for the meat industry.

ABP is taking the matter “extremely seriously” and says it has “never knowingly bought, handled or supplied equine meat products.

“We are shocked by the results of these tests and are currently at a loss to explain why one test showed 29 percent equine DNA,” the company says, adding that it was checking thoroughly with the two concerned suppliers and “is considering its options”. ABP is conducting its own DNA analysis of the products and will be implementing a new testing regime for meat products which will include routine DNA analysis.

The company assures that its group companies only buy meat from licensed and approved EU suppliers. “These results relate only to where beef based products have been sourced by those suppliers from the Continent. Only a small percentage of meat is currently procured from outside the UK and Ireland. Fresh meat products are unaffected.”

The latest comment in The Guardian suggests that the horse DNA might have come from additives extracted from protein sources, rather than fresh horse meat directly.

NZ: legal requirements not to mislead

Here in New Zealand, there are legal requirements not to mislead the customer, says the Ministry of Primary Industries (MPI), which will be keeping a close eye on proceedings in the UK.

New Zealand processors are subject to performance-based verification by MPI and meat products are not permitted for export until they first comply with requirements for sale domestically. In addition, MPI provides export certificates that provide MPI-verified assurances on the species of animal  from which the exported products were derived.

Under its mandatory Species Verification Programme – which checks the effectiveness of the regulatory requirements in place to ensure truth in labelling with respect to species of origin – MPI samplers collect 300 samples of meat from randomly allocated cold stores all around the country. Each sample is tested and the test includes checks for contamination by other possible species, using the enzyme-linked immunosorbent assay (ELISA), which identifies proteins unique to a species. For example, a sheepmeat sample will be tested for the presence of cattle, deer, goat, horse or pig meat. These tests are conducted by an MPI contracted laboratory to do independent testing using an International Accreditation New Zealand (IANZ) method. The contracted laboratory operates under comprehensive quality systems that, as a minimum, comprise compliance with the ISO 17025 ‘Standard for technical competence of testing laboratories’.

In addition, the Australian/New Zealand Food Standards Code maintains standards for meat and meat products, specifying the proportions of fat free meat flesh and fat (sausages, for example, must contain no less that 500g/kg of fat free meat flesh and the proportion of fat in the sausage must be no more than 500g/kg of the fat free meat flesh content). There are also separate checks for contaminants and residues.

Together, these controls minimise the possibility of a meat not being mentioned in packaging being in the New Zealand product, says MPI, adding that there are no known incidents where a meat product in New Zealand was discovered not to be what it said it was.

 

 

 

 

Co-products return to centre-stage, says Rabobank

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A recent Rabobank report, published in the Netherlands, shows what has been evident to New Zealand’s processors and exporters for some time: that by-products – more usually known as co-products here – are returning to centre-stage and becoming a more important part of the carcase.

Over the last few years, the valuation of the animal carcase has shifted from prime cuts to processing cuts and fifth quarter products, the bank says. This is driven by changing consumer preference for processed products, fast-rising economic welfare and preference for animal co-products in Asia, new applications for animal co-products and lower availability of sow meat. The report by analyst Albert Vernooij suggests the trend will be permanent and will impact the business models of almost all players in the global meat industry.

“The impact of this shift in carcase valuation will be different for slaughterhouses, the further processing industry and dedicated companies active in the different parts of the by-product industry,” he says. “For slaughterhouses, the focus will increasingly move towards capturing the value of fifth quarter products, which might lead to forward integration in these activities.”

Vernooij puts the rise in price of cuts and co-products of cattle and hogs down to five main developments: growing economies in developing countries including the opening of the Chinese market for imports; the economic crisis which has caused consumers to trade down to cheaper products; the growth of convenience products with more women entering the workforce; consumers having less time to cook, and increased grazing; the growing number of applications for animal co-products in the pharmaceutical and cosmetic industries; and the decline in the sow herd in both the US and the EU.

He suggests that the further processing industry could be forced to change their raw material sourcing to other products or enter into long-term supplier contracts to safeguard supply. For dedicated processors, competition will increase which will urge them to strengthen their positions in the chain.

Generally, as affluence rises consumers move towards cuts, rather than co-products. However, as most co-products are considered a delicacy in Asia they should remain on menus in the long-term. Coupled with the growing number of applications for fifth quarter products Rabobank believes this will result in continued strong demand and the shift in carcase valuation will be permanent.

May for US-NZ Pacific Partnership Forum

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The US-NZ 2013 Pacific Partnership Forum will be held in Washington, DC from May 19 – 21 at the Grand Hyatt Hotel. The Forum will bring together New Zealand and US game-changing leaders from business, government, and non-profit organisations to explore the next opportunities for economic growth and cooperation.

Organised by the United States | New Zealand Council in Washington, DC and the NZUS Council in New Zealand, the two-day meeting will focus on the two countries’ shared interests and complementary visions for the future.

The success stories and vision of both NZ and US companies will be prominently featured.

“Today’s NZ – US relationship is about leadership, innovation and a readiness to be a catalyst for positive change in the world”, said William Maroni, president of the US | NZ Council.

“By showcasing examples of real innovation, next year’s Forum will help inform, inspire and shape the next generation of though leaders in business and public policy.”

The 2013 Forum will be the fifth gathering of its kind. It comes at a time when countries and companies will compete to discover, define and deliver the next opportunities in the Asia-Pacific region. The Forum also occurs at a time when newly-appointed Members of President Obama’s Cabinet and newly-elected Members of the U.S. Congress will be defining their goals for the next two to four years.

Stephen Jacobi“Next May is likely to be a particularly important time in the Trans-Pacific Partnership (TPP) negotiations,” said Stephen Jacobi, executive director of the NZUS Council.

“The 2013 Pacific Partnership Forum will foster the type of dialogue that can help move TPP to a successful completion.”

New Zealand and the United States are influential global voices for open markets, regional growth and stability, individual freedoms, and a sustainable environment.  The 2013 Forum will build on this legacy by focusing on Asia-Pacific issues.  The program will include dynamic keynote presentations, diverse panel discussions, valuable networking opportunities, executive-level exchanges, and a variety of social and cultural activities.

Exclusive sponsorship opportunities to host specific portions of the Forum are available, and the event is open to interested parties.  For more information, contact [email protected].

American sheep farmers suffering even more than here

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Allan BarberIt’s tougher in the US for sheepfarmers, Allan Barber has found.

An article headlined ‘Drought, high feed costs hurt sheep ranchers,’ appeared last Friday in the Northern Colorado Business Report, he writes in his latest blog posting. It makes the problems being experienced currently by New Zealand sheep farmers look comparatively pretty small.

This isn’t meant to denigrate the difficulties here, but it puts things in context. One rancher has cut his 2,000 head flock by a third and is losing US$80 on every lamb he sells. According to the article, drought, consolidation of the sheep-packing business, increased feed costs and plummeting lamb prices have created hardship among sheep ranchers across Northern Colorado. The situation has deteriorated so much for ranchers that the federal government is investigating whether meat packers have played a role in the market’s collapse.

In 2011 lamb prices soared above US$2 per pound, or about NZ$5.25 a kilo. But today the same lambs fetch only 85 cents per pound (NZ$2.20), while rearing a lamb costs more than $1.30 per pound (NZ$3.40 a kilo). Feed costs have also risen from $250 per ton of grain in 2011 to $400 in 2012.

As lamb prices declined in 2012 demand also softened, causing the US Department of Agriculture to buy $10 million worth of lamb as a drought relief measure. An insurance policy designed to insulate ranchers against fluctuating lamb prices is too expensive at present price levels.

There is also a suspicion that the packers may have been manipulating the market by buying lamb supplies and holding them on feedlots to guard against being caught with insufficient stock to process profitably. This is apparently in violation of the Packers and Stockyards Act which prohibits price manipulation.

A further disadvantage is the fact Japan has been closed as an export market for sheepmeat for 10 years because of mad cow disease – I’m not sure why this was the case, as sheep were not the problem and lambs are too young to pose a risk.

The USDA has asked for any evidence of price manipulation by the packers, as it ‘takes allegations of anti-competitive behaviour very seriously.’ But it doesn’t look as though there will be any relief for sheep farmers any time soon because of low consumer demand and the high cost of feed as a result of the drought.

None of this will be any comfort to New Zealand sheep farmers, especially with the implications for export demand from the USA, but at least our exporters have developed a much broader range of markets for sheepmeat and co-products. This spreads the risk for producers. Equally farmers here don’t have the same worries about feed costs, as the vast majority of sheep and lamb feed generally grows naturally as a result of regular rain.

That said, it is important for New Zealand’s sheep industry, as distinct from its beef industry, to develop a strategy which can ensure our industry doesn’t fall into the same hole as that of Colorado.

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

‘Momentous’ US/NZ food safety agreement signed

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Ministry for Primary Industries deputy director-general standards Carol Barnao (left) and US Food and Drug Administration deputy commissioner for food Michael R Taylor sign a systems recognition agreement at a meeting in Washington DC.

Ministry for Primary Industries deputy director-general standards Carol Barnao (left) and US Food and Drug Administration deputy commissioner for food Michael R Taylor sign a systems recognition agreement at a meeting in Washington DC.

New Zealand this week became the first country in the world to sign an agreement with the US Food and Drug Administration (FDA) that recognises each other’s food safety systems as providing a comparable degree of food safety assurance.

Meat exporters will welcome the move, which will enable

streamlining of product to the market – New Zealand’s top destination for beef, fifth largest for venison and fourth largest for lamb – through the reduction of red tape and costs.

The Food Safety Systems Recognition Arrangement was signed at a meeting in Washington DC by delegations from the Ministry for Primary Industries (MPI) and FDA.

“This is momentous for MPI as it is the first time the FDA has recognised another country’s food safety system as comparable to its own,” says MPI deputy director-general standards, Carol Barnao.

“The arrangement with New Zealand is part of an overall strategy for strengthening the global food safety net through closer collaboration with regulators around the world, highlighted in FDA’s report Pathway to Global Product Safety and Quality,” FDA’s Deputy Commissioner for Food Michael R Taylor says.

Carole Barnao says both countries have done a huge amount of work ahead of this week’s signing.

“This process has included a comprehensive review of each country’s relevant laws and regulations, inspection programmes, response to food-related illness and outbreaks, compliance and enforcement and laboratory support.

“In one calendar year, FDA and New Zealand officials spent an intensive period of time together including visiting production plants, cold-store facilities, verifiers and accreditation authorities looking at the effectiveness of how each other’s preventative controls and verification systems worked.”

Barnao explains that both countries intend to use the agreement to lessen the potential regulatory burden for foods traded between the countries by removing unnecessary duplication of activities.

The agreement covers all foods and animal feeds regulated by the FDA, which equates to $1.5 billion of New Zealand’s current exports of primary products.

“Systems recognition agreements are very important for MPI to help us achieve one of our key strategic goals of maximising export opportunities through other countries’ recognition of the credibility of our food safety controls,” Barnao says.