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Greenlea scoops award for business excellence

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Business Excellence Awards for Greenlea Premier Meats.Congratulations to Waikato-based beef processor Greenlea Premier Meats, which scooped up the Supreme Award in the 2012 Westpac Waikato Business Excellence Awards, after winning the Tompkins Wake award for businesses employing more than 50 people.

Greenlea is a family-owned business that has grown over the last 20 years from humble beginnings to become a significant player in the New Zealand meat industry. It employs 370 staff at two beef processing plants in Hamilton and Morrinsville, with a turnover of more than $260 million and growing.

The company, which celebrates its 20th anniversary this season, procures over 185,000 prime steers, heifers, manufacturing bulls and cows each year and also, in a new move last season, now also collects bobby calves. The product range includes 425 different specifications, with around 200 in production at any one time, and supplies over 40 countries with New Zealand beef.

Introducing Marel Streamline boning-room technology from Europe to its Hamilton prime-boning room in 2009 and its Morrinsville plant in 2010 was a first for a New Zealand meat company and using this technology for hot-boned beef a first, globally.

Tony Egan' Greenlea Premier Meats new managing director

Tony Egan’ Greenlea Premier Meats’ managing director

The modern and ergonomically designed system has helped to reduce the hard manual work found in traditional beef boning rooms, which means less strain injuries for staff, explains managing director Tony Egan.

The computer-based tracking system provides for more efficient monitoring of yields, quality, throughput and orders at the boning room floor. Supervisors now have the ability to provide data-based feedback to staff on their performance. The company also uses a locally developed tailor-made freezing technology.

According to Egan, Greenlea’s international reputation for reliable service and consistent high quality product has been a key factor in making it the processor of choice in many markets not only in manufacturing beef, but also for high quality prime beef table cuts.

He has a simple answer to how this has all been achieved. “Quite simply, it’s the people that make our company so special and our success comes from creating a great team and encouraging them to do great things.”

This article has appeared in Food NZ magazine (February/March 2013) and is reproduced here with permission.

PGP project suggests meat industry ready to co-operate, says Barber

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Allan BarberYesterday’s announcement of the Red Meat PGP Collaboration Programme for Greater Farmer Profitability at a total investment of $65 million is fantastic news for the whole industry, says meat industry commentator Allan Barber. The key words are ‘collaboration’ and ‘farmer profitability’, he writes.

The first of these has usually been notable by its absence, while the second combination of words has only been evident at irregular intervals.

Half the funding will be made available from the Ministry for Primary Industries (MPI)’s Primary Growth partnership fund, while 30 percent will come from farmers through Beef & Lamb New Zealand Ltd (B+LNZ) and Meat Board reserves and the balance from six meat companies, two banks and Deloitte.

B+LNZ’s contribution is contingent on levy paying farmers voting in support of the proposal at its annual meeting on 8 March. Although nothing is ever certain, it would be a shock if this support wasn’t forthcoming, because the programme represents a significant step towards fulfilling the objectives of the Red Meat Sector Strategy conducted by Deloitte and completed nearly two years ago.

The aim of the programme is to lift the performance of all farmers to match that of the best performers which was identified in the strategy as the best way of improving industry profitability. There is a significant gap between the top and bottom performers in farming methods and profitability. If this gap can be closed the gains for the sector and New Zealand are enormous.

The participation of the six meat processors – AFFCO, Alliance, ANZCO, Blue Sky, Progressive Meats and Silver Fern Farms – is as meaningful as it is welcome. These are the key sheepmeat processors which is recognition that it is the sheep meat sector in particular where the greatest gains are to be made. However, the focus behind the farm gate shouldn’t obscure the fact that there are substantial gains to be made from greater collaboration in the market place.

A striking aspect of yesterday’s press releases by Ministry of Primary Industries, B+LNZ, Alliance and Silver Fern Farms (SFF) was the difference in tone between the statements by the two meat companies and the enthusiasm with which Beef & Lamb is greeting the opportunity.

The tone of SFF’s press release was less than enthusiastic, emphasising the need for a levy vote in support before the programme could begin and the care taken to ensure this programme did not cut across SFF’s Farm IQ programme which was the first project out of the blocks.

In spite of a first sentence which confirmed SFF’s support for the collaboration programme, the main impression from the statement was that the company was a somewhat unwilling participant and would be guided by the farmers’ decision. If this happened not to be supportive, I was left with the feeling SFF would not be particularly upset.

In comparison with Keith Cooper’s guarded support for the programme, Alliance chief executive Grant Cuff was positively euphoric, stating:

“This new coordinated 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 earnings by ensuring all parts of the value chain collaborate so suppliers are using the best available farm and business management practice and tools.

“This initiative is an important step in the implementation of the Red Meat Sector Strategy. We’re supportive of any steps to lift the industry’s game and improve on-farm profitability.”

After my recent call for a sheep meat strategy, I am cheered by this progress. Admittedly, results won’t happen immediately, but it provides an investment over several years during which industry participants will work together for the collective good.

This must be one of the best possible outcomes for an industry which is noted more for its divisiveness than its potential to cooperate in the interest of a better future for all the parties.

Allan Barber is a meat industry commentator who writes a number of columns on the topics. He has his own blog Barber’s Meaty Issues.

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.

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.”

Merry Christmas to all our readers

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This year started with the debt crisis in Europe, went through droughts, the finding of the Higgs Boson and the first probe to land on Mars and ended with Gangnam style everything (watch the PetersonFarmBros putting the word out for food producers all around the world). It’s hard to tell what 2013 will bring!

Thanks to all of our readers who have stopped by MeatExportNZ this year. As of today, we’ve had over 7,600 views in our first busy six to seven months, which is really pleasing. There will be more to report in 2013.

As is customary in New Zealand, we will be taking a break for the festive season and the summer holidays and we’ll be back on stream in late-January. The meat business itself of course will carry on through its busy period.

Here’s to a great 2013! But first …029

Merry Christmas, safe journeys and Happy New Year to you all from MeatExportNZ. Ho, Ho, Ho!!!

 

ANZCO starts energy management programme

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One of New Zealand’s largest exporters is set to save more than $2 million a year and enhance its global reputation as a sustainable producer through a company-wide energy management programme.

The Energy Efficiency Conservation Authority’s EECA Business announced yesterday it would support the initiative over two years to help meat processor and exporter ANZCO generate long-term energy savings in its New Zealand plants.

With annual sales of $1.25 billion, ANZCO Foods Ltd processes and markets New Zealand beef and lamb products around the world. The firm employs over 3,000 staff world-wide and has 11 meat processing plants in New Zealand.

This programme will target a reduction in its processing plant energy use by 25 gigawatt hours (GWh), returning ongoing annual savings of $2.45 million after two years.

EECA Business general manager Ian Niven says that making better use of its energy will provide far-reaching benefits for the company and congratulated the company on its vision.

“Globally New Zealand is recognised for sustainably produced, premium quality meat products. And energy efficiency is one of the best ways to strengthen environmental credentials.

“By taking a lead in energy efficiency, ANZCO is making significant energy cost savings and signaling to its customers that it is committed to sustainable production,” he says.

Mark Clarkson, ANZCO Foods.

ANZCO managing director, Mark Clarkson says the programme will deliver on many levels for the company.

“Sustainability is key to the ANZCO brand and we are always looking for new ways to build on our reputation for environmentally responsible production, so reducing energy costs is a priority.”

The programme involves the establishment of a group-wide energy management plan, led by a team responsible for putting in place up to $5 million of identified energy efficiency projects.

With the assistance of one of EECA Business’ industrial programme partners, ANZCO will set up a system to help keep the programme on-track, measure efficiency outcomes, and develop case studies for a number of the projects.

Ian Niven says management commitment is key to the programme achieving its objectives.

“From the Board of Directors through to site operations, ANZCO leadership has indicated it wants to foster a culture of efficient energy use throughout the company.

“Such commitment is important to the success of making enduring improvements to energy management.”

EECA Business funding of up to $450,000 will be made available in stages upon achievement of various programme milestones.

Debt is good under some circumstances, says Barber

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Allan BarberAfter Allan Barber’s column last week about meat industry debt levels, Keith Cooper, chief executive of Silver Fern Farms, took him to task for incorrectly reporting the situation with Silver Fern Farms’ debt facility, he writes in his latest guest blog.

I stated that these expired in September 2012 and therefore the company was operating on a temporary extension. The correct position was that the debt facility was originally negotiated for two years from September 2010 and consequently due to expire in September 2012. This remained the position at balance date in September 2011. However in the 2012 annual report, the facility was stated as expiring on 31 December 2012.

Clearly, the company had arranged a three month extension at some point before the original two year facility expired and this was not a temporary facility, as I implied. Nevertheless, it was no more than a three month extension, while the next longer term arrangement was being negotiated.

I apologise for any incorrect interpretation, but still maintain the company’s current debt level at balance date was higher than could be considered comfortable.

However, in an interview with Jamie Mackay on the Farming Show last week, when asked to comment on the industry’s debt level, Cooper gave his opinion that the debt was a good thing. Because it was tied up in inventories, it would ensure the industry acted responsibly. This is almost exactly what I wrote last week, although I saw the discipline on the companies as a necessity, not a virtue.

In Cooper’s radio interview, he stated after record prices last year, meat companies are reining things in.

“It’s a damn good thing we do have stock in store and we do have high debt because that means meat companies are acting responsibly, and are feeding the product to market to create stability of price. I’m quite happy that us and other companies have debt because that means they’ve got stock in store and that means we’re managing markets well.”

I must give Keith credit for being unreservedly a ‘glass half full’ kind of guy which you have to be to survive in what I believe is New Zealand’s toughest industry. He promises farmers that things will improve.

“We are living in volatile times. There will be volatility, but through the volatility we will see a steady increase in the price we will receive from offshore,” and he expects meat companies will pay farmers around 90 dollars per lamb this year.

I’m not sure the glass is quite as half full as Keith Cooper suggests, especially in the sheep meat market. Although lamb leg prices in the UK are holding fairly well, especially for chilled product, prices for middle cuts, like racks, loins and tenderloins, in North America and Europe are under pressure.

The price of loins and tenderloins have dropped by as much as 30 percent in the last couple of months, while there are fears of another collapse in lamb rack prices because of competition from low priced Australian product. As a result, importers are not placing orders for New Zealand lamb, because they remember the last time prices collapsed.

The Middle East has gone quiet on lamb shoulders because of cheaper Australian product, although China is still firm. Here, it appears New Zealand exporters benefit from less Australian competition with fewer China licensed plants in Australia.

All this explains why the New Zealand consumer is able to buy plenty of well priced lamb available on the domestic market. But this won’t provide more than a minimal contribution to managing the existing inventory levels and it certainly won’t cope with next year’s peak production. The industry will be keeping its fingers and toes crossed for an early economic uplift in our main markets, UK, Europe and North America, because otherwise the glass won’t have much in it at all.

Allan Barber is an agribusiness commentator, with particular interest in the meat industry. He has his own blog Barber’s Meaty Issues. This item has also appeared at www.interest.co.nz.

Silver Fern Farms donates $500,000 to Te Aroha Events Centre

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Pictured left to right are: Eoin Garden, chairman, Silver Fern Farms;
Keith Cooper, chief executive, Silver Fern Farms; Peter Jager, chairman Te Aroha Events Centre Charitable Trust; and Prime Minister John Key.

At the official opening of Silver Fern Farms’ new world-class Te Aroha beef processing facility last week, the company also announced its intention to make a sizeable donation to a community initiative of major significance to Te Aroha.

Silver Fern Farms chief executive, Keith Cooper, revealed that the co-operative and its local farmer-suppliers had jointly contributed to a dedicated Te Aroha Community Fund over the period the plant had been out of operation.

Silver Fern Farms’ Te Aroha beef plant was destroyed by fire in December 2010, devastating the company’s local workforce and impacting heavily on the Te Aroha community. Fully aware of the uncertainty the community faced, the company signalled its intent early-on to rebuild a new state-of-the-art flagship processing operation on the same site.

In the interim period, the company had endeavoured to provide alternative options for staff whose livelihoods were affected by the fire, to the extent of making positions available at neighbouring plants, providing accommodation supplements in the early stages and donating meat for food parcels for those in need.

“We were heartened by the way the Te Aroha community rallied so bravely around affected Silver Fern Farms employees. From the outset, we were determined to make a meaningful contribution to the township above and beyond our commitment to rebuild – one that would acknowledge the support of the Te Aroha community into the future. We reached out to our loyal suppliers in the area and their response to the appeal was overwhelming” said Cooper.

Over the last two years the company had been working in partnership with the Matamata-Piako District Council to identify where the fund might ultimately be best deployed. This culminated in the co-operative proudly announcing base funding of $500,000 for the establishment of the Silver Fern Farms Te Aroha Events Centre in association with the Te Aroha Events Centre Charitable Trust.  The Events Centre has been a long-hoped for facility in the Te Aroha area to support community health and wellbeing, and Silver Fern Farms’ donation will provide a major funding boost to progress the initiative.

Silver Fern Farms’ Te Aroha plant will be fully commissioned ahead of the new season and will employ up to 380 staff when operating at full capacity, which is welcome news for the township.

“The whole community has been behind the project every step of the way” said Te Aroha plant manager, Lance Warmington. “The company’s commitment to rebuilding Te Aroha is a big deal here – it means future security for hundreds of families in the area.”

Eventful year for meat training

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It’s been an eventful year for meat training, with the merger of the meat and dairy sectors’ industry training organisation (NZITO) and the Seafood ITO to create a major export food ITO, which is generating synergies that will benefit all.

The new single ITO entity, using the NZITO name and branding, has been in operation since the beginning of August and is now servicing a combined workforce of over 60,000 employees covering New Zealand’s three key export food industries – meat, dairy and seafood.

“There are many obvious synergies we are now taking up, such as knife skills and rendering and there will be more shared servicing over time as we maximise staff and training to keep costs in check,” reports general manager Carl Ammon, who has stepped up from leading the meat and dairy ITO to head the new body, adding that there are new skills in the team that are all adding value.

Ammon is delighted to share that the new NZITO is delivering at the top of the Tertiary Education Commission’s Educational Performance Indicator tables. “Which is creditable as our industries are seasonal and not based around trade apprenticeships, unlike building or engineering,” he says.

The move to a single enlarged ITO has been strongly supported by the Meat Industry Association (MIA) with chief executive Tim Ritchie pointing out that ITOs provide training that many people would not otherwise get, as it is delivered in the workplace and allows for the seasonal pressures of the agricultural industry.

“The ITO system is an invaluable asset for out industry, and this merger can only make it stronger. The merged ITO will allow our people to learn and up-skill themselves while they work and offers clear opportunities for career development in our industry.”

When he announced  the merger, NZITO chair Graeme Sutton said that training offered through the NZIITO will carry more status in the primary sector and the community as a whole.

Because of its increased ‘buying power’, Sutton said that the ITO will be able to demand high standards of delivery from its training providers. There will also be greater emphasis on training skills that are transferable across the food export sector, creating more opportunities for personal advancement, he said.

The new NZITO board includes two representatives each from the meat, dairy and seafood industries. Representing the MIA, and the meat industry, on the board are Carolyn Thompson, HR Manager for Taylor Preston Ltd and Kerry Stevens, Group HR and Communications Manager for Alliance Group Ltd.

There is also a meat advisory group (MAG), comprising representatives from a number of meat companies, which provides industry input to the NZITO. Similar groups have been set up for the dairy and seafood sectors.

Qualifications now under review

Recent work for the groups includes input to the nation-wide Targeted Review of Qualifications (TRoQ), aimed at simplifying the qualification framework, rationalising the number of qualifications and seeing where updates are needed. Proposals are expected to go forward to NZQA in early 2013.

The work is going well, says Ammon, adding that it is using best practice examples between sectors and will allow for qualifications that are simpler to follow and use and that still provide a learning pathway for staff.

“We are focusing on the generics and people skills like communications, problem solving and team work as well as food safety, market access, quality, biosecurity and supply chain.”

Apprenticeship pathways, proving very popular for meat companies and others, are to be rebuilt. “This uses the qualifications and packages them to the level of a well-rounded and capable operator able to take on technical and leadership responsibility.”

The TRoQ review is also building in the future needs that are arising from drivers like automation and robotics that are now expanding in use across the sector. “This mirrors past experience in the dairy industry, so we can benefit from that experience here,” says Ammon.

Health and safety skills and knowledge are being integrated into core training, alongside the running of specialist Occupational Health and Safety qualifications.

Management development and productivity improvement qualifications are being retained, “as these have been used to good advantage by many companies in building both people and organisational performance,” says Ammon.

The NZITO is also planning to implement with other ITOs, such as hospitality, a base food sector qualification aimed at schools and pre-employment. “This will reinforce the career pathways plan of the Ministry of Education and support trade academies and schools delivering trade-focused skills to students who have a career planned in industry.”

What’s next?

The NZITO is now working closely with other primary sector ITOs in the planning of a primary sector platform to coordinate qualifications and training. That will harmonise with Ministry of Primary Industries (MPI) requirements in areas like traceability, transport and animal welfare.

“This will help us to harmonise much that is in common in the food export areas and is intended to reinforce the value chain or paddock to plate concept this is a key driver in New Zealand exports,” Ammon explains.

Practical examples would be common HACCP training standards, animal welfare, animal products inspection and initiatives like halal standards for key markets. “This is also intended to complement our adaptation to expectations from key markets for a standards based approach to the supply chain,” he says.

The NZITO/Seafood ITO merger is part of the reconfiguration of the ITO sector into larger, more capable organisations to better meet the needs of employers. In October, the agriculture and horticulture ITOs also merged into one organisation, under the Primary Industry Training Organisation banner.

“Work is progressing on the prospect of a consolidated primary sector ITO that will deliver greater efficiencies in scale, coverage (market share) and resourcing flexibility,” says Ammon. “Early work shows real potential for savings and improved services so this will be a work in progress for 2012/2013.”

This item appeared first in Food NZ magazine (December 2012/January 2013).