Archive for the ‘Consumer demand’ Category

ANZCO confident no repeat of horror year

July 10, 2019

ANZCO’s 2018 pre-tax loss of $38 million was the worst result in the company’s history. The exporter has traditionally posted a profit, even in difficult years for the meat industry which has always had a chequered history, so it is critical to assess what went wrong and, more important, how to make sure it doesn’t happen again. (more…)

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Two reports, two different audiences

July 1, 2019

ANZ Bank’s Red Meat Benchmarking report and KPMG’s 2019 Agribusiness Agenda were both released during Fieldays week and both addressed the challenges facing the agricultural sector and farmers, but that’s just about where the similarities end. The ANZ report focuses specifically on the red meat sector with the objective of providing a stable and consistent basis for assessing and providing options for improving farm performance. In contrast the KPMG Agenda is a much more ambitious document which, in its 10th iteration, seeks to educate the whole sector on the accelerating speed of change and how participants need to adapt to remain relevant. (more…)

Finding the balance between long and short term

March 26, 2019

Every business has to find an appropriate balance between long and short term planning and farming is no exception. But, given farmers are very capable of planning and implementing their annual farm strategy, the long term offers the greater challenge. Forward planning involves a high degree of risk assessment, because decisions must take into account several critical factors over which the farmer has little or no control. (more…)

Pace of change keeps getting quicker

January 29, 2019

Perhaps it’s my advancing age, but it seems as though the changes facing agriculture demand ever faster reactions and responses to stay ahead or even just to keep pace with a whole series of challenges: public expectation, government regulation, consumer tastes, changing climate patterns, and new technologies as well as the usual ones like finances, human resources and health pressures, both physical and mental. (more…)

That was 2018 – now for 2019

January 16, 2019

2018 is over and it’s now timely to look at how many of last year’s key challenges will continue into the New Year.

 

From a New Zealand domestic perspective the attempt to eradicate Mycoplasma Bovis has had the biggest impact on farming, most of it focused on the relatively small number of properties forced to cull their entire herd, some of it directed at those properties under surveillance or Notice of Direction, and some of it on the agricultural service industry, including meat processors, cartage contractors, stock agents and saleyards, as well as calf clubs and A&P shows. (more…)

Reflections on the year that was

December 19, 2018

2018 is nearly over and it’s now time to reflect on what were the most notable events and issues of the year. It is also time to think about the implications for the future. (more…)

Meat companies only have themselves to blame, if lamb cost too high

October 26, 2018

Seven years ago, the last time lamb prices were as high as they have been for the last 12 months, overseas customers suddenly decided enough was enough and turned off the tap, causing a sharp drop in price which reached its low point of less than $4.50 per kilo more than a year later. The difference this time appears to be a more gradual climb and a longer peak with no sign yet of a repeat collapse. (more…)

World not yet falling apart

September 6, 2018

Much to a lot of people’s surprise, the global economy is resisting the dire predictions of many commentators, just as the New Zealand economy continues to perform much better than businesses are prepared to accept. But it is far from certain whether this just a question of timing or the genuine possibility the predictions are exaggerated. Speculation, based on suspicion and anecdote, appears to be an unreliable guide to what is actually happening, so, while planning for an uncertain future is essential, it would pay not to ignore present realities. (more…)

Meat companies must be clear about their purpose

March 7, 2018

When I heard KPMG’s global agribusiness head, Ian Proudfoot, on the radio stating the move away from meat to alternative proteins was happening permanently and quickly and meat companies needed to wake up, I wondered whether I had strayed into the Pop Up Globe to see A Midsummer Night’s Dream. Surely if meat companies need to wake up to alternative protein, this implies their whole business model is broken and farmers should be sitting in front of their horoscopes looking for a magical answer to the inevitable question “what the hell do I do now?” (more…)

How much meat do we actually eat?

February 21, 2018

“There are three kinds of lies: lies, damned lies and statistics” is a quotation which Mark Twain attributed to British Prime Minister, Benjamin Disraeli. Over a three week period the Sunday Star Times is conducting ‘an investigation into how environmental concerns are putting the heat on meat.’ Although much of the first article in the series was balanced and fair in its commentary, the main conclusion was clearly wrong, based as it was on misleading statistics published by the OECD. These appear to show a dramatic drop in the amount of red meat, particularly lamb and mutton, New Zealanders are eating. (more…)