Project will identify marketing potential of regenerative agriculture

Earlier this year before lockdown B+LNZ announced its intention to conduct research into consumer attitudes to red meat produced using regenerative agriculture practices. This project has now been bolstered by an injection of financial support from MPI’s Sustainable Food and Fibre Futures fund and the involvement of the wine industry’s Bragato Research Institute which is keen to discover any potential for improving vineyard management, as well as evolving brand messaging across the wine industry.

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Decades of dietary advice misguided

For at least the last 40 years international health guidelines have recommended minimising intake of saturated fats contained in red meat, dairy, cocoa and palm oil in a mistaken attempt to improve public health, particularly in first world countries. Heart disease skyrocketed to become the leading cause of death by 1950 and scientists hypothesised the cause to be dietary fat, particularly the saturated variety.

Meat industry continues to do a superb job

The return of community transmission underlines the excellent performance of the whole meat industry since Covid 19 reached New Zealand nearly six months ago in March. Farmers, transport and logistics operators, sale yards, exporters and domestic processors have all combined to ensure the health and safety of participants, while meeting the demands of customers, with only a minimal number of temporary plant closures. This contrasts markedly with experience overseas in countries such as the United States, Canada, Brazil, Australia and Germany with admittedly a much higher incidence of coronavirus outbreaks in the rest of the world than here.

Time for sector to find united voice

Several organisations with an interest in the future of our agricultural sector have come out with strategies or visions for what needs to be done to find New Zealand’s place in the sun. One such report produced by the Primary Sector Council has been sponsored, one could say hijacked, by the government, and converted by MPI into a set of financial and environmental targets. Another is the result of independent research and consultation. Ideally either the government will engage with the primary sector to agree the best policy settings the industry believes necessary to meet these ambitious targets, rather than insisting on following the plan it commissioned to meet its own priorities.

Taste Pure Nature one year on

A little over a year since the launch of the Taste Pure Nature country of origin brand in California, Beef + Lamb’s GM Market Development, Nick Beeby, is thrilled with the evolution of the programme. At the start a small number of meat exporters were supportive of what Beeby concedes was initially seen as a B+LNZ initiative, but 15 months later success in targeting specific consumer groups and expansion of the scheme into China have brought increased industry commitment. TPN is now viewed positively as a sector-led strategy and the meat exporters have injected huge momentum and drive in support.

ANZCO achieves a huge turnaround

ANZCO Foods’ 2019 pre-tax profit was $30.6 million on record sales revenue of $1.7 billion which admittedly represents a margin on sales of less than 2% and a return on assets of 3.74%, but it is a huge improvement on the pre-tax loss of $39.1 million in 2018. It is also the third highest profit the company has achieved and its best for 16 years, signalling the benefit of the restructuring programme carried out over the last 18 months which has simplified the business and made it more efficient across the entire operation. Replying to a question about the relative importance of a favourable market and trading environment as against these internal improvements, CEO Peter Conley accepts the market conditions certainly helped, but is adamant the main benefit came from the changes to the business.

Agility and innovation essential for meat exporters

The days of bemoaning our meat exporters’ lack of flexibility when everything was exported as frozen carcases are now a distant memory. Even the days of growing the profitable chilled lamb business without upsetting the EU authorities are receding into the distant past, as meat marketers cope with the complexities of marketing to previously time poor, technologically sophisticated consumers around the world now living in lockdown without ready access to restaurants.

Differing responses to wage subsidy scheme

The country’s meat processors have followed two distinctly different paths in response to the government’s wage subsidy scheme which is available to all businesses for 12 weeks, providing they can substantiate a 30% drop in revenue during the period. Silver Fern Farms, Alliance, ANZCO, Taylor Preston and Blue Sky Meats have all claimed the subsidy to varying extents, whereas AFFCO, Greenlea and Wilson Hellaby have decided it is not justified or necessary, at least partly on ethical grounds.

Overseas markets holding up

In a recent conversation, Alliance CEO David Surveyor described world red meat markets by comparing them to traffic lights. Contrary to the evidence earlier in the year, when buyers stopped buying because of Chinese New Year closely followed by the Covid-19 shutdown, China has emerged as the brightest light with the traffic lights firmly set on green. The composition of Chinese orders has changed since the virus outbreak with retail and online sales growing considerably, while there are signs of hot pot outlets starting to reopen.

Ritchie instrumental in driving positive change for red meat sector

Tim Ritchie came into the Meat Industry Association as CEO at the end of 2007, initially intended to be for an 18 month period, and retired earlier this month over 12 years later. His first task was the planned merger of the processor representative organisation with Meat & Wool, the forerunner of Beef + Lamb NZ, which was strongly promoted by Keith Cooper, then CEO of Silver Fern Farms, and Meat & Wool chairman, Mike Petersen.