Posts Tagged ‘AFFCO’

Agility and innovation essential for meat exporters

May 24, 2020

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.

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Differing responses to wage subsidy scheme

May 6, 2020

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. (more…)

Meat industry performing well under Level 4

April 9, 2020

Processing is under severe constraints during the lockdown, although, as an essential service, meat companies are working hard to feed New Zealanders and service key export markets. In a newsletter to staff and suppliers, AFFCO states that processing restrictions on maintaining a minimum distance between employees means sheepmeat capacity is running at 50% of normal and beef capacity is close to 65%. This of course comes at the peak of the season, exacerbated by drought in several regions, particularly the top half of the North Island. (more…)

Drop in China beef prices not expected to last

January 20, 2020

It is difficult to see any real reason for panic over the sudden pre-Christmas reduction in demand for sheepmeat and beef from Chinese importers which has led to prices coming off their peak. Livestock suppliers will already have noticed a drop in schedules from the elevated levels processors had been paying over the first couple of months of the season. It’s tempting to fear the worst given past experience with high prices paid by meat processors which have inevitably been followed by a sudden crash and a long slow recovery. (more…)

Brexit impact to drag on and on

September 20, 2019

Any hopes Brexit would be sorted this year are receding further into the distance with every new twist and there’s a strong chance the situation will have changed again by the time you read this. For obvious reasons I won’t make firm predictions about the likely outcome, because it’s impossible to predict which of several will eventuate, but it is possible to assess the long and short term risk factors for New Zealand exporters who must get on regardless with securing orders and satisfying customers. (more…)

More dairy beef unlikely to flood the market

July 1, 2019

Meat processors have tried for years to encourage dairy farmers to up their numbers of beef cross calves and either keep them or onsell to rearers at three months old. Rearing white face dairy beef calves has long been an option for dairy farmers to generate more income, with rearers looking to buy bull calves to put weight on and sell to bull farmers targeting the US lean beef market. But the lure of higher profits from maximising milk production has until recently made it a relatively unattractive option. (more…)

Cooperative model not ideal for all business types

May 8, 2019

Cooperatives emerged in the 19th century as an important business structure designed to protect the interests of a group of members, based on the principle of equitable distribution of benefits related to use or supply. The first New Zealand cooperative was formed in 1871 by eight cheese making settlers on the Otago Peninsula; by 1890 40% of dairy factories were cooperatives and by 1925 there were about 500, of which only three remained after the formation of Fonterra in 2001. (more…)

No need to panic over Brexit

February 15, 2019

In spite of the fast approaching deadline of 29th March, when the UK is due to leave the EU, not to mention the latest shipment date able to meet that deadline, there may be no need to get too concerned. There is a huge amount of media-inspired speculation about the potentially dire consequences of Prime Minister May’s inability to achieve an improvement of the exit terms leading to a No Deal Brexit, but word from Britain suggests this is highly unlikely. After all, both the EU and the British Parliament have specifically ruled out leaving without a deal. (more…)

Changing export markets give confidence in industry’s future

February 18, 2018

The global market for New Zealand’s meat exports and exporters is undergoing quite a rapid change, judging by movements in the industry’s latest quota entitlements and market destinations. The differences between exporters and markets over a ten and five year period provide an interesting snapshot of the relative position of the meat companies and the impact of changing market dynamics. (more…)

Meat company choice clearer than it’s ever been

December 9, 2017

November used to be the month when we could get a comprehensive idea of the financial state of the meat industry because annual results were published in quick succession by three of the major processors: Alliance, Silver Fern Farms and AFFCO. When AFFCO was absorbed as a wholly owned subsidiary of Talley’s, there were still the two cooperatives to provide a comparison, but now SFF’s balance date is 31st December. So we must now wait until March to find out about ANZCO and SFF. This means Alliance’s result is the only one which can give a factual record of the traditional meat year, while it is still reasonably fresh in the mind. (more…)