Posts Tagged ‘Alliance’

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…)

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…)

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…)

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…)

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…)

South Island farmers still being short-changed

May 21, 2018

When it comes to being paid for their livestock, South Island farmers appear to be earning considerably less for some species than their North Island counterparts. Trying to unpick the reasons for the differential is complicated by a number of factors, like traditional meat company secrecy, schedule price as distinct from premiums paid for volume supply, cooperative pool payments and loyalty rewards, shorter seasons, cartage, labour agreements and relative plant efficiencies. (more…)

Silver Fern Farms’ result shows benefit of capital injection

April 6, 2018

Silver Fern Farms Limited has posted an improved annual result for its first year with its new Chinese partner, Shanghai Maling, which invested $260 million to acquire a 50% share of the meat processor and exporter. Revenue for the 2017 financial and calendar year, following the change in balance date from the traditional meat industry year to September, was on a par with 2016, but the NPAT of $15.4 million was a huge increase on the previous year’s $30.6 million loss, although not as good as the 2015 result of $24.6 million. (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…)

Time to walk the talk

September 15, 2017

There are large operators, small suppliers, traders and third party agents and, in times of tight livestock supply, the lines between them start to get a bit blurred and the classifications move around, depending on who is making the judgement. (more…)

First chilled shipments to China

August 30, 2017

According to a press release from SFF the company’s first sea container leaves this week for arrival early next month, claimed by the company to be the first sea freight consignment of chilled product to the Chinese market which has only recently opened up to New Zealand meat exporters. However, I have since been informed that the first shipment from Greenlea arrived on 18th August and a chilled container of AFFCO product is already on the water, arriving on Friday 1st September, with a container of chilled mutton being shipped next week. (more…)