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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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.

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.

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.

Brexit impact to drag on and on

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.

Meat company results only average for 2017 – will 2018 be any better?

ANZCO’s lacklustre result for 2017, posted last month, concludes the financial reporting for last year by the three major processors which publish their results. ANZCO’s pre-tax profit was $1.8 million which compares disappointingly with Alliance Group’s $16.7 million profit and Silver Fern Farms Cooperative’s 15 month profit of $7.8 million.

South Island farmers still being short-changed

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.

Changing export markets give confidence in industry’s future

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.