That was 2018 – now for 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.

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Reflections on the year that was

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.

Japan a country of contrasts

After three weeks on holiday in Japan, I am still reeling from the enormous contrast to any other country I have ever visited. When I first went there on business 40 years ago, I was getting used to life in New Zealand after immigrating from the UK, so probably didn’t register the size of the contrast, apart from the total lack of any street signs in English and the politeness of the people. All these years later the differences in lifestyle and behaviour have become even more apparent, especially when set against the huge progress in infrastructure and technology around the world, a lot of it invented by the Japanese.

World not yet falling apart

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.

Red Meat sector confident despite some headwinds

Since I attended the 2016 conference, having missed last year’s, several things have changed considerably: two years ago Donald Trump wasn’t President, Silver Fern Farms hadn’t concluded its capital raising with a Chinese investor, alternative proteins and non-meat burgers weren’t on the industry’s radar and there was little recognition of the need for a Red Meat Story.

Trade outlook still bright, but not without challenges

Vangelis Vitalis, Deputy Secretary for trade at MFAT and chief negotiator for the CPTPP due to take effect early next year, gave a very thorough and enthralling presentation on the trade landscape to the Red Meat Sector Conference in Napier on Monday. Free trade and market access are a key area of interest to the New Zealand meat industry and the economy as a whole.

Free trade trumps protectionism, we hope

It’s ironical the same week the CPTPP agreement was signed President Trump proudly announced new tariffs on steel and aluminium which threaten to undermine the World Trade Organisation’s function as the global regulator of international trade. The jury is still out on whether Trump can get the tariffs signed off by Congress and he has already created exemptions, at the time of writing for Australia, Canada and Mexico. But it’s an uneasy period, particularly for a country as dependent on trade for its economic survival as New Zealand, because we might well get caught in the crossfire from a trade war.