Meat industry performing well under Level 4

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.

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Meat companies only have themselves to blame, if lamb cost too high

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.

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.

Come on John, give them a break!

The last time I dared to question MIE’s desired reform of the meat industry, John McCarthy accused me of bias and warned me to watch out, if we are unlucky enough to run into each other. So this column will almost certainly result in another attack on my character and more threats to my personal safety!

Lies, damned lies and statistics or historical facts about sheepmeat

A brief comparison of sheepmeat and milk solids prices since 1991 throws up some interesting facts. These give the lie to the belief that the dairy industry is consistently more profitable than the sheep sector.

Cracks appear between farmer groups

It hasn’t taken long for the cracks to appear in the ‘united farmers for change’ movement started by the Meat Industry Excellence group which held its first meeting in Gore a couple of weeks ago with a resoundingly successful response.

Federated Farmers ask meat companies how the parties can work together

Last week Jeanette Maxwell, Federated Farmers’ Meat & Fibre chair, sent a letter to the chairmen and CEOs of the five major sheep meat processors and exporters. The letter asked them to suggest how the parties could work together for the good of the industry.

Outlook cloudy for 2013

As we head into the New Year, the Christmas break has provided an opportunity to consider how the meat industry is likely to pan out during 2013. But literally as I write this speculative opinion piece, the fate of the American economy is still uncertain – although the Senate approved a restructured deal on taxes and expenditure yesterday, Republican dominated Congress has yet again balked at reaching an acceptable conclusion.

Debt is good under some circumstances

After my column last week about meat industry debt levels, Keith Cooper, CEO of Silver Fern Farms, took me to task for incorrectly reporting the situation with Silver Fern Farms’ debt facility.

Optimistic signs for coming season’s red meat trade

After some harrowing experiences last season for the meat industry, both processors and farmers, 12 months on things are looking up. This sense of optimism hasn’t yet been reflected in prices from the meat companies, but statements from those in the know strike a perceptibly more positive note.