Posts Tagged ‘procurement competition’

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…)

Alliance enforces shareholding commitment to match supply

February 16, 2016

After many years competing for livestock without compelling suppliers to invest in the full number of shares required in principle, Alliance Group has seized the opportunity offered by Silver Fern Farms’ likely shareholding change to review its capital base. (more…)

Debt is good under some circumstances

December 13, 2012

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. (more…)

Cooper’s resignation signals broader meat industry frustration

February 28, 2012

Keith Cooper’s resignation from the board of Beef & Lamb New Zealand, sudden as it appeared to be, had been brewing for a time. Cooper had previously expressed frustration with farmer directors’ lack of commercial awareness, terming it naivety, and obviously believed B&LNZ was getting involved in areas it should leave to the meat companies, such as market development. (more…)

Sheep and beef under threat from too much grass

February 7, 2012

This season’s excessive grass growth throughout the country except for Otago and Southland has generally been a cause for celebration among sheep and beef farmers, happy not to have to worry about drought and ecstatic about livestock prices. (more…)

Meat companies likely to sustain profitability

December 20, 2011

It’s becoming harder to track meat industry performance with only two companies, Silver Fern Farms andAlliance, reporting annually within two months of the season’s end. ANZCO will continue to report to the Registrar of Companies at the end of March, while AFFCO is no longer required to publish its result. Therefore performance comparison is a matter of studying the available annual reports and gleaning scraps of information from farmer meetings and the grapevine. (more…)

Processing changes may not mean better capacity alignment

October 21, 2011

The meat industry will see a number of processing initiatives taking effect over the next 12 months, all of them designed to create greater efficiency for their owners. They may not necessarily lead to better alignment of capacity (more…)

Stick to the knitting

March 21, 2011

Stock and station agencies have a long history in this country, performing essentially the same role throughout their existence, but at the same time the industry has undergone enormous change. At the turn of the 20th century there were 80 firms, by 1986 when Wrightson and Dalgety merged this had fallen to seven, while today there is only one full service firm, PGG Wrightson (PGW) supplemented by Elders and Allied Farmers offering a narrower range of services, three specialist farm merchandise retailers, wool buyers, and a number of regional agencies offering livestock, grain and seed, and advisory services. (more…)

Sector strategy vulnerable to grass growth

March 2, 2011

At the end of the sector strategy’s first stage there will be a plan which draws on the interviews with farmers, processors and stock agents, analysis of a huge amount of data, and input from the consultation meetings held round the country. (more…)

AFFCO cautious after good first half

June 9, 2010

AFFCO’s net profit after tax at $15.91 million was marginally ahead of the same period last year in spite of a 0.6% drop in revenue, but on balance it appears to be a very solid result in a season which both AFFCO and Silver Fern Farms termed slow because of good early grass growth. (more…)