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.

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Falling co-product prices prompt changes

The sale of Wallace Group’s tanning, rendering and composting operations in the Waikato, Northland and Manawatu is the latest step in the consolidation process of what is often termed the fifth quarter of the meat industry. Since it began in the late nineteenth century the industry has had to invest significant capital in facilities which were not just designed to process animals for meat production, but also to dispose of the parts of the carcase left over from its primary purpose, otherwise known as by-products or more politely co-products.  

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.

Cooperatives and private companies work best in agriculture

Good company performance demands clarity of purpose which is defined and monitored by a board of directors elected or appointed by the shareholders. There are five main types of company ownership structure that are or have been represented in New Zealand’s agricultural sector and each has advantages and disadvantages.