Developments

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Meat Industry Association welcomes Government sector agreement announcement

The Meat Industry Association today welcomed the announcement that the meat processing sector has been invited to negotiate with the Government for one of the first sector agreements for immigration. “Labour shortages have been an ongoing issue for the meat processing sector, which affect our ability to run our plants to the desired capacity and fully process all products,” says MIA chief executive Tim Ritchie. “That deprives processors and farmers of revenue and rural communities of income.” The sector is committed to training and employing New Zealanders first and foremost and works closely with the Ministry of Social Development and regional agencies to recruit people from local communities to work in plants. “However, we still struggle to fill roles from New Zealand’s rural communities and the meat processing sector is approximately 2,000 employees short at present, that’s about eight per cent of our workforce. To fill this immediate gap, we must recruit people from overseas.” A sector agreement is likely to include how the meat industry will attract New Zealanders, improve productivity, offer training and continue to uphold employment standards, said Mr Ritchie. “The meat processing sector, with 25,000 people, is New Zealand’s largest food manufacturer, offering modern technology, training, career progression and competitive wages.” The sector is looking forward to sector agreement negotiations with the Government to deliver benefits to the sector, the regions and ultimately, to all New Zealanders, said Mr Ritchie. “Meat processors are mainly based in the regions, so residential accommodation is available for people coming from overseas. Enabling meat processors to operate at full capacity for the season will provide additional money to the communities in which they operate.” Employing people from overseas is typically more expensive than employing New Zealanders with additional costs including visa support, travel and pastoral care, he said. “The MIA […]

DairyNZ: economic report an inaccurate, trivial attack on farmers

The recent NZIER report trivialises the significant role the dairy sector plays in New Zealand’s economy – and fails to look at the specifics of the Government’s freshwater package, according to DairyNZ. DairyNZ chief executive Dr Tim Mackle said the report, commissioned by Fish & Game, Forest & Bird and Greenpeace, is less an economic report and more a high-level commentary on the dairy sector’s role in the economy – and paints an inaccurate picture. “This is yet another case of environmental lobbyists targeting dairy farmers – who are people trying to do the right thing by the environment and who are actively working to make changes on-farm to protect it,” said Dr Mackle. “By singling out dairy farmers, they are ignoring other contributors to water quality and, therefore, are limiting our ability to actually fix the problems where they exist. “The NZIER report trivialised dairy’s role in the economy – 3 percent of GDP equates to 28 percent of merchandise exports and one-fifth of goods and services exports coming from the dairy sector. “The NZIER report does not analyse the economic benefits of dairy to regional communities – which is a critical aspect of dairy farming’s contribution to NZ Inc. Dairying is the engine of the regions, in terms of income and jobs. For example, it is the top income earner in Waikato, West Coast and Southland. “Yesterday we saw the latest MPI Situation and Outlook for Primary Industries report which showed dairy makes up $18.1b of $46.4b exports to June 2019. Dairy exports were up $1.47b last year – this has flow-on effects to our communities, where we employ 46,000 people on and off-farm. Local Government New Zealand (LGNZ) recently completed an advisory report on the Essential Freshwater Package that showed that national limits for nitrogen and phosphorus […]

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Japan number one market for New Zealand chilled beef

Japan is now New Zealand’s number one market for chilled beef driven by tariff cuts under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). However the gains may be eroded following a US-Japan agreement, according to the Meat Industry Association. In the eight months up until the end of August 2019, NZ beef exports to Japan have increased 22% and 15% by value. In August alone, New Zealand dispatched 679 tonnes of chilled beef to Japan, 26% of the total and a 19% increase compared to August 2018. Sirma Karapeeva, Trade and Economic Manager at the Meat Industry Association, says since the CPTPP came in effect in December last year, overall beef exports to Japan have increased 22% by volume and 15% by value. “So far, we have seen two rounds of tariff cuts on beef into Japan. Pre-CPTPP, our beef exports faced a 38.5% tariff that has now been reduced to 26.6% and will continue to decrease to 9% over the next 15 years. “Effectively, the CPTPP has already saved around $14 million in tariff costs on New Zealand beef exports into Japan.” Prior to CPTPP, New Zealand’s beef market share had been dropping. Across the Tasman, Australia’s 2015 trade agreement with Japan saw its beef exports to Japan soar by $NZ1 billion, while New Zealand’s fell by $NZ25 million. “Under the CPTPP we have now achieved parity with Australia in the market and we are already seeing a rebalance of market share as New Zealand beef has become more competitive.” However, the announcement of a US/Japan trade deal is a cause for concern, says Ms Karapeeva. “Despite the US not being part of the CPTPP and their beef exports to Japan attracting a 38.5% tariff, US exports remain strong. “We are keeping a close eye on the […]

Insurers beef up food recall offering

Specialist liability insurance provider Delta Insurance NZ has responded to the growing risk of food recalls in New Zealand with a more extensive offering for food manufacturers. Delta, New Zealand’s largest kiwi-owned insurer, has released a comprehensive White Paper on the subject of food safety risk in the food manufacturing sector, following up on the company’s introduction of a niche insurance offering for food manufacturers last year. The company’s Chief Executive Officer Craig Kirk says Delta designed the new insurance and prepared the White Paper to fill a perceived need in the sector. “We had seen an alarming increase in the risks for food producers, most glaringly reflected in a leap in the number of food recalls per capita out of this country which were significantly higher than in Australia. “At the same time, the world, including New Zealand, is seeing an increase in the prevalence of allergens in food, and those susceptible to them, increasing the number of food safety issues happening.” The insurance industry had not kept pace with these developments, Kirk adds. “We could also see that existing general liability insurance in the market fell well short of covering the potential risks and damage to companies that could arise from a major food issue.” Kirk says food manufacturing is a vital part of New Zealand’s economy, representing almost 4% of the country’s total GDP but equating to a staggering 71% of manufactured exports. “It’s currently worth around $7 billion, with that figure projected to quadruple to almost $30 billion by 2025. The damage in terms of cost and reputation from a significant food crisis or major issue doesn’t just affect the company concerned; New Zealand’s reputation as a high-quality food producer also suffers.” Kirk says recent alarming instances of food issues in New Zealand included the possible […]

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Robotics Plus wins ANZLF Trans-Tasman Innovation and Growth Award

Robotics Plus, a world-leading robotics and automation company developing innovation to unlock new levels of productivity in some of the world’s most labour-intensive food and fibre value chains, has won an ANZLF Trans-Tasman Innovation and Growth Award. The awards celebrate innovation, growth and impact of emerging businesses in Australia and New Zealand. Robotics Plus was founded in 2013 by Steve Saunders and Dr Alistair Scarfe with a simple goal in mind: to improving the quality, productivity and sustainability of the horticultural and other primary industry supply chains. The company’s R&D efforts focus on automation, vision, robotics and AI, to solve the growing challenges in the primary industry globally such as: labour shortages, sustainability for growers and producers, pollination gaps and yield security. Steve Saunders, Chairman and Founder of Robotics Plus, says: “It’s an absolute honour for the team to receive an ANZLF Trans-Tasman Innovation and Growth Award. It is validation of the hard work of a lot of people over a number of years and celebrates our innovation, culture and diversity. “Receiving such a prestigious award provides a valuable opportunity to showcase Robotics Plus to the world. We would like to recognise our fantastic partners and collaborators in the commercial, research and Government sectors, without them this would not be possible.” Robotics Plus CEO Dr Matt Glenn says the company is experiencing strong growth on the back of increasing demand for its world-first platform technologies. “Over the last 18 months Robotics Plus has launched two commercial products, entered the US and European markets, completed a US$10M Series A investment with Yamaha Motor Company and grown from a team of 12 to over 50. We also have a number of new products in the pipeline and expect our growth to continue at the same rate for the foreseeable future. “We’ve been able to […]

Dairy exports up, providing good ‘nutrition’ for the economy

By Professor Graeme Doole, Principal Economist DairyNZ. The value of New Zealand dairy exports jumped by $1.47 billion to total $18.1 billion in the year ended June 30 – that’s got to be some good nutrition for the New Zealand economy, and help towards providing Kiwis with more of what they say matters to them. It doesn’t take an economist to tell you that if we’re to afford more of what is important to our quality of life here in New Zealand, the economy has to grow – and it has to grow sustainably and responsibly to ensure our future generations can continue to benefit and enjoy a high level of wellbeing. Given our relatively small population base, the way to grow a strong and healthy economy is by increasing exports of high-value products. As New Zealand’s largest exporter of goods, the dairy sector currently sits at 31 percent of total merchandise exports, having grown in value over the past two decades at a compound annual rate of eight percent per year. This remarkable growth has been achieved both through increased milk production and by increasing the value of exports through the ongoing product innovation and skilled, targeted marketing by New Zealand’s dairy processing companies. And it’s also important to note is that this growth is being achieved at the same time the dairy sector is stepping forward to embrace greatly improved environmental practices, both on farm and in processing. Dairy exports are a major driver of New Zealand’s terms of trade – this is the ratio of the value of our exports to the value of our imports. An improvement in a nation’s terms of trade increases the purchasing power of its people as they can afford more imports for a […]

Farmer voting open for DairyNZ board

Voting closes before DairyNZ’s Annual General Meeting (AGM) in Hamilton on Tuesday, October 22.

Marlborough wine producer wins diversity award

A cadetship programme giving Marlborough and Hawkes Bay locals employment and providing a solution to skills shortages in the wine industry has won a national workplace diversity award. Constellation Brands New Zealand, which owns Drylands Winery and Riverlands winery in Marlborough, and Selaks winery in the Hawkes Bay, took out the Tomorrow’s Workforce category at the 2019 Diversity Awards NZ The company began its cadet programme in Marlborough in 2012 as a way of identifying and training local talent. It gives young people and those outside the industry a chance to explore working within the wine industry during a year of paid training. The programme was later extended to Hawkes Bay. About a fifth of the 60 people who have completed the training have been offered permanent employment with Constellation Brands New Zealand. Those who aren’t offered employment leave fully trained and qualified to work in most New Zealand vineyards and wineries. “This programme is an investment in the future of the company, the industry and New Zealand. This is critical in helping to fuel a growing industry with a labour shortage in Marlborough,” says Constellation brands New Zealand Vice President Human Resources Julie Bassett. Judging convener Neil Porteous says this is a well-designed programme with the greater good of the industry and regions at its heart, that has invested in developing capability creating pathways for both younger workers and those looking for a career change.

Climate explained: regenerative farming can help grow food with less impact

Troy Baisden Professor and Chair in Lake and Freshwater Sciences, University of Waikato Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. If you have a question you’d like an expert to answer, please send it to climate.change@stuff.co.nz I would like to know to what extent regenerative agriculture practices could play a role in reducing carbon emissions and producing food, including meat, in the future. From what I have read it seems to offer much, but I am curious about how much difference it would make if all our farmers moved to this kind of land management practice. Or even most of them. – a question from Virginia To identify and quantify the potential of regenerative agriculture to reduce greenhouse gas emissions, we first must define what it means. If regenerative practices maintain or improve production, and reduce wasteful losses on the farm, then the answer tends to be yes. But to what degree is it better, and can we verify this yet? Let’s first define how regenerative farming differs from other ways of farming. For example, North Americans listening to environmentally conscious media would be likely to define most of New Zealand pastoral agriculture systems as regenerative, when compared to the tilled fields of crops they see across most of their continent. If milk and meat-producing animals are not farmed on pasture, farmers must grow grains to feed them and transport the fodder to the animals, often over long distances. It’s hard to miss that the transport is inefficient, but easier to miss that nutrients excreted by the animals as manure or urine can’t go back to the land that fed them. Healthy soils Returning nutrients to the land really matters because these build up soil and grow […]

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Urgent need for primary sector career pathway

The Tractor and Farm Machinery Association (TAMA) welcomes the challenge posed by the Minister of Agriculture to focus on training New Zealanders rather than continuing to rely on seasonal migrant workers. Minister Damien O’Connor spoke at the recent inaugural TAMA conference and in response to questions following his speech said the continued reliance on migrant workers during seasonal spikes was “problematic”. “Focus instead should be on the long term and therefore on training our own to be part of the most noble industry – feeding the world.” This need to train young people was echoed by TAMA president John Tulloch who said the tractor and farm machinery sector had to work together to develop a strong career pathway. “There are many exciting and challenging career opportunities within our sector, especially within the technology area, but school leavers need to be made more aware of them,” Mr Tulloch said. Mr O’Connor said such investment in labour in the primary sector was long overdue. “This industry has invested a lot in land, a lot in technology and a lot machinery but we’ve invested as little as we can in labour.” “The system has failed because we just don’t have enough skilled people. We need to deliver what the economy needs. At the moment we have fewer people going into vocational training and far less coming out. We don’t want to disrupt unnecessarily but we do need to change things.” The need for skilled workers was the major theme of the conference with many other speakers pointing to this as being a more pressing issue for the industry than rising costs and extreme weather events. The first-ever TAMA conference was attended by about 70 people from across New Zealand, including farm machinery importers, manufacturers and retailers.

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