Saturday, April 20, 2024

Big win for meat

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The meat industry has had a fresh win in China with the biggest batch of processing plants approved for export in three years. 
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In the past two months eight processing and cold storage facilities were given the green light to export to China.

Another three had existing listings upgraded to include additional species.

It was the most dished out by Chinese authorities since 13 plants were rubber-stamped for export in the middle of 2014.

Despite the lengthy wait by some companies, industry sources said the approvals underlined NZ’s privileged position in the market with well over 100 meat plants and cold storage facilities now qualified to export there.

By contrast in Australia just 47 out of 88 export-registered plants had China listings.

That shortfall was estimated to be costing the industry there more than $200m a year in lost earnings and related auditing costs.

Of the major companies to be included in the latest round of approvals Hamilton-based Affco appeared to be the biggest winner with its Horotiu beef plant included after several years of trying.

Director Rowan Ogg said it was a significant development for the company as Horotiu was its biggest beef operation and meant that now all but one of its processing plants could export directly to China.

“Clearly, the benefit of this is being able to widen the number of markets that we can send product to from each of our plants.”

Ogg said it was likely Affco would now be able to do more business with China.

“All things being equal it will probably result in that.

“Previously we would not necessarily have transported stock around because the extra costs may or may not have been recouped by the China market option.”

As with its other plants Horotiu was approved for most other major markets and didn’t require significant capital works to meet Chinese regulatory standards, Ogg said.

In common with other plants, tripe could still not be exported to China.

Single-plant operators Auckland Meat Processors and Te Kuiti’s Universal Beef Packers were also among companies given the green light to begin trading directly with China in the past few months.

AMP managing director Fred Hellaby said listing for its Otahuhu plant had been in the pipeline for several years.

The plant was visited by officials from China’s Certification and Accreditation Administration (CNCA) before being given the all-clear by the General Administration of Quality Supervision and Inspection and Quarantine (AQSIQ) in Beijing.

“It took a few years and it was a lengthier process than initially we were hoping it would be.

“But there were quite a lot of things for the officials to look at and we are pleased that they have now been worked through.”

Although AMP was focused on the local trade to pay competitive prices for livestock it was important for it to be able to access the full range of export markets, Hellaby said.

“The meat industry is enormously competitive. Offals and by-products are fully priced into the schedule and if you are not accessing those markets then you are really disadvantaged.”

Hellaby said AMP could start exporting to China more or less immediately.

“Literally, it is a matter of printing labels that are correct for that market . . . once approved it moves through pretty quickly.”

Others understood to have won new listings included Silver Fern Farms, Te Kuiti’s Crusader Meats and a single plant operator in Taranaki.

The Ministry for Primary Industries said there were 10 processing and cold store premises still to be approved by China as well as others awaiting the inclusion of additional species at plants already listed for export.

They included Affco’s Castlecliff beef and pork plant at Wanganui, which was only recently upgraded to export standard.

Also still in the pipeline was approval for NZ plants to begin selling chilled meat to China.

Despite Prime Minister John Key saying in April that trade could begin in a matter of months the two countries had yet to finalise the necessary export protocols.

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