THE meat industry has come a long way since Tim Ritchie got involved and a decision made on the far side of the world about then that has provided the biggest advantage to the sector here in the years since.
Though it might not have seemed like it at the time, in retrospect Britain joining the then European Economic Community in 1973 was the best thing that could have happened for New Zealand farmers.
It meant NZ could no longer just sit back and send its sheep meat to the United Kingdom so exporters had to look further afield.
“It forced us to look at the world as a global market rather than concentrate on one or two narrow areas like the United Kingdom and North America.”
The challenge that’s followed has been getting as many countries’ front doors open to NZ agricultural exporters as possible.
One of the real pluses for the industry as it broadened its horizons was that rather than continuing to rely on a traditional focus of exporting whole carcases, processors, marketers and exporters had to learn how to take them apart then export the parts to different markets that would pay the most for them.
Despite his many years in primary sector roles Ritchie did not come from a farming background though he had links to rural life through his father working in the stock and station industry and his mother being from a Canterbury farming family.
His mother’s side of the family also had connections to White Rock Station in Wairarapa and Ritchie is still a major shareholder there today.
After graduating from Lincoln with an agricultural science degree majoring in marketing and economics he joined the Treasury in 1974, working in agricultural and trade policy areas before moving to the Freezing Companies Association and the Meat Exporters Council as secretary/economist.
It was the start of a long career in the NZ meat industry, based in NZ and Europe, which has included spells with Waitaki, Towers International and Advanced Foods along with a number of roles at Meat NZ, the NZ Meat Producers Board and Meat and Wool NZ.
Ritchie was Meat NZ’s general manager for Europe, based in Brussels, during the foot and mouth outbreak in the UK in 2001 that led to more than six million cows and sheep being slaughtered in what was an eventually successful attempt to halt the disease.
Not only did that job involve working closely with the European and particularly UK farming industries as they dealt with the crisis, he also helped lead the NZ meat industry’s approach of quietly capitalising on opportunities created without overstepping the mark and being accused of benefitting from the misfortune of the UK domestic industry.
He says his earlier time in Europe in the 1980s managing Waitaki’s interests was an electrifying few years, with boat after boat of meat arriving at a time when demand from traditional butchers, who broke down the frozen lamb carcases for their customers, was reducing, requiring a switch in focus to developing relationships with supermarkets that wanted the packaged cuts directly from NZ, frozen and chilled.
His role as Meat Industry Association chief executive, which began in 2007, was initially for 18 months, the contract designed to facilitate the merging of meat-related, whole of industry organisations, something that in the end did not happen.
He stayed on and these days the association is a voluntary membership organisation for NZ’s red meat processors, marketers and exporters. Given more than 99% of those involved in the industry are paid up members he thinks it must be doing something right.
The industry is in good heart, he says, despite global uncertainty over coronavirus and a few sticking points around international trade, including continued uncertainty over what Brexit will look like.
“There’s some really good collaboration going on and a recognition that competitors are not themselves but other proteins.”
In an industry that has traditionally involved some big egos there’s now an understanding that, rather than looking at other red meat processors the real competition is coming from industrial-produced proteins like pork and poultry.
“It makes sense for companies to collaborate rather than focus on each other. The industry has matured in that sense.”
It is, however, a tough industry where margins are slim so, despite a diverse ownership structure involving co-ops, overseas and family groups, there is very little public ownership.
“It’s not like the dairy industry where the tanker comes up the drive every day, reinforcing the relationship between supplier and processor.”
The highly competitive nature of the industry, which can resemble a rollercoaster at times, is exacerbated by the climate.
“It’s dictated by the colour of the grass. When it’s green farmers have the leverage and when it’s yellow it’s the meat company.
“You have to look at both sides of the farm gate to get the real picture of industry profitability.
“But there is absolute interdependence and the more we realise that and work together, the better.”
He says the meat industry, especially when it comes to lamb, is sometimes too critical of itself.
“While it’s good to think that you can always do better we need to remember that we are world class and the rest of the world recognises that.”
The dynamics of the industry are constantly changing and international meat trade can be affected by adverse events in different countries, such as covid-19 or African swine fever.
It’s times like that when having trade open with a variety of other countries is important because it can offer a plan B.
“Sure, that might be at a lower price but at least it’s moving (product).
“The industry now has more resilience and agility built into it.”
Ritchie will look for other opportunities, such as in governance, where he will be able to apply his skills and experience though those roles won’t be full time.
“I’d like to give back in some way and it’s important to keep using your brain.”
He will, however, miss an industry he has enjoyed being a part of for many years.
“Every day is different and you never know what is around the corner. If you enjoy that sort of working environment it’s hard to leave.”
Stepping down will mean he can spend more time maintaining his 4.5ha lifestyle block in Wairarapa where he and wife Deb have lived for the past three years, running a few cattle.
He also has an interest in manuka honey and has hives both at home and in bush blocks at White Rock Station.
He leaves the association in good hands, he says.
“It’s a small team but one that’s very focused on delivering outcomes for members.”
He’s pleased his replacement Sirma Karapeeva, the trade and economic manager who has been with the association since 2015, has a thorough understanding of the meat industry.
“Sirma will bring different strengths and she has a strong background in trade.
“She will take things to new heights.”
