MEATY MATTERS: Alliance puts spin on poor result

It was a profit but, as Alliance chairman Murray Taggart said “We don’t budget to make $8 million on turnover of $1.8 billion”.

The just-announced 2018 result compared with the previous year’s operating profit of $20.2m though after pool payments the 2017 profit was only 11% higher than this year’s. 

MEATY MATTERS: Structure kills Fonterra growth

Fonterra's trials and tribulations have led to a rising crescendo of criticism of the co-operative’s performance since the release of the 2018 annual report. 

Declining share value and dividend payments, fluctuating milk price, inadequate return on capital, failure to match international and domestic competitors’ financial performance, failed investments, rising debt ratio and overpaid staff are the most notable criticisms.

MEATY MATTERS: Strong progress on origin brand

Red meat origin brand Taste Pure Nature is on track to be launched early next year in California, more specifically in the target cities of San Francisco and Los Angeles, with the full support of parties across the industry.

MEATY MATTERS: Meat firms can’t blame others

Seven years ago, the last time lamb prices were as high as they have been for the last 12 months, overseas customers suddenly decided enough was enough and turned off the tap, causing a sharp drop in price that reached its low point of less than $4.50 a kilo more than a year later.

MEATY MATTERS: Japan a country of contrasts

After three weeks on holiday in Japan I am still reeling from the enormous contrast to any other country I have ever visited. 

When I first went there on business 40 years ago I was getting used to life in New Zealand after migrating from the United Kingdom so probably didn’t register the size of the contrast, apart from the total lack of any street signs in English and the politeness of the people. 

MEATY MATTERS: Multi-pronged approach to strategy

Since announcing its environment strategy in May, the Beef + Lamb New Zealand team responsible for developing the plans, processes and tools to help farmers achieve the ambitious goals of being carbon neutral by 2050 and every farm having an active farm plan by 2021 has been working flat out to get the right farm planning systems in place.

MEATY MATTERS: World not yet falling apart

Much to a lot of people’s surprise the global economy is resisting the dire predictions of many commentators, just as the New Zealand economy continues to perform much better than businesses are prepared to accept.

MEATY MATTERS: Nait still has long way to go

Nait is like a long running soap opera viewers can watch faithfully for a couple of years, go back to after a long absence and find nothing much has changed. 

MEATY MATTERS: Confidence despite headwinds

Since I attended the 2016 Red Meat Sector conference having missed last year’s, several things have changed considerably: two years ago Donald Trump wasn’t United States president, Silver Fern Farms hadn’t concluded its capital-raising with a Chinese investor, alternative proteins and non-meat burgers weren’t on the industry’s radar and there was little recognition of the need for a Red Meat Story.

MEATY MATTERS: Farmer groups must lead change

Red Meat Profit Partnership Action Groups are a key initiative of the $64 million Primary Growth Partnership project jointly funded by farmers via Beef + Lamb New Zealand, six meat processors, two banks and the Government through the Ministry for Primary Industries.