And while the likes of international tourism and education suffered significant blows, NZ farmers and meat processing and exporting companies continued delivering for the country.
The sector performed strongly, exporting almost $10 billion of lamb, beef and co-products across the globe, while at the same time taking unprecedented measures to keep our people safe.
This success was in large part to the sector’s resilience and adaptability, which meant we were able to weather the covid-19 storm. The agility of our meat companies in the global marketplace and NZ’s strong trade networks through bilateral, regional and multilateral trade agreements also proved crucial.
Fortunately, the sector regained some of its social license to operate as public perceptions of the agribusiness started to improve.
Our revised red meat sector strategy, released in December, was born from the need to tackle the challenges and make the most of the opportunities facing the sector with better coordination and focus on the priority areas that matter most.
The strategy sets out a clear road map to help navigate the future and ensure we stay on course. This blueprint is now more important than ever because many of the challenges that we faced in 2020 remain.
As an export-focused nation, trade is of course our lifeblood. The UK has now left the EU and the disruptions in the marketplace will have ripple effects globally.
Fortunately, we have been preparing for a range of scenarios since the UK voted in favour of Brexit in 2016 and had solid contingency plans ready to roll out to ensure our valuable exports to the UK and EU face minimal disruption.
While we continue to strongly oppose the split of our World Trade Organisation (WTO) sheep and beef tariff rate quotas, companies have the practical tools to continue to trade under the new environment.
We also have free trade negotiations in play with the EU and the UK respectively, which are opportunities to set a high benchmark for modern trade rules that encompass market access for sheep and beef products, as well as our best practice around food safety, animal welfare, environmental stewardship and inclusivity.
Unfortunately, many parts of the UK and EU are continuing to experience covid-19 lockdowns. This will impact how our products are sold and consumed. Food service channels will be disrupted once again and we will see the effect in the price we are likely to get for our exports and potentially a build-up in certain products.
Similarly, there will continue to be covid-19 spikes in the US and this is likely to further impact the food service trade. It is possible we will see a repeat of US domestic production disruption as well as supply chain disruptions.
China will continue to be a significant market for our sheep and beef. It is expected that Chinese demand for safe and high quality food will continue to grow as the country recovers from covid-19.
Demand around the Lunar New Year holidays will be key to maintaining the current strength in this market. We are in a good position to help meet some of that demand. The whole industry’s Covid-19 Safety Processing Protocols have kept the virus out of our plants and have been instrumental in keeping our exports flowing.
We now need to remain vigilant and capitalise on our excellent track record. We are planning a multi-discipline cooperation programme to partner up with our Chinese counterparts to advance the economic development of China’s red meat industry through the application of a robust, certified supply chain performance system. This is an exciting development and we hope it will lead to a stronger mutual understanding and relationship.
More broadly, the work we completed with the Ministry for Primary Industries (MPI) last year on market access analysis and prioritisation provides a solid base for maintaining and opening global markets for our products, especially in these uncertain times.
Domestically, last year we saw the introduction of a number of major policies around climate change, freshwater, workforce and immigration. If these are not managed carefully, they will significantly impact the sector.
We are advocating for a pause on new policies to allow time for proper implementation, because in absence of that, even the best policies run the risk of not achieving the desired objectives.
Despite these significant challenges, the sector is well prepared and is ready to continue to engage and partner with the Government to find practical and effective solutions.
The He Waka Eke Noa Climate Change Commitment Partnership is making progress on approaches and tools to measure and reduce greenhouse gases.
Independent research is being done on the carbon footprint of NZ sheep and beef to provide credible evidence to support our environmental stewardship credentials.
Covid-19 saw an increase in the unemployment rate, however we are still facing a labour shortage, which needs to be tackled. Immigration is part of the solution and will continue to be important for the future prosperity of the sector, particularly in specific skills areas such as halal workers, which cannot be easily filled domestically.
Immigration New Zealand (INZ) released a suite of visa extensions in December 2020. While this alleviates the immediate concerns, it is not a permanent and sustainable solution
We are also focused on workforce development to attract, train and retain skilled New Zealanders in a wide range of roles in the processing sector. As one of the largest employers in the regions and the largest on-the-job training provider, we have a real opportunity to fix the skills gap and to work with the Government to ensure that the new vocational training system is fit for purpose.
Ultimately, we have a window of opportunity to work with the Government on a workable and cost effective solution to critical workforce shortages.
How the general public, both in NZ and internationally, perceives animal farming and the role of red meat in a healthy and sustainable diet will continue to warrant attention.
Covid-19 has helped to draw consumers back to healthy and wholesome foods, including pasture-raised NZ beef and lamb. The opportunity ahead is to use this to our advantage and we are eagerly anticipating the results from a major new research programme assessing the health and wellbeing benefits of eating pasture-raised beef and lamb compared to grain-fed beef and plant-based alternatives.
Much of the global research on the health, nutritional and environmental aspects of red meat is based on intensive grain-finished farming systems. The Pasture Raised Advantage research programme brings together leading researchers from AgResearch, the Riddet Institute and the University of Auckland, and includes two groundbreaking clinical trials to look at the impact of including red meat in a diet within the NZ context.
We know there are myths and misinformation about the production and benefits of eating red meat, so we have turned to research to help bring balance to what consumers are hearing and to help them make informed choices.
This important research is supported by Meat Industry Association Innovation Ltd (MIA Innovation) and jointly funded with Beef + Lamb New Zealand Ltd (B+LNZ), the High-Value Nutrition National Science Challenge and the Ministry of Business, Innovation and Employment (MBIE).
2020 was an extraordinary year with many unprecedented developments. It took a great deal of energy and hard work to navigate the “new normal” and we all sighed a breath of relief when the Christmas break began.
And while 2021 will no doubt be different – there are headwinds ahead – we are resilient and prepared to achieve our goal of growing sustainable value together.
Who am I? Sirma Karapeeva is the chief executive of New Zealand’s Meat Industry Association.
