Meat company Anzco Foods has recorded a $60m-plus profit turnaround for the 2019 year.
“In 2019 we made record payments to farmers for the second year in a row ensuring the benefits of higher market prices have been shared across the value chain,” says chief executive Peter Conley.
“We regularly measure payments to farmers for sheep and beef, and we have consistently paid premium prices when benchmarked with the wider industry.” Conley says market diversification was an important strategy for the company in 2019, with the business focusing on expanding its beef, lamb and healthcare products in a range of markets including New Zealand, Japan, the UK, Europe, North America, and China.
“As the year progressed, global demand for New Zealand beef and lamb products continued to improve which provided a sustained period of higher market returns.
“Despite the risks of volatility and the emergence of trade-related conflicts in global markets, red meat pricing increased steadily during the year, with China standing out as a significant market for both beef and lamb products.”
Conley added that the company continued to offer a diversified portfolio of meat, value-add and healthcare products, with Japan, the UK, Europe and North America all remaining integral to balancing market options.
The company says its $11m investment in automation in 2018 at its Rangitikei lamb processing operation had delivered significant gains in 2019.
Chairman Sam Misonou says Anzco continues to contribute to the communities in which it operates through wages, salaries, supplier payments and sponsorships.
“ANZCO Foods’ shareholder, Itoham Yonekyu Holdings (IYH), and board remain very supportive of the business and its overall direction and performance.”
IYH is the nineth largest global meat company.
“We will continue to work closely to expand ANZCO Foods’ expertise in food products, as well as capitalising on benefits from IYH’s experience and global networks,” Misonou says.