Monday, 30 March 2020 08:49

COVID-19: Meat plants’ capacity down, prices under threat

Written by  Staff Reporters
Alliance's plants have seen a 50% reduction in ovine capacity and a 30% reduction in bovine capacity. Alliance's plants have seen a 50% reduction in ovine capacity and a 30% reduction in bovine capacity.

Meat processor Alliance is warning farmers to brace for a drop in prices for their lamb and cattle.

In an email to farmers last night, Alliance chief executive David Surveyor says the COVID-19 situation remains challenging for the co-op and wider meat processing industry.

The co-op’s plants have resumed processing under the new rules and restrictions set by the Government but with reduced capacity: 50% reduction in ovine capacity and a 30% reduction in bovine capacity. There is no impact on cervine capacity.

“This means a new way of working for our people and we will look to increase capacity as we learn how to optimise the operational constraints created by Alert Level 4,” he says.

“This is likely to be common across the industry. We are, as always, prioritising livestock from Platinum and Gold shareholders.”

Surveyor told farmers that the pricing volatility and the changed operational run modes for its plants means the co-op is significantly less efficient as a result of COVID-19. 

“Although we are holding the livestock schedule this week, it is likely to cause downward movement in prices. 

“We will do our best to minimise the extent of this, but it is unlikely we will be able to absorb the full impact.”
The co-op is asking farmers to hold back stock until capacity steps back up.

“From a farmer perspective, we know you will be considering what this means about timeframes for when your animals will be processed, and we will be providing you with clarity on this going forward,” Surveyor says.

“We are asking that farmers who are in a position to do so, prepare for holding stock for longer periods until the capacity steps back up. We would also appreciate it if farmers can let their livestock representative know, so we can prioritise those farmers facing drier conditions on farm.”

More like this

Editorial: Time for change

OPINION: With election day only a few days away and advance voting well underway, there appears to be a mood for change in rural and provincial New Zealand.

Putting meat on the bone

NZ's red meat sector says it is committed to playing its part to address climate change, improving our waterways and protecting New Zealand's biodiversity. However, it wants a future Government to implement these policies in relation to the environment and climate change. Nathan Guy, Meat Industry Association, and Kate Acland, Beef+Lamb NZ explain.

More pain yet!

China's slower than expected recovery from Covid-19 and an oversupply of Australian sheep meat is causing problems for NZ sheep farmers.

Featured

Vet fund to support recovery

A new initiative to support North Island farmers recovering from flooding and Cyclone Gabrielle with veterinary services receiving $2.6 million from the Ministry for Primary Industries.

Lamb prices chopped!

BNZ's latest Rural Wrap report shows lamb prices for mid-November 2023 tracking around 25% below 2022 levels.

New Government has a lot to do

Former agriculture minister and speaker of Parliament Sir David Carter says the new National-led coalition faces significantly more important issues to deal with than previous governments.

Dairy prices hit six-month high

Following the latest Global Dairy Trade (GDT) auction overnight, dairy prices are now sitting at their highest since June.

Christmas gift for farmers

The repeal of Fair Pay Agreements (FPA) legislation by the new Government will be a great Christmas gift for farmers and rural service businesses, claims Federated Farmers.

National

Better laws for farmers

The new chair of Parliament’s primary production select committee, Mark Cameron, is promising “better law making” for the sector.

Tough outlook for 2024!

It's now official, in the coming year the value of NZ's dairy, meat and forestry exports will be down significantly…

Machinery & Products

New MF tractor series launched

Massey Ferguson has announced the launch of the new MF 9S Series, which includes six models with powers from 285hp…

Simple, practical hay rakes

Grassland specialists Kuhn has extended its Gyrorake offering with the addition of the GA 8731+ and GA 9531+ models.

» Latest Print Issues Online

The Hound

Hiding something?

OPINION: A colleague of this old mutt’s was less than impressed by the antics of a regenerative dairy farming couple’s…

Taking the p%ss!

OPINION: Your old mate understands that researchers at AgResearch are not taking the proverbial with their latest scientific revelation.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter