Tuesday, 19 May 2020 09:30

Meat processing back to normal soon

Written by  Sudesh Kissun
Meat companies are working hard to achieve normal processing capacity. Meat companies are working hard to achieve normal processing capacity.

Farmers are hoping that processing capacity at meat plants will return to normal within a month.

Federated Farmers president Katie Milne says the meat companies are working hard to achieve normal processing capacity.

“The works assure us they are catching up fast and will be close to normal soon – sheep much sooner than beef,” Milne told Rural News.

“The North Island is further through their kill than the South Island. Hopefully by mid-June things will be near right again.”

Covid-19 meat processing protocols, which require physical distancing between employees to prevent the spread of the virus, reduced the industry’s processing capacity in level 4 by about 50% for sheep and lamb and 30% for beef.

Longer wait times, up to six weeks in some cases, put additional pressure on winter feed resources as farmers were forced to hold on to stock for longer.

Alliance chief executive David Surveyor has told farmers that the company is continuing to increase processing capacity across the network.

“Our plants are running overtime, extended shifts and at weekends,” he told suppliers in an email last week. “We are also transporting livestock from the South Island to the North Island to ease the pressure in the south.”

Surveyor says the co-op is on track to reach its Alert Level 3 target of over 90% capacity for ovine and over 95% for bovine across the network.

“The Meat Industry Association is working on a new processing protocol for Alert Level 2 and there is an expectation this will enable us to increase capacity further,” he says.

Meanwhile, Alliance will be offering a deer supply contract from July through to December 2020. 

Surveyor says this will provide farmers with some certainty, helping manage risk during significant market uncertainty.

He says Alliance has been responsibly managing its inventory and sales.

“However, there does appear to be some inventory build-up in global markets and we expect this to impact sales prices in the short to medium term.

“We continue to have long term confidence in the deer industry,” Surveyor says.

More like this

'A complete dog

OPINION: It's not just a rural banking inquiry that farmers want. Freshwater farm plans are another major headache for farmers.

Action, not words

OPINION: The new Government may be farmer friendly, but it's not love, rather action that farmers want.

Drought classification welcome news - Feds

Federated Farmers Marlborough Province says it welcomes the announcement yesterday that current dry weather in the top of the South Island would be classified as a medium-scale adverse event.

Featured

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as possible.

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Alliance's Pure South cuts win gold

Meat co-operative Alliance Group has bagged four gold medals at the Outstanding NZ Food Producer Awards, achieving top honours for every cut entered.

Dairy demand on the rise

There is increasing evidence that dairy demand is on the upswing, according to Rabobank senior agricultural analyst Emma Higgins.

Fert use tumbles as prices spike

Fertiliser use in New Zealand over the 18 months is about 25% down from what it consistently was for the previous decade or more, says Ravensdown chief operating officer Mike Whitty.

National

Machinery & Products

JD unveils its latest beast

John Deere has unveiled its most powerful tractor ever, with the launch of the all new 9RX Series Tractor line-up…

Biggest Quadtrac coming to NZ!

In the biggest announcement that Case IH Australia/New Zealand has made around its tractor range, its biggest tractor is about…

A different shade of blue for Norwood

Norwood and ARGO Tractors, the Italian manufacturer of Landini and McCormick tractors, have announced an agreement that gives Norwood exclusive…

Kubota tests diesel engines

Kubota last month used the UK LAMMA Show to test the water with its new 200hp, four-cylinder 09-series diesel engines.

Claas rings up some big numbers

The Claas Group finished fiscal year 2023 with a substantial leap in sales that reflected the high demand for agricultural…

» Latest Print Issues Online

The Hound

Too late?

OPINION: Your canine crusader reckons moves by the new government to try and breathe new life into the country's ailing…

Going rogue!

OPINION: This old mutt suggests the new government is going to have to move fast to rein in a number…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter