Friday, 17 May 2013 16:34

We’re here to stay – ANZCO chair

Written by 

REMOVAL OF excess capacity is a key to breaking the impasse in the meat industry, says Anzco Foods chairman Sir Graeme Harrison. 

 

This will ultimately be achieved, either in a relatively orderly way or through company collapses, he says. “Either way, Anzco Foods as a predominantly beef company intends to remain a part of the New Zealand meat industry,” Harrison told Rural News.

His comments come as farmers make another push for merging co-ops Silver Fern Farms and Alliance in a bid to lift returns. However, combining the co-ops is unlikely to be enough to change the industry’s performance, strategy and structure.

SFF and Alliance collectively hold a market share of only 53%. Adding the private Affco and Anzco companies would bring total processing capacity to nearly 80%.

According to Harrison, Anzco supports the objective of New Zealand meat industry consolidation. But it is a strong believer in the importance of creative tension, regardless of the business sector, he says. “It has been unfortunate that focus has been given to the model of a single dominant player.

“ANZCO owned no slaughter plants 20 years ago and was a sheepmeat company, yet has transformed itself to become the industry’s second largest beef processor.  It is important that such an opportunity is never lost to some other future industry player to be able to do the same, whether it is farmer or privately owned.”

Harrison, who has been associated with the meat industry for 40 years, also holds directorships in dairy and fishing sector companies.

He says land use competition with dairy and dairy support is the major challenge facing the red meat sector.

While improved market access and consumer demand in Asia looks set to improve the prospects for beef, the sheep sector will continue to be highly challenged unless returns for all items, and especially wool, can be lifted significantly, he adds.

More like this

ANZCO return good result

Meat processor ANZCO Foods has reported an annual turnover for 2022 of $1.90b - compared with $1.64b for 2021 - and net profit before tax of $147.7m (2021 $75m) for the 2022 financial year.

50 GHG workshops in 30 days

Beef + Lamb New Zealand (B+LNZ) has joined forces with Silver Fern Farms, Alliance, Greenlea Premier Meats, ANZCO and Deer Industry New Zealand (DINZ) to deliver 50 Greenhouse Gas workshops over the course of 30 days.

ANZCO posts record profit

Meat processor and exporter ANZCO Foods has joined other NZ agri-sector businesses and reported a record net profit of $75m for the 2021 year.

Featured

EPA Approves Beetle to Tackle Chilean Flame Creeper

Environment Southland is welcoming this week’s decision by the Environmental Protection Authority (EPA) to approve the release of Blaptea elguetai, a leaf‑feeding beetle that will help control the highly invasive Chilean flame creeper.

Celebrating Women in NZ’s Potato Industry

This March, the potato industry is proudly celebrating International Women’s Day on 8 March alongside the International Year of the Woman Farmer, recognising the vital role women play across every part of the sector — from paddocks and packhouses to research, leadership, and innovation.

National

Remediation NZ Fined $71k Over Compost Site Odours

Remediation NZ (RNZ) has been fined more than $71,000 for discharging offensive odours described by neighbours as smelling like ‘faecal and pig effluent’ from its compositing site near Uruti in North Taranaki. 

Machinery & Products

» Latest Print Issues Online

The Hound

Penny Pinching

OPINION: A mate of yours truly reckons rural Manawatu families are the latest to suffer under what he calls the…

New Order

OPINION: If old Winston Peters thinks building trade relations with new nations, such as India, isn't a necessary investment in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter