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

No welfare issues for feedlot

Animal-rights organisation Save Animals from Exploitation (SAFE) are calling to ban intensive feedlots, which it termed “the Americanisation” of agriculture.

ANZCO's profit plunge

ANZCO Foods Ltd has reported a pre-tax profit of $1.8 million for the year ended December 31, 2017 — 90% lower than the previous year.

Big NAIT changes needed

An expert in data management in the meat industry is calling for a fundamental change in the technology used in the NAIT (National Animal Identification and Tracing) system.

Featured

Gong for working with nature

A Leeston dairy farmer’s adoption of regenerative agriculture has won him North Canterbury Fish & Game’s Working with Nature Award for 2019.

 

Do you need an upgrade?

Dairy infrastructure can have a major impact on milking efficiency and the comfort of cows and milkers, says DairyNZ.

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Appropriate

Your canine crusader reckons it is ironic – and highly appropriate – that Shane Jones’ $3 billion electoral slush fund…

Funny names

Over the years, a mate of the Hound’s has always been quick to point out to him people in roles…

» Connect with Rural News