Those involved in the Red Meat Profit Partnership aim to
help improve the profitability of sheep and beef farms.
Photo from ODT files.
Beef and Lamb New Zealand chairman Mike Petersen believes
there is a significant opportunity to improve profitability in
the red meat industry through the Red Meat Profit Partnership
The partnership, which is now under way, is supported by the
Primary Growth Partnership and involves the Government and
co-investors Alliance Group, ANZCO Foods, ANZ, Beef and Lamb
NZ, Blue Sky Meats, Greenlea Premier Meats, Progressive
Meats, Rabobank and Silver Fern Farms.
It will invest $64 million in the red meat sector over the
next seven years.
The significance of the collaboration could not be
underestimated, as it drew together a big part of the red
meat processing industry, along with farmers and two banks,
with the common goal of improving the profitability of sheep
and beef farms, Mr Petersen said.
''Profitability has been too variable and insufficient in
recent years but, through this collaboration, there is a
significant opportunity to improve it,'' he said.
Rabobank New Zealand chief executive Ben Russell said the
imperative for change and innovation in the industry was at
an all time high, with the industry along the entire value
chain facing many challenges.
''In recent years, many farmers have voted with their feet by
leaving the industry, due to low and inconsistent
''If this trend is to be stopped, we need to see more
consistent on-farm returns for farmers. That is the goal of
the RMPP,'' Mr Russell said.
ANZ's commercial and agri managing director Graham Turley
said the red meat industry was performing well below its
''One of the goals of this project will be to increase volume
and certainty over the supply of livestock which will support
initiatives to increase our market opportunity,'' he said.
Alliance Group chief executive Grant Cuff said the company
looked forward to contributing to the knowledge and
capabilities of those working in the sector and exploring
better ways to deliver information and tools to support
farmers making key decisions for their business. Meanwhile,
Beef and Lamb New Zealand's lamb crop report, released this
week, showed the number of lambs tailed nationally was down
4.7% on last year.
A total of 25.5 million head were tailed - 1.3 million fewer
than 2012 - making it the second smallest crop in nearly 60
The figure was higher than many might expect, given the
impact of last season's drought on ewe numbers and ewe
condition at mating, Beef and Lamb NZ economic service chief
economist Andrew Burtt said.
Export lamb processing numbers were expected to drop 6.8% to
19.5 million head, making 2013-14 the third lowest export
lamb total since 1960.
However, the average export lamb slaughter weight was
expected to increase 2.3% to 18.4kg, due to lower stocking
rates and more available feed.
That weight increase would not be enough to offset the drop
in numbers and total lamb production was still expected to be
down by about 5%, Mr Burtt said.
Mutton processing numbers were expected to be well back on
last season, down 20% to 3.3 million.
In Otago-Southland, ewes to ram in the region remained almost
static at 6.6 million. The region's lamb crop was down 1.9%
on the previous spring to 8.9 million lambs, 35% of the New
Zealand lamb crop.