SFF expands new contracts

Silver Fern Farms says it has listened to concerns about its inaugural Backbone supply contracts last year, and made changes to simplify them.

The meat co-operative has also expanded new contracts offered for this season, linking suppliers of lamb with new customers.

Contract prices will be announced in the next month.

This year was shaping up as big year for Silver Fern Farms (SFF), which last month was given shareholder approval for a new capital restructuring programme and in October will launch its global branded consumer lamb and venison product range.

That launch would be in New Zealand and, with the help of several All Black rugby players, at high-profile events with the Intermarche supermarket chain in France.

In 2010 those product ranges would be rolled out in Greece, Italy, Germany, United Kingdom and Switzerland.

SFF livestock marketing manager Grant Howie said the Backbone contracts were a key to supplying that product range, but also UK and European retailers with which it has formed supply partnerships.

Farmers can choose between two Backbone programmes.

The committed supplier programme linked the delivery of stock to a designated period for which farmers would be paid a weekly schedule plus 10c a kg supply premium for lamb, and 5c a kg for beef and venison.

The integrated supply chain programme rewarded farmers with a contracted price for supplying stock which met customers' criteria and specifications.

Those contracts were: Lamb Backbone partnership club, M&S Lamb, organic lamb, North American Lamb, Backbone prime beef, Backbone bull, Backbone cow, Backbone Angus beef, Backbone Angus bull, Backbone Angus cow and venison Backbone partnership.

Mr Howie said the M&S Lamb partnership supplied the giant UK supermarket, while the new Backbone partnership club supplied lamb to Tescos in the UK, Intermarche in France, Migros in Switzerland, Denmark's Coop and CITTI in Germany.

Mr Howie said he hoped the committed supply programme would see the supply of 90% of SFF's lamb, venison and prime cattle needs for the coming season, and half its bull beef and cow requirements.