The Alliance Group has cut its greenhouse gas emissions by
22% a unit of production since 2000 and hopes to help its
farmer suppliers do the same.
The co-operative's chairman, Owen Poole, said it was working
with consultant AbacusBio to develop a carbon and energy
audit, and bench-marking system, to help sheep, beef and deer
farmers assess their emissions.
They also needed to utilise opportunities found in the
Government's mitigation policies.
Mr Poole told shareholders at the recent annual meeting in
Invercargill that Alliance had met the international
environmental standard ISO 14001 and implemented an energy
management programme to assess the company's energy use,
which included monitoring its emissions and overall carbon
footprint.
Also, both Alliance and Silver Fern Farms are looking at
opportunities to secure a source of sheep meat, as well as
sell products, in South America.
"The region offers potential benefits as a market for
Alliance Group and also as a source of product supply to
ensure the company meets international supply commitments
during New Zealand's winter months.
"More supply provides more control in the markets that we
serve," Mr Poole told shareholders.
While New Zealand's temperate climate offered excellent
conditions to grow food and crops, Mr Poole said the country
was geographically isolated and meat production was seasonal
and incurred significant freight costs.
"New Zealand's production cycle is generally seasonal,
predominantly over a six-month period from which companies
endeavour to service markets for 12 months of the year," he
said.
This mismatch created market and foreign exchange risks, he
said, which companies addressed by supplying frozen product.
Unfortunately, this limited market opportunities.
In contrast, most sheep meat in South America was consumed in
the market in which it was produced, which meant producers
there did not have the risk of storing product.
"They can supply the product fresh on a consistent basis.
There are no long transportation requirements and,
accordingly, freight costs are minimised. There are no
exchange-rate risks involved and cash-flow cycles are
measured in days rather than months."
