
Phrases such as carbon neutrality, ready-to-cook portions and forward supply agreements are all becoming a normal part of business for meat companies, and PPCS chief executive Keith Cooper recently gave the company's annual meeting in Dunedin an insight into how it was
no longer appropriate to label the meat industry a dinosaur.
Mr Cooper said international customers required suppliers to account for the sustainability and environmental impact of production systems and some markets were seeking to differentiate local and imported products by carbon emissions and food miles.
This was despite scientific analysis which showed energy inputs were lower for New Zealand meat exports than for local equivalents.
In response, PPCS, which will be renamed Silver Fern Farms later this year, has added the position statement "Silver Fern Farms - natural and carbon conscious'' in all company emails.
Mr Cooper said the statement highlighted that its products were natural and raised from pasture-fed animals, acknowledged that while the business had a carbon footprint it was taking steps to minimise it, and was a reminder to staff to consider the environment.
"While we are some way off achieving carbon neutral processing operations, we see this as a desirable goal in both environmental and, as the cost of carbon increases, economic terms.
"We have already begun initial work to quantify carbon usage.''
He said an example was the $12 million upgrade of the company's Finegand waste treatment plant, which will provide feedstock for a new bio-fuel boiler.
The boiler would start operation later this year and the technology required less coal.
Changes to procurement systems were a sign of the future, Mr Cooper said.
Its new procurement model, introduced in May last year, offered transparent pricing, supply to specification on grades and quality, volume quality supply agreements, guaranteed processing space and pricing, and an end to third party deals.
Mr Cooper said that plan had now gone further, with PPCS now offering guaranteed minimum pricing on all forward supply agreements.
It gave suppliers certainty of minimum value, encouraged sheep farmers to stay in business, allowed the company to invest in 12-month marketing programmes, gave certain and clear incentives to farmers and allowed PPCS to manage its processing facilities better.
The meat industry had long recognised that changing demographics meant the Sunday roast leg of lamb was becoming an endangered dish, and Mr Cooper revealed PPCS had been developing new leg cuts aimed at younger consumers.
The development of sub-primal, portion-controlled, easy-cook cuts would also reduce reliance on the UK by creating higher unit returns and greater efficiency from delivering smaller consumer portions and greater profits.