Issue 3 | October 2021
Our Livestock Representatives Getting to know your Livestock reps Page 16
Making Ends Meat during COVID-19 Protein donations given to South Island foodbanks Page 19
Take Advantage of your points this Christmas From family trips to summer entertainment Page 7
WHAT’S YOUR REASON? Another great season with my mates.
Helps keep me fit.
Jenny, Misty, Trish and Annaliese, Further Lamb Processing
Stacy, a Labourer in Further Lamb Processing
For my next adventure.
For their future.
Lucas, a Labourer in Further Lamb Processing
Sarah, Compliance Auditor and Isaac, Maintenance Engineer
Join our team of processing workers. Apply now! careers.anzcofoods.com
WELCOME TO ADVANTAGE
Welcome
Contents
When ANZCO set up the Advantage programme in January this year it was an industry first. We wanted a way to recognise your loyalty and reward the behaviours we need to manage plant capacity and get stock when we need it to meet customer demand. Nine months later the programme is going from strength to strength; it’s driving the behaviours that help us run our business and you’re definitely reaping your rewards. The programme points are available for farm supplies, a range of things for the home and lifestyle, and those of you who’ve redeemed points are doing so across all three of these categories. Our biggest points spend so far is $10,000 on fencing, first aid kits and farm inputs. Others popular items are drones, appliances, clothing, fishing gear and alcohol. Initially Advantage by ANZCO has been offered to lamb suppliers but because of how you’ve embraced it we’ll be extending it next year to grassfed natural beef suppliers who meet the market criteria (for example antibiotic free). If you’re yet to redeem your points or have any questions about the programme you can check out the website anzcoadvantage.com Connecting with farmers is an important aspect of our business. Our Advantage programme is one way we do this. We also know farmers are big radio listeners so we’ve started a partnership with the new radio sports programme SENZ – sports entertainment network – that started operating in New Zealand in July.
From November we’ll have a weekly segment on The Country Sport show and we’ll be involved in regular podcasts and panel discussions covering a range of topics about what’s going on in agriculture and ANZCO. SENZ programmes feature a range of New Zealand personalities including Brendon McCullum, Israel Dagg, Ian Smith and Andy Thompson. It’s on 28 frequencies around the country and there’s an app. You can find out more at www.sen.com.au/nz There’s lots in this issue of Advantage about what’s happening in our sector. We’d welcome any feedback you have – drop us a line at info@anzcoproducers.co.nz Kind regards
2 NZFAP+ A natural progression for Alpine Pastures' Winchmore Farm 7 TAKE ADVANTAGE OF YOUR POINTS THIS CHRISTMAS Redeem your Advantage points 8 GLOBAL MARKET UPDATE An insight into the 2021 market close and into 2022 11 MOVING FORWARD AND FLYING HIGH ANZCO Technology team is taking to the sky 12 MORE WORK REQUIRED TO GET MESSAGES TO FARMERS Becoming accountable for our emissions 14 WOOL JOINS NZ FARM ASSURANCE PROGRAMME Providing the sector a simple process to verify product credentials 16 MEET THE TEAM Introducing Daniel and Gordon - two of our Livestock Representatives 17 OUT WITH THE COAL Reinstating electric options
GRANT BUNTING
General Manager Systems and Supply ANZCO Foods
18 ISAAC WEBSTER Young butcher slices and dices his way to victory 19 HELPING MAKE ENDS MEAT DURING COVID-19 Providing valuable protein to families during lockdown 20 INTERNATIONAL SHIPPING DELAYS CHALLENGE ANZCO'S IN-HOUSE LOGISTICS TEAM Getting ANZCO's processed beef and lamb to the plates of international consumers
1
FEATURE
NZFAP+, a natural progression for Alpine Pastures Farm Becoming a pilot farm for the soon to be launched New Zealand Farm Assurance Programme Plus (NZFAP+) was a natural step for Alpine Pastures’ Winchmore Farm.
Situated on the Canterbury Plains, the property is a 220ha fully irrigated livestock finishing operation which is the centre point of the Canterbury arm of the Spiers family’s Alpine Pastures business. Their primary focus is the supply of 100% grass-fed antibiotic-free beef and lamb; striving to meet their targets, with sustainability in mind, was a key factor in the decision to get on board with the New Zealand Farm Assurance Programme Plus (NZFAP+). Hayden McCambridge (manager) along with Kate Griffiths (compliance manager) run the property alongside Charlie Anderson (stock manager), Derek Barrett (maintenance manager),
2
Advantage | Issue 3 2021
Nathan Hellyer and Simon Molloy. The team manages a total of 500ha, as well as several grazing properties throughout the winter. The Winchmore property became New Zealand Farm Assured (NZFAP) when the programme was first launched. Kate describes NZFAP as a demonstration of best on-farm practice, with emphasis on animal welfare, traceability, chemical usage, health and safety, robust record keeping and comprehensive on farm policies. As well as being NZFAP assured, they also have a comprehensive Farm Environment Plan in place and use Overseer to analyse farm data.
Above: The farm is a pilot farm for the New Zealand Farm Assurance Programme Plus.
3
FEATURE
Right: The farm focuses on supplying lambs for antibiotic-free contracts.
“We are working towards reducing the farm’s carbon footprint and are taking a multifaceted approach to doing this.”
4
Advantage | Issue 3 2021
Overseer is proving to be a valuable tool, as they strive to reduce their carbon footprint. “We are working towards reducing the farm’s carbon footprint and are taking a multi-faceted approach to do this,” says Kate. “This includes an intensive planting programme along with changes to the way in which we manage our stock.” Stock is used as a tool to reduce inputs without compromising performance. Sheep are grazed behind cattle to help manage internal parasites and they try to avoid making baleage, rather using the stock to manage pasture surpluses. As part of the winter crop programme, barley and oats are sown as cash crops and harvested for whole crop silage. These policies are implemented across all the properties that are under their management. The team works closely with their irrigation company, Ashburton Lyndhurst Irrigation Company and their nutrient company Ballance Agri Nutrients to ensure they are making the most efficient and effective use of their water and nutrient inputs.
Kate says while they have always carried out soil tests, they are now testing all paddocks annually and doing more detailed soil analyses, such as Visual Soil Analysis and also more intensive planning around crop rotations and crop varieties. She says the biggest change they have made in recent years is record keeping beyond the standard requirements of the NZFAP. “Now we record everything and we make use of that data. This can seem a daunting prospect, however, once you find a system that works for you and your business, it does become second nature." The farm team uses a combination of computer records along with hard copy record books. NZFAP+ - THE NEXT LEVEL Kate says they have only just started on the NZFAP+ journey and admits it is a lot more involved than NZFAP, with the inclusion of the farm environment, people and biosecurity plans. “There is certainly a lot more data to collate, however this does improve your farming operation in the long run."
“The agricultural community is evolving very quickly and I think it is important to understand that by implementing strategies within your farming business that align to standards within programmes such as NZFAP+, farmers will be in a good position to deal with the changes within agricultural policy which are undoubtedly coming.” After signing up for NZFAP+, farmers are required to carry out an initial self-assessment checklist which is provided by the programme’s auditors AsureQuality. Kate describes the checklist as an excellent idea and found it easy to complete. “It gives you a very good indication as to where your farming business lies in relation to the standard required by NZFAP+." She says it highlights both the weaknesses and positive aspects within an operation, therefore giving farmers the opportunity to start improvements straight away. While their operation is on a journey of continual improvement, Kate says through NZFAP+, they are particularly focusing on biodiversity and have set aside an annual budget to enable native planting on the property. “We will be planting new shelter belts and native plantings on our noncultivatable areas, adding some bee hives and will continue to monitor the wildlife, we hope in time to encourage more native species,” says Kate. She says they are always looking for new ideas on how to improve the biodiversity on their property and she has found a wealth of information that is readily available on-line. IT’S ABOUT PEOPLE One of the aspects of NZFAP+ which Kate really appreciates is the people aspect of the programme. She says staff are the most valuable part of their business and they have staff management plans in place that not only cover the legal aspects of employment, but also staff wellbeing. “We make sure that the team get regular time off farm by organising trips to other farms or agri-related businesses; this is not only enjoyable but informative too.”
"Now we record everything and we make use of that data. This can seem a daunting prospect, however once you find a system that works for you and your business, it does become second nature." All of the Winchmore team is involved with NZFAP+ programme and Kate says they have and continue to contribute enormously. Staff are not only responsible for farm data recording, but also personal training records, which are updated and discussed at their weekly meetings. Earlier this year, stock manager Charlie Anderson started their in-house newsletter to which all staff contribute. It has proved to be a great success, enjoyed not only by immediate staff but also the wider Alpine Pastures company. BIOSECURITY IS A CRITICAL PART OF NZFAP+ Biosecurity is a key facet of NZFAP+ and Kate says this is already discussed at the farm’s monthly health and safety meeting. A local company, Core H & S not only assists them with their health and safety policy but also employment policy and necessary training such as first aid and chemical handling. “From time to time we also invite company reps such as seed reps or chemical reps to update us on any new bugs or disease that may be an issue for us. “With the ever-changing situation in New Zealand with Covid-19 and M.bovis for example, it has been really important for us, all of our staff and outside contractors to be aware that we take threats such as these very seriously. A REWARDING EXPERIENCE While they have just started NZFAP+, Kate says they have found it to be a rewarding experience. “I think it will continue to be rewarding as we see positive changes within our business.” The programme gives them a pathway to follow and they will do a GAP audit every year to see where changes need to be made.
“I would encourage other farmers to get on board. Although preparing for an audit can be quite stressful and time consuming, I feel that the NZFAP+ audit is different; it is more like a progressive audit that you continue to work on while positively changing aspects of your business for the better – and that can't be a bad thing.”
What is NZFAP+? NZFAP+ is a new voluntary standard that builds on the existing New Zealand Farm Assurance Programme (NZFAP). It is a highlevel sustainability programme, which includes the management of people, farm and natural resources, and biosecurity. To take part in the programme, farmers need to have completed NZFAP, the foundation programme. They can then apply to become a member of NZFAP+ and will carry out an initial self-assessment checklist to determine what aspects of their business they need to work on. They are then given up to three years to meet the required standards and be audited by an AsureQuality independent auditor. The cost of the audit is covered by NZFAI member companies with whom farmers have a relationship. A comprehensive handbook has been developed to support farmers as they work towards their NZFAP+ certification, along with a number of other tools and resources which are under development.
5
REWARDS
Turn your prizes into pressies! From family trips and summer entertainment to kids’ toys and the latest tech, the Advantage programme has a Christmas gift for everyone.
For the farm
Fertiliser to fencing
For the home
Cookers to couches
For the lifestyle
Surfboards to skydiving
We all know Christmas can be expensive – which is why it’s the perfect time to use your Advantage points. As a member of the ANZCO Advantage programme, you will have been accumulating reward points. Of course, the real benefit of that is your ability to turn those points into actual things – from appliances, furniture and practical stuff for the farm to surfboards, skydiving adventures and holidays away.
To get your hands on some amazing prizes in time for Christmas, head to anzcoadvantage.com
6
Advantage | Issue 3 2021
Take advantage of your points this Christmas Redeem your Advantage points this Christmas and treat the whole family to an array of wonderful gifts. From tents and cricket sets to speakers, smart watches and everything you need to make the perfect cocktail, you’ll find something for everyone in our rewards shop.
1
2
473 Points
486 Points
Blush Gin
The Gimlet Box
3
Vtech Kidizoom Smart Watch Dx2 - Blue 695 Points
4
European Tour 791 Points
5
Karen Walker Sterling Silver Runaway Girl Charm Necklace
1,425 Points
7
Weber (Q2000) BBQ (LPG) From 3,960 Points
10
Suunto 5 GPS Sports Smartwatch 3,294 Points
8
Torpedo 7 Air Series 500 Tent 4,157 Points
11
6
Ultimate Ears MEGABOOM3 Portable Bluetooth Speaker
From 1,704 Points
9
Makita Chainsaw 18V x 2LXT Brushless 14" DUC353PT2 4,766 Points
12
Samsung Galaxy s21 256GB
Kauri Cliffs Escape
From 7,812 Points
11,064 Points
7
MARKET UPDATE
Global market update How we see global market performance over the coming months.
The last three months of the year are always a busy and very important period, both on-farm and at ANZCO Foods as we look to start the new production season and close out our financial year. From a global market perspective, the last quarter of 2021 looks set to offer a positive end to the year with good demand for beef and lamb allowing us to maintain prices at strong levels. In this edition, I thought I would provide you with some insights specifically on our important sheepmeat business.
CHINA China has cemented its place as New Zealand’s, and ANZCO Foods’, number one market for sheepmeat in 2021, with over half of the industry’s product destined for this market. We expect that this trend will continue and may even increase over the next three months. Q4 is always a
8
Advantage | Issue 3 2021
strong period for demand in China as importers and customers look to fill their coldstores with raw material in preparation for the important Chinese New Year holidays, which takes place in early February 2022. In reality, this stock-building is already well underway with customers generally wary of the ongoing challenges and risks around supply chain and global shipping, which means it is better to have a product in-market early than assume that their orders will arrive on time as may have been the reasonable expectation in years gone by. The majority of China’s demand is in lower value products and cuts such as flaps, but we are seeing a resurgence in interest in higher value cuts, including frozen lamb legs. This was a trend that we started to see in 2019 before the impact of Covid-19 so it is encouraging that this opportunity has reemerged. It has also been interesting this year to work on our chilled lamb strategy in China, where we have our branded Maimoa chilled lamb on the shelf in a small number of high-end retailers. Consumer interest has exceeded our
expectations to date and confidence is building within our retail partners around the ability of the cold chain to ensure that the quality of the product is maintained. While chilled lamb will always be a very small niche in our overall China sheepmeat portfolio, it is a valuable one and a great vehicle for continuing to educate consumers about ANZCO’s values and the New Zealand farming story, with Taste Pure Nature being an important part of our toolkit.
NORTH AMERICA The North American lamb market has recovered extremely well in 2021 as the economy awakens from its Covid-19 slumber and consumer confidence rebounds around the safety of eating out and the viability of the restaurant trade. As I have mentioned in previous reports, one of the unintended consequences of Covid-19 has been the growth in retail demand for lamb and the opportunity it provided us with to
introduce products to a new segment of consumers. The exciting part is that retail demand for our chilled and frozen lamb products has stayed strong despite the return of the foodservice sector over the past six months, suggesting that we have actually grown the overall market. That bodes well for NZ lamb exporters for the long-term and we are very lucky to have an investment in-market through The Lamb Company that is in a strong position to take advantage of this opportunity. Our challenge as a supplier will be ensuring that we can secure sufficient numbers of 100% grass-fed, antibioticfree lamb to feed this demand 12 months of the year, as this is no longer just a premium claim but an expectation from our retail partners in the US. Our second challenge will be the ability of the major shipping lines to get our product into the US market in a timely fashion. The Lamb Company’s business model has traditionally been driven by the value gained from supplying chilled lamb. With the relatively short shelf life for lamb and the distance the product needs to travel by ship to get to market, this chilled supply chain has always been a challenge, but with the issues being faced on shipping, the level of risk around chilled lamb supply has grown exponentially. The outcome of significant shipping delays generally means having to freeze the product down once it arrives inmarket to ensure that we can still sell the product. That inevitably means price discounts. The solutions to this dilemma are potentially two-fold: 1. Airfreight more chilled lamb to take the risk associated with shipping out of the equation 2. Sell more product as frozen to reduce the risk associated with a chilled shelf life. The first is certainly something The Lamb Company has been pursuing this year and will continue to do as we move into 2022, but it comes at a cost, particularly in the world today where airlines are looking to increase rates
given their precarious business model. The second is also something that we are actively working on with The Lamb Company and trying to ensure that we change the narrative around the frozen or defrosted product so that retailers appreciate the quality that can still be delivered.
UNITED KINGDOM Our UK lamb business is all locked up for Q4 with the important chilled leg contracts for Christmas in place with major retailers. Demand has been good. Retailers recognise that New Zealand supply is limited and competition for their traditional volumes of legs is increasing. This has been helped in part by the very strong domestic lamb market this year, which has seen prices for British lamb stay at unusually high levels. This is contrary to what many thought would happen following the completion of the Brexit deal between the UK and Europe. The UK processing industry however has been hit hard by a shortage of labour. This has been caused in part by Brexit, with the traditional supply of East European labour drying up. It has also been a factor of Covid-19, with a high level of absenteeism across processing sites as individuals fell to the virus or were forced into isolation through being identified as a close contact of someone who had. As with our North American market, the shipping delays into the UK will be a major risk for the next three months. As a result, we have lessened our reliance on sea freight of chilled lamb and increased the supply of frozen. We have also increased our airfreight volumes, with retailers in the UK well used to dealing with that extra cost to ensure they get supply in time. The trend towards frozen is one that we expect will increase in the UK retail market in 2022. Retailers were already
becoming wary of the risks of managing a chilled supply chain from halfway around the world before Covid-19 and the global supply chain crunch, and the past year has only accelerated their plans to look to ways of leveraging more frozen/defrosted product in their stores. As per the US, our challenge as salespeople is to ensure that we can maximise the value of that frozen product given that the New Zealand industry has done a great job over many years marketing the virtues of chilled lamb and extracting premiums for it.
EUROPE European lamb demand also looks very solid for the last quarter of 2021. Supply, in general, has been tight thanks to growing demand from China, a recovery in demand from the US and less lamb coming out of Australia and New Zealand. In addition, European buyers have missed not having the same level of access to British lamb, and the Covid-19 related labour challenges noted above have also impacted the volume and range of products that the Irish industry has been supplying into the continent of late. The European summer season has been a successful one for many of the traditional holiday hotspots, which has meant that inventories are lower than anticipated, encouraging importers to keep buying. Again, demand for frozen product has been unusually good, with importers keen to secure supply as opposed to take the risk on weekly volumes of chilled lamb arriving as predicted, and while the general mood is one of confidence, importers remain wary of what may be around the corner in relation to the virus and are preferring to hedge their bets with frozen product, which is viewed as less risky.
9
MARKET UPDATE
NEW ZEALAND It is easy to forget how important our local market is to ANZCO Foods. Without a doubt, a benefit of the local market in the current operating environment is the security of supply chains, which takes out all of the noise around shipping delays, shelf life and chilled product quality that I have referenced earlier. The major retailers are also well aware of the generally tight supply position and the growing cost of securing lamb, hence we have seen early orders coming in for their traditional peak demand period leading into Christmas. This is also a great way to get our ANZCO brand out into the community, and the new branding that we now have on our lamb legs and frenched racks has been performing well across the two major retail banners. You should hopefully see more of the ANZCO brand in your local supermarket as chillers fill up leading into December.
JAPAN Japan is such an important part of ANZCO Foods' history and business. It has been a tough year for our chilled lamb business, and this will likely continue to be the case for the balance of 2021. This has been driven by the same factors impacting many other parts of the world – Covid-19 and supply chain disruption.
10
Advantage | Issue 3 2021
Japan has struggled to keep the Delta variant under control over recent months, leading to lingering restrictions on the important foodservice sector. One of the major stories of Covid-19 globally has been the ability of businesses to ‘pivot’ from foodservice into retail. This has certainly been the case in Japan over the past year, however growing supply chain challenges and delayed vessel arrivals has meant, just as we are seeing in North America and the UK, chilled volumes arriving with limited shelf life and limited options. We are however more optimistic as we look ahead into 2022. The ANZCO Foods' brand has a strong reputation in Japan, and the inherent demand for our product remains strong in a market that has always been willing to pay for quality. We are also actively looking at solutions to help our sales team mitigate the shipping issues, and we believe this will help us significantly as new season sales start to increase. There are also signs that Japan is working its way through the worst of the current Covid-19 outbreak, and that foodservice demand will slowly start to rebuild in the weeks and months ahead. We remain committed to our Japanese customers, and we are certain that they will be equally committed to us as we work our way back to a more normal operating environment. Hence, in general, it is a pretty optimistic view of where our sheepmeat markets are heading for the balance of 2021. This optimism is being reflected in the pricing that you should be seeing behind the farm gate, although as new season lamb comes online, we would
hope that we can find an equilibrium that ensures that you get fair value for the product you are selling to us and we can get fair value when selling to the end customer. Lamb is a great product. It is however an expensive form of protein. While our customers and consumers around the world value what we offer, there will always be a point where price eventually burns off demand and we lose markets and customers to more cost-effective alternatives. We don’t want to see that happen and we will continue to work with our global partners based on a long-term view of what is in the best interests of our retailers, consumers, and chefs. This will ensure that we can maximise the value we get from markets and keep our growing consumer base engaged and excited about the fantastic story New Zealand lamb has to tell the world around taste, quality, nutrition and sustainability. All the best for your own end of year opportunities and challenges, and thanks for your ongoing support for ANZCO Foods and the Advantage Rewards programme.
RICK WALKER General Manager Sales and Marketing ANZCO Foods
Moving forward and flying high The ANZCO Technology team supports ANZCO through ideation, creation and implementation of innovation changes using leading technology that helps drive the business forward.
When ANZCO South Island Grazing Operations Manager Ben Waipouri approached the Technology team looking for assistance, they leapt at the opportunity. Ben was searching for ways to save time, improve livestock management processes and enhance animal welfare, and the team’s thoughts quickly turned to the use of drones. The commercial use of drones in the New Zealand agriculture and horticulture sectors has been gaining steady momentum, and this was the perfect opportunity to run a proof of concept trial.
Since the trial began, Ben has been using the drone to check on the various ANZCO farms he oversees, using the technology to monitor water levels, fences, gates and animal health, and to find livestock in the paddocks. “The other day I used the drone to fly over a paddock to see where the livestock was located," says Ben. “I found them straight away, saving me time. The drone has also helped me to inspect fence lines quickly". These early successes have spurred further ideas on how the drone would be used. The team is currently working on adding a speaker to Ben’s drone, which will imitate a dog’s bark and will be used to herd livestock.
things to the next level. Having engaged a partner company, Terence is building a prototype which uses Machine Learning (ML) to automatically count livestock numbers from aerial photographs. As part of the prototype, Terence also wants to explore the use of thermal cameras to monitor animal health and welfare. Like humans,
livestock develop fevers when they are unwell. If technology can be used to improve the detection of these fevers, the animal can be treated sooner and/or removed from the pen to avoid infecting other stock.
ALWAYS THINKING AHEAD For the last two years, a drone has been used as part of ANZCO’s Five Star Beef feedlot annual audit, taking photos of the livestock which are then manually counted. Now, Terence Kruger (ANZCO Technology’s Innovation and Development Manager) is taking
The feasibility study is well underway, and is already producing exciting results.
11
FARMER PROGRAMME
More work required to get messages to farmers Around the world countries are seeking to make people accountable for their emissions, however New Zealand is the only country currently considering a compulsory emissions price for agricultural emissions.
An industry group called He Waka Eke Noa has been established to provide an alternative to the Emissions Trading Scheme (ETS) that will better meet agriculture’s needs while still making people accountable for their emissions. New Zealand’s meat processors have established a working group to help the industry engage with farmers. It is chaired by Grant Bunting, ANZCO Foods’ GM Systems and Supply. To have an alternative option to the ETS, agriculture needs to meet the following targets: · By end of 2021, 25% of NZ farmers know their annual total on-farm greenhouse gas emissions and have a written plan in place to measure and manage their emissions · By the end of 2022, 100% of NZ farmers know their annual total onfarm emissions · By 1 January 2025, all farmers need to have a plan to monitor and manage their emissions.
12
Advantage | Issue 3 2021
“Achieving these goals would enable the industry to demonstrate to the Government that farmers are engaged,” says Grant. An alternative scheme for agriculture is important for a number of reasons including: · Under the ETS, greenhouse gas emissions would be applied through processors with costs likely to be borne on-farm · The first cost being discussed for agriculture was $70m a year for a 5% emissions exposure · Under the ETS, it would be a blanket tax on farmers which would not recognise work individual farmers have already done in this area, including work around sequestration.
“There’s some good progress being made, however, we find some farmers haven’t heard of He Waka Eke Noa let alone know about the goals. “We recognise there’s a lot going on in the farming space, but we need farmers to engage in this process, so we have a say in the future of the agriculture industry,” Grant says. “This is not about having a soft option for agriculture; we are simply seeking to have a process that’s fairer.” Finding out your greenhouse gas number was relatively easy, says Ohakea farmer Richard Waugh. Richard, with his father Sam, mother Helen, and wife Rochelle farm three properties in Manawatu, having recently added a 300ha property at Opiki to their existing 580ha farms at Ohakea and Stanway. The Waugh family finishes 3,000 cattle a year through what they describe as a simple operation that follows the grass curve. They start and finish their farming year with 1,500 cattle, bringing cattle on and off throughout the year. About 80ha of the Ohakea and Stanway properties are river country, and the rest is clay.
Above: An industry group is working to provide an alternative to the Emissions Trading Scheme (ETS) that will better meet agriculture’s needs while still making people accountable for their emissions.
“The process is not too hard – you just need to walk through the various sections which includes information about your farm size; stock numbers grazed on and off farm; fertiliser applications; and forest and shrubland areas.”
Soil phosphate levels are good with an Olsen P of 30, but Richard says the farm is deficient in potassium and sulphur. Fertiliser application is mainly for maintenance only with lime, potassium, sulphur and chicken manure applied. Richard says they initially started using the chicken manure to address an issue with clover root weevil but saw immediate results and it has a longer-term slow-release benefit too, keeping active for around 10 years. Using natural chicken manure as a fertiliser isn’t overly common and Richard is also interested in other environmentally friendly options. Two years ago, he introduced dung beetles that can completely remove a cow patty in 24 hours by embedding it in the soil. “Benefits of this include reduced leaching, reducing fertiliser requirements because of the N introduced back into the soil, it aerates the soil and results in 15-20% better grass growth. This will be a three to five year journey to develop the population of beetles required to deliver the benefits,” says Richard. The Rangitikei River runs alongside the Waugh’s Ohakea property and the river and creeks on the property are fenced and have riparian planting. Richard says finding out the farms’ greenhouse gas numbers using the Beef + Lamb New Zealand calculator was relatively easy. “The process is not too hard – you just need to walk through the various sections which include information about your farm size; stock numbers grazed on and off farm; fertiliser applications; and forest and shrubland areas.” Armed with a set of last year’s accounts, fertiliser records, and a farm map, the process took Richard about 25 minutes. As a comparison, Richard also tried the Aim Calculator which required much less information and gave a different result. Richard felt it was too simplistic for his operation. Once all the information is inputted, the calculator provides the farms’ greenhouse gas emission numbers for nitrous oxide, methane,
and carbon dioxide, as well as letting you know how much you’ve offset through sequestration. After trialling both calculators, Richard had a number of questions including wanting to know about the information and assumptions that are driving the calculators behind the scenes, the level of confidence that could be taken from the numbers, and whether the numbers you get are impacted by your year-end balance date. The Beef + Lamb New Zealand calculator is being enhanced to include benchmarking so farmers can compare their results to other similar farm types in the vicinity. Richard didn’t think he’d find this useful because their operation is different from others nearby. “With the government wanting agriculture to demonstrate they are engaged in this process and the goals set by He Waka Eke Noa, we need farmers to use the calculator and find their numbers by the end of next year,” says Grant. Towards the end of the year, the industry groups will be talking to farmers about what the pricing mechanism for an alternative scheme to the ETS would look like. Meat processors around the country are working together to encourage farmers to find out their numbers. They have set up a landing web page farmers can use to access the Beef + Lamb New Zealand calculator: www.ghgnumber.co.nz
Above: Ohakea farmer Richard Waugh calculating his greenhouse gas emissions numbers.
13
NZFAP
Wool joins NZ Farm Assurance Programme Wool recently became part of the New Zealand Farm Assurance Programme (NZFAP), providing the sector with a simple process to verify product credentials.
14
Advantage | Issue 3 2021
“Formally aligning to the NZFAP helps the global marketability of New Zealand wool."
PGG Wrightson and wool export subsidiary Bloch & Behrens are among the first to join the NZFAP wool programme, which already covers approximately 95% of New Zealand sheep, beef and deer farmers. Jason Everson, PGG Wrightson Wool Product and Innovation Manager, is a member of the Wool Technical Advisory Group that helped NZFAP bring wool on board. He says quality assurance will now cover growers’ wool, as well as their meat production. Formally aligning to the NZFAP helps the global marketability of New Zealand wool.
“Although no extra compliance or cost is involved for wool growers, farmers will need to know their NZFAP Assurance number, and to maintain product integrity ensure they maintain separation between wool from assured livestock compared to non-assured stock." There will be communications around this in the near future. “When future versions of the NZFAP are revised, wool will now have a voice," he says. Established by the red meat sector and the Ministry for Primary Industries in 2017, the NZFAP provides a single harmonised farm
assurance standard for red meat, replacing the 10 or more different standards developed by individual meat companies that previously prevailed. It covers practices and issues relevant to the market including origin, traceability, biosecurity, animal welfare, the environment and sustainability. The NZFAP is today owned and managed by New Zealand Farm Assurance Incorporated (NZFAI) with all farms independently verified by AsureQuality. Approximately 25 wool companies have so far joined NZFAP, including brokers, merchants, exporters, scours, test houses and retail brands.
15
MEET THE TEAM
Meet a couple of our Livestock Representatives Each issue we will introduce you to two Livestock Reps across the country
Daniel Smith
Gordon Jannink
Hawkes Bay Representative
Otago Representative
Daniel has been a livestock representative for the last 10 years after being approached by ANZCO to work for and learn from ANZCO’s Chris McKay. The key aspects Daniel looks for during lamb selection is a healthy lamb that stands tall, with clear eyes and a strong muzzle. Next, he looks to see if the skin and wool is a creamy colour, this indicates the lamb is healthy and thriving. The final step of Daniel’s selection process involves putting his hand on the lamb, to feel for a soft rib, wide loin and wide, fat tail at its base. Only then does he decide which lambs will provide the best quality cuts for ANZCO. The most enjoyable part of Daniel’s job is the people involved and seeing on-farm progression as farmers improve from previous seasons and reach their targets. Daniel is a businessman at heart, he loves to find the best lambs offered by farmers to ensure our customers are receiving the highest quality lamb in New Zealand.
16
Advantage | Issue 3 2021
Gordy began his career working on farms and stations in Central Otago progressing from a junior rep to a senior rep at Reid Farms in Milton. He was then transferred to Alexandra and went through the mergers of Reid Farms to Pyne Gould Guinness and then PGG Wrightson. When the role at Canterbury Meat Packers came up 11.5 years ago, Gordy moved his family to Brighton to take advantage of the schooling opportunities for his three children and has been part of the ANZCO Livestock team since. Gordy has been in the livestock industry for 43 years and knows his stuff when it comes to selecting ANZCO lambs. Gordy’s approach is generally putting a hand on the ribs of the lambs to ensure they have sufficient fat cover to yield well enough. He says a lamb with a good live weight and a good fat cover is what will deliver a good return to the farmer and a good product for ANZCO. Gordy says the most enjoyable parts of his job are the clients he works with and the friendships he forges with them and their families. He also thinks it’s pretty special being able to work outside in the region’s rural community.
DECARBONISATION
Below: ANZCO Canterbury Site
Out with the coal Our ANZCO Foods Canterbury site has significantly reduced its coal use by reinstating electric options.
Working in partnership
ANZCO Foods Canterbury significantly reduced coal consumption by reinstating electric options when the site started operating again after the annual shutdown. This is the first step in a journey away from fossil-fuel fired boilers at the Ashburton site – a process that has been sped up, thanks to a partnership with Meridian Energy. Meridian has launched a programme to support businesses to reduce their emissions from fossil-fuel fired industrial boilers – the second largest source of energy-related greenhouse gas emissions. “ANZCO Foods is committed to reducing its carbon footprint and we are delighted to be working with Meridian in a long-term partnership to help us speed up our decarbonising process,” says ANZCO Foods General Manager Operations Darryl Tones. “Transitioning away from coal to electricity requires significant capital investment, so Meridian’s
decarbonisation programme helps make the transition stack up commercially as well as environmentally.” ANZCO Foods Canterbury is the company’s largest processing site with the largest footprint so it’s also the site where we can make the biggest impact, says Darryl. “ANZCO Foods Canterbury site had retired electric boilers that we've been able to recommission resulting in a shift from coal to electricity. This reduction in reliance on fossil fuels together with the long-term Meridian partnership, has meant we can make this move sooner than initially planned,” he says. There are more initiatives planned on site that will further reduce its carbon footprint. These are scheduled for next year following further work and investment. Overall the site transition from coal to electricity will bring additional electricity usage of 14GWH and will remove 2,800T of coal and 5,600MT of carbon a year.
17
COMMUNITY
Below: Isaac Webster in action
Isaac Webster Young butcher slices and dices his way to victory.
The National Butchery Awards, held in Auckland last month, were the scene of the ANZCO Foods Butcher Apprentice of the Year finals – a title eventually claimed by Otago’s Isaac Webster. Just reaching the final was an achievement in itself, with competitors having to first navigate tightly-fought regional contests held in Auckland, Hamilton, Wellington, Christchurch and Dunedin throughout June and July.
Those who did manage to qualify for the last event had to demonstrate their boning, trimming, slicing and dicing skills in the final test, breaking down a size 20 chicken, a whole pork leg and a beef short loin (as well as the ‘mystery cut’ – a lamb forequarter) to create a value-added product display. Contestants were also required to complete a 30-question multi-choice exam, and an interview with the judging panel. Isaac, who works at Dunedin’s New World Gardens, credits his success to determination, focus and support. “It has been a two-year journey to get here and compete today," said the rising star after his victory. “I won my competition in Dunedin last year
“It has been a two-year journey to get here and compete today.”
18
Advantage | Issue 3 2021
but, due to an injury, I was unable to compete. So that makes today even more amazing. I feel lucky and thankful for everyone who has helped and supported me along the way." With a record number of apprentices taking up the trade this year, the ANZCO Foods Butcher Apprentice category provides an invaluable opportunity for those just starting out in the industry. Head Judge Peter Martin, who is the Butchery Training Advisor at Auckland’s Skills4Word, was particularly impressed by the talent on display, describing this year’s competition as ‘a real showstopper.’
Helping Make Ends Meat during COVID-19
Caring for our people & communities
Protein is a difficult item for foodbanks and welfare response organisations to source and this was made worse by the recent COVID-19 lockdowns.
As a significant employer in New Zealand’s regions, ANZCO Foods seeks to make a positive contribution to the communities in which our sites are located.
ANZCO Foods takes its responsibility as a big employer in mainly rural New Zealand seriously and tries to help out where we can. In late August our “Helping Make Ends Meat” programme provided 500kg of 1kg packets of mince to The Salvation Army for distribution to its Wellington foodbanks and 1 tonne to the New Zealand Food Network which
distributed it to foodbanks around the South Island. These donations were greatly appreciated with agencies saying they made a big difference to many people during tough times. A shout out too to transport company Big Chill which donated the freight charge of transporting the mince to the Salvation Army from our Waitara site.
Our sponsorship and donations programme supports organisations with a national and regional focus with its primary focus on rural communities, ranging from providing an ambulance to St John, through to supporting local dog trials. · · · · · · · · · · · · · · · ·
·
Helping Make Ends Meat St John Universities rugby Bitches Box Woolshed Tours Butcher Apprentice of the year Sponsor a School programme Mid-Canterbury hospice Angel Bay BBQ trailer Women’s rugby A&P shows Dog trials Surfing for farmers Golf tournaments Rangitikei shearing Meat donations Planting at local sports clubs and community groups Mental wellbeing initiatives.
Left: Making Ends Meat packed and ready to go to families
19
LOGISTICS UPDATE
International shipping delays challenge ANZCO’s in-house logistics team Getting ANZCO’s processed beef and lamb to the plates of our international consumers has become increasingly challenging in the past year, with significant Covid-19 related disruptions to international shipping.
20
Advantage | Issue 3 2021
A massive and completely unexpected shift in consumer behaviour during the pandemic, with people spending money on goods rather than services, saw an unprecedented 20% increase in the volume of goods moving through international shipping terminals. Even in normal conditions, ports would have struggled with an increase of this magnitude, but layer on this labour shortages and delays due to Covid restrictions, shipping schedules have been thrown into chaos and ports have become extremely congested. Since October last year, waiting times outside of ports have been days and even weeks. These long delays are contributing to an international shortage of shipping containers which is exacerbated by a 40% drop in new container production, again due to Covid restrictions. In parallel, shipping costs have soared. Around 60% of the ocean fleet is chartered and charter rates have climbed from US$18,000/day in January of this year to US $35,000/day in March, $40,000/day in April and $45,500/day in May. At $35,000/day, this means an additional US$8 million per seven days or about US$300 more per container
just to break even – and there is no respite on the horizon. Global trade is forecast to lift 8% this year and a further 6% in 2022 which suggests there won’t be any let-up in demand for shipping any time soon. This continues to put upward pressure on global freight rates. This massive disruption in global shipping comes on the back of a decade of bankruptcies and mergers in the international shipping industry, driven by low profitability and overcapacity. This began after the global financial crisis in 2008/2009 and between 2014-2017, the industry underwent a transformation due to the consolidation of four major carriers and one bankruptcy. Prior to the Covid-19 pandemic, the industry had been slowly recovering and while shipping lines are now enjoying soaring profits, many are remaining loyal to their long-term clients in the knowledge that the situation could change very quickly. To negotiate this extremely complex world of international transport logistics, ANZCO Foods has its own in-house logistics and shipping team led by Brent Falvey.
This was established in 2019, as between 2014-2018, ANZCO had outsourced its freight management, initially to Fonterra-owned Kotahi and then to international freight forwarder K+N. Today ANZCO has direct and personal relationships with all shipping lines, so is working with accurate four weekly forecasts and has weekly teleconferences with shipping lines to understand schedules, bookings and equipment availability. The team has quarterly face-to-face meetings with the senior management teams of individual shipping lines to ensure both parties have met agreed expectations and targets, and to identify any mutually beneficial opportunities. At these meetings, the parties also agree on future freights rates and volume commitments. This means our suppliers have a dedicated and talented team working hard for their products. The teams work and the relationships they have built, helps ensure ANZCO’s beef and lamb, which is produced to the highest standards on farm, gets to our international markets as quickly as possible.
21
GO GOURMET ANGEL BAY PREMIUM ANGUS BEEF BURGER WITH BRIE & BACON • • • • • • • • •
4 x Angel Bay Premium Angus Beef Patties 100g Brie cheese, cut into slices 4 tablespoons mayonnaise Lettuce 2 tomatoes, sliced 8 bacon rashers, cooked Sliced red onion rings 4 burger buns, halved and toasted Barbecue sauce (optional)
Preheat your oven to 200°C and cook the Angel Bay Premium Angus Beef Patties according to the instructions on the packet. When the patties are cooked, remove them from the oven and drape some slices of Brie over the top of each one. Return them to the oven on a low heat and let the cheese melt gently while you build your burgers.
EVERY DAY DELICIOUS Image and recipe supplied by Dish magazine
angelbay.co.nz/recipes
Spread a tablespoon of mayonnaise on the base of each bun. Top with a good handful of lettuce, some sliced tomato and two bacon rashers. Add the Angel Bay Premium Angus Beef Patty, a couple of onion rings and then squeeze over some barbecue sauce if desired. Pop the top of the burger bun on and serve. Delicious!