SFF joins the slaughter
Meat processor and exporter Silver Fern Farms Ltd has joined fellow South Island-based meat company Alliance Group in reporting a big loss for the past year.
Almost $600 million flowed into the meat industry from outside New Zealand in the last 18 months.
Overseas firms looked to secure NZ beef and lamb and strengthen their global agrifood positions, says a new report.
Investors chiefly from China and Japan bought in, says the report ‘Investors Guide to the NZ Meat industry 2017’, released in June. It was commissioned by the Ministry of Business, Innovation and Employment (MBIE) and prepared by Coriolis.
The meat industry has an almost even split of foreign and private ownership, and the largest two firms are farmer cooperatives, the report says.
New foreign firms continue buying into the meat industry and they keep spending on plant and equipment.
NZ meat firms spend on new and improved marketing.
The number of meat processing firms in NZ is growing and industry efficiency is improving, particularly in poultry.
“NZ has a large, robust meat products industry with a wide range of participants of various sizes,” the report says.
“Employment in meat processing in NZ is consolidating in red meat (fewer sheep) and growing in poultry and cured meats; poultry stands out for maintaining or improving efficiency.
“Meat processing employs over 30,000 people spread across the country. While employment is spread across large number of firms, the top three meat processors account for over 50% of industry employment and the top 11 for 85%.
“NZ has a reasonably consolidated meat industry, with a range of strong firms competing; however there appear to be further consolidation opportunities, particularly in lamb and beef.
“Lamb processing share and beef processing share keep changing across the industry.
“Silver Fern Farms remains the largest meat firm in NZ by turnover.”
Federated Farmers is throwing its support behind the Fast-track Approvals Bill introduced by the Coalition Government to enable a fast-track decision-making process for infrastructure and development projects.
The latest report from ANZ isn’t good news for sheep farmers: lamb returns are forecast to remain low.
Divine table grapes that herald the start of a brand-new industry in Hawke’s Bay have been coming off vines in Maraekakaho.
In what appears to be a casualty of the downturn in the agricultural sector, a well-known machinery brand is now in the hands of liquidators and owing creditors $6.6 million.
One of New Zealand’s deepest breeder Jersey herds – known for its enduring connection through cattle with the UK’s longest reigning monarch, Queen Elizabeth II – will host its 75th anniversary celebration sale on-farm on April 22.
Rural trader PGG Wrightson has revised its operating earnings guidance, saying trading conditions have deteriorated since the last market update in February.