M.I.A.
OPINION: The previous government spent too much during the Covid-19 pandemic, despite warnings from officials, according to a briefing released by the Treasury.
Meat Industry Association (MIA) chair John Loughlin says despite the fears about the coronavirus, China still needs to eat.
“It’s a question of how they will buy their food and how will the distribution channels will be affected,” he told Rural News. “As I am reading it, restaurant sales will be down and it’ll affect some product lines, but retail sales will continue and home delivery will boom.
“Online sales in China are bigger than anywhere else in the world and I would guess that home delivery will be the way that people get their food with minimal contact with other people and risk of infection.”
Loughlin says, from a NZ perspective, it will depend to a large degree on the circumstances of the individual companies, who their partners are and what their channels to the consumer are.
Meat processor Silver Fern Farms (SFF) says it’s closely monitoring the situation in China.
Chief executive Simon Limmer told Rural News that businesses, ports and government departments remain operating at restricted capacity. He says people are still under movement restrictions and in many cases cannot get to work, or back home, potentially for at least until February 9.
“Road transport through to our customers, and from their facilities to retail outlets, is a potential pinch point. This will be having an impact on both retail supermarket and food service sales in restaurants. Though the extent of this disruption is not yet known.”
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Silver Fern Farms chief executive Simon Limmer. |
Limmer says SFF have resolved some early challenges in dealing with the coronavirus crisis – especially around balancing cold storage and processing capacity.
He says by making some changes to their market mix, albeit at lower market returns, they have got back on track with processing volumes. Limmer says SFF has a good market split across much of the carcase for lamb and beef that give it alternative options to they can deal with situations like this.
“The changes enabled us to process our forecast levels for mutton – which was a good outcome last week. We have marketed mutton well to China and it is the most valuable global market for mutton,” he adds.
“Demand, and the high prices paid for the product, is invaluable to our industry. We have options for managing near-term mutton production so we can continue processing farmers’ stock.”
Meanwhile, Limmer says SFF is aware of the extremely dry seasonal conditions facing many of its suppliers. He says its livestock team are looking after farmers to ensure they can manage feed situations and the company is running overtime across the majority of it plants to assist in getting stock away.
“The coronavirus outbreak is a dynamic and changing situation and we will continue to assess our options daily,” he says.
Alliance has announced a series of capital raise roadshow event, starting on 29 September in Tuatapere, Southland.
State farmer Pāmu (Landcorp) has announced a new equity partnership in an effort to support pathways to farm ownership for livestock farm operators.
Following a recent overweight incursion that saw a Mid-Canterbury contractor cop a $12,150 fine, the rural contracting industry is calling time on what they consider to be outdated and unworkable regulations regarding weight and dimensions that they say are impeding their businesses.
Trade Minister Todd McClay says his officials plan to meet their US counterparts every month from now on to better understand how the 15% tariff issue there will play out, and try and get some certainty there for our exporters about the future.
Brett Wotton, an Eastern Bay of Plenty kiwifruit grower and harvest contractor, has won the 2025 Kiwifruit Innovation Award for his work to support lifting fruit quality across the industry.
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