Early Bird I Wednesday May 8th 2024

Meat exporter bucks current trends and posts a profit, most of Canterburys A&P board step down from their roles and multiple NAIT breaches hit father and son hard in the pocket. Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather! Meat exporter bucks current trends and posts a profit Major player in New Zealand's meat export sector, Anzco Foods has bucked the trend by reporting a profit for the 2023 financial year, a notable achievement amidst industry challenges and a slow recovery in China. Despite a 58.4% decrease in net profit to $44.4 million compared to the previous year, Anzco's ability to maintain profitability sets it apart from competitors like Alliance Group and Silver Fern Farms, both of which reported annual losses. Chief Executive Peter Conley attributed Anzco's success to effective navigation of market pricing challenges for beef and lamb, leveraging its global reach to counterbalance slower recoveries in key markets like China.  Conley also acknowledged the impact of rising costs, interest rates, and consumer financial pressures on the business environment during 2023. Anzco's financial officer, Joe Bebbington, says that the 2023 result, although lower than the exceptional year in 2022, still ranks as the company's third-best performance in history. Beyond its core meat processing operations, Anzco has diversified into health products, such as bio-tissue used in heart surgery, which contributed positively to the company's overall performance during 2023. This strategic diversification into value-add food and healthcare segments reflects Anzco's commitment to long-term growth and sustainability. With the United Arab Emirates (UAE) already ranking as New Zealand’s second-largest market within the Gulf Cooperation Council (GCC), second only to Saudi Arabia, the prospect of a free trade agreement (FTA) holds significant promise for further enhancing exports of frozen beef, lamb, and wool. The board of the Canterbury A&P Association has announced that nearly all its members will step down later this year due to irreconcilable differences with the association's general committee.    2. Most of Canterburys A&P board step down from their roles The decision was triggered by challenges from the general committee regarding the cancellation of this years  NZ Agricultural Show, which was attributed to financial difficulties. While ex-officio president Bryce Murray will remain in his role, all other members, including three independent directors, will step down at the upcoming AGM scheduled for July 30.  Board chairperson Stewart Mitchell says that the decision to resign was made in the best interests of the association, allowing time to review business changes, build reserves, and plan for a curated show in 2025. Mitchell says challenges in working collegially with the current leadership of the general committee, leading to an increasingly difficult situation.  The recent $5 million funding from the Christchurch City Council to pay off a loan and secure the show's future was a critical step, but Mitchell emphasized that more fundamental changes are needed to ensure the association's survival.  The board is preparing for a smooth transition, with a new board to be appointed during the meeting on July 30. 3. High-quality and comprehensive FTA talks between New Zealand & UAE In 2023, the UAE contributed $47 million to New Zealand's export earnings from the red meat sector, with chilled beef emerging as the most valuable sub-category at $31 million. This places the UAE as New Zealand's fourth-largest market for chilled beef, following the US, China, and Japan. Trade Minister Todd McClay, who’s currently in Dubai, announced the commencement of negotiations on a Comprehensive Economic Partnership Agreement (CEPA) between New Zealand and the UAE. The Meat Industry Association believes that a high-quality and comprehensive FTA would create new avenues for expanding trade between the two countries. MIA chief executive Sirma Karapeeva underscored the value of New Zealand's reputation for high-quality halal products and the existing zero tariffs on chilled beef and lamb in driving current exports to the UAE. Karapeeva says that reducing tariffs on other key products like frozen beef, lamb, and wool through a robust FTA would significantly benefit exporters, especially as New Zealand aims to double its export value over the next decade. McClay's discussions with UAE Trade Minister Dr Thani bin Ahmed Al Zeyoudi aim to strengthen economic ties and explore avenues for fostering greater trade between the two countries.   4. Multiple NAIT breaches hit father and son hard in the pocket Campaign for Wool New Zealand has seen remarkable growth and solid traction in its efforts, as highlighted in its 2023 annual report.  President Ryan Cosgrove highlighted the organization's consistent focus on education, promotion, and advocacy for wool throughout the fiscal year. The Campaign for Wool reached over two million consumers through a multimedia campaign advocating for wool over synthetic alternatives and the campaign strengthened its alignment and support base, securing over 230 supporters and partners. Additionally, it actively advocated for increased use of New Zealand wool both regionally and globally, enhancing the industry's visibility and impact. 5. Campaign for Wool has ambitious plans to expand its impact further The "Wool in Schools" program successfully engaged 6,700 students, instilling early awareness and promoting sustainable habits among New Zealand's youth. Looking ahead to 2024, Campaign for Wool has ambitious plans to expand its impact further. This includes introducing tailored modular pilot programs in tertiary education, particularly in architecture. Additionally, a new "Wool in Schools" pilot program will target remote schools, extending the reach of educational initiatives. The campaign also aims to develop additional consumer-focused campaigns to highlight wool's benefits and promote its use in public and government buildings, further advancing the cause of sustainable wool products. A father and son duo from Canterbury, have been fined a combined total of $47,500 for breaching regulations under the National Animal Identification and Tracing (NAIT) scheme by failing to register hundreds of cattle. The NAIT scheme mandates that all cattle or deer must be fitted with a NAIT tag and registered in the NAIT system either before reaching 180 days of age or before being moved off the farm. Keith Townshend, who managed farms in the Ashburton and Banks Peninsula areas, received fines totaling $20,000 on two charges related to NAIT non-compliance. His son, Joel Townshend, responsible for farms in coastal Wakanui, faced fines amounting to $27,500 on three charges under the NAIT Act. Murray Pridham, MPI's regional manager for animal welfare and NAIT compliance, emphasized the seriousness of NAIT non-compliance due to its pivotal role in preventing biosecurity incursions such as M. bovis or foot and mouth disease, and said that disregard for NAIT obligations by animal owners jeopardizes the agricultural sector's ability to effectively track and trace animals.See omnystudio.com/listener for privacy information.