Meat industry leader Sirma Karapeeva pins hopes on free trade agreements

Meat Industry Association chief executive Sirma Karapeeva.

Sirma Karapeeva, chief executive of the Meat Industry Association (MIA), talks to the Herald about the extremely challenging year that was 2023 for the red meat sector and what the industry wants to see from the new Government in 2024.

What are your hopes for the new Government?

As a major contributor to the economy in terms of export earnings and employment, it is important the right policy settings are in place to boost red meat exports.

We cannot control the prices we receive in-market, which is why it’s more important than ever to ensure we are focused on stripping out unnecessary costs and barriers, especially non-tariff measures, enhancing access to existing markets and securing opportunities in new markets.

How would you describe 2023 for your business?

The year has been extremely challenging for the red meat sector. There has been weaker demand for beef and lamb in global markets with consumers keeping a tight hold on their spending amid high interest rates and inflation. The flow-on effect saw red meat export earnings drop, which is felt in the national accounts but also by farmers and regional communities in particular. It is during challenging times that relationships with key markets matter most, and a key focus for the MIA over the past year has been to ensure we are reconnecting with them.

What will be your biggest business challenges in 2024?

We’ll be monitoring the conditions in our global markets, in particular, China, our largest market by value and volume. How quickly the Chinese economy bounces back will be critical. However, we have a diverse export portfolio and we will be keeping a close eye on our other key markets, including wider Asia, the UK and Europe and North America to ensure we’re capitalising on new growth opportunities.

What opportunities do you see in 2024?

There is a significant opportunity to capture more market value from fifth-quarter exports, a catch-all term for the parts of an animal that are not meat such as tallow, bone meal and high-value ingredients such as blood products for pharmaceutical use. In 2022/23, fifth-quarter exports were worth $2.2 billion, up by 8 per cent from the previous year. These exports accounted for a fifth of overall sector exports during the year.

We’ll also be keenly watching the new Government kickstarting its efforts to secure a trade agreement with India, which presents commercial opportunities for many New Zealand businesses including the red meat sector. New Zealand must have a long-term approach and outlook to solidifying the relationship and deepen trade - this is a five- to 10-year project.

What was the most interesting news story of 2023?

The ratification and entry into force of the NZ/UK FTA was a real milestone. The FTA really opens up an opportunity for New Zealand’s beef exports in a traditional market and creates new avenues for growth for the red meat sector. We are already seeing the benefits with a lift in beef exports to the UK.

Domestically, it was heartening to see how the East Coast community pulled together after Cyclone Gabrielle, whether it was helping farmers re-fence their farms, cleaning up properties or meat processing companies making significant financial contributions or donating meat to hard-hit communities in their time of need.

What are your predictions for 2024?

I’m hopeful the current volatility in global markets will settle and demand and pricing for beef and lamb will begin to lift again. In the long term, we know global demand for natural protein will only grow and New Zealand is well-placed to help meet this need.

What’s the worst mistake you have made in business?

Probably the biggest regret is not trusting my gut early enough. A while back, I was offered a role in an organisation I really wanted to work for. The role was not perfect and instead of trusting my instincts, I put too much weight on the opinions of others, which closed off a particular career path for me. That said, I would not be in my current role, which I am really enjoying and thriving in.

What would you rate as your greatest success?

Personally, it is watching my daughter grow into a well-adjusted, social and caring human being with a good dose of spunk to keep others on their toes.

Professionally, my greatest success is building a small but high-performing team of professionals who deliver real value to New Zealand’s second-largest goods exporting industry. It is deeply satisfying to watch the team hum and perform, often under great pressure and uncertainty.

Where and how are you holidaying this summer?

My husband, my daughter and I are heading to Ōhope Beach for lots of swimming and generally being lazy in the sun. We have stocked up with great food and wine to enjoy and plan to keep things easy and casual - the only makeup will be a good dose of sunscreen!

What would you recommend as a good book to read over summer?

I am an avid reader and have been part of a book club with good friends for the past 25 years. This summer my reading list includes: Troy by Stephen Fry; Lola in the Mirror, the new book by Trent Dalton and My Life in Full by Indra Nooyi. Oh and probably a few trashy magazines too!