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Home / The Country

MIQ room release postponement another blow for red meat industry

The Country
20 Jan, 2022 12:45 AM4 mins to read

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Photo / File

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News that an upcoming MIQ room release has been postponed is another blow for New Zealand's red meat industry, which is crying out for skilled workers.

The uncertainty caused by Covid-19 for the past two years has started to affect morale among the workforce, Meat Industry Association chief executive Sirma Karapeeva said.

"I think it's fair to say that everyone has been doing it tough," she told The Country's Rowena Duncum.

"It has been really challenging and it's going to continue to be challenging as Covid throws new curveballs at us."

The industry was vigilant with safety protocols and keeping "a really close eye" on any potential infection coming into the workforce but it was still "hard", Karapeeva said.

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The staff shortage was taking its toll on plant operating protocols as well, with plant managers making "some really tough choices", she said.

Meat Industry Association chief executive Sirma Karapeeva. Photo / Supplied
Meat Industry Association chief executive Sirma Karapeeva. Photo / Supplied

"Not being able to run a shift at full capacity is not actually running a shift. The impact of that is not only are we not able to process stock for farmers but also, it puts at risk jobs for the hard-working Kiwis that the industry supports.

"We are the second largest manufacturing industry and we provide over 25,000 jobs right around the country, so it is a significant concern for us."

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While the industry continued to be "agile, resilient and nimble" in the face of Covid uncertainty, things were starting to come to a head, Karapeeva said.

"We've done really well but the issue is that the crunch point is coming now."

Warm weather was also challenging, especially with peak season looming.

"Conditions have been quite hot right around the country so the possibility of farmers having to move stock off their land quickly is there and without the sufficient workforce we may not be able to maintain the capacity that is needed to do that."

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Halal butcher shortage

Perhaps most pressing, however, was a lack of halal butchers.

Muslim markets and many customers needed meat to be processed in the halal way; 49 out of 55 processing plants in New Zealand operated halal systems and relied on 250 halal butchers.

"We are desperately trying to recruit and bring in halal workers that are fundamental to the business model that we run in the meat industry."

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These workers were "absolutely crucial" at the first point of the processing chain, as without them, there was no way to certify the product was halal later on, Karapeeva said.

"For us, halal processing is a very clear example of how we're taking largely a commodity product, adding value and specialising that product to meet consumer needs right around the world.

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"Without the halal butcher at the front of the chain, we risk losing $3.3 billion worth of export earnings due to value-add halal-certified products."

The overall price for products would also be affected, which would have "flow-on implications for farmgate returns across New Zealand", Karapeeva said.

The Government announced border class exceptions for 15 halal butchers in December last year but a Meat Industry Association member survey found 69 were needed.

"It's a big number because some have left the industry, some have gone back overseas to be with their families and because of the border closers and MIQ system, they can't come back in," Karapeeva said.

"We are coming into a really significant crisis point and the notion that 15 border exceptions will be sufficient to meet our needs falls woefully short of the reality that we're dealing with."

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