New markets sought for NZ red meat

Photo / Supplied.

Expansion and innovation key for Carrfields Livestock.

Working with industry partners to develop new markets for red meat and taking a traditional business into a challenging future are key issues facing livestock farmers, according to leading agribusiness company Carrfields.

Donald Baines, General Manager of Livestock at Carrfields, says the red meat industry has been highly volatile in recent years, with new markets such as China proving "boom and bust" when it comes to consumption of New Zealand meat.

"Traditionally we had a heavy reliance on the UK and Europe but in 2017 we are constantly looking to carve out new international markets for our high-quality protein," he says.

There is a lot of uncertainty around the UK market as they wrestle with the complexity of Brexit and the industry will be in a state of flux until these details are worked out.

Baines says new markets will help ensure the future of the red meat market remains secure: "Carrfields operate in a number of international markets so it makes good sense to use our reach and relationships with our strategic partners to identify new opportunities for the marketing of New Zealand red meat."

Raising awareness of the health benefits of New Zealand grass-raised beef and lamb will also play a vital role in the development of new markets.

Carrfields also became the largest New Zealand-owned livestock agency with the acquisition of Farmlands Livestock in July. The company, which was predominantly operating its livestock business in the North Island, has extended its reach nationwide with the purchase.

That is bucking the trend; in recent times many large agriculture businesses have taken on a percentage of foreign ownership.

"The Farmlands Livestock acquisition has also provided the key requirement of scale; we now have livestock agents representing Carrfields Livestock in all regions across New Zealand - 130 of them throughout the country, supporting farmers," he says.

While innovation in agriculture is a focus for Carrfields, Baines says the livestock industry remains very traditional in the way livestock is marketed.

Digital platforms have been a game changer in most industries but the livestock industry is still based in saleyards, with direct sales between farmers brokered by stock agents.

Baines says while there has been some progress in online sales of livestock, the relationship between farmers and stock agents is still a strong foundation for the sale and purchase of livestock.

Carrfields are committed to working with farmers to streamline the supply chain, help develop good genetics with breeding stock and open up new markets.

Carrfields Livestock liaise closely with meat industry partners to understand market requirements in animal size and quality, among other factors. They then work with farmers to breed and finish animals to these specifications. This provides a better result for farmers and ultimately higher returns.

He says they are seeking new ways to engage with markets that may not have been accessed through traditional marketing channels: "We are looking for genuine supply chain options that provide New Zealand livestock farmers with options countering the traditional commodity-based marketing of red meat."

Carrfields has also introduced the new Stockline livestock finance option to help farmers manage their day-to-day cashflow.

"This provides a fully flexible, seasonal, finance facility allowing farmers to have full control on where their livestock is either on-sold or processed," Baines explains.

The company will also be launching an innovative share farming scheme for lambs and beef cattle this spring.