Rick Powdrell: Chinese markets hold export key

New Zealand should be offering some of its finer cuts to the massive Chinese market.

Removing barriers on chilled meat exports to China is extremely positive for our meat industry.

As highlighted by special agricultural trade envoy Mike Peterson, Prime Minister John Key's timeframe maybe somewhat optimistic but the significance should not be underestimated.

Chilled product, no matter where it is sold, is a higher value product. As often said the future of New Zealand meat is reliant on marketing the cuts and by-products of the disassembled carcass in their highest possible form to the world's wealthy consumers.

China is an enormous market, already consuming large quantities of our meat products.

While much of this product has been lower value, this opportunity for chilled product will assist in further increasing the range of higher value cuts entering the Chinese market.

New Zealand meat companies' marketing divisions will need to continue to grow their strategies and relationships to fully access the rewards this opportunity presents.

As expected New Zealand First and some private individuals have challenged the process Silver Fern Farms adopted when taking the Shanghai Maling proposal to its shareholders.

The company announced a special meeting will be called to address the issue as requested by about 80 shareholders; one then asks when should it be?

Does the company wait until the Overseas Investment Office and Ministers deliver their decisions or should the company clarify their in-house process first?

One could say this is a chicken-and-egg situation but, in my view, it is important that the shareholders' issue around process is addressed.

Business process must be correct and, if some shareholders have doubts, this must be rectified. Once clarified either way, the shareholders can go forward towards an agreed goal.

To this end it will be vital for all shareholders to be engaged, within this issue lies the future of Silver Fern Farms going forward.

It will also have a large bearing on the Silver Fern Farms organisation of 2016 and beyond and its ability to maximise the aforementioned chilled opportunities in China.

The Shanghai Maling joint venture has huge potential, while also many unknowns and risk, but key to its success will be strong, united farmer shareholders.