New Zealand Lamb Industry Fact Finding Mission Report

New Zealand Lamb Industry
Fact Finding Mission Report
Prepared for:
Canadian Sheep Federation
Attention:
Jennifer Fleming
Prepared by:
Martin Gooch
Senior Research Associate
Value Chains, George Morris Centre
519-822-3929 ext. 216
[email protected]
and
Sean Firth
AgraPoint International Inc.
10 Webster St. Suite 210, Town Square
Kentville, Nova Scotia,
Canada, B4N 1H7
Telephone: 902 678 7722
Fax: 902 678 7266
[email protected]
Table Of Contents
Executive Summary................................................................................................3
Rissington Breed Lines ...........................................................................................6
Meat and Wool New Zealand..................................................................................8
Christchurch................................................................................................................................ 8
Wellington................................................................................................................................... 9
Agricultural Research Group on Sustainability (ARGOS).....................................11
Federated Farmers.................................................................................................12
Lincoln University ................................................................................................14
Primary Producers Corporate Society (PPCS).......................................................16
MacFarlane Rural Business Ltd. (MRB), Ashburton.............................................18
Everest Farm Consulting Ltd. (EFC), Ashburton ..................................................18
Abacus Biotech Ltd., Dunedin ..............................................................................19
Catapult® Genetics, Dunedin................................................................................20
FECPAK International Ltd., Dunedin ...................................................................21
Ag Research, Otago University, Dunedin, ............................................................23
Farm visit, Hamish Reid, Christchurch .................................................................24
New Zealand Ministry of Agriculture and Forestry (MAF), Wellington ...............25
Appendix A: Map of New Zealand Showing Regions Visited...............................27
Appendix B: Itinerary ...........................................................................................28
Appendix C: History and Development of NZ Lamb Industry ..............................29
Appendix D: Key Facts About New Zealand ........................................................37
Appendix E: Information on Rissington Breedlines ……………………………...39
Appendix F: Information of Catapult® Products ………………………………...41
2
Executive Summary
This report contains the results of a fact finding visit to New Zealand, led by the Canadian Sheep
Federation and Canadian Sheep Breeders Association, and enabled through funding provided by
Agriculture and Agri-Food Canada. The visit represented one part of the Canadian Sheep
Federation’s Market Development Strategy. Covering a period of 10 days, the fact finding
mission commenced in Napier on January 14th, 2007, and ended in Wellington on January 23 rd,
2007. Appendix A features a map of New Zealand and illustrates the main areas visited: Napier,
Christchurch, Ashburton, Dunedin and Wellington. Appendix B features a breakdown of the
meetings attended and industry representatives met.
The initial decision to abolish income subsidies, made in 1984, along with subsequent decisions
to deregulate what was once a highly regulated and subsidized industry, have acted as catalysts
in the formation of a market-orientated agricultural industry. That has led to a level of
coordination between producers, as well as between producers and processors, that, while not
perfect, is enabling the production of a highly consistent carcass that meets market demands
better than any other time in the history of New Zealand’s sheep industry. Appendix C features
information and statistics that illustrate the extent of sheep industry developments. Appendix D
features statistics to illustrate the contribution of agriculture to New Zealand’s overall economy.
Most producer and marketing boards have been abolished. New Zealand Meat and Wool
(NZMW) is one of the few that remains and collects a statutory levy from producers. The
Commodity Levies Act supports this ongoing arrangement, so long as at least 70 percent of
producers vote for its continuation at a referendum that occurs every six years. Producer levies
are not just used to address production-based issues. They are also invested in efforts such as
improving techniques used by processors to increase the value of lamb supplied to targeted
markets. And supporting market research and promotional strategies from both a generic (NZ
Lamb) and individual processor perspective. NZMW also collaborates with processors to fund
the Beef and Lamb Marketing Bureau, which promotes beef, lamb and venison domestically.
NZMW oversees the beef, sheep and deer sectors, and slaughtered dairy cattle. There are
different departments for production, marketing and R&D; not different organizations. The
synergies and opportunities that result are extensive. Not least due to the caliber of personnel and
technical resources they can afford to employ. The association’s focus is entirely placed on
creating market pull by understanding what customers want and produce accordingly. This
creates greater opportunity to create added value along the chain, including very much from the
producer standpoint, through sharing that information with industry through a number of
dissemination techniques to encourage adaptation to market demands.
Two of those dissemination techniques are ‘Monitor Farms’ and ‘Farm Improvement Clubs’.
Supported by NZMW, these initiatives are in effect groups of producers that meet regularly to
assess each others’ farming operations and develop new capabilities. Discussions often centre on
improving prosperity by capturing added value or reducing costs. Little is held back in terms of
discussing financial information, farm plans, production choices, etc. Learning and growing
with your peers is a powerful motivator. It enhances producers’ pride and gives them greater
3
assurance that they control their own destiny. On average it leads to a doubling of producers’
profitability in the first two to three years of involvement too!
In terms of the technology and management approaches used in the production of New Zealand
lamb, they are in essence not particularly different to those utilized by leading Canadian
producers. The most significant differences however lie in the level of sophistication to which
the basic approaches and techniques have and continue to be developed; the extent to which
these often quite sophisticated management techniques are used by lamb producers on an
everyday basis; and the positive attitude of most producers to proactively creating their own
opportunities. Government has played a supporting (not a driving) role in industry development.
This was seen in areas ranging from traceability and genetics, through to production and
marketing. If industry is not prepared to invest resources to innovate and develop new
capabilities, then neither is government. Fee-for-service and accountability became common
themes throughout the visit.
The introduction of price-based payment grids that reflect market demands were cited on a
number of occasions as the single greatest motivator for producers striving to adopt new
management tools and techniques. The extent of technology and capability developments that are
occurring in New Zealand could arguably be placed into three categories. These are: Production
Management (grazing, stock selection, nutrition, etc.); Genetics (DNA indicators, genetic
markers, composite targeted breeding); and Processing (post slaughter technology and
management).
Production Management capabilities appear to undoubtedly be more extensive and sophisticated
than generally occurs amongst Canadian producers. Examples were identified of where practices,
such as rising plate calibration for guiding decisions based on achieving the most effective use
of pasture in livestock production, are rare in Canada yet commonplace in New Zealand. This,
even though their benefits are well understood by extension officers and grassland experts in
both Countries. The use of different though complementary grass and clover species to maximize
the productivity of grazing areas and meat quality are also highly developed and widely
implemented by producers. Who, based on their topography and other agronomic related factors,
are specializing operations to capture greater value from identified market opportunities.
Genetics is the second area of innovation that is enabling the rapid development of New
Zealand’s sheep industry. On a number of occasions it was stated that genetics are responsible
for up to forty percent of end meat quality, yet have traditionally not played a primary role in
producers’ management decisions and practices. Partly due to the lack of technology needed to
accurately identify genetic traits. The development of technology such as Catapult® and
composite breeding programs such as Rissington Breedlines are changing that. Genetics are
playing an increasingly important role in the cost effective production of consistent quality lamb
that reflects market demands more accurately than was previously possible, and provides added
value to consumers. This is leading to increased satisfaction and market growth, even in markets
that have traditionally consumed higher volumes of lamb than Canada.
The category area of developments occurring in New Zealand is slaughter and post slaughter
technology and handling. Direct benefits include further opportunities to satisfy consumers, add
4
value, and reduce costs. Technology that is still in the development stage, though showing great
promise, includes Via Scan. This will enable processors to objectively grade carcasses and refine
grid payment systems so that producers are accurately paid on market-derived values.
Electrolysis is being used to enhance tenderness and general eating quality already improved
through genetic and general management techniques. Extensive work has also been undertaken
to optimize cooling practices to extent quality, shelf life, and allow international shipping of
chilled rather than frozen lamb.
In all, the visit was well worthwhile. It provided insights and examples into lamb production,
processing and marketing techniques that the Canadian industry can use to its advantage. The
next stage is to take information gained from this visit, along with material developed from the
overall Market Development Strategy, to guide and enable enhancements to occur throughout the
Canadian sheep industry. New Zealand is clearly showing the extent to which improvements can
be made to the production and marketing of high quality lamb. We hope that the Canadian
industry is able to utilize some of the techniques identified in this report to emulate that success.
Perhaps through the undertaking of counter seasonal production arrangements, as are developing
between New Zealand and United Kingdom producers to provide consumers with consistent
quality lamb on a year-round basis.
Finally, the group that visited New Zealand would like to express their tremendous gratitude to
the people that took time out to meet the group throughout its visit. Appendix B includes the
names of most people that the group visited with during their fact finding mission. A special
thanks goes to Aaron Meikle, from Meat and Wool New Zealand, who provided invaluable
support in arranging suggesting the initial itinerary and coordinating the visit.
5
Rissington Breed Lines
Located near Napier, on the North Island of New Zealand, Rissington Breed Lines (RBL) is a
sheep genetics organization. It was established in 2001 by producers who believed that tying the
development of composite genetics to specific market demands offered significant commercial
opportunities through enabling the production of consistent high quality lamb. This belief
appears to have been borne out through, most notably perhaps, a partnership with the UK retailer
Marks and Spencer’s (450 stores). Marks and Spencer’s (M&S) have engaged Rissington to
establish a counter-seasonal lamb supply arrangement, based on value chain principles, to utilize
RBL genetics as the base for producing and marketing consistently high quality lamb to the UK
market on a year-round basis.
Information shared by RBL included an overview of the New Zealand sheep industry, and the
extent to which lamb production has improved through producers and processors consciously
focusing on devising methods and processes to capture added value through first understanding,
then meeting, changing consumer demands for lamb. RBL currently has approximately 1,000
clients. The services it provides are scoped within the mandate of improving productivity,
assisting the specialization of flocks according to identified market demands, and working with
the entire chain to specify what is required (x) from a carcass to consistently meet (y) market
requirement.
The visit also took in two of Rissington’s Breeding Partners, who breed and raise composite
rams on the company's behalf. The Breeding Partners and Rissington operate on an arrangement
where the Partners provide the land along with flock management expertise. RBL provides the
grading information and technical feedback required to ensure the breeding program continually
improves, thereby attaining identified market demands for lamb. The two interlinked processes
combine to support the marketing and sale of RBL genetics (through the sale of Primera terminal
rams and Highlander maternal ewes). Additional support is provided to producers through
Sheeplink, a store lamb sale and production arrangement focused entirely on bringing RBLbased genetics through to the end market. Descriptions of RBL’s prominent breed lines are
featured in Appendix E.
Highlights from the two day visit included:
? Primera (terminal) performance calculated on an index based on growth x eye muscle area
(*PW ‘primal weight’ – GR – Leg length);
o Lamb performance regularly exceeds 300 gms DLWG;
? Average NZ lamb carcass weight is 16.8kg;
o Less than 50% of wider NZ lamb production hits standard retailer specifications;
? Lamb carcass value can differ by as much as $20 due to muscle scores, RBL genetics aimed
at taking out the variances that hurt producers’ returns, and impact processors’ yields;
? At a lambing percentage of 150%, only half the ewe flock need go to a maternal sire,
thereby enabling more effective use of terminal genetics and increasing farm profitability;
? The majority of New Zealand flocks are scanned during gestation to identify if pregnant,
number of lambs, calculate overall survival rate, and ultimately determine flock health;
o Scanned at rate of 5,000+ ewes per day: costing ~ 45 Cdn cents each to scan;
6
?
?
?
?
?
?
?
?
Rising rate calibration commonly used, often in conjunction with sophisticated computer
software, to maximize effectiveness of grazing management activities;
Traceability practices are focused on improving overall ewe performance and profitability,
not simply monitoring the five months of a lamb’s life;
M&S contract is supported by a pricing grid aimed at providing producers with an informed
perspective on how they can capture added value through meeting market demands;
Veterinarians increasing look at how they can add value to a producer’s operations through
maintaining flock health and performance, not simply curing sick sheep;
Markets increasingly prepared to source identity-assured lamb in exchange for $$$;
Brassica crops used as protein source to achieve 250 gms DLWG @ 60 lambs per ha;
Looking to consistently achieve an average annual gross revenue of $165 per ewe;
60% of lamb production costs are variable, so significant opportunities exist to improve
profits.
Rising Rate Calibration Plate
7
Meat and Wool New Zealand
Meat & Wool New Zealand (MWNZ) is funded by livestock producers through levies applied to
all beef, sheep and goats slaughtered, and on all wool sold. Current levies include NZ45 cents
per lamb or sheep slaughtered and NZ5.25 cents per kg of wool. The beef has a levy of NZ$3.6
per head slaughtered. This income is used primarily to market New Zealand wool and red meat
internationally and domestically; to maintain and extend trade access for New Zealand wool and
red meat; and to fund research and development in providing solutions that will help improve the
financial returns of New Zealand producers. NZMW also uses levies to support dissemination of
market, industry and research information through a number of avenues and, in turn, assists
livestock producers to act upon the information provided to increase their profitability.
Every 6 years producers vote to reconfirm their willingness to pay a mandatory levy and retain
NZMW in its present form. With 70 % of producers required to post a positive vote of support
for the status quo to continue, NZMW is directly accountable to producers. In addition to the
usage of levies as described above, NZMW works closely with meat processors to maintain open
objective dialogue at and between all levels of the lamb and beef industries.
Visits with MWNZ were separated into two events. The first was a meeting with MWNZ’s
regional office in Christchurch, which focused on MWNZ’s extension work with producers. The
second meeting was with MWNZ’s corporate office in Wellington, which focused more on
governance, funding, industry development and marketing issues.
Christchurch
The NZMW office coordinates the activities of 13 specialists situated across the South Island.
Their responsibilities include each collecting data from 50 farms for economic and forecasting
activities, and communicating extension-based information to those and other producers through
a variety of avenues. One avenue is entitled Monitor Farms. Another is the Sheep Council.
Originally called Farm Improvement Clubs, Monitor Farms are essentially groups of producers
who meet regularly to assess each others’ farming operations and develop new capabilities.
Monitor Farms are located across the whole of New Zealand. Discussions often center on
improving prosperity by capturing added value or reducing costs. In most instances, through the
formation of a dedicated group that meets regularly on a chosen farm over a three year period, a
heightened sense of trust is developed amongst the members. This leads to little information
being held back in terms of discussing financials, farm plans, production choices, etc. and,
therefore, opportunities to acquire new business capabilities – including presentation and
communication skills. Monitor Farms cover whole farm operations, not solely one issue within a
farm.
The outcomes achieved by Monitor Farms, often entertaining 50 – 60 producers at sessions held
at quarterly intervals through the year, have been extensive. To the extent that members
commonly double their profitability with the first three years of participation. NZMW put this
8
down to the fact that learning and growing with your peers is a powerful motivator. It also
enhances producers’ pride and gives them greater assurance that they control their own destiny.
Sheep Councils are essentially a regional Board of Directors that advises MWNZ’s full Board of
Directors on research needs that they observe through their own dealings with grassroots
producers. The Council is made up entirely of producers. Two Councils operate in the South
Island and two in the North Island; one for sheep and beef in each respective geographic
location. Sheep Council members often attend Monitor Farm or regional MWNZ sessions and
field days held across their respective geographic regions. They are, therefore, a crucial link in
establishing communication between the main MWNZ Board, the industry’s grassroots
members, and other stakeholders, such as processors.
Wellington
The Wellington office of MWNZ coordinates the overall activities of MWNZ, including
international marketing, industry competitiveness, and R&D. Combining resources of lamb, beef
and deer enables MWNZ to engage leading and experienced professionals that, in turn, benefit
the industry. The lamb and sheep industry has changed radically since the withdrawal of
subsidies. Basis of development is largely due to a more proactive and objective focus on
satisfying market demands, which has itself stemmed from the industry becoming less political.
Specific details of industry changes are outlined in the MWNZ presentation featured as an
appendix.
Additional information provided by NZMW included:
? Accountability for investment of levies in research given to producers to ensure
appropriate usage;
? Forage Master and Flock Master are NZMW-enabled data base systems that are provided
as a service to producers seeking to improve productivity;
? Advice provided on additional management initiatives such as using DNA to identify
susceptibility to footrot through scoring system (1.1 very high: 5.5 very low);
? Average NZ lambing percentage is 125%;
? Most farmers have scales to achieve higher consistency in hit rates to maximize profits;
? Increasingly, buyers buy on farms to secure purchases according to specific markets;
? Breed types have changed considerably as greater onus is placed on meat production;
? Sophistication of marketing has reached the point that producers forecast time movement
of lambs according to breed type and have highly refined systems for each customer;
? Genesis of Monitor Farms was MWNZ wondering why information and results of
research were not taken up by producers. They also teach producers how to measure and
benchmark more effectively in order to improve productivity;
? Land prices for dairy farms on Canterbury Plains commonly reach $NZ35,000 per ha;
o Average prices are $NZ18,000 per ha (supporting 20 lambs or 3.5 dairy cows);
o Sheep farming is becoming as profitable, or more so than dairy;
? Many beef and lamb promotions run together;
o Developed by Beef and Lamb Marketing Bureau;
o Supported financially by NZMW and meat processors;
9
?
?
?
?
o Combined annual support of NZ$4 million;
More discussion, closer working together, including value chain partnerships, and far less
politics exist than prior to withdrawal of subsidies;
o Sectors (i.e. dairy and sheep) work closely together – especially in last 10 years,
partly to develop and implement innovative grazing management techniques;
NZMW do not publish extensive reports or seek to push information to producers;
o Share information through network of contacts, including consultants;
North Island producers tend to get better returns because of more even lamb supply;
o 90% of lambs born in three month period;
o North Island has more corporate processors;
o South Island has more cooperative processors;
o Processors increasingly competing for best producers;
Lamb production becoming more specialized and sophisticated;
o Store lamb is itself a specialty operation;
o Trading of lambs has increased 10 fold in last 10 years as producers focus on
specialist roles in the overall production of lamb;
10
Agricultural Research Group on Sustainability (ARGOS)
ARGOS is a large multi-faceted sustainability project enabled by a joint venture between the
Agribusiness Group, Lincoln University, and the University of Otago. It is funded by
government and industry stakeholders, including the UK retailer Waitrose, and has a mandate to
examine the environmental, social and economic sustainability of New Zealand farming systems.
The drive behind the project came from the acknowledgement that protecting New Zealand’s
reputation as a ‘clean and green’ environment is imperative to supporting a sustainable
agricultural and agri-food industry.
The expectation lying behind the project is that a better understanding of the environmental
effects, and the social and economic consequences of different farming practices, will help New
Zealand producers better manage their land in order to improve performance. Simultaneously,
the hope is that the New Zealand environment will benefit from producers using environmentally
sensitive practices to meet market demands in an ecologically and financially sustainable
fashion. It is considered the first step in a 20 to 30 year project.
Drivers that have influenced the ARGOS initiative include market (i.e. consumer preferences,
food safety, and potential trade barriers), environmental (i.e. protection of biodiversity, water
quality, soil and climate change), social drivers (i.e. family farms, regulatory constraints), and
culture (i.e. changing values towards environment, health, food and overall well-being).
Additional information provided by Jon Manhire at ARGOS included:
? Government seeking guidance on supporting research based on needs, not perceived
requirements;
? ARGOS has been funded for an initial six years, commenced in 2002;
? Part of the project is to identify the most effective approach for assisting producers to
manage operations and reduce risks that could stem from failing to maintain
environmental sustainability;
? A significant driver of the initiative is a UK retailer illustrating the demand of adopting
environmentally sustainable production practices;
o Also highlights the need to understand supermarkets to capture and secure market
opportunities;
11
Federated Farmers – Nick Clark
Federated Farmers is New Zealand's leading rural sector organization. Through a network of 24
provinces, Federated Farmers represents 17,000 member farmers and rural families throughout
New Zealand by providing a collective voice at the national and provincial levels. The
organization comprises policy and administration staff spread across seven industry groups
representing the interests of meat and wool, dairy, mohair, rural butchers, high country and grain
farmers and beekeepers.
The mission of Federated Farmers of New Zealand (Inc) is “To add value to the business of
farming for our members.”
We do this by standing for an open, free, enterprise economy to promote employment,
economic growth and to increase living standards in the best interests of all New Zealanders.
Our vision is a productive, high income and high employment market economy. This requires
flexible markets for labour, goods and services, low inflation, maximum sustainable use of
capital and people, and sustained investment in technology and education.
Once a statuary body funded by mandatory levies, following the deregulation of agriculture in
the 1980’s Federated Farmers has changed to become a voluntary, member-funded organization.
This means that the organization is directly accountable to farmers and must continually strive to
add value to agriculture in order to retain their membership. In establishing itself as a fee-forservice rather than statutory organization, Federated Farmers has cultivated greater support and
recognition from the wider industry. This, in turn, means that, perhaps ironically, Federated
Farmers has a greater influence on policy decisions and industry development than previously.
Most of Federated Farmers’ offices perform a separate role within a well coordinated structure.
The Christchurch office acts as the main policy development centre. Located close to the
national Parliament, the Wellington office coordinates lobbying and government relations
activities. The main administrative offices are located in Hamilton.
12
The Federation is governed by a National Board and a National Council. The National Board
meets six times a year and is comprised of a President, Vice-President, two National Board
Members and three Industry Group Chairs. The National Council involves the National Board
and includes representatives from each of the 24 provinces. They meet twice a year.
Further information acquired from Federated Farmers includes:
? Federated Farmers represents the vast majority (~80%) of ‘serious’ producers;
o Does not seek to represent everyone, only those producers that manage
commercially important operations;
o Enables Federated Farmers to invest more resources into influencing the
development of meaningful commercially-focused policy;
o Provides greater freedom to represent views;
? Funded through four revenue streams:
o Flat annual membership fees of $500, a large proportion of which is returned to
regional offices for provincial administration and operating purposes;
o Concession membership fees for rural retirees;
o Sponsorships by largely agribusiness and rural organizations;
o Government funding on a project by project basis;
? Federated Farmers led calls for abolishment of agricultural subsidies during the 1980’s;
o Led to significant benefits to producers, including:
Lower interest rates;
Reduced taxation rates (was 67% on $20k+; now 39% on 60k and below);
More extensive market opportunities than previously existed;
Agriculture far less ‘political’ industry than previously;
Different sectors (e.g. dairy, lamb, beef, deer) work closely together to
improve producers’ management capabilities and market opportunities;
? Agricultural statistics:
o Arable largely has a domestic focus;
o Livestock largely has an export focus;
o 2% of NZ population live of farms;
o 17% GDP comes from primary production;
? Prior to the abolition of subsidies and deregulation, NZ had one of the world’s most
heavily regulated and subsidized agriculture sectors;
o Gained significant trading and economic benefits through changes in policy;
o A heavily legislated industry is only sustainable if you have guaranteed markets;
13
Lincoln University
Lincoln University, located south east of Christchurch, has for a number of years been New
Zealand’s leading research organization in identifying methods to improve lamb meat quality
(and therefore market value) and better manage pasture. Extensive research has been conducted
on beef and lamb to identify factors influencing meat quality (sensory and physical), then
proposed methods for industry to utilize findings to capture increased market value. Traditionally
the NZ lamb industry did not have to concern itself with integral quality issues, subsidies
supported an industry that was typified by “poor quality in – bad product out” (Chris Logan,
Manager, Animal Research Program).
Quality parameters of lamb defined as KgF, representing the shear force (in kilos) required to
bite across a portion of meat. Conducting over 10,000 tests annually, Lincoln University found
clear differences between industry standards for meat quality and the extent of consumer
sentiment. Common KgF industry standards of between 8 and 11 far exceeded the level at which
consumer satisfaction levels begin to deteriorate. The optimum KgF from a consumer standpoint
is between 3.5 and 5. Less than 3.5 and meat begins to loose structure.
KgF is affected by a number of factors, many of which also influence pH levels - which are
another determinant of meat quality from both a sensory and physical standpoint. The most
notable factors affecting KgF fit into three categories. The first two can have a significant
influence on pH:
? Stock (i.e. genetics, management practices)
? Supply processes (i.e. transport and handling practices, abattoir arrangements)
? Post kill processing (i.e. cooling, hanging, cutting)
Increases in the overall quality and consistency of NZ meat have led to an 8% growth in
consumption, even though prices have doubled in three years. This has been achieved through
the development of shorter more responsive supply systems, improvements in genetics and the
identification of markers to enable breeding programs to target specific market requirements, and
training personnel situated along the entire chain.
Pasture management is also critical to optimizing meat quality. Pasture management focused on
maximizing growth rates to maintain profitability and produce consistently high quality meat.
Daily growth rates of less than 300 grams negatively impact eating quality. Mean of 300 gm
DLG enables the delivery of a 14-16 week old lamb with a 16.5 – 17 kg carcass (38 kg LW).
Grazing alfalfa at a height of 15cm can see lambs hitting a DLW of 500gms.
Additional information gathered from Lincoln University included:
? There is no relationship between KgF and meat marbelling, meaning that they have to be
treated as separate though inter-related factors in devising management systems that are
consistently able to satisfy consumers through maximizing meat quality;
? KgF measurements taken differently in New Zealand to rest of the world:
o New Zealand use corner pieces, rest of the work use core measurements;
o Reduces costs as does not cause the destruction or downgrading or meat value;
14
?
?
?
?
?
?
That a traditional lamb market has seen an 8% growth in consumption through improving
meat quality and consistency (Australia closer to 15%), even though prices have doubled
in three years, illustrates the potential benefits of improved quality to Canadian industry;
Can produce tender meat from almost any breed, so long as correct conditions exist;
Lamb grading standards are evolving to more effectively reflect market requirements, and
encourage producers to supply lamb accordingly:
o Processors however concerned that grading on a strictly objective basis (as
possible through Via Scan – CVS technology) would initially at least see
producers perceive themselves to be penalized unfairly – which may see them
loose suppliers to competitors;
o Leading producers looking to be paid on yield rather than weight;
Supermarkets gradually introducing specifications that limit acceptable KgF measures;
o Retailers working together to increase meat quality, looking at other factors in
order to differentiate themselves in the market place;
Ram selection practices are growing in sophistication. Were sold to a large degree on
eyeball size; increasingly sold on carcass records and availability of information
surrounding progeny testing (this is the exact approach taken by Rissington);
Younger producers more interested in expanding management capabilities and gaining
access to added resources to improve income and service high debt levels;
15
Primary Producers Corporate Society (PPCS)
Headquartered in Dunedin with a turnover of NZ$2 billion, PPCS is New Zealand’s largest
processor. Representing 37% of sheep meat and 35% of beef exports, PPCS is owned by 9,000
farmer suppliers and operates 26 separate processing facilities located around New Zealand. The
company exports to over 60 countries, owns secondary processing facilities in the UK for
supplying value-added products to European markets, and has established export marketing
personnel in the United States, Asia, Europe and the Middle East.
The plant visited at Fairton processes an average of 7,000 lambs per day. All are killed according
to Halal requirements and processed according to specific customer requirements. All New
Zealand processing facilities are either Halal or non-Halal. Grading grids are modified to suit
specific customer requirements. This commonly occurs on a weekly basis and encourages
producers to supply lambs most suited to meeting target market specifications. This leads to the
production of highly uniform carcasses.
One standard of grading and inspection exists for the whole of New Zealand. New Zealand
standards are on par with EU and USDA standards, allowing ready access to export markets.
Inspections are conducted on a fee for service basis by non-government third party persons.
Additional information gathered from PPCS Fairton included:
? Vast majority of New Zealand processing plants are Halal operated;
? Lambs are usually killed one day, processed the next;
? Lamb increasingly shipped as chilled rather than frozen product;
? One inspection standard exists for the entire country;
o Not on for each of the 24 provinces;
o Leads to significant benefits in market opportunity;
? Processors aware of three sources of contamination:
o Ingested
o Wool
o People
Traceability, integrity protection and price/value discovery based on
mitigating risks from those three sources;
? Traceability exists, though very much market driven;
o Not driven by legislative approach;
o Traceability based predominantly on groups delivered to processor;
Identified by source (producer), region, date, etc.
o Transferred to level of individual carcasses at the processor level;
Closely monitored throughout processing, cutting and packing;
? Grids increasingly paid on quality-based systems;
o Experimenting with Via Scan technology to more accurately assess carcass value
from an objective yield-based perspective;
o Grids reflect specific market requirements;
Widely published in order to source most appropriate lambs;
? Producer receive added premiums at the end of the season;
o Calculated from their own and PPCS’s overall performance;
16
Photographs From PPCS Fairton Showing Uniformity of Lamb Carcasses
Individual Traceability of Lamb Carcass and NZ Inspection Stamp
17
MacFarlane Rural Business Ltd. (MRB), Ashburton
Everest Farm Consulting Ltd. (EFC), Ashburton
New Zealand’s agricultural consultancy sector was born out of Ministry of Agriculture and
Forestry (MAF)’s Government Advisory Service and Farm Improvement Clubs. The latter led to
MWNZ supporting the establishment of Monitor Farms. Prior to 1980s deregulation, farm
consultancy and extension practices supported financially by government. Since 1980,
consultancy has become a user pays practice. This includes the engagement of external
consultants to support Monitor Farm functions. In total, New Zealand has approximately 220
full-time rural consultants.
Consultancy practices are generally divided into three categories: dairy, beef and sheep, and
arable. MRB is a multi-person consultancy founded in 1997. It works closely with rural industry
stakeholders, ranging from national and regional governments through to industry bodies (such
as MWNZ), and individual producers. EFC works closely with MRB, particularly in terms of
supporting Farm Improvement Clubs and Monitor Farms.
The majority of MRB and EFC’s work is consulting with producers through a one-on-one basis.
They provide a broad range of services targeted at assisting producers improve competitiveness
and profitability. Monitor Farm events cost producers approximately NZ$120 per day, typically
involve 10 – 20 people, and considered extremely worthwhile. Farm Improvement Clubs can be
formally structured with a committee and chair. MRB and EFC also offer management services,
managing farms on an ongoing basis.
Additional information provided by MRB and EFC included:
? Role and incidence of supply chain coordination (management of the value chain) is
increasing across New Zealand agricultural and agri-food industry;
o Focus is on returning top of market process (plus small premium) to producers on
most consistent possible basis;
Ideal approach for enabling producers better manage risk;
o Particular importance placed on opportunities this provides for producers to
access greater information on end markets and guide production decisions;
o May impose more costs, though expenses off-set by premiums;
? Registering as a farm consultant requires:
o Initial examination (written and oral);
o Regular five yearly review
Including submission of example reports;
Oral;
o Fifty hours formal annual personal development (i.e. workshops);
o Fifty hours informal annual personal development (i.e. reading);
? Monitor Farms have greatly assisted producers to develop capabilities necessary to set
and meet production targets, and improve overall business skills;
o Occur average of 8 – 10 times per year;
o Closed groups – as are many Farm Improvement Clubs;
? Combination of genetics and nutrition led to increase in lambing percentage;
o Average amongst leading producers @ tailing is 150-160%;
18
?
Ten key technologies and practices used to the benefit of NZ sheep industry:
1. Exotic breeding – i.e. E. Friesen, Texel, Finns
2. Grazing management;
a. Subdividing;
b. New pasture species (i.e. ARC endophyte in ryegrass;
c. Forecast and tracking devices to guide specific management decisions;
3. Fecal testing and counting;
4. Individual animal weighing
5. Pregnancy scanning;
6. Feeding management in late pregnancy;
7. Hogget lambing;
8. Standard stock unit 65-70kg producing 150% ewes market/lamb tailed;
9. Flatter ewe weight range through conception and dry period;
10. Concentration on carcass weight per land unit;
Abacus Biotech Ltd., Dunedin
Abacus Biotech Limited matches biotechnology, agricultural management techniques, and
information and communication technology to assist producers make more informed business
decisions. Initially begun by two ex-MAF biogenetic scientists, Abacus Biotech has expanded to
encompass business management personnel. They also provide traceability-based services to aid
management decisions. To this end, they have recently entered a joint venture with an Australian
company producing 13.56 MHz, full duplex (writable) RFID tags. Looking to use this
technology and current capabilities to develop systems to track and compare individual animal
performance across on entire flock, or multiple flocks.
Firmly consider that New Zealand producers have become far better farmers since withdrawal of
subsidies. Have far greater focus on seeking new business options that typical North American
farmer. Top farmers always looking for ‘where can I go now?’, so looking to improve personal
skills; and ‘what does my customer/market want differently, so looking to improve the
effectiveness of their operations to capture added value.
Abacus currently facilitates a number of Monitor Farms and Farm Improvement Clubs, and has
recently started developing Agribusiness Improvement Clubs. These will be aimed at
agribusiness operators from across New Zealand, including farm input suppliers, retailers,
processors, banks, solicitors and large producers. Expected focus will include HR and
international business strategy.
Additional information provided by Abacus included:
? The traditional breeds of Romney and Leicester have been cross-bred or surpassed by E.
Freisen, Finns and Texels;
o Coopworth and Perendale two NZ breeds bred from a Romney base to improve
lambing percentage and mothering ability;
? NZ consulting sector is vibrant, with plenty of demand from progressive producers.
o Competing with financial sector for new graduates;
19
Catapult® Genetics, Dunedin
Catapult Genetics provides genetic-based services and products to agriculture and aquaculture.
Their products and services are designed to improve meat production and quality, and production
efficiencies at both the farm level and along the value chain. It has commercial operations in
New Zealand, Australia and the United Kingdom. Descriptions of products produced by Catapult
are featured in Appendix F.
The company produces diagnostics that, through identified DNA and bio-marks, allow individual
animals to be screened for the presence of specific genetic traits such as increased fertility,
disease resistance, parasitic resistance, increased muscle yield, meat colour stability, meat
tenderness, and others. This information can be used to create and capture added value along the
entire chain. Over 200,000 commercial tests conducted to date. With its role in diagnosing rams
and their progeny offering the greatest value in terms of productivity and carcass value, animals
are now being marketed as ‘Catapult selected rams’ or ‘Catapult selected ewes’. This is similar
to Intel chips being co-branded with Dell computers. Products such as Catapult® are said to
greatly enhance production and profitability of flocks. See appendix for further information on
Catapult products. Target is to have 50% of NZ rams tested with Catapult’s diagnostics within
five years.
Additional information provided by Catapult included:
? Catapult originally came from NZ government. It was spun off to become self-sustaining
through providing value-adding services to industry;
? Culling is a fundamental strategy of creating a healthy flock, though often a subjective
rather than objective process.
o Catapult assists producers make better more informed choices through
pinpointing reasons around:
Which stock to keep?
Which stock to kill?
Which stock to treat?
Which stock to mate?
? Can create and capture greater value in any flock through its scale, accuracy, and
audibility enabling producers to specialize;
o Allows accurate identification of which ewe is making money, and which isn’t;
? Started to be used in conjunction with Rissington genetics;
o With improved genetics and pasture management, more producers are spreading
their lambing outside of the traditional window to further increase value;
o Also enables fewer resources to be invested in managing same sized flock;
? Main genetic markers used to identify meat quality, especially beef:
o Marbelling;
o Tenderness;
o Yield;
o Feed efficiency;
? Specific trait markers identified by Catapult and turned into management systems
through traceability and data base assessments include:
20
o
o
o
o
Number of lambs born;
Predict performance of next generation;
Disorders (i.e. Microphthalmia – blindness);
Meat yield (i.e. 10% larger loin = additional $3 per lamb);
Significant part of Texel’s genetic benefits comes from one gene;
1.6% added carcass dressing percentage;
7% less fat;
5% added meat yield;
o Facial Eczema;
o Footrot;
o Parasitic resistance;
30/40% of resistance to faecal parasites comes from genetics;
FECPAK International Ltd., Dunedin
FECPAK was formed in 1993. It manufacturers and distributes Faecal Egg Counting (FEC)
analysis units, designed to provide producers with accurate, quick and reliable FEC information
on the farm. This, in turn, enables producers to make informed grazing and flock management
decisions. The importance of this approach is shown by faecal parasites having the second
greatest impact on growth rates and performance. Only nutrition has greater impact.
Traditional treatment for faecal parasitic eggs has involved application of anthelmintics, such as
Ivermectin. The annual cost of treating lambs and flocks with anthelmintics has more than
doubled in the last fifteen years (from NZ$25m in early ‘90s, to NZ$65 in 2006), even though
the cost of each application has reduced considerably and overall flock numbers have reduced
considerably. And faecal parasites remain a considerable challenge to the New Zealand sheep
industry. The extent of that challenge is further highlighted by the resistance levels to individual
anthelmintics running at up to 80% on farms.
With upwards of 95% of parasitic eggs residing on the ground, failing to give sufficient attention
to grassland management practice such as stock rotation means that solely using anthelmintics
will have limited effect on controlling parasites. The onus is, therefore, on understanding worm
lifecycles, including populations of eggs (and therefore worms) within any production system on
an ongoing basis. FECPAK is promoted as a simple and cheap way of achieving this. Recent
work is showing that the effectiveness of FECPAK flock management systems and approaches
can be further enhanced if combined with DNA-enabled genetic stock selection practices.
FECPAK have been and continue to be involved in a number of industry initiatives. The broadest
in terms of impact is PARASOL, a research program undertaken in conjunction with a number of
universities and private industry stakeholders located around the world. Increasing consumer
concerns surrounding animal welfare and use of drugs in livestock production has led to a
concerted European effort to find new methods to control parasitic worms. Conventional
methods involve repeated dosing of whole herds with synthetic anthelmintics. The objective of
PARASOL is to develop Targeted Selective Treatments (TST), where only animals showing
clinical symptoms or reduced productivity are given drugs.
21
The commercial benefit of taking a more targeted approach to the control of parasites was first
proven through FECPAK’s work with Canterbury Meat Packers (CMP) and their dedicated
group of lamb producers. Part of the emphasis of the project was to support producers in
exploring methods to increase profitability by working as a group; to share information and
knowledge to identify the benefit that practices performed at one level of the chain (producer)
could have upon another level (processor), then in turn the retailer, and ultimately the consumer.
Over a three year period, an education and awareness program delivered to producers with
financial assistance from CMP has seen a significant reduction in the usage of drenches amongst
the CMP producer group. This translates into reduced medicinal costs, increased feed conversion
rates, and increased meat yield. The average number of anthelmintic treatments has reduced from
5.5 to 1.9 per lamb per season. With 12% of ewes producing 50% of parasitic eggs, it was also
found that simply treating lambs as the focus on anthelmintic treatments had little impact on
increasing productivity. Far greater impacts were achieved through CMP-sponsored approach.
Additional information provided by FECPAK included:
? Romney flocks commonly have 20% of ewes exhibiting 2,000 – 3,000 parasitic eggs per
gram of faeces, which has a significant effect on feed conversion and stock performance;
? FECPAK is highly accurate do to ability to conduct tests in situ, which enables better
identification of parasitic eggs and worms;
? Parasitic resistance is highly hereditary – to the rate of 0.3;
? FECPAK recently purchased by PG Wrightson, a New Zealand agribusiness company
that is investing considerable resources to extent NZ-developed technology into Uruguay
and other South American countries:
o Particularly in the areas of beef and dairy;
o New Zealand producers investing in property in these regions too;
? Ivermectin said to be experiencing the fastest growing resistance of any anthelmintic;
? One system works for sheep, cattle, and horses;
o Also able to identify facial eczema spores
o Both classes of GI parasites (nemutodirus and strongyles) identifiable;
o Lungworms being look at, though not quite able yet;
? Need to encourage vets veterinarians to work with producers on interception and
strategic worming recommendations;
o Not on diagnosis;
o More cost effective service from veterinarians;
? Treatment thresholds divided into three types:
o High (500+ eggs per gm) – treat with anthelmintic and move to new pasture
o Medium (200-500 eggs per gm) – move to new pasture, treat only if required
o Low (100 or less eggs per gm) – leave alone unless quarantining
? The system is not yet available in Canada, though could be;
22
Ag Research, Otago University, Dunedin,
Established 12 years ago, Ag Research is New Zealand’s largest Crown Research Institute (CRI),
employing approximately 1,200 people. Ag Research facilities are strategically located in
important agricultural areas of both the North and South Islands.
Investing expertise in biotechnical research efforts to build substantial competitive advantage
throughout the value chain, its focus ranges from forage through to supermarkets. Its mission is
to seek areas of common interest and opportunities for investment and cooperation where
pooling of resources promises faster and better results than would occur otherwise. The ultimate
aim is to support pastoral farming that is not just highly profitable but sustainable, and where, for
a given unit of effort, more economic value is created with a smaller environmental footprint
than previously the case.
While a CRI, it supplements government funding through developing commercially-valuable
tools and capabilities, from which it captures royalties necessary to sustain its extensive research
efforts. Of the NZ$160m operating budget, 45% comes from government, the remainder from
industry. It, therefore, operates as a profit-generating organization, overseen by a Board of
Directors.
Ag Research sheep projects currently include initiatives to improve ewe maternal traits
(including lambing prolificacy), identify genetic causes of lamb mortality, and improve meat
quality through genetics (in conjunction with Rissington). With approximately 40% of meat
quality determinants coming from genetics, immense efforts are being channeled into developing
methods to improve lamb productivity and consistency in meeting market demands through
creating a genetic base that can then be enhanced through best management practices.
Part of Ag Research’s current efforts are being invested in showing that starting with genetic
specifications that meet market requirements, then using these to develop standards and achieve
consistency in production and supply, is a commercially sound venture. Have found that securing
processors and retailers support for projects is a valuable method to capture producers’ attention,
and enable results to be more effectively shared with industry. The results leading to changes in
management practices, with the speed of change increased through pricing premiums.
Additional information provided by Ag Research includes:
? Processors, as well as producers, can benefit markedly from introduction of pricing grids
that encourage targeted consistent quality;
? Developing system to identify burger/compound meats for traceability;
? Besides Rissington, Hereford Prime is successfully using genetics to establish a market
presence and capture greater value for the chain from producing and delivering consistent
quality meat products to the marketplace.
? Quality specifications which are influenced by genetics, include:
o Colour stability;
o Tenderness;
o Marbelling;
o Fat acid balance (inc. unsaturated to polyunsaturated, and omega 3);
23
Farm visit, Hamish Reid, Christchurch
Hamish is a progressive lamb producer, farming south west of Christchurch on the Canterbury
Plains. Hamish has implemented extensive irrigation system to enable average stocking rate of
20 lambs per hectare, grazing on a clover, tetraploid (Winfred), ryegrass (Ceres Progrow) mix.
Grass fills the lambs, clover finishes them. Lambs regularly average 300 grams DLWG. Finishes
store lambs on a forward contract with PPCS, where payment per kg LWG and set pricing grid,
target weight/confirmation are guaranteed prior to the lambs’ arrival. Lambs arrive at 28 kg,
leave at 40kg. Objective is to produce extremely consistent lambs.
Additional information supplied by Hamish included:
? Uses FECPAK on ewes to monitor parasitic egg population;
o Lambs on irrigated pasture, change paddock every 28 days to minimize parasites;
? Average lamb DLWG over the year is 280 grams @ stocking rate of 20 lambs / ha;
? Fertilizer usage per ha:
o 150 kg urea / 500 kg superphosphate / on soil averaging a pH of 6.0;
? Over 40kgs, lambs feed conversion rates ‘go to hell’;
o Weigh and sort lambs carefully to pinpoint optimum slaughter time ;
Discussing clover, tetraploid, ryegrass mix with Hamish Reid
24
New Zealand Ministry of Agriculture and Forestry (MAF), Wellington
MAF has ten functional groups. These are:
1. Policy
a. International
b. Sector Performance
c. Sustainable Resource Use
d. Innovation and Research
e. Management Services
2. Food Safety Authority
a. Semi-autonomous, attached to MAF
b. Divided into three business units
i. Agricultural Compounds and Veterinary Medicines
ii. Animal Products
iii. Dairy and Plant Products
3. Biosecurity
a. Tasked with a “whole-of-system” leadership role, encompassing economic,
environmental, social and cultural outcomes. It also has international trade and
animal welfare responsibilities.
4. Quarantine Service
a. Manages any potential biosecurity risks at the border
b. Provides domestic and offshore technical inspection and clearance services
5. Crown Forestry
6. Biosecurity (strategic) Group
a. Supports biosecurity system group by ensuring effective interconnection across
MAF’s biosecurity operations and its national marine, agriculture, forestry,
conservation, health, economic, social and cultural objectives.
7. Strategy and Performance Group
8. Maori Strategy Unit
9. Corporate Assurance and Risk
10. Corporate Services Groups
Discussions with MAF centered on policy related to research and development, industry
structure and performance, and Sustainable Farming Program. Historically, New Zealand
agriculture was legislated in some way to address problems as they occurred. This led to further
problems, which could only truly be addressed through deregulation.
Most industry boards are now abolished. Those that remain do so through Commodity Levies
Act, which require producer referendums every six years to maintain. Otherwise, they’d be split
up too. Those that do remain have specific roles focused on facilitating trade. MAF believes that
traditional boards do the opposite. They re-enforce a straight jacket mentality that does not
provide the flexibility required for producers to compete in an increasingly international market.
Traceability is approached in an outcome-orientated manner, rather than a prescriptive approach.
All traceability is currently voluntary, with implementation dictated by market forces. Most
25
current traceability practices exist in high value situations. Surveillance programs are being put
in place to monitor for many of the same risks that Canada shares. These will complement
traceability practices. Approach of focusing on outcomes will continue for foreseeable future.
New Zealand’s sheep industry has changed markedly since the 1980s. Romney breed used to be
70-80 percent of national flock, now approximately 50 percent. Much of that crossed. Wool has
largely become a by-product, except for specialist producers such as Merino. New Zealand
currently has 40.1 million sheep, with 25.6 million lambs slaughtered during the year to
September 2006. In last ten years, the average carcass weight of lambs slaughtered has increased
from 15.2kg to 17kg. Canada accounts for NZ$78 million of NZ$2.2 billion annual exports.
Market signals, no longer distorted by subsidies, have led to immense changes in agriculture as a
whole. Responses to market signals have themselves been enabled and supported through the
withdrawal of legislative approaches that once prevented producers and agri-food companies
adapting to opportunities in most effective and commercial sound methods.
Additional information provided by MAF included:
? Sustainable Farming Fund established to support on-farm applied research and
implementation of results;
o $9.5 million annual funding;
o Projects of under $20k can be funded without going to full Board;
o Maximum funding of $600k per project;
Average support is 60% of overall project value;
o Established with aim of supporting regional and community issues;
? Average age of primary producers is:
o Lamb – 52
o Dairy – 45
26
Appendix A: Map of New Zealand Showing Regions Visited
27
Appendix B: Itinerary
Date
January 2007
Monday 15
Tuesday 16
Wednesday 17
Thursday 18
Friday 19
Morning
Afternoon
Napier – Rissington Breedline
- Alastair Nelson
Napier – Rissington Breedline
- Donald Watson
MWNZ – Jansen Travis
Napier – Rissington Breedline
- Dr. Richard
Napier – Rissington Breedline
- John Heald
Federated Farmers – Nick Clark
ARGOS programme - Jon Manhire
Lincoln University – Dr Alastair Nicol, Dr Derrick Moot,
Alan Marshall
Macfarlane Rural Business, Ashburton
- Andy Macfarlane, Hugh Eaton, Jeremy Savage
Phil Everest
FECPAK International – Greg Mirams
PPCS Fairton – Joe Butchard, Manager
Abacus Biotech - Jack Scott
Catapult – Tony Arthur
Monday 22
Tuesday 23
AgResearch Invermay – Julie Everett-Hincks, George
Davis, Tricia Johnston, John McEwen, Anna Campbell,
David Stevens
NZMW - Aaron Meikle
Hamish Reid, Christchurch
Ministry of Agriculture and Forestry Rob Forbes
Ken Armstrong
Ben O’Brien
MWNZ - Craig Finch
28
Appendix C: History and Development of NZ Lamb Industry
Sheep and Beef Farm Land Value
& Farm Profit Before Tax Trend per Ha.
Index (1990-91 = 1,000)
6000
Overseas buyers, Land use
change, On-farm development
5000
Forestry and Dairy
Expansion
4000
Major Regulation &
govt. support period
3000
2000
1000
Deregulation
2000-01
1995-96
Land Value
2005-06e
Farm Profit
1990-91
1985-86
1980-81
1975-76
1970-71
1965-66
1960-61
0
Source: Meat & Wool New Zealand Economic Service,
All Classes Sheep and Beef Farm Survey
YM Lamb $ per Head
Month and Annual Average
90
80
60
$56.80
+$3.50
50
12 Month
Weighted Av
40
30
Av Carcase 15.5 Kg
Source: Meat & Wool New Zealand - Economic Service
29
Oct-07
Oct-06
Oct-05
Oct-04
Oct-03
Oct-02
Oct-01
Oct-00
Oct-99
Oct-98
Oct-97
20
Oct-96
$ per head
70
Sheep and Beef Farm Profit
per Farm, Real 2004-05 Dollars
$126,910
120,000
100,000
80,000
60,000
2006-07f
+26%
40,000
20,000
decade av. $44,800
Source: Meat & Wool New Zealand Economic Service
Sheep and Beef Farm Survey, All Classes
Farm Equity
•
Sheep and Beef Farms
82%
•
Dairy Farms
65%
•
Sheep and Beef Rate of Return on
Total Farm Capital (2004-05e)
1.2%
30
2005-06e
2003-04
2001-02
1999-00
1997-98
1995-96
1993-94
1991-92
1989-90
1987-88
1985-86
1983-84
1981-82
1979-80
1977-78
1975-76
0
31
20
05
-06
e
20
03
-04
20
01
-02
19
99
-0
0
19
97
-98
19
95
-9
6
19
93
-94
19
91
-92
Lamb Carcass Weight (kg)
20
05
-06
20
03
-04
20
01
-0
2
19
99
-00
19
97
-9
8
19
95
-96
19
93
-94
19
91
-92
Lambing %
Lambing %, All Classes
130
125
120
115
110
105
100
95
90
85
80
Average Carcass Weight
18
16
14
12
Productivity Comparison
Lambing Percentage (ewe)
Hogget lambs as % all lambs
1990-91
2005-06p
101.6
121.5
-
5.0
Average Lamb Wt (kg)
14.35
17.18
Lamb sold Kg / Ewe
9.76
16.79
Wool kg/head
5.28
5.60
Average Steer Wt (kg)
297
318
Milksolids per cow (kg)
260
308
Productivity Trend
Productivity per Head av. per Year
1990-91 to 2005-06
• Lamb Kg per sheep
+3.3%
• Milkfat Kg per cow
+1.24%
• Wool Kg per sheep
+0.4%
• Beef Carcase Kg per head [beef + dairy] +0.02%
32
Export Lamb Product Mix
1970-71 to 2003-04
100.0
90.0
Per cent
80.0
70.0
60.0
50.0
40.0
30.0
20.0
Source: Meat & Wool New Zealand
Economic Service
Carcase
Cuts
2003-04
1999-00
1995-96
1990-91
1985-86
1980-81
1975-76
1970-71
10.0
0.0
Boneless
Export Lamb
Tonnage & $ per Tonne
100%
367,656 T*
392,323 T*
$4,699 / T
80%
$5,557 / T
60%
40%
$7,603 / T
20%
$10,607 / T
0%
1995-96
Chilled
Boneless
2005-06
Cuts
Carcases
Source: Meat & Wool New Zealand Economic Service
New Zealand Meat Board
33
* Shipped tonnes
Farm Size
•Farm Class
•Class 1 (High Country)
•Class 2 (Hill Country)
•Class 6 (Finishing & Breeding)
1991/92
2004/05
10,373 ha
9551 ha
(-8%)
1597 ha
1557 ha
(-3%)
385 ha
431 ha
(+12%)
Lamb Purchases Per Farm
1,600
1,200
Class 6
Class 8
800
400
34
20
03
-04
20
01
-02
19
99
-00
19
97
-98
19
95
-96
19
93
-94
0
19
91
-92
Lambs Puchased/Farm
2,000
25%
20%
15%
35
19
99
-00
19
97
-98
19
95
-96
19
93
-94
19
91
-92
20
05
-06
30%
20
05
-06
35%
20
03
-04
40%
20
03
-04
45%
20
01
-02
Lamb Slaughter – Apr to Jun
20
01
-02
19
99
-00
19
97
-98
19
95
-96
19
93
-94
19
91
-92
Percentage of Total
Percentage of Total
Lamb Slaughter – Jan to Mar
50%
46%
42%
38%
34%
30%
20%
15%
10%
5%
0%
19
97
-98
19
95
-96
19
93
-94
19
91
-92
36
20
05
-06
20
03
-04
20
05
-06
20
03
-04
20
01
-02
25%
20
01
-02
30%
19
99
-00
Lamb Slaughter - Oct to Dec
19
99
-00
19
97
-98
19
95
-96
19
93
-94
19
91
-92
Percentage of Total
Percentage of Total
Lamb Slaughter – Jul to Sep
14%
12%
10%
8%
6%
4%
2%
0%
Appendix D: Key Facts About New Zealand
hectares (000)
Grazing, arable, fodder and fallow land
Land in Horticulture
Plantations in Exotic Timber
Total area of New Zealand
1994
13 536
104
1 388
26 870
2004
11 709
121
1 835
26 870
GDP Contribution (NZ$ million)
Constant 1995/96 prices
Agriculture
Forestry & logging
Food & beverage manufacturing
1994
4 601
1 132
4 519
%
5.4
1.3
5.3
2004
6 095
1 485
5 802
%
3.8
0.9
3.8
Wood & paper products manufacturing
1 897
2.2
2 399
1.6
Total GDP
85 676
Exchange Rates
Source: NZ Reserve Bank
37
119 525
In 2004, Agricultural, forestry and horticultural exports were valued at $18.5 billion or 65% of New
Zealand’s total exports
Total Agricultural, Forestry and Horticultural Exports
(NZ$billion fob)
38
Appendix E: Information on Rissington Breedlines
39
40
Appendix F: Information on Catapult® Products
41
KEY FEATUR
ES
42
43
44
45
46
47