Posives - d10k7k7mywg42z.cloudfront.net Gira Consultancy and Research World Sheepmeat Production 2010 15% 2% 1% 4% 4% ... Graeme Lowe Hawera Taranaki Bio …

2

Posi%ves

3

Gone

4

Gone

5

In command

6

Nega%ves

7

Fluctua%ng Australian Dollar Compared to the Greenback over the past twelve months Peaked 1.08US BoFomed .89US Current .965US

8

CARBON TAX Implemented July 2012 at $23 /tonne Currently $24.15 No chance of it being repealed un%l July 2014 Rudd in elec%on mode promised to cut it to $6 AbboF has promised to remove it Needs a majority in the Senate. The "obstacles" don't get %pped out un%l July 2014 Australia's largest independent renderer is paying $1.4 million per annum to fill Labor's black hole Our opera%on is paying just under $700,000

9

CHINA Meal access far from resolved Only 13 plants audited and approved by AQSIQ Only 4 of these have MOA registra%on A few others have MOA registra%on but no AQSIQ approval 27 Plants seeking AQSIQ audits but like everyone else we are in the queue HPAI A couple of outbreaks around the country saw China, Indonesia ,Taiwan ban imports of poultry meals

10

CHINA OIE requirements met but six months later these doors s%ll closed

Tallow to China s%ll have issues here gecng product back in for refining ader the "GuFer Grease" incident

Two delega%ons have visited and are quite happy with what they saw. Beijing is becoming challenging and unpredictable

11

Tony AbboF has currently been in SE Asia nego%a%ng FTAs with Japan, China and South Korea.

A live caFle ban to Indonesia severely affected our rela%onship with that country nearly two years ago

We are s%ll feeling the ramifica%ons of this. Tony AbboF has seen this trade resume Now drought sees not enough of that type of animal available

12

Tallow heading south Meals heading south Singapore has become our largest user of tallow Biofuel producers edgy exacerbated with your current Government issues Capacity kills around the country More so in Queensland that is drought ravaged. Some markets requiring fumiga%on of product being an unnecessary expense

13

Hygienic rendering under more scru%ny Chinese demanding zero salmonella Feedmillers requiring COAs prior to delivery of meals and tallows Species separa%on s%ll controversial

14

Vegetarian Diets A major supermarket chain is employing Bri%sh policy makers

Bri%sh Policy Makers are quo%ng from the Bri%sh RSPCA rulebook

RSPCA APPROVED “CHICKEN” IN THEIR MARKETING STRATEGY

No animal protein (BSE driven) The supermarket chain is pushing for this in Australia

15

One major processor won't capitulate but another has ARA have engaged the services of an industry expert to point out the short comings of this approach

The same person had recently aFended a European Poultry Symposium where four out of five speakers spoke about the issues of wet liFer resul%ng from vegetarian diets

16

2011/2012 2012/2013 CaFle 7.2m 7.8m

Calves .671m .645m

Sheep 5.17m 8.19m

Lamb 18.87m 21.12m

Pigs 4.73m 4.74m

Poultry 551m 563m

Poultry is now the most consumed meat in the country

17

Queensland drought has seen a lot of plainer caFle processed but the feedlots are full

Young caFle being offloaded in record numbers and heading for parts of NSW, Victoria and South Australia

One large operator picked up in excess of 15,000 young heifers and these are being walked from Queensland to South Australia

NSW experiencing scorching summer weather in spring

Drought could spread but who knows?

18

Happy ones

Tim Juzefowicz winner on the Ron Lyon Award for his contribu%ons over the years

Thanks to the DUPPS Company for sponsoring the award

19

Sad ones Bill Spooncer intends re%ring next year and spend the rest of his life in art galleries ,listening to chamber music and doing what he does best…grizzling.

He is a different person with his grand kid

Bill receiving his AM for services to the Australian Rendering and Meat Industry

20

More happy ones ARA had a service to industry award. We named it to honour Brian BartleF for his vision and commitment to our industry.

It was awarded to Phil Lambeth who has chaired our Symposium CommiFee for about ten years

Phil Lambeth receives the B W BartleF Award from Brian BartleF

21

More happy ones It was also awarded to Stephen Cooke and Dennis King in recogni%on of their dedica%on and input to the ARA.

Note Spooncer’s sarcasm reaching new levels. The 3 Booseads

22

A J Bush Beaudesert won the local environmental sustainability award last November and has now taken off the Premier of Queensland sustainability award for reducing emissions as well their use of cucng edge sustainability prac%ces.

Global Perspectives: Australasia

Bruce Rountree

Chairman New Zealand Renderers Group

(A subcommittee of the Meat Industry Association of NZ)

Representing New Zealand Rendering Processors, Exporters and Services - Responsible, Sustainable and Essential

Australasia = Australia and New Zealand



Rendered Products from Australasia are predominantly from beef and sheep


Global Produc%on Rendered Products

(Es%mates)

Meals Fats and Grease

United States 4,094,237 4,576,429 European Union -18 3,870,000 2,687,000 South America 3,970,578 2,278,379 Australia 650,000 470,000 New Zealand 193,000 120,000 Turkey 185,600 84,179 TOTAL 12,963,415 10,215,987

Source: www.worldrenderers.org

Representing New Zealand Meat Processors, Marketers and Exporters

Global Beef Produc%on 2011

19%

14%

7,948

13%

4% 3% 3% 3%2% 2% 1% 1% 1% 1% 1% 1%

21%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Tonn

es ('

000

cwe)

Compiled by MIA from FAOSTAT database

Representing New Zealand Meat Processors, Marketers and Exporters

Global Beef Exports 2011

Australia, 13%

New Zealand, 5%

India*, 12%USA, 11%

Brazil, 10%

Canada, 4%

EU-27, 4%

Uruguay, 3%

Argentina, 2%

Mexico, 1%

Others, 35%

Compiled by MIA from UN Comtrade database

* Indian exports include buffalo meat

On the Interna4onal scene Australia and New Zealand are:

•  Small players in regards to the produc4on of rendered products (6%)

•  Significant in the world in regards to interna4onally traded product (~ 20%?)

•  Disease Free -‐in accordance with OIE recognised as having a negligible BSE risk and FMD free



Market

•  Tallow -‐Trade predominantly with China and Singapore with strong demand

•  MBM -‐Main market Indonesia & China has been strong

•  Ovine Meal -‐Premium product aZrac4ng a premium price

•  Dried Blood –Strong interna4onal demand


Market (con%nued)

•  Poultry and Feather Meal was strong -‐Australia has had market restric4ons due to Avian Influenza -‐NZ has access issues with Indonesia

•  Fish has experienced record highs


Market (Con%nued)

•  Opportuni4es exist for producers wishing to specialise in species specific meals (ovine, cervine, duck, etc.)

•  Exchange Rate –A roller coaster ride, but good returns in spite of this


•  Australasian Renderers are con4nuing to make investments in the Industry at a steady rate

•  ARA and NZRG are working together to promote our Industry as:

Responsible, Sustainable and Essen4al

General


Quality

Customers are becoming more demanding as prices increase •  Salmonella

•  MIU

•  Plas4c and Metal Contaminants


Summary

•  Times are good for an Australasian renderer –good demand and good prices

•  Need to be vigilant that Interna4onal Market

Access Requirements are science based and not technical barriers to trade


NZ Rendering Industry: An Overview

Kevin Cresswell

New Zealand Renderers Group

(A subcommittee of the Meat Industry Association of NZ)


•  Interna4onal Scene •  NZ Rendering Sta4s4cs •  Industry Issues •  Achievements •  Summary


World Beef Production 2010

Source: Gira Consultancy and Research

20%

1%1%2%3%3%3%4%5%5%

9%

12%13%

19%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

USAEU-27

Brazil

China

Argentin

aIndia

MENA

Australia

Mexico

Russia

Canada

South Afri

ca

New Zealand

Others

Tonn

es ('

000

cwe)



World Beef Exporters 2010

Brazil, 23%

Australia, 20%

Canada, 11%

USA, 11%

India, 8%

Argentina, 7%

New Zealand, 6%

Uruguay, 5%

EU-27, 2%

Others, 6%

Mexico, 2%



World Sheepmeat Production 2010

15%

1%2%4%4%5%6%

7%

12%12%

32%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

ChinaAfri

caMENA

EU-27

South Asia

CIS/C

EECs

Australia

New Zealand

South Americ

a

North A

merica

Others

Tonn

es ('

000

cwe)



World Sheepmeat Exporters 2010

Australia32%

EU20%

New Zealand41%

South America

2%

Others3%

China2%


Global Produc%on Rendered Products

(Es%mates)

Meals Fats and Grease

United States 4,094,237 4,576,429 European Union -18 3,870,000 2,687,000 South America 3,970,578 2,278,379 Australia 650,000 470,000 New Zealand 193,000 120,000 Turkey 185,600 84,179 TOTAL 12,963,415 10,215,987

Source: www.worldrenderers.org

On the Interna4onal scene New Zealand (and Australia) are:

•  Small players in regards to the produc4on of rendered products (6%)

•  Significant in the world in regards to interna4onally traded product (~ 20%?)

•  Disease Free -‐in accordance with OIE recognised as having a negligible BSE risk and FMD free



The New Zealand Renderers Group comprises of: •  8 meat companies with rendering plants

(25 rendering premises) •  11 independent processors •  26 associated members

(exporters and service providers)

Rendering Premises in New Zealand

Wellington

Christchurch

Dunedin

Auckland

AFFCO Moerewa Wallace Corporation Bakels AFFCO Rangiuru

AFFCO Wairoa Hawkes Bay Protein Silver Fern Farms Pacific Silver Fern Farms Takapau Kakariki Proteins Alliance Levin Taylor Prestons

Silver Fern Farms Belfast Silver Fern Farms Fairton CMP Canterbury South Canterbury By-Products Silver Fern Farms Pareora Alliance Smithfield

Alliance Pukeuri Keep It Clean Silver Fern Farms Silverstream Silver Fern Farms Finegand South Pacific Meats Awarua

PVL Proteins Graeme Lowe Waikato AFFCO Horotiu

Taranaki Abbatoir Graeme Lowe Hawera Taranaki Bio Extracts Taranaki By-Products AFFCO Imlay

CMP Kokiri Value Proteins Silver Fern Farms Waitane

Alliance Mataura Alliance Lorneville Alliance Makarewa Prime Range Meats


•  Includes es%mate for local market •  Meat and Bone Meal

–  200,000 tonnes

•  Tallow –  160,000 tonnes


Meat and bone meal $ 168 Million

Tallow $ 159 Million

Total $ 327 Million

Compared with Venison + Velvet $ 181 Million

Apples $ 386 Million (*FOB for year ended 30 June 2013)


MBM Exports (years ended June)

0

20

40

60

80

100

120

140

160

180

200

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Valu

e (N

Z$ m

illio

ns)

Volu

me

(tonn

es)

Volume Value


Exports of MBM to major markets (year end June 2013)

By volume (tonnes) By value (NZ$m)

Indonesia58%

United States15%

China5%

Taiwan4%

Netherlands3%

Fiji3%

Thailand3%

Canada2%

Other markets7%

Indonesia48%

United States22%

China6%

Netherlands5%

Taiwan3%

Canada3%

Fiji2%

Thailand2%

Other markets9%


Tallow Exports: Volume and value (years ended June)

0

20

40

60

80

100

120

140

160

180

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Valu

e (N

Z$ m

illio

ns)

Volu

me

(tonn

es)

Volume Value


Exports of Tallow to major Markets (year ended June 2013)

By volume (tonnes) By value (NZ$m)

Singapore44%

China42%

Pakistan3%

Philippines3%

PNG2%

India1%

Korea1%

Malaysia1%

Other markets3%

Singapore45%

China41%

Philippines3%

Pakistan3%

PNG2%

Korea1%

India1%

Malaysia1%

Other markets3%


Change in Tallow Exports (year ended June 2013)

By volume (tonnes)

0

20,000

40,000

60,000

80,000

100,000

120,000

2009 2010 2011 2012 2013

China Singapore Other markets


•  Profitability –  Land use changes from sheep and beef – par4cularly to dairying –  Excessive meat processing capacity –  Exchange rate

•  Processing –  Contamina4on: Foreign MaZer / Salmonella –  Consistency –  Hi calcium/bone content

•  Growing ‘Ethical’ issues –  Environmental / Sustainability –  Animal Welfare –  Odour

•  Logis%cs –  Shipping space –  Equipment availability –  Slow steaming


Sheep and Cattle Numbers

1990-91 to 2012-13

25,000

35,000

45,000

55,000

65,000

75,000

1990

-91

1992

-93

1994

-95

1996

-97

1998

-99

2000

-01

2002

-03

2004

-05

2006

-07

2008

-09

2010

-11

2012

-13

Shee

p (0

00)

2,000

3,000

4,000

5,000

6,000

Cat

tle (0

00)

Source: Beef + Lamb New Zealand Economic Service Statistics New Zealand. % change 1990 to 2012

Dairy +78%

Beef -10%

Sheep -43%







NZ Exchange Rate Trend

700800900

1,0001,1001,2001,3001,4001,5001,6001,7001,800

2007

Sep

2008

Mar

2008

Sep

2009

Mar

2009

Sep

2010

Mar

2010

Sep

2011

Mar

2011

Sep

2012

Mar

2012

Sep

Inde

x

U.S. $ U.K. stg EuroSource: Beef + Lamb New Zealand Economic Service Reserve Bank of New Zealand

12 month av.

EU € +6.3%

US $ -0.2%

UK £ +3.7%2011-12e

(Jan 2000 = 1,000)


or putting it another way …..










Achievements I

•  Professional/Organised –  BeZer organised and meaningful mee4ngs –  U4lising MIA resources and informa4on –  Website for members

•  Strategic Plan –  Implemented second 3 year strategy 2010-‐2013 –  Has provided a focus for the group

•  Environmental –  Produced Guidelines for Assessing and Managing Odour. –  Gained approval for rendering to be eligible for free carbon credits under the ETS


•  Marke%ng –  Market Research Project jointly funded with NZ Trade and Enterprise –  Developing a brochure promo4ng NZ Rendered Products

•  Upskilling –  Training Workshop (3rd) for senior opera4onal staff –  Developed a na4onal rendering qualifica4on

•  Interna%onal Organisa%ons –  Past President of World Rendering Organisa4on –  Fats and Proteins Research Founda4on (FPRF): Directorship and Research

CommiZee Member –  Close rela4onship with Australian Renderers Associa4on


•  NZ is small in meat produc4on in global terms -‐but big in

interna4onally traded meat products –especially lamb

•  Similar trends for rendered products

•  Rendered products make a significant contribu4on to the NZ economy

•  Reliant on a few markets –but this is changing, bringing new product requirements and challenges

•  The Rendering Industry is alive and well and has a great future

Documents

Posives - d10k7k7mywg42z.cloudfront.net Gira Consultancy and Research World Sheepmeat Production 2010 15% 2% 1% 4% 4% ... Graeme Lowe Hawera Taranaki Bio …