THE INVESTOR’S GUIDE TO THE NEW ZEALAND MEAT INDUSTRY 2017 Part of the New Zealand Food & Beverage Information Project
FINAL REPORT; v1.02; June 2017
STEERING & GUIDANCE
This project would not have been possible without the strong guidance of ourSteering Committee. In particular, we would like to thank Andrew McCallumof MBIE for his tireless energy in keeping this project on track, while at thesame time pushing us forward.
Draft versions of parts of this document were distributed to key firms forcomment, addition or correction. This was done in the form of emails andphone calls. We thank those who helped us in this process for their time andeffort. We also thank those who provided their photos.
We are grateful for all of the input we have received, but the report is oursand any errors are our own.
Finally, we acknowledge the support of the Ministry of Business, Innovationand Employment (MBIE), New Zealand Trade and Enterprise (NZTE) and theMinistry of Primary Industries (MPI). It is their funding that has made thisreport possible.
CONSTRAINTS & INHERENT LIMITATIONS
This work was commissioned by the Ministry of Business, Innovation andEmployment (MBIE) and prepared by Coriolis. This work is based onsecondary market research, analysis of information available or provided toCoriolis by our client, and a range of interviews with industry participants andindustry experts. Coriolis have not independently verified this informationand make no representation or warranty, express or implied, that suchinformation is accurate or complete.
The report is dated June 2017 and Coriolis accepts no liability for, and has notundertaken work in respect of, any event subsequent to that date, which mayaffect the report.
Key global trade data analysed in all sections of the F&B Information projectare calculated and displayed in US$. This is done for a range of reasons:
- It is the currency most used in international trade- It allows for cross country comparisons (e.g. vs. Denmark)- It removes the impact of NZD exchange rate variability- It is more comprehensible to non-NZ audiences (e.g. foreign investors)- It is the currency in which the United Nations collects and tabulates
global trade data
Anyone should feel free to call the authors if any of the material cannot beunderstood or accessed. We always welcome opportunities to discuss ourresearch with our readers and users.
Projected market information, analyses and conclusions contained herein arebased (unless sourced otherwise) on the information described above and onCoriolis’ judgment, and should not be construed as definitive forecasts orguarantees of future performance or results. Neither Coriolis nor its officers,directors, shareholders, employees or agents accept any responsibility orliability with respect to this document.
Coriolis wishes to draw your attention to the following limitations of theCoriolis report “New Zealand Meat Industry 2017“ (the Coriolis Report)including any accompanying presentation, appendices and commentary (theCoriolis Commentary):
a. Coriolis has not been asked to independently verify or audit theinformation or material provided to it by, or on behalf of the Client, or any ofthe parties involved in the project;
b. the information contained in the Coriolis Report and any CoriolisCommentary has been compiled from information and material supplied bythird party sources and publicly available information which may (in part) beinaccurate or incomplete;
c. Coriolis makes no representation, warranty or guarantee, whether expressor implied, as to the quality, accuracy, reliability, currency or completeness ofthe information provided in the Coriolis Report and any Coriolis Commentary,or that reasonable care has been taken in compiling or preparing them;
d. the analysis contained in the Coriolis Report and any Coriolis Commentaryare subject to the key assumptions, further qualifications and limitationsincluded in the Coriolis Report and Coriolis Commentary, and are subject tosignificant uncertainties and contingencies, some of which, if not all, areoutside the control of Coriolis; and
e. any Coriolis Commentary accompanying the Coriolis Report is an integralpart of interpreting the Coriolis Report. Consideration of the Coriolis Reportwill be incomplete if it is reviewed in the absence of the Coriolis Commentaryand Coriolis conclusions may be misinterpreted if the Coriolis Report isreviewed in absence of the Coriolis Commentary.
Coriolis is not responsible or liable in any way for any loss or damageincurred by any person or entity relying on the information in, and theRecipient unconditionally and irrevocably releases Coriolis from liability forloss or damage of any kind whatsoever arising from, the Coriolis Report orCoriolis Commentary including without limitation judgments, opinions,hypothesis, views, forecasts or any other outputs therein and anyinterpretation, opinion or conclusion that the Recipient may form as a resultof examining the Coriolis Report or Coriolis Commentary.
The Coriolis Report and any Coriolis Commentary may not be relied upon bythe Recipient, and any use of, or reliance on that material is entirely at theirown risk. Coriolis shall have no liability for any loss or damage arising out ofany such use.
Unless otherwise noted, all photos used in this discussion document wereprovided by the New Zealand Story resource (www.nzstory.govt.nz),purchased by Coriolis from a range of stock photography providers asdocumented, or are low resolution, complete product/brand for illustrativepurposes used under fair dealing/fair use for both “research and study” and“review and criticism”. Our usage of them complies with New Zealand law ortheir various license agreements.
Cover image: Shutterstock (Rolf_52)
Where appropriate, this document is Copyright © 2017 Coriolis and MBIE.However, please feel welcome to use, refer to and cite this research.
+ Purpose
+ Situation summary
+ Drivers of success
+ Investment opportunities
+ SWOT
+ Supply chain
+ Global situation
+ Consumption
+ Production
+ Import demand
+ Key markets
+ Market growth
+ Yield/productivity
+ Production
+ Regional activity
+ Growth upside
+ Segmentation
+ Key products
+ Exports by product
+ Horizons for growth
+ Emerging export stars
+ New viable options
+ Mega-trends driving change
+ Innovation & new products
Market Overview
Context & Conclusions
New Zealand Production
Categories Growth & Innovation
01 02 03 04INTRO
TABLE OF CONTENTS
+ Enterprises
+ Employment
+ Production share
+ Turnover
+ Ownership
+ Foreign investors
+ Acquisitions
+ Investments
+ Firm Profiles
Firms Performance
05
Pages 3-9 Pages 10-25 Pages 26-34 Pages 35-46 Pages 47-62 Pages 63+
PURPOSE Why did the New Zealand government undertake this project?
4
The project presents a comprehensive, business-focused overview of the total New Zealand food and beverage industry.
The project pulls together the available information on the food and beverage industry into one place, in a form which is familiar and useful to business. The reports contain analysis and interpretation of trends and opportunities to materially assist with business strategy and government policy.
The information will be of vital use to businesses, investors, government, and research institutions as the industry expands and diversifies. This industry view will be very useful to government, enabling better dialogue and the opportunity to address issues collectively.
– As support for raising capital
– As a base of market intelligence to enable business to be much more targeted in their own market research
– Reviewing and informing offshore market development strategies, including export and investment
– Assisting in identifying areas of innovation and R&D for the future
– Identifying strategic partners and collaborators
– Enabling a company to benchmark performance with that of its competitors
– Monitoring industry activity
– Gaining a better understanding of their own industry sector
– Identifying internal capability needs or external inputs
While the government collects large amounts of industry data, little of this has an investor or industry-driven perspective.
This information will provide much greater insight into the industry, which is useful for a range of policy developments, from regulatory frameworks to investment in science and skills and facilitating access to international markets.
In particular, a single source of factual information will enable government agencies to better coordinate their efforts across the system and be more responsive to addressing industry issues.
All project resources are available online at:
www.foodandbeverage.govt.nz
What is the purpose of the project? What benefit will this bring to businesses? How will government use the reports?
SITUATION SUMMARY New Zealand is the global leader in lamb and deer meat exports and has a strong position in beef exports; other species are primarily focused on the domestic market, although in recent years chicken exports have been growing
5
LLAAMMBB
Both New Zealand and Australian lamb production has been flat for forty years. Falling domestic consumption at home has made more meat available for export. New Zealand & Australia together account for more than seventy percent of global lamb exports.
Top four New Zealand lamb meat processors account for 70% of NZ volume. The Australian industry is more fragmented. NZ lamb exporters primarily compete with each other and Australian firms.
The major lamb consuming countries are effectively the major lamb producing countries. In other words, the regions that grow lamb eat lamb (and those that don’t, don’t). However, most major lamb consuming countries are too poor to afford NZ lamb in quantity.
The key markets for New Zealand and Australian lamb are a handful of rich Western countries and the Gulf States. Supply is primarily counter-seasonal lamb for consumption around the time of traditional religious holidays (e.g. Christmas, Easter and the end of Ramadan). Lamb production flat-to-falling in these key markets and lamb consumption per capita falling due to an increasing price gap with other more efficient meats (e.g. chicken).
China is a rapidly emerging market for New Zealand’s lamb exports, but also a strongly growing producer.
China has gone from producing a fifth as much lamb as New Zealand 40 years ago to more than four times as much today. However China is currently a growing customer and is unlikely to be a threat in key markets within the medium term.
BBEEEEFF
NZ is a minor global producer of beef (~1%). NZ beef breeds (e.g. Angus) have declining numbers and are not generally finished on grain, as is preferred by key premium markets. In addition, a growing proportion of beef production is a secondary product of the dairy industry, not optimal for meat quality.
Grass-fed beef has achieved minimum consumer cut-through to date and sells at a discount to grain fed overall, despite healthy attributes. This low fat beef is however valued for patties in foodservice (e.g. supplying McDonalds).
Brazil and Australia are both major producers and exporters of beef into key NZ markets; in addition the USA is increasing beef exports driven by the weak USD, leading to increased imports of manufacturing beef.
DDEEEERR
NZ pioneered deer farming in the 1960’s. The industry has two income streams (venison and deer velvet). The number of animals is in decline and long term economic viability unclear without major sustained breeding program to improve relative animal productivity.
CCHHIICCKKEENN
NZ has a modern chicken industry with four processors (Tegel, Inghams, Brinks & Turks). NZ chickens have an excellent FCR1 due to lack of key poultry diseases. Bio-security prevents imports due to threat posed to iconic native birdlife (e.g. kiwi, kea, etc.). Exports have recently started growing strongly off a small base.
PPOORRKK
NZ pork production has been flat for 40+ years and growing consumption of bacon, ham & smallgoods(B,H&SG) is being filled by frozen imports. The domestic industry now predominantly supplies fresh pork and is currently uncompetitive in export markets without moves to improve productivity to global best practice.
1. FCR = feed conversion ratio (a measure of conversion of food input into meat output)
DRIVERS OF SUCCESS New Zealand’s success in meat has three key drivers
Source: photo credit (under license NZ Story, purchased or creative commons (freenzphotos.com)) 6
- Temperate climate similar to Italy or France
- Temperature extremes moderated by surrounding ocean
- Isolated location protected by natural barriers
Low production cost
IDEAL CLIMATE & SOILS EFFICIENT PEOPLE & SYSTEMS LOCATION & MARKETS
Trusted byconsumers
Significant share in key products
- Long history of continuous meat production
- Industry focused on export for over 100 years
- Large pool of skilled people
- Strong systems and support networks
- Implementing on-farm efficient systems and programs (e.g. New Zealand Farm Assurance Program)
- Excellent proximity to East & South-East Asian markets
- CER agreement with Australia
- NZ was the first developed country to sign free trade deal with China (2008)
INVESTMENT OPPORTUNITIES Potential areas for new and/or external investment primarily transforming ingredients rather than producing more ingredients
7
LLAAMMBB,, BBEEEEFF && DDEEEERR
The New Zealand meat industry continues to have significant excess capacity, particularly in lamb. The ongoing decline in New Zealand sheep numbers has generated significant excess primary processing capacity, especially for lambs. This, in turn, has often led to bidding wars among competing industry buyers as each strives to meet the volume required by their plant(s). Prices paid to farmers rise and processor margins are reduced resulting in lowered financial returns.
Over the years numerous firms have exited the industry. There is every indication that the problem of declining sheep numbers and its corollary, excess processing capacity, will continue.
Ownership of top 4 processors, who account for ~75% of both lamb and beef production, is locked up with limited opportunity for new outside capital to participate: Alliance is a farmer-owned cooperative; Silver Fern Farms is a farmer owned cooperative with a Chinese shareholder; ANZCO has two cornerstone Japanese shareholders (Itoham & Nissui); and AFFCO is owned by the Talley’s family following a decade long gradual takeover of a poorly performing listed firm.
That said, there is some opportunity for further consolidation among second tier beef & lamb
processors, particularly of smaller regional players each with one plant. Global experience shows single plant operators need to be above average size to achieve economies necessary for success.
CCHHIICCKKEENN
The New Zealand chicken industry performs well and has achieved reasonable sales and profit growth for the past two decades. In the past decade chicken exports have grown from almost nothing to over NZ$100m in 2016, primarily through success in the Australian market, mainly in the form of frozen pieces.
Market leader Tegel was recently listed on the New Zealand stock exchange (by Affinity PE). Number two producer, Ingham, floated on the ASX by private equity, Brinks (#3) was for sale in 2009 and acquisition by Tegel rejected by the New Zealand Commerce Commission; no other bidders emerged.
PPOORRKK && PPOORRKK PPRROODDUUCCTTSS
Domestic pork production has been flat for the last 40 years and the industry is sub-scale by global standards (e.g. Canada, USA, Denmark). International investors with global best practice
capabilities in pork farming could find opportunities.
Following a number of major acquisitions, bacon, ham and smallgoods (B,H&SG) producers are now reasonably consolidated. Hellers (#1) is 50% owned by Rangatira (PE), recently acquired #3 Hutton’s Kiwi (from Goodman Fielder). Premier Beehive (#2) was acquired by Brazil based global meat processing leader JBS (from Affinity PE).
MMEEAATT--BBAASSEEDD PPRROOCCEESSSSEEDD FFOOOODDSS
New Zealand exports significant quantities of manufacturing beef as a raw material ingredient for processors in other countries. There are opportunities to make more value-added products in New Zealand. Tegel has set a strong example of what is possible in terms of adding value to raw material ingredients.
There are significant further opportunities for growth across a range of sectors, including frozen meals, soups, canned meats & meals, jerky, pet food, formed hamburgers for chain fast-food. These are reviewed in more detail in the “Processed Food” report.
SWOT ANALYSIS The global meat industry is undergoing fundamental shifts and consolidation; New Zealand’s competitive position is changing as a result
STRENGTHS WEAKNESSES
- Natural environment favourable to pastoral agriculture
- Low cost, grass fed beef and sheep production systems
- Strong biosecurity rules and systems leading to low presence of key diseases
- High standards of food safety and animal welfare
- International recognition of high quality of New Zealand meat industry regulations
- 135+ years experience exporting meat long distances
- Strong position in global lamb trade in counter-seasonal window to Northern Hemisphere
- Successful dairy industry generating large numbers of surplus stock
- Preferential access into Europe for some products for historical reasons
- Substantial research funding improving taste, quality of eating experience
- NZ reputation for quality products and trusted supplier
- High tariff barriers into key markets limits access to Europe and parts of Asia
- Limited experience with branded and high value processed meats or meal solutions
- Limited in-market knowledge, few firms close to customer/consumer, especially in growth markets of Asia
- Lack of in-market co-ordination
- Inefficient use of meat plants (declining stock numbers) and inefficient procurement of stock (competitive, not coordinated)
- Labour shortages both on farm and in processing
- Animal welfare issues around dairy calves
- Domestic and imported grain prices higher than competitors, which restricts competitiveness of pork, poultry, and other feed-dependent production systems
OPPORTUNITIES ISSUES/THREATS/RISKS
- Further negotiation of high quality Free Trade Agreements with key markets (Iran, UK, EU)
- Scientific research showing superior health properties of free range, grass-fed animals
- Genomics research to optimise output quality, animal productivity, growth rates etc.
- High and growing levels of foodservice penetration across most key markets
- Religious-based food restrictions (e.g. Sikh, Muslim, Jewish, Hindu) also a risk
- Ability to extend shelf life of chilled product (extend season window)
- Increased demand for protein globally
- Move from frozen product to chilled; position/develop brands and case-ready, convenience foods products for retail and hospitality/foodservice
- Removal of EU/UK farm subsidies in the medium term
- Extension/expansion of livestock traceability and specific-animal identification
- Encourage innovative on-farm practices to minimise green house gases
- Continued conversion of beef and sheep land into dairy
- Market access reduced due to import restrictions (e.g. Indonesia)
- Continued decline in consumption of lamb in developed markets
- Religious-based food restrictions (e.g. Sikh, Muslim, Jewish, Hindu), also an opportunity
- Disease outbreak affecting stock numbers and or trade access
- ETS, climate change legislation affecting cost of business
- Increasing pork imports threatening the viability of New Zealand pork industry
- Southern South America (e.g. Argentina, Uruguay, S. Brazil) improving their pasture system and “catching-up” with New Zealand
- USA market entry policy changing as Trump administration embraces “America First”
- EU quota reallocation in Brexit negotiations (particularly lamb and mutton)
- Animal welfare and extension of “rights revolution” to animals
8
SUPPLY CHAIN The New Zealand meat industry supply chain is effectively segregated by species
1. There may be one or more layers of wholesaling, depending on product or market; some wholesale functions may be captive inside retailers or foodservice operators; Source: Coriolis
SIMPLIFIED MODEL OF NEW ZEALAND MEAT SUPPLY CHAIN1
Model; 2017
9
Sheep-Beef farming Meat processing
Meat wholesaler1
SeafreightAirfreight
Supermarkets
Butchers
Foodservice
Meat wholesaler1
Supermarkets
Butchers
Foodservice
Internationalmarkets
Domesticmarket
Distributorwholesaler1
Dairy farming
Other livestock farming nec.
Deer farming
Pig farming
Poultry meat farming
Poultry processing
Cured meat & smallgooods mnfg
Will include separate lines for each species
Case-ready meat processor
Case-ready meat processor
Global Market Overview
+ Global situation
+ Consumption
+ Production
+ Import demand
+ Key markets
+ Market growth 01
The global cross-border meat trade is large and growing; New Zealand has a strong position
CONSUMPTION- Global meat consumption is concentrated in the Americas, Europe
and China- Global per capita meat consumption (all forms) is showing relatively
low growth (~1%)
PRODUCTION- Global meat production is 322m tons of raw meat, and production
has been growing at a 3% CAGR over the last 50 years- Total global production has grown 4.5 times in the last fifty years- Meat production is spread across the globe with growth varying by
region- New Zealand produces almost half a percent of total world meat
supply (all species)- New Zealand – the size of Japan or Italy, but with the population of
Singapore – produces a significant meat surplus available for export (particularly beef and sheep); it is export focused and overweighted in trade
GLOBAL TRADE- Global cross-border meat trade volumes are growing (4% CAGR)
with moderate price gains (2% CAGR) across the cycle leading to export value growth (6% CAGR)
DEMAND: PRODUCT CATEGORIES- Total global cross-border meat trade large (US$140.9b); key species
are beef ($47.1b), pork ($31.9b), chicken ($24.4b) and sheep ($6.1); processed meats are also large ($20.8b)
- Frozen beef stands out for global growth over the past five years; a number of products (e.g. animal fats) are growing volume but not value
DEMAND: IMPORT MARKETS- Total global cross-border demand for meat was US$140.9b in 2015;
Europe (including inter-EU) is the single largest market, followed by Asia and North America
- Vietnam, China, the US and Singapore stand out for meat import market growth
- Markets vary in average meat import price – driven by quality and mix - with the USA, Japan, Canada and the UK standing out as a high value markets
SUPPLY: EXPORTERS- New Zealand, Australia, the US, Canada, Brazil, Germany, and the
Netherlands are the key exporters in the overall global meat trade- New Zealand maintains a 3-4% share of global meat exports and is a
more consistent supplier than other Southern Hemisphere grass fed operators (due to its more stable climate)
- New Zealand and Australia stand out for driving total value growth over the past five years relative to peer group
- Exporting countries vary in their average meat export price; New Zealand achieves leading prices on average (driven by quality and product mix)
11
Global meat consumption is concentrated in the Americas, Europe and China; global per capita meat consumption is showing relatively low growth (~1%)
-
5
10
15
20
25
30
35
40
45
50
1998
1999
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
2010
2011
2012
* Includes non-cow; includes milk, cultured and cheese; excludes butter, infant foods and ingredient/processed; ** data is apparent consumption all forms; Source: UN FAO; Coriolis analysis
AVAILABLE MEAT SUPPLY BY REGION*Kilograms; millions; 2013
15Y GLOBAL MEAT CONSUMPTION PER CAPITA BY SPECIES**Kilograms/person; 1961-2011
Total = 318
E/SE AsiaAmericas EuropeAustralasia
SS Africa
S Asia
NA
/ME/C
A
86.2
Italy5.3
China89.4
Other Americas13.1
3.5 15.1 18.0 9.7
United Kingdom5.3
62.9
Germany7.2
122.6
France6.0
Other Europe25.1
Viet Nam5.4
Brazil20.0
NA
/ME/C
A18.0
Canada3.2
Indonesia3.8
Argentina4.7
Other S A
sia1.3
Mexico8.2
Other E/SE Asia17.3
Australia
2.9
SS Africa
15.1
Pacific0.1
Japan6.6
Russian Federation11.4
Turkey2.7
New
Zealand
0.5
India5.1
United States of America37.0
Pakistan3.3
Beef
Pork
Poultry
0%
1%
3%
15yCAGR1%
Other 2%
Sheep/Goat 0.5%
Offal 0%
12
15yCAGR
95
100
105
110
115
120
125
130
135
140
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
200
0
200
2
200
4
200
6
200
8
2010
2012
2014
Global meat production is currently 322m tons of raw product, growing at 3% (53y CAGR); total global production has grown 4.5 times in the last fifty years
Bovine cattle 65 20%
Water Buffalo 4 1%
Other 11 3%
Sheep 9 3%
Goat 6 2%Pork 115 36%
Other poultry 13 4%
Chicken 100 31%
GLOBAL MEAT PRODUCTION BY SPECIESTonnes; million; 2014
53 YEAR GLOBAL MEAT PRODUCTION BY SPECIESTonnes; million; 1961-2014
INDEXED MEAT YIELD BY KEY SPECIES1970=100; 1970-2014
GLOBAL YIELD BY SPECIESAnimals vs. kg/head; 2014
* CAGR = Compound Annual Growth Rate; Note: 2014 is latest data available for all countries globally in FAOSTAT as of February 2017; Source: UN FAO database; Coriolis analysis
Total = 322m tonnes
53yCAGR3%
Chicken
Buffalo
Goat
Sheep
Buffalo
Cattle
Pork GoatSheep
Other
1216
142
216
178
78
Proportional to total # of animals processed
KG/head
13
1983
1971
1984
1982
2014
1961
1981
1970
1987
Chicken
1986
200
7
1985
Other poultry
1962
19751974
1976
200
8
1972
1965
2013
1973
1979
1963
1980
2012
1977
1964
1978
Sheep
2010
1968
1998
200
01999
Bovine cattle
1996
Pork
1997
200
3
1967
Other
200
4
200
1
200
5
Goat
200
2
1991
1966
200
6
1992
Water Buffalo
1988
19901989
CAGR 53y
2011
19951994
200
9
1993
1969
119123
128116108
109
114
145
149
154141133
137139
75798071
3%
4%
5%
9710
110
5958488
92
159
255263
273
249232239
244
306
313318298281
285293
184187191179165
171174
218224
230
21019720
320
5
2%1%3%
2%
2%
EXCLUDES POULTRY
BeefPork
Meat production is spread across the globe, with growth varying by region; New Zealand produces almost half a percent of total world meat supply (all species)
14Note: 2014 is latest data available for all countries globally in FAOSTAT as of February 2017; Russia includes historical USSR; Source: UN FAO database; Coriolis analysis
GLOBAL MEAT PRODUCTION BY KEY COUNTRIES & REGIONSTonnes; million; 2014
GLOBAL MEAT PRODUCTION BY KEY REGIONSTonnes; million; 1964-2014
Total = 318
Americas EuropeAustralasia E/SE Asia
Other Europe23.0
62.7 14.4 112.313.36.8 11.097.4
Russia9.1
Poland4.2
Australia
4.9
Brazil26.1
Mexico6.2
Argentina5.2
New
Zealand
1.4
Turkey3.2
Other C/S America13.0
United States of America42.6
Canada4.4
Spain5.7
S Asia
11.0N
A/M
E/CA
14.4
China, mainland84.8
Germany8.4
United Kingdom3.7
SS Africa
13.3
Japan3.9
Other E/SE Asia15.7
Other Pacific
0.6
Indonesia3.4
France5.5
Viet Nam4.5
or 0.4
%
53yCAGR3%
1994
China
Australia
1984 2014
SS Africa
North America
2004
CAGR 50y
Other E/SE Asia
New Zealand
C/S America
NA/ME/CA
1974
S. Asia
Europe
1964
18.8
6.7
3.9
10.5
15.7
317.9
249.3
2%1%
84.8
4%
3%
1%
3%
4%
2%
4%
149.4
9.0
5.5
27.5
196.6
17.2
62.0
6%
80.4
114.0
39.7
20.2 24.5 28.0
8.611.4
16.7
35.943.4 46.9
1.2 1.5 1.40.8 1.0 1.2
4.1
8.2
10.5
13.3
1.7
2.4
14.4
6.5
7.8
11.0
2.5
3.1
4.4
9.2
31.7
49.3
58.9
24.6
38.2
50.5
54.54.3
5.7
6.7
53.8
62.7
3.4
New Zealand – the size of Japan with the population of Singapore – produces a significant meat surplus available for export (particularly beef and sheep)
Note: 2014 is latest data available for all countries globally in FAOSTAT as of February 2017; Source: UN FAO database; Coriolis analysis
RAW MEAT PRODUCTION PER PERSON (BEFORE TRADE): NEW ZEALAND VS. KEY COMPETITORS/PEER GROUPKilograms/person; 2014
15
JapanMexicoBrazil CanadaUSANew Zealand Australia Germany FranceArgentina
Meat, chicken
Spain
Meat, sheep
Meat, pig
Meat, cattle
Other poultry
299
108
204
126
4
132
31
1
17
2
13
0
17
0
23
49
47
85
31
109
139
31
36 13
22
122
15
122
62
102
14
120
1
77
3
10
10
15
6
5569
10
8
02 33
510
2 2
31
061
1
45
0
27
55
0
15
0
32
47 0
11
40
Surplus
4m people 127m people
Global cross-border meat trade volumes are growing (4% CAGR), with moderate price gains (2% CAGR) across the cycle, leading to export value growth (6% CAGR)
-
10.0
20.0
30.0
40.0
50.0
60.0
200
5
200
6
200
7
200
8
200
9
2010
2011
2012
2013
2014
2015
16Note: data is as reported sender FOB; Source: UN Comtrade database; Coriolis classification and analysis
GLOBAL EXPORT VOLUMEKG; b; 2005-2015
GLOBAL AVERAGE EXPORT PRICEUS$/kg; actual; 2005-2015
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
200
5
200
6
200
7
200
8
200
9
2010
2011
2012
2013
2014
2015
GLOBAL EXPORT VALUEUS$; b; 2005-2015
10yCAGR4%
10yCAGR2%
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
200
5
200
6
200
7
200
8
200
9
2010
2011
2012
2013
2014
2015
10yCAGR6%
X =
The total global cross-border meat trade is large (US$140.9b); key species are beef ($47.1b), pork ($31.9b), chicken ($24.4b), prepared/processed meats ($20.8b) and sheep meat ($6.1b)
Note: 2015 is latest available globally; data is as reported sender FOB; Source: UN Comtrade database; Coriolis analysis
TOTAL GLOBAL MEAT EXPORT VALUE BY CATEGORY & MAJOR PRODUCTSUS$; b; FOB; 2015
17
Total = $140.9
Pork BeefPoultry Fats Prep/proc
Sheep
Other
Chicken, whole frozen$3.7
Pork, frozen nes$10.0
Chicken, frozen$11.6
Other poultry$5.5
Sheep, frozen offal$0.2
Other sheep$0.0
Beef, chilled boneless$14.8
$47.1
Turkey, cuts chilled$1.4
Beef, frozen bone-in$1.5
$2.9$6.1 $7.8 $20.8
Other processed$2.5
$24.4 $31.9
Sheep, frozen bone-in$2.2
Beef, chilled bone-in$4.4
Sheep, frozen boneless$0.8
Beef, frozen offal$2.2
Other beef$0.7
Animal fats$7.8
Beef, chilled carcass$1.9
Beef, chilled offal$0.8
Sheep, frozen carcass$0.3
Other species
$2.9
Sheep, chilled bone-in$1.0
Sheep, chilled boneless$0.5
Pork, chilled carcass$2.0
Pork, offal frozen$2.9
Beef, frozen boneless$20.9
Sheep, chilled carcass$1.0
Turkey, cuts frozen$1.0
Gelatin$1.7
Pork, chilled cuts$3.6Poultry, cuts fresh
$0.2
Chicken, whole chilled$1.0
Swine, hams$1.1
Swine, prepared nes$2.2
Sausages$4.4
Pork, smoked$2.3
Prep/pres chicken meat$6.5
Pork, chilled nes$8.9
Prep/pres beef offal$2.4
Other pork$2.3
Bubble size is proportional to trade value in 2015; a bubble this size is US$3b
Frozen beef stands out for global growth over the past five years; a number of products (e.g. animal fats) are growing volume but not value
Note: 2015 is latest available globally; data is as reported sender FOB; Source: UN Comtrade database; Coriolis analysis
5Y GROWTH MATRIX: 5Y VOLUME VS. 5Y CAGR VALUE VS. VALUE 2015 BY PRODUCT T; b; % of US$; US$b; FOB; 2010 vs. 2015
18
1.00 1.40
10%
-0.20 0.00 0.50
15%
-5%
0%
5%
Gelatin
Other sheep
Sheep, frozen offal
$3
Sheep, frozen carcass
Prep/pres beef offal Prep/pres chicken meat
Sausages
Other processed
Other species
Swine, prepared nes
Animal fats
Swine, hams
Sheep, frozen boneless
Pork, chilled carcass
Pork, chilled cuts
Pork, chilled nesPork, offal frozen
Beef, chilled boneless
Other porkPork, smoked
Chicken, whole chilled
Poultry, cuts fresh
Chicken, frozenChicken, whole frozen
Other poultry
Pork, frozen nes
Turkey, cuts chilled
Turkey, cuts frozen
Other beef
Sheep, chilled carcass
Beef, chilled offal
Sheep, frozen bone-in
Sheep, chilled bone-in
Sheep, chilled boneless
Beef, frozen boneless
Beef, chilled carcass
Beef, chilled bone-in
Beef, frozen offal
Beef, frozen bone-in
5Y Change in volume (t) traded; 10-15
5Y CAGR value US$;
10-15
Total global cross-border demand for meat (US$140.9b) is focused in Europe (including inter-EU), Asia and North America; key Middle East markets are also important
Note: 2015 is latest available globally; data is as reported sender FOB; Source: UN Comtrade database; Coriolis analysis
TOTAL GLOBAL MEAT IMPORT VALUE BY RECEIVING COUNTRY/REGIONUS$; b; FOB; 2015
19
Total = $140.9
Australasia EuropeAmericas E/SE AsiaS Asia
NA
/ME/C
A
SS Africa
South Korea$3.7
Chile$1.2
$11.4$63.3 $3.1 $37.7$0.3$23.7
Hong Kong SAR$5.7
USA$10.4
China$7.2
$1.4
Other E Asia$1.5
Japan$11.1
France$6.4
Egypt$1.4
United Arab Emirates$1.8
Belarus$0.1
United Kingdom$9.3
Turkey$0.2
Russia$3.2
Saudi Arabia$2.6
Mexico$4.3
Other Pacific
$0.4
Canada$3.4
Australia$0
.7
Italy$5.5
SS Africa
$3.1
Venezuela$1.1
Malaysia$0.9
Singapore$1.2
Germany$8.9
Vietnam$4.2
Other SE Asia$1.3
Philippines$0.9
Cuba$0.3
Other S A
sia$0
.3
Other Americas$2.5
Other Europe$23.4
Netherlands$6.2
Brazil$0.4
India$0
.0
New
Zealand
$0.2
Other NA/ME/CA$5.6
Bubble size is proportional to trade value in 2015; a bubble this size is US$3b
Vietnam, China, the US and Singapore stand out as growth markets for meat imports
Note: 2015 is latest available globally; data is as reported sender FOB; Source: UN Comtrade database; Coriolis analysis
5Y GROWTH MATRIX: 5Y VOLUME VS. 5Y CAGR VALUE VS. VALUE 2015 BY RECEIVING COUNTRY/REGIONT; b; % of US$; US$b; FOB; 2010 vs. 2015
20
1.20.2 1.4
25%
0.80.6
20%
0.4 1.0 1.5
0%
-0.2-0.3
5%
10%
0.0
15%
27%
-5%
Philippines
Other SE Asia
China
$3
Other E Asia
Japan
South Korea
Hong Kong SAR
Other Americas
Germany
Brazil
Cuba
Italy
Netherlands
United Kingdom
France
Other Pacific
USA
Australia
New Zealand
Venezuela Chile
Canada
Mexico
India
Other NA/ME/CA
Egypt
Malaysia
Vietnam
Other S Asia
SingaporeUnited Arab Emirates
Russia
Turkey
Other Europe
Belarus
Saudi Arabia
SS Africa
5Y Change in volume (t) imported; 10-15
5Y CAGR value
US$; 10-15
Markets vary in average meat import price – driven by quality and mix – with the USA, Japan, Canada and the UK standing out as a high value markets
Note: The area under chart is proportional to import value (volume x $/kg); Source: UN Comtrade data; Coriolis analysis and classifications
TOTAL GLOBAL MEAT IMPORT VOLUME VS. AVERAGE IMPORT PRICE BY KEY MARKETKG; millions; US$/kg; actual; 2015
21
Other E A
siaC
hile
Hong K
ong SAR
Cuba
Canada
UK
Australia
Venezuela
Japan
Egypt
UA
E
South Korea
Brazil
Malaysia
Other Europe
Germ
any
Mexico
Other A
mericas
Russia
Turkey
Italy
India
Other S A
sia
NZ
Netherlands
Vietnam
Belarus
Other SE A
siaO
ther Pacific
SS Africa
Other N
A/M
E/CA
France
Singapore
China
Saudi Arabia
Philippines
USA
$2.04
$3.24
$1.97
$2.87
$1.86
$3.23
$2.40
$2.49 $2.32
$1.17
$1.19
$1.09
$1.76$1.81
$1.72
$1.44
$1.48
$3.07
$3.32
$2.72 $2.49
$3.88
$4.57
$2.95
$3.92
$3.93
$3.50
$2.54
$2.17
$2.38
$2.13
$2.16
$2.11
$2.46
$2.48
$2.38
$2.59
Proportional to import volume in 2015
Average import
value per kilogramUS$/kg
2015
Weighted average $2.53
On the supply side, New Zealand, Australia, the US, Canada, Brazil, Germany, and the Netherlands are the key exporters in the overall global meat trade
Note: 2015 is latest available globally; data is as reported sender FOB; Source: UN Comtrade database; Coriolis analysis
TOTAL GLOBAL MEAT EXPORT VALUE BY SOURCE COUNTRY/REGIONUS$; b; FOB; 2015
22
TToottaall == $$114400..99
EuropeAmericasAustralasia
NA
/ME/C
A
E/SE Asia
S Asia
SS Africa
Other Americas$2.1
France$4.6
$64.3$15.2
Hong Kong SAR$2.2
$45.3
Belgium$4.9
$0.9
Denmark$4.2
Germany$10.7
Russia$0.3
Chile$1.1
$10.0$0
.6
Belarus$0.8
$4.7
Mexico$1.6
India$4.4
China$3.0
Canada$5.2
Uruguay$1.7
Brazil$14.7
NA
/ME/C
A$0
.9
Other S Asia$0.3
Thailand$3.0
Turkey$0.6
Other E Asia$0.4
SS Africa
$0.6
New Zealand$5.0
Other Europe$27.6
Other SE Asia$1.5
Netherlands$10.5
USA$17.1
Argentina$1.7
Australia$10.2
New Zealand maintains a 3-4% share of global meat exports and is a more consistent supplier than other Southern Hemisphere grass fed operators (due to its more stable climate)
Note: Top 10 excluding Belarus; 2015 is latest available globally; data is as reported sender FOB; Source: UN Comtrade database; Coriolis analysis
GLOBAL EXPORT MARKET SHARE: SELECT PEER GROUP MEAT EXPORTERS% of value; US$; 2005-2015
23
20102006
10Y Change
2009
Brazil
Australia
2007
Argentina
2008 2011 2015
Canada
USA
Chile
New Zealand
2005 20132012 2014
Uruguay
12.3%
-1.8%
10.5%
9.6%
11.6%11.6%
12.1%
3.7% 3.6% 3.6%3.4%
3.9%4.1%
4.6%
5.5%
3.7%3.8%
12.7%
0.1%-1.1%
-0.1%
12.7%
2.7%
0.0%
-0.8%3.7%
12.5%
13.0%
0.4%
2.3%
10.4%
2.2%2.2%
10.5%10.6% 10.6%10.7%
1.5%1.6%
1.2%1.4%
2.3%2.1%
1.7%1.8%
11.2%
3.2%3.1% 3.0%3.1%
3.7%
4.3%
3.2%3.4%
11.4%
10.3%10.6%
11.7%
3.2%2.9%
10.5%
3.5%
1.1%
6.6%
6.9%
5.2%
5.9%
0.6%0.7% 0.8%0.6%
6.7%
5.7%
9.5%
7.3%
5.4%
4.9%
5.3%5.3%
0.7%
1.1%1.1% 1.0%1.2%
1.0%1.3%
1.1%1.2%
0.7%0.7% 0.7%0.7%
1.2%1.1%
0.8%0.8%
Bubble size is proportional to meat product import value in 2015; a bubble this size is US$3b
New Zealand and Australia stand out for driving total value growth over the past five years relative to peer group
Note: 2015 is latest available globally; data is as reported sender FOB; Source: UN Comtrade database; Coriolis analysis
5Y GROWTH MATRIX: 5Y VOLUME VS. 5Y CAGR VALUE VS. VALUE 2015 BY SELECT EXPORTING PEER COUNTRIEST; b; % of US$; US$b; FOB; 2010 vs. 2015
24
0.5 0.6 0.80.70.20.1 0.40.3-6%
6%
4%
10%
8%
-2%
-4%
2%
0%
0.0-0.8 -0.3-1.0 -0.4-0.6 -0.5-0.7 -0.2-0.9 -0.1
New Zealand
$3
Australia
Brazil
Chile
Canada
USA
Uruguay
Argentina
5Y Change in volume (t) of meat imported; 10-15
5Y CAGR value US$;
10-15
Exporting countries vary in their average meat export price; New Zealand achieves leading prices on average (driven by quality and product mix)
Note: The area under chart is proportional to import value (volume x $/kg); Source: UN Comtrade data; Coriolis analysis and classifications
TOTAL GLOBAL MEAT EXPORT VOLUME VS. AVERAGE EXPORT PRICE BY COUNTRIES/REGIONKG; millions; US$/kg; actual; 2015
25
Belarus
SS Africa
Uruguay
Chile
Denm
ark
Other A
mericas
Australia
NA
/ME/C
A
Other Pacific
Canada
Other S A
sia
Thailand
Argentina
Turkey
USA
Hong K
ong SAR
Other Europe
Other E A
sia
India
Other SE A
sia
Russia
China
France
New
Zealand
Netherlands
Belgium
Germ
any
Brazil
$2.21
$3.21
$1.31
$2.27
$2.23
$4.35
$3.27
$1.72
$2.25
$3.71
$2.29
$2.61
$2.05
$4.0
2
$2.84 $2.67
$3.99
$3.94
$2.31
$2.31
$4.21
$2.36
$1.07
$1.26
$2.31
$3.08
$3.64
$2.46
Proportional to import volume in 2015
Average import
value per kilogramUS$/kg
2015
Weighted global average $2.53
New Zealand Production
+ Yield/productivity
+ Production
+ Regional activity
+ Growth upside
02
New Zealand can continue to increase meat production going forward
CHANGING INDUSTRY INPUTS The New Zealand meat industry is undergoing a long-term shift driven by high-level “mega” drivers
- As New Zealand lacks large amounts of grain/feed producing area, it uses grass-fed meat production systems in export-focused species- The amount of grass area available to the meat industry is falling and the industry is producing fewer animals, and has fewer farming enterprises
(consolidation), but more people employed
POTENTIAL FOR FURTHER PRODUCTIVITY IMPROVEMENTNew Zealand may continue to increase animal productivity
- New Zealand meat yield varies dramatically by species; yields per head are growing gradually across all key categories, except beef where the average yield is declining
- The New Zealand low input/low intensity system produces smaller animals than most competitors
CHANGING MEAT PRODUCTIONNew Zealand has increased total production
- New Zealand meat production has achieved stable long term growth through (1) more efficient producers (2) higher productivity and (3) higher yields; at the same time mix is changing in response to market demand
- Cattle, particularly dairy cows are replacing sheep across most regions; the South Island stands out for a particularly strong shift
- Looking at ten year growth drivers, the South Island stands out as increasing beef at the expense of sheep- The New Zealand low intensity model produces different results than key peers
27
The amount of grass area available to the meat industry is falling and the industry is producing fewer animals, and has fewer farming enterprises (consolidation), but more people employed
28
TOTAL EFFECTIVE HECTARES IN GRASSLANDS & CROPSHa; millions; % of ha; 1995-2015
TOTAL MEAT ANIMAL POINT-IN-TIME INVENTORYHead; million; 1995-2015
TOTAL NUMBER OF LIVESTOCK FARMING ENTERPRISESUnits (tax entities); thousands; 2000-2015
TOTAL NUMBER OF LIVESTOCK FARMING EMPLOYEESEmployees (PAYE); thousands; 2000-2015
Source: Statistics NZ; UN FAO AgStat database; MAF/MPI; Coriolis estimates and analysis
CAGR 95-15
Grassland
1998
1996
1995
Crops
200
8
200
9
1997
High Country
1999
200
3
2013
200
2
2011
200
4
200
5
2012
200
6
200
0
2010
2015
200
7
2014
200
1
2.7
-1.0%
2.6
1.6%
2.7 2.4
11.3 11.411.411.611.3 11.3
10.9 10.611.111.3 11.1
13.5 13.713.3
-2.2%
13.513.9
11.7 11.812.0
13.212.6
2.8
0.5 0.5
9.4
0.60.5 0.5 0.5
9.4 8.8 8.2
10.09.2
9.5
9.7
0.50.4 0.4 0.40.40.4 0.4 0.4 0.3 0.4 0.40.40.4 0.4 0.4
3.4 3.3 3.3
3.4
3.6
3.5
3.5
2.8
2.9
2.8
2.9
3.0 3.0 2.8
3.7
8.1
8.0
8.08.1
8.1
8.4
8.2
7.9
7.8
3.7
7.8
8.0
8.0
7.9
1999
200
4
1998
200
0
200
2
200
3
200
1
Dairy cattle
CAGR 95-15
Other poultry
Sheep
Chickens
1996
1997
Beef cattle
1995
200
5
200
9
Other livestock
200
8
2014
2011
2012
2010
200
7
2013
200
6
2015
4.3
2.0
1.9
2.0
58.61.8
1.9
4.2
3.7
4.3
2.1
48.8
2.3
1.7
5.2
1.8
46.8
1.5
5.1
1.5
58.1
4.6
58.4
47.4
2.11.8
4.9
1.6
3.7
4.2
70.9
62.1
71.471.374.4
71.9
58.9
69.8 69.0 67.667.170.1
66.968.0 66.3
59.4
3.5
1.7 1.81.71.8 1.6
4.1
59.0
-2.0%
1.1%
0.5%
58.3
2.3%
-1.9%
-2.5%
1.6
2.1
40
.1
4.7
2.02.12.42.2
4.6 4.14.6
2.3
1.6
4.15.2
39.3
1.51.61.7
4.8
39.9
4.9
1.6
2.2
29.8
32.4
4.4 4.4
29.1
30.8
4.4
32.6
31.1
4.4
31.3
2.32.2
4.5
38.5
2.3
4.5 4.6
1.9 1.9 2.0
34.1
1.5
13.1
43.5
5.3
13.813.514.6
12.5
5.9
3.8
5.6
14.8
15.8
3.7
5.2
46.2
1.7
15.214.5
5.2
45.7
5.1
14.4
14.1
12.0
39.6
6.5
3.9
12.012.0
6.5
1.4 1.3
6.7
12.7
15.317.1
5.94
1.5
13.5
6.2 6.4
12.713.0
13.0
39.6
2014
Dairy
200
4
200
5
200
3
Other livestock
200
2
Sheep & Beef
2015
200
1
Poultry
2010
2011
200
7
200
9
200
8
Beef
CAGR 95-15
200
0
200
6
2012
2013
Sheep
0.3
2.2
0.2
0.4 0.4
0.2
0.3 51.752.1 51.152.2
55.856.253.4
55.4
42.345.3
43.342.1
46.548.0
45.246.2
0.20.2
0.20.2
0.20.2
0.20.2
-4.4%
1.2%
-4.1%-5.7%0.20.2
-0.4%
-1.4%
2.1
12.513.0 11.912.213.412.212.6 12.612.3
11.3
4.84.8 8.58.45.2
12.011.8
5.35.4
12.7
17.918.1 15.617.218.419.819.8 19.119.815.9
12.8
15.9
12.712.7
15.415.815.8 15.316.0
5.25.34.4
5.0
6.46.56.2
6.67.1
4.1
2.83.0
2.22.73.0
3.94.03.1
3.5
6.5
6.28.0 6.56.1
8.08.39.08.17.9
12.5 8.79.2
6.67.38.812.412.4
12.012.2
2014
Dairy
200
4
200
5
200
3
Other livestock
200
2
Sheep & Beef
2015
200
1Poultry
2010
2011
200
7
200
9
200
8
Beef
CAGR 95-1520
00
200
6
2012
2013
Sheep0.6
1.3
0.6
0.5 0.5
0.40.646.845.6 46.847.4
42.641.8
46.547.6 48.248.8 49.850.1
45.546.6 46.846.10.40.4
0.40.40.40.4
0.40.4-4.8%
2.8%
0.0%-3.4%0.50.5
0.3%
4.3%
1.3
3.63.93.6
3.63.8
3.24.6 3.43.3
3.65.35.911.712.4
6.24.54.3
6.16.5 4.6
20.620.5 22.220.820.016.314.5
19.819.623.5
4.4
27.1
5.0
4.4
27.524.223.3 25.625.8
2.12.2
2.02.16.6
6.76.3
7.17.9
1.81.71.7
1.41.6
1.71.71.8 1.71.6
6.1
9.410.79.99.5
10.611.8
12.311.110.513.7
8.39.7 5.56.78.514.2
13.3
13.313.6
20yCAGR1.2%
20yCAGR1.2%
15yCAGR1.7%
15y CAGR1.2%
New Zealand meat yield varies dramatically by species; yields per head are growing gradually across all key categories, except beef where the average yield is declining
29Source: Statistics NZ; UN FAO AgStat database; MAF/MPI; Coriolis estimates and analysis
NEW ZEALAND MEAT YIELD BY KEY SPECIESKg./head; 2014
AVERAGE NZ MEAT YIELD PER ANIMAL BY KEY SPECIESKg./head; 1964-2014
Pork
Sheep
Poultry
Beef
2
71
145
19
Averagemeat/
animal;kg; 2014
Proportional to number of animals processed; head; 2014
1989
1998
CAGR 50y19931994
19921991
19961997
1990
1995
1999
2011
2012
200
920
10
Poultry
Beef
2013
2014
200
8
200
220
03
200
020
01
200
620
07
200
420
05
1982
1965
Pork
1981
1983
1968
19731974
1984
19781977
1967
Sheep
1979
19761975
1966
1980
1971
1986
1972
1987
1970
1988
1969
1985
1964
0.8%
0.6%
0.4%
0.8%
The New Zealand low input/low intensity system produces smaller animals than most competitors
30Source: Statistics NZ; UN FAO AgStat database; MAF/MPI; Coriolis estimates and analysis
AVERAGE BEEF MEAT YIELD/HEAD: SELECT COUNTRIESKg/head; 1964-2014
AVERAGE SHEEP MEAT YIELD/HEAD: SELECT COUNTRIESKg/head; 1964-2014
10
5
25
20
15
0
30
19991998
1989
200
0
1990
1993199419951996
1991
1997
1992
200
1
2013
2014
2011
2012
UK
China
Australia
South Africa
USA20
04
200
5
200
220
03
200
6
200
920
10
200
720
08
1975
1978
1964
1971
1982
1965
19861985
1980
19841983
1972
1979
1974
CAGR 50y
1969
1976
1970
1977
1981New Zealand
1968
1987
1966
1973
Spain
1988
1967
1.2%
0.5%
0.7%
2.1%
0.3%
0.0%
0.1%
0
150
350
50
100
300
250
200
1991
South Africa
1981
1979
1994
19921993
1990
19871988
19851986
1984
1982
1980
1989
1983
USA
200
920
1020
11
200
620
07
200
8
Brazil
Australia
Argentina
2012
2013
2014
1998199920
00
199519961997
200
320
04
200
5
UK
200
120
02
1967
1974
Spain
China
1966
19761975
1970
19721971
1973
1968
New Zealand
1969
19651964
19781977
CAGR 50y
0.9%
1.0%
0.6%
0.7%
1.2%
0.0%
-0.1%
1.0%
0.5%
New Zealand meat production has achieved stable long term growth through (1) more efficient producers (2) higher productivity and (3) higher yields; at the same time mix is changing in response to market demand
Source: Statistics NZ; UN FAO AgStat database; MAF/MPI; Coriolis estimates and analysis
TOTAL NEW ZEALAND MEAT PRODUCTION BY SPECIESTonnes; 000; 1964-2014
31
50y CAGR
200
2
1986
2011
200
0
1965
1966
1984
2012
200
1
1964
1985
200
6
200
9
200
5
1990
200
7
200
8
1989
Poultry198
8
2010
50y ABS
200
3
1991
Sheep
Beef
200
4
1987
1967
1974
1981
1978
2014
1973
1997
1979
1996
1977
Deer
1993
1995
1975
1982
1976
Pork
1972
1980
2013
1969
1999
1992
1968
1998
1971
1994
Other
1983
1970
1,191
1,3161,2691,200
1,219 1,184
1,119
1,215
1,278
1,265
1,292
1,068
973
1,0531,0
01
1,027
1,066
1,101
1,127
1,143
1,208
1,128
1,237
1,44
6
1,471
1,433
1,471
1,452
1,333
1,355
1,3741,303
1,327
1,328
1,302
1,351
1,324
1,204
1,210
1,352 1,310
1,433
1,350
1,256
1,284
979
0.0%2.0%
1.6%
0.0%
5.0%
6.6%
862
952
814
835 8
08
-2
+5
+175
+1
+21
+339
50yCAGR1.0%
Cattle, particularly dairy cows are replacing sheep across most regions; the South Island stands out for a particularly strong shift
32NOTE: Manawatu/Wanganui includes Wellington; Canterbury includes Chatham Is.; Source: Statistics NZ; UN FAO AgStat database; MAF/MPI; Coriolis estimates and analysis
TOTAL CATTLE BY REGIONHead; m; point-in-time inventory; 1994/2005/2015
Otago
Southland
21Y CAGR
Bay of Plenty/Gisborne/Hawkes Bay
Waikato
Auckland/Northland
Manawatu/Wanganui
21Y ABS
2015
Tasman/Marlborough/Westcoast
2005
Canterbury
1994
Taranaki
-0.1
-0.1
-0.1
+0.3
-0.2
+1.0
+0.1
+0.6 13.9%
8.1%
12.3%
9.5
10.0
8.9
-1.3%
-0.5%
-3.7%
2.2%
-1.7%
-1.7%
1.1
1.7
2.4
2.2
2.3
0.7
0.8
0.4
1.4
1.3
1.4
0.7
0.4
0.4
1.3
0.60.9
1.4
-0.3
1.2
1.4
0.7
0.4
0.7
1.1
1.0
0.3
0.4
TOTAL SHEEP BY REGIONHead; m; point-in-time inventory; 1994/2005/2015
Otago
Southland
21Y CAGR
Bay of Plenty/Gisborne/Hawkes Bay
WaikatoAuckland/Northland
Manawatu/Wanganui
21Y ABS
2015
Tasman/Marlborough/Westcoast
2005
Canterbury
1994
Taranaki
-2.2
-2.0
-0.5
-2.5
-2.7
-5.3
-0.8
-3.8 -7.9%
-4.9%
-9.1%
39.8
29.1
49.5
-4.6%
-9.3%-8.9%
-7.8%
-4.0%
-7.9%
7.6
4.6
2.6
1.6
3.6
0.5
1.0
1.68.8
6.9
9.7
9.9 1.1
0.8
1.3
6.04.1
7.0
-0.7
4.8
6.1
5.1
7.6
0.7
0.9
0.6
7.9
6.2
Looking at ten year growth drivers, again the South Island stands out
33NOTE: Manawatu/Wanganui includes Wellington; Canterbury includes Chatham Is.; Source: Source: Statistics NZ; UN FAO AgStat database; MAF/MPI; Coriolis estimates and analysis
GROWTH MATRIX: 10Y CHANGE IN CALVES BORN BY REGIONHead; m; 2005 vs. 2015
GROWTH MATRIX: 10Y CHANGE IN LAMBS BORN BY REGIONHead; m; 2005 vs. 2015
-2.0%
-1.5
-1.0%
-2.5 -2.0
0.0%
-4.0%
0.2
-4.5%
0.0-1.0
-3.0%
-0.5
Manawatu/Wanganui
Auckland/Northland
1.0
Waikato
Southland
Otago
BOP/Gisb/HB
Canterbury
Tas/Marl/WC
Taranaki
10y CAGR
10y ABS
Bubble size is proportional to calves born in 2015; a bubble
this size is 0.2m calves
0.5-0.5 0.0 0.8
15.0%
10.0%
20.0%
25.0%
0.0%
-2.0%
5.0%
Tas/Marl/WC
Auckland/Northland
0.2
Manawatu/Wanganui
Waikato
Otago Southland
Canterbury
BOP/Gisb/HBTaranaki
10y CAGR
Bubble size is proportional to lamb born in 2015; a
bubble this size is 1m lamb
The New Zealand low intensity model produces different results than key peers
Note: 2014 data latest available as of Feb 2017; Source: UN FAOStat; Coriolis analysis
GROWTH MATRIX OF MEAT PRODUCED: TONNES/KM2 VS. TONNES/CAPITA VS. TOTAL PRODUCTIONTonnes/km2; actual; tonnes/resident person; actual; tonnes; m; 2004 vs. 2014
34
20 30 8010 6050 70400
150
400
100
200
350
300
250
0
50 Italy 14
10
New Zealand 04
Netherlands 04
Belgium 14
UK 04
Spain 04
Japan 04
France 04
Denmark 04
Belgium 04
Ireland 04
Germany 04
New Zealand 14
Netherlands 14
Spain 14
Italy 04
UK 14
France 14
Denmark 14
Japan 14
Ireland 14
Germany 14
Tonnes/capita
Tonnes/square kilometre
Bubble size is proportional to total meat production; a bubble this size is 10m tonnes
New ZealandCategory Performance
+ Segmentation
+ Key products
+ Exports by product
03
New Zealand is the global leader in sheep meat exports, a major player in the world beef trade and emerging in venison and poultry meat
36
- New Zealand exports six categories of meat products
- New Zealand meat exports are predominantly beef (48%) and lamb (44%); all other products 8%
- Average export price varies, with deer venison and processed meats getting high prices
- New Zealand is the leading global exporter of sheep/lamb meat, strong in beef and deer/other and has growth opportunities elsewhere
- Beef and sheep meat are growing strongly in volume and value growth, though only achieving moderate price gains; poultry growing strongly
- New Zealand is the leading global exporter of sheep/lamb meat, strong in beef and deer/other and has growth opportunities elsewhere
- New Zealand generates beef exports of US$2.4b, with trade focused in North America, E. Asia, SE Asia and the Middle East; trade is predominantly boneless (frozen and chilled)
- New Zealand is the global leader in the lamb meat trade, with a strong position in East Asia, Europe and North America
- New Zealand pioneered deer farming and leads the world in venison production; an intriguing and innovative product effectively unknown in most markets
- New Zealand’s animal fat exports go predominantly to East and South-East Asia
- New Zealand’s poultry meat exports mostly go to Australia and the Pacific Islands; there appears to be widespread opportunities for growth worldwide
- New Zealand trails peer group countries in converting its abundant raw meat into prepared/processed, ready-to-heat or ready-to-eat meat products; however, the country is catching up fast
OVERVIEW BY CATEGORY
New Zealand exports six categories of meat products
* New Zealand exports minor amounts of other species (e.g. llama) folded into this total in the data (category is not elsewhere specified (nes) at source) 37
- Low cost producer; strong in manufacturing grade
- Strong into US market (itself a major exporter); rapidly growing into Asia
- Most animals purely grass-fed with natural positioning
- Growing intensive feeding operations (primarily Japanese investment to date)
- National herd shifting to dairy breeds with growth of that industry
- New Zealand pioneered deer farming
- Proven farming systems and genetics
- Largest global producer and exporter of farmed venison
- Growing well off a low base
- Wide range of innovative products
#3 to US#5 to China#6 Global
#1 Global LambExporter
#1 Global Venison Exporter
#1 to Australia
- Trusted supplier of high quality ingredients
- Specialised use across multiple products and sectors
- Growing very well off a low base
- Recently listed Tegeldriving growth
- Further growth possible in other bio-secure markets (e.g. Australia) and premium markets
#4 to East Asia#1 sheep fat
HIGH-LEVEL CATEGORIES
- Beef, frozen boneless- Beef, chilled boneless
- Sheep/lamb, frozen bone-in- Sheep, chilled bone-in
- Deer meat- Goat meat
- Prep/proc. chicken meat- Sausages
- Animal fats- Lard stearin, etc.
- Chicken, parts frozen- Chicken, whole frozen
EXAMPLE PRODUCTS UNDER THESE CATEGORIES
BEEF POULTRY PREP/PROCESSEDSHEEP/LAMB DEER & OTHER* ANIMAL FATS
- Dominant global lamb exporter
- New Zealand alone represents more than a third of global trade; NZ+AU represent 70%; future trans-Tasman consolidation likely
- Clear long term comparative advantage in lamb built on solid foundations: skills, genetics, supportive business ecosystem, climate
#1 to Australia
New Zealand meat exports are predominantly beef (48%) and lamb (44%); all other products 8%
38Source: UN Comtrade database (from NZ Customs data); Coriolis classifications and analysis
NEW ZEALAND EXPORT VALUE BY MEAT SEGMENTUS$; m; 2015
NEW ZEALAND EXPORT VALUE BY MEAT SEGMENT OVER TIMEUS$; m; 2005-2015
Beef$2,407 48%
Sheep$2,186 44%
Deer/other$146 3%
Animal fats$83 2%
Poultry$48 1%
Processed meat, $126
, 2%
Sheep
20152006
Poultry
Deer/other
2005
10Y CAGR
201320102009 2012
Processed meat
2011
Animal fats
Beef
2007 2008 2014
$1,411
$146
$76
$90
$65
$1,443$1,241$1,253
$137
$93
$110
$3,406
$3,836$3,882
$3,141
$3,363
$5,183
$4,997
$4,583$4,627
$4,468
5%
3%
$126
$135
$139
7%
$3,401
22%
-1%4%
$1,854
$48
$56
$1,985
$48
$45
$1,978
$126
$81
$1,578
$61
$91
$1,772
$6$2,299
$6
$2,186$2,548$6
$7
$2,417
$29
$41
$2,192
$12
$18
$156
$184
$1,725
$237
$171
$1,782
$168
$146
$1,195
$64
$167
$1,461
$166
$138$116
$112
$107
$136
$1,701
$2,407
$178
$177
$1,819
$83
$162
$2,174
10yCAGR4%
All other8%
Average export price varies, with deer venison and processed meats getting high prices; beef and sheep meat are driving volume growth, though only achieving moderate price gains; poultry growing strongly
39Source: UN Comtrade database (from NZ Customs data); Coriolis classifications and analysis
NEW ZEALAND EXPORT VOLUME VS. AVG $/KG: BY SEGMENTKG; millions; US$/kg; actual; 2015
10Y VOLUME GROWTH VS. 10Y CAGR $/KG VS. $KG; US$/kg; US$; 2005-2015
Bubble size is proportional to export value in 2015; a
bubble this size is US$1b
Beef
Deer/other
Poultry
Sheep Animal fats
Processed meat
$4.94
$0.56
$4.79
$8.09
$5.57
$3.07
Proportional to NZ export volume in 2015
Average NZ export value per kilogramUS$/kg
2015
Weighted average $4.35
8%
3%
7%
2%
40
9%
5%
4%
0%50
1%
6%
0-10-20 302010
Sheep
Beef
$500
Processed meat
Deer/other
Animal fats
Poultry10Y CAGR of
average NZ export value per kilogram
US$/kg 05-15
10y growth in export volume; kg; m; 2005-2015
New Zealand is the leading global exporter of sheep/lamb meat, strong in beef and deer/other and has growth opportunities elsewhere
40Source: UN Comtrade database (from NZ Customs data); Coriolis classifications and analysis
NEW ZEALAND SHARE OF WORLD EXPORT VALUE BY CATEGORYUS$; % of US$; 2015
NEW ZEALAND SHARE OF WORLD EXPORT VALUE BY CATEGORY% of US$; 2005-2015
Beef
Sheep
Processed meat
Poultry
Anim
al fats
Deer/other
0.2%1.1%
5.1%
36.0%
5.0%
0.6%
Proportional to total global export value in 2015
NZ share of total global
trade; % of $;
2015
2005 20072006
Sheep
Other
Processed meatPoultry
2008 20132012
Animal fats
2014 2015
Beef
20102009 2011
7.9%
0.5%0.5%
3.8%
8.3%
0.2%
4.1%4.2%
0.5%
36.0%
0.5% 0.6%0.6%
4.9%
11.6%
0.6%
6.2%
0.7%0.6%0.5%
4.2%
11.3%
0.7%
4.4%
0.2%
1.4%
6.0%
40.3%
1.4% 1.2%
36.1%
1.1%1.3%1.2%
40.7%
37.7%
1.5%
38.3%
4.8% 5.0%
1.6%
37.6%
5.6%
37.1%
1.4%
38.2%
0.1%
3.9%
35.8%
4.2%
0.1%
4.2%
0.2%0.2%0.1%
7.3%
41.5%
0.0%1.1%1.2%
6.3%6.2%
0.0%0.0%0.0%
5.1%
EXCLUDES PORK
New Zealand generates beef exports of US$2.4b, with trade focused in North America, E. Asia, SE Asia and the Middle East; trade is predominantly boneless (frozen and chilled)
41
GLOBAL EXPORT SHARE: BEEFUS$b; 2015
GLOBAL REGIONAL IMPORT VALUE VS. NZ SHAREUS$; % of US$; 2015
NZ EXPORTS BY TYPE: BEEFUS$m; 2005-2015
EXAMPLE PRODUCTS: SILVER FERN FARMS2017
Source: UN Comtrade database; photo credit (images courtesy Silver Fern Farms); Coriolis classifications and analysis
NA
/ME/C
A
AU
/Pac
North A
m.
SE Asia
Europe
S. Asia
SS Africa
E. Asia
C/S A
m.
0%
7%
0%1%
1%
17%
3% 2%
39%
NZShare
Import value
Americas Europe OthersAustralasia
USA$5.9
$5.7
Other Americas$3.0
$13.4
New Zealand$2.4
Other Europe$8.5
Australia$7.5
Netherlands$2.7
$18.1
Brazil$5.0
Spain$0.7
Argentina$1.0
Other$5.7
$9.9
Germany$1.6
Canada$1.7
Uruguay$1.5
2005
10Y ABS10Y CAGR
Other beef
Beef, frozen boneless
Beef, chilled boneless
2015
Beef, frozen bone-inBeef, frozen offal
2010
$2,407
+$96
-7%3% +$21
-$48
$1,411
+$904
+$24
$1,461
$109
$1,922
$133$69
$1,105
$193$135
$1,018
$231 6%
$43
2%
7%
$42$51$58$91 $79
New Zealand is the global leader in the lamb meat trade, with a strong position in East Asia, Europe and North America
42
GLOBAL EXPORT SHARE: SHEEP/LAMBUS$b; % of US$; 2015
GLOBAL REGIONAL IMPORT VALUE VS. NZ SHAREUS$; % of US$; 2015
NZ EXPORTS BY TYPE: SHEEP/LAMBUS$m; 2005-2015
EXAMPLE PRODUCTS: WAITROSE2017
Source: UN Comtrade database; photo credit (fair use; low resolution; complete product/brand for illustrative purposes); Coriolis classifications and analysis
Australasia Americas Europe Others
$0.4$0.1$4.2 $1.4
Uruguay$0
.1
UK$0.5
New Zealand$2.2
Australia$2.0
Other Americas$0.0
Spain$0.2
Other Europe$0.6
Other$0.4
Argentina$0
.0
USA
$0.0
Netherlands$0.1
10Y ABS10Y CAGR
Sheep, frozen offal
Sheep, frozen boneless
Sheep, carcass
Sheep, chilled bone-in
2010
Sheep, frozen bone-in
2015
Sheep, chilled boneless
2005
$2,186
2%
0%
4%
+$40
+$246
-$10
+$14
$1,701
$1,985
+$120
+$756%
$104$395
$185
$920
$180
$75$53 $93
$419$275
$47
$29
$43
4%
6%
$1,166$931
$320
$310
$328
AU
/Pac
NA/ME/CA
C/S A
m.
SS Africa
North A
m.
S. Asia
SE Asia
EuropeE. Asia
31%
41%
1%
16%
56%
32%
22% 19%19%
NZShare
Import value
New Zealand pioneered deer farming and leads the world in venison production; an intriguing and innovative product effectively unknown in most markets
43
GLOBAL EXPORT SHARE: VENISON & ALL OTHER MEATSUS$b; % of US$; 2015
GLOBAL REGIONAL IMPORT VALUE VS. NZ SHAREUS$; % of US$; 2015
NZ EXPORTS BY TYPE: VENISON & OTHER MEATSUS$m; 2005-2015
EXAMPLE PRODUCTS: WAITROSE2017
Source: UN Comtrade database; photo credit (fair use; low resolution; complete product/brand for illustrative purposes); Coriolis classifications and analysis
Americas Europe OthersAustralasia
USA$0.0
$0.5
Other Americas$0.0
$1.4
New Zealand$0.1
Other Europe$0.7
Australia$0.2
Netherlands$0.5
$0.7
Brazil$0.4
Spain$0.1
Argentina$0.1
Other$0.5
$0.4Germany
$0.1Canada$0.1
Uruguay$0.0
2005 2010 2015
10Y CAGR
Deer/Other Species
10Y ABS
$145$155
-$16$162
-1%
$162
$145
$155
C/S A
m.
AU
/Pac
North A
m.
SE Asia
Europe
SS Africa
S. Asia
E. Asia
NA
/ME/C
A0
%
9%
0%
5%
1%
13%
4%
2%
15%
NZShare
Import value
DATA INCLUDES OTHER SPECIES INSEPARABLE AT SOURCE
New Zealand’s animal fat exports go predominantly to East and South-East Asia
44
NEW ZEALAND EXPORTS BY DESTINATION: ANIMAL FATSUS$m; 2015
GLOBAL REGIONAL IMPORT VALUE VS. NZ SHAREUS$; % of US$; 2015
NZ EXPORTS BY TYPE: ANIMAL FATSUS$m; 2005-2015
EXAMPLE PRODUCTS2017
Source: UN Comtrade database; Coriolis classifications and analysis
C/S A
m.
North A
m.
NA
/ME/C
A
E. Asia
S. Asia
SS Africa
Europe
AU
/Pac
SE Asia
0%
3%
0%
2%
0%
5%
0%
7%
0%
NZShare
Import value
E. Asia60%
SE Asia35%
Other5%
2005 2010 2015
10Y CAGR
Animal fats
10Y ABS
$83
$107
+$27
$56
4%
$56
$83
$107
New Zealand’s poultry meat exports mostly go to Australia and the Pacific Islands; there appears to be widespread opportunities for growth worldwide
45
NEW ZEALAND EXPORTS BY DESTINATION: POULTRYUS$m; 2015
GLOBAL REGIONAL IMPORT VALUE VS. NZ SHAREUS$; % of US$; 2015
NZ EXPORTS BY TYPE: POULTRYUS$m; 2005-2015
EXAMPLE PRODUCTS: TEGEL2017
Source: UN Comtrade database; photo credit (fair use; low resolution; complete product/brand for illustrative purposes); Coriolis classifications and analysis
Chicken, frozen pieces
2010
10Y ABS
2005
10Y CAGR
Other
2015
Chicken, whole frozen +$2
$48
+$3
$6
$18 +$38
$3
$1
$4
$3
$15
$41 29%
5%
17%
$1
$1
$3
E. Asia
NA
/ME/C
A
SS Africa
Europe
North A
m.
AU
/Pac
C/S A
m.
SE Asia
S. Asia
0%0%
0%
0%
0%
0%
0% 0%
35%
NZShare
Import value
AU/Pacific94%
Other6%
EXCLUDES PREP/PROC POULTRY (NEXT PAGE)
EXCLUDES PREP/PROC POULTRY (NEXT PAGE)
New Zealand trails peer group countries in converting its abundant raw meat into prepared/processed, ready-to-heat or ready-to-eat meat-based products; however, the country is catching up fast
1% 3% 3% 4%8% 8%
10% 10% 11% 11% 12%15% 16% 18% 19%
21% 22%
28%
Australia
New
Zealand
Uruguay
Mexico
Argentina
Canada
Netherlands
Spain
Brazil
USA
UK
Denm
ark
Poland
Belgium
France
Ireland
Germ
any
Italy
46
WORLD MARKET FOR PROCESSED MEATS: KEY IMPORTERSUS$b; 2015
SHARE OF MEAT EXPORTS WHICH ARE PREP/PROCESSED% of US$; 2015
NZ EXPORTS BY DESTINATION: PREP/PROC MEATS US$m; 2005-2015
EXAMPLE PRODUCTS: HELLERS2017
Source: UN Comtrade database; photo credit (fair use; low resolution; complete product/brand for illustrative purposes); Coriolis classifications and analysis
EuropeAmericas E/SE AsiaOtherAustralasia
Other Americas$0.7
Japan$2.6Mexico
$0.3
$0.2 $3.1 $4.1
Germany$1.6
$1.1
Canada$1.0
$12.2
S. Asia$0.1
United Kingdom$3.0
Other E/SE Asia$0.6
Other Europe$5.4
NA
/ME/C
A$0
.7
Australia$0
.1
SS Africa
$0.4
New
Zealand
$0.0
Other Pacific
$0.1
Hong Kong SAR$0.7
USA$1.1
France$1.1
Philippines$0.1
Netherlands$1.1
Singapore$0.2
Australia
Other Pacific
Japan
10Y ABS
Philippines
2005
Other
2010 2015
Other E/SE Asia
USA/Canada
10Y CAGR
8%
-6%
4%
20%
11%
-$6+$6
$64
$126
$110
+$5
+$31
+$19
+$3
+$4
$8
$6
$7
$5
$6$2
$13
$18
$38
$11
$38
$47
$14
$12
$6
4%
12%
$15
$1
$9
$31
$7
$4
New ZealandGrowth & Innovation
+ Horizons for growth
+ Emerging export stars
+ New viable options
+ Mega-trends driving change
+ Innovation & new products 04
New Zealand firms continue to develop a range of innovative new meat products
48
THREE HORIZONS OF GROWTH
- Beyond its mature core export products (Horizon 1), New Zealand has both a strong range of emerging export stars (Horizon 2) and continues to innovate and produce new, viable export options (Horizon 3)
HORIZON 2: EMERGING EXPORT STARS
- In Horizon 2, New Zealand is building a range of emerging export products
- Two meat products – chicken (in various forms) and sausages –emerge as “growth stars” from an evaluation of ten years of product-level trade growth
- Chicken meat and processed product exports are growing and the product plays to New Zealand strengths as a safe, reliable meat supplier (free of diseases)
- In a virtuous circle, the growth of New Zealand chicken exports has triggered reinvestment in new packaging and new product innovation
- New Zealand sausage exports are growing, though they currently go primarily to Australia, Japan and the Pacific Islands
HORIZON 3: NEW, VIABLE OPTIONS
- In Horizon 3, New Zealand is creating and nurturing a wide range of viable options for future export success
- Four broad global consumer mega-trends are driving growth and new product development in the food & beverage industry
- New Zealand meat products succeeding on-shelf in export markets are aligned with these trends
- These trends drive new product development, through (1) packaging, (2) product, (3) category and (4) channel innovation; success, however, often comes down to implementation and execution
- New Zealand meat firms are delivering on…
- Packaging-driven innovation
- Product-driven innovation
- Category and channel innovation
Beyond its mature core (Horizon 1) export products, New Zealand has both a strong range of emerging export stars (Horizon 2) and continues to innovate and produce new, viable export options (Horizon 3)
Source: McKinsey & Co.; Coriolis analysis
THREE HORIZONS OF GROWTH FRAMEWORK: NEW ZEALAND MEAT INDUSTRYModel; 2017
49
− Defend and extend profitability of core business
− Efficiency & cost control− Process innovation− Scale− Supply chain
− Profits, margins, costs
− Beef− Lamb
HORIZON 1Mature export categories & products
HORIZON 2Build emerging export products
HORIZON 3Create viable export options
Strategic Focus
Key success factors
Key metrics
Example products
− Expand and grow emerging businesses & products
− Customer acquisition− Speed & flexibility− Execution− Resources/funding
− Market share, growth
− Deer (Venison)− Sausages− Chicken meat
− Develop and discover new options for growth
− Risk taking− Market insight− Business model innovation− Culture & incentives
− Milestones
− Prepared/processed meats
FOCUS OF THIS SECTION
In Horizon 2, New Zealand is building a range of emerging export products
Source: McKinsey & Co.; Coriolis analysis
THREE HORIZONS OF GROWTH FRAMEWORK: NEW ZEALAND MEAT INDUSTRYModel; 2017
50
Strategic Focus
Key success factors
Key metrics
Example products
HORIZON 1Mature export categories & products
HORIZON 2Build emerging export products
HORIZON 3Create viable export options
− Defend and extend profitability of core business
− Efficiency & cost control− Process innovation− Scale− Supply chain
− Profits, margins, costs
− Beef− Lamb
− Expand and grow emerging businesses & products
− Customer acquisition− Speed & flexibility− Execution− Resources/funding
− Market share, growth
− Deer (Venison)− Sausages− Chicken meat
− Develop and discover new options for growth
− Risk taking− Market insight− Business model innovation− Culture & incentives
− Milestones
− Prepared/processed meats
Bubble size is proportional to export value in 2015; a bubble this size is US$1b
Two meat products – chicken (in various forms) and sausages – emerge as “growth stars” from an evaluation of ten years of product-level trade growth
Note: Data on this page is product level trade codes, not segment level aggregates as presented earlier; Source: UN Comtrade database (from NZ Customs data); Coriolis classifications and analysis
NZ MEAT EXPORT GROWTH STAR MATRIX: 10Y VALUE GROWTH VS. 10Y CAGR $ VS. VALUE IN 2015US$; CAGR on US$; 2005-2015
51
150 200
20%
950-50
30%
-100 0 100
25%
50
-5%
15%
10%
5%
0%
-10%
Beef, chilled offal
Beef, frozen bone-in
Beef, frozen offalSheep, chilled bone-in
Other beef
Sheep, chilled carcass
Chicken, whole frozen
Other poultry
$100
Chicken, frozen
Beef, chilled bone-in
Beef, frozen bonelessBeef, chilled boneless
Other processed
Prep/pres chicken meat
Deer/other species
Prep/pres beef offal
Sausages
Gelatin Sheep, frozen bone-in
Sheep, frozen boneless
Sheep, chilled boneless
Animal fatsSheep, frozen offal
Sheep, frozen carcass
10y ABS growth in export value; US$; b; 2005-2015
10y CAGR growth in
export value;
US$; 2005-
2015
Chicken meat and processed product exports are growing and the product plays to New Zealand strengths as a safe, reliable meat supplier (free of diseases)
52Source: UN Comtrade database (from NZ Customs data); photo credit (courtesy Tegel or fair use; low resolution; complete product/brand for illustrative purposes); Coriolis analysis
CHICKEN EXPORT VALUE BY MARKETUS$; m; 2005-2015
EXAMPLE: NZ PRODUCTS IN-MARKETSelect; Mar 2017
EXAMPLE: IN-STORE DISPLAY IN HONG KONGSelect; 2016
2006
Japan
Other Pacific
2007
United Arab Emirates
Other
20152005 2011
Other Asia
2009 20122010
Australia
20142008 2013
$0
$0$28
$41
$47
$0
$0
$0
$6
$0$44
$6$6$7
$0
$17
$0
$11
$0
$48
$5
$32
$12
$23
$34
$29
$6 $5
$33
$5
$12
$5
$6
$9
$9
$1
$6
$15
$5
$0
$1
$1
$0
$0
$0$1
$2$0
$1
$0
$0
$0$0 $0
$0
$0
$0
$0
$0
CAGR22%
AUSTRALIA AUSTRALIA
UAE AUSTRALIA
UAE HONG KONG
In a virtuous circle, the growth of New Zealand chicken exports has triggered reinvestment in new packaging and new product innovation
Source: various articles; various Tegel reports; Coriolis estimates (*); photo credit (courtesy Tegel or fair use; low resolution; complete product/brand for illustrative purposes); Coriolis analysis
EXAMPLE: TEGEL EXPORT VALUE OF CHICKEN PRODUCTS NZ$m; exports Select; Feb 2017
53
− Staff 1,550
− Exports to Pacific Islands (started 2003), Hong Kong (started 2006) Australia (started 2009)
− Affinity Equity Acquire Tegel for $600m from PEP
22001111
− May 2016 listed on NZX/ASX
− 2,300 staff
− Launch new brand imagery and packaging
− Key export market Australia $74m (Aldi, Costco),
− The Pacific Islands, UAE, Hong Kong
− Expand in UAE foodservice channel (Country Hill)
− New product initiatives for retail, foodservice and QSR
22001122 22001144 22001155 2200116622001133 22001177
− Developing Philippines (QSR), Japan (QSR)
− Market access to Bahrain and South Africa
− Access to fresh chicken market in Australia
− Installed new breast deboner
− Invested in new breeder farm
− Strong growth projections
− R&D facility commissioned to drive product innovation
− Invested $20m in new production line in Henderson plant -350t/wk processed at new plant, 75% exported
− Added 300 people at site jobs to total 2,000
− Expanded cooked range for QSR, battered nuggets, “Takeouts” and “Cuisine”
− Launched “Pure New Zealand Premium Chicken in HK”
− New sausage plant upgraded in New Plymouth (old Top Hat Foods premise)
− Tegel #2 sausage supplier
− Start exporting to UAE (Spinney’s)
− Tegel win Supreme Exporter Award
− Launch new value added Free range chicken “Tegel” brand
~$20*m ~$50*m ~$70*m $88m $102m~$60*m N/A
New Zealand sausage exports are growing, though they currently go primarily to Australia, Japan and the Pacific Islands
54Source: UN Comtrade database (from NZ Customs data); photo credit (fair use; low resolution; complete product/brand for illustrative purposes); Coriolis classifications and analysis
NEW ZEALAND EXPORT VALUE BY MARKET: SAUSAGESUS$; m; 2005-2015
EXAMPLE NEW ZEALAND PRODUCTS AVAILABLE: HELLERSSelect; Feb 2017
United Arab Emirates
Japan
20072006
Other
2005
Other Pacific
201220112010 2013
Australia
201520142008 2009
Other Asia
$4.7
$5.0$5.2
$6.5
$4.2
$4.3
$8.3
$3.8
$5.6
$2.2
$0.6
$5.6
$4.3
$0.7
$5.9
$6.9
$4.7
$4.8
$6.8
$6.0
$0.4
$0.9
$0.1
$0.5
$0.1
$0.0
$0.3
$0.0
$6.6
$0.3
$0.0$0.1 $0.1$0.7 $0.6
$0.0
$0.5$0.0$0.1 $0.7$0.1
$0.0
$0.0
$0.0$0.0
$4.1
$0.1
$0.1
$0.3
$0.3
$0.5
$0.1
$0.0
$0.5
$0.2
$0.3
$0.5
$1.5
$0.2
CAGR30%
In Horizon 3, New Zealand is creating and nurturing a wide range of viable options for future export success
Source: McKinsey & Co.; Coriolis analysis
THREE HORIZONS OF GROWTH FRAMEWORK: NEW ZEALAND MEAT INDUSTRYModel; 2017
55
Strategic Focus
Key success factors
Key metrics
Example products
HORIZON 1Mature export categories & products
HORIZON 2Build emerging export products
HORIZON 3Create viable export options
− Defend and extend profitability of core business
− Efficiency & cost control− Process innovation− Scale− Supply chain
− Profits, margins, costs
− Beef− Lamb
− Expand and grow emerging businesses & products
− Customer acquisition− Speed & flexibility− Execution− Resources/funding
− Market share, growth
− Deer (Venison)− Sausages− Chicken meat
− Develop and discover new options for growth
− Risk taking− Market insight− Business model innovation− Culture & incentives
− Milestones
− Prepared/processed meats
Four broad global consumer mega-trends are driving growth and new product development in the food & beverage industry
Source: Boston Consulting Group; Datamonitor; Coriolis research and analysis 56
HEALTH & WELLNESS AUTHENTIC & RESPONSIBLE EASY & CONVENIENT SENSORY & INDULGENT
− Mid-high income countries experiencing an aging population
− Spread of Western lifestyle and Western diseases of affluence (e.g. diabetes)
− Ongoing waves of media hype around fad diets and new "superfoods"
− Food presented and viewed as both the problem and the solution
− Dramatic global shift to city living; 1800=3%, 1900=14%, 2015=50%; developed nations 75%+; 400 cities 1m+
− Loss of attachment to the land and food production
− Ongoing "rights revolution" now spreading to animals
− Ongoing waves of food scares around contamination, additives
− Dramatic increase in female participation in the workforce globally
− Consumers working longer hours to maintain relative income
− Work hours no longer just "9 to 5"; food needs at all times (e.g. night shift)
− Rise in snacking and on-the-go meal occasions
− Growing income polarisation into “haves and have-nots”
− Strongly emerging trend to premium (and discount) at the expense of the mid-market
• Emerging middle class across developing world driving consumption growth
• Incredible power of food and beverages in many social settings
− May be addressing specific conditions (e.g. weight management; cholesterol)
− May target a specific family member (e.g. grandparent)
− May reflect wider "healthy living" worldview
− May target specific foods perceived as high risk, unethical or visible (e.g. coffee, eggs)
− May target specific farming systems (e.g. grass-fed/free-range)
− May target a specific family member (e.g. child)
− May represent a need for an immediate solution (e.g. hungry)
− May represent an easy solution to a future challenge (e.g. children's lunch)
− May range from "everyday luxury" to an occasional "treat”
− May be used to demonstrate social status, taste or style (e.g. wagyu beef)
I am concerned about my health and am trying to live a healthy lifestyle
I am mindful of where my food comes from and how it is produced
I am trying to achieve work-life balance and need quick-and-easy meal solutions
I like to indulge in rich and sumptuous living beyond the bare necessities
FOUR CONSUMER FOOD & BEVERAGE MEGA-TRENDS
100% lamb
New Zealand meat products succeeding on-shelf in export markets are aligned with these trends
Source: photo credit (fair use; low resolution; complete product/brand for illustrative purposes); Coriolis classifications and analysis 57
“Select group of farmers”
“Long established”
Cook from frozen
“Expertly matured”
Natural fermentation
“Aalt’s traditional recipes”
Crafted in New Zealand
Pre-sliced
“Traditional European”
Ready-to-eat
Grass-Fed
Heart foundation 2 ticks
100% made of New Zealand
Long shelf-life packaging
London Singapore
H&W
A&R
A&R
E&C
S&I
H&W
A&R
E&C
E&C
S&I
H&W
H&W
A&R
E&C
A&R
“Hand prepared”S&I
Aged S&I
Aged 21 daysS&I
Supreme tendernessS&I
Cooks in1 15-20 minutesE&C
Graded A++ by our Master Graders S&I
High in iron; 10% of RDAH&W
These trends drive new product development, through (1) packaging, (2) product, (3) category and (4) channel innovation; success, however, often comes down to implementation and execution
Source: Coriolis
CONSUMER FACING INNOVATION IN THE FOOD & BEVERAGE INDUSTRY FROM TREND TO EXECUTIONSimplified model; 2017
58
CONSUMER FOOD & BEVERAGE MEGA-TRENDS
1. PACKAGING INNOVATION
NEW PRODUCT DEVELOPMENT
2. PRODUCT INNOVATION 3. CATEGORY INNOVATION 4. CHANNEL INNOVATION
Usage (e.g. ready-to-cook)
Shelf-life (e.g. vacuum-skin)
Convenience (e.g. dried)
Appearance (e.g. foil pack)
Flavour
Specifications/Recipes
New/different ingredients
Source/origin
Production system
Manufacturing process
Line extension
Creation of new category
New temperature state
Foodservice offer
Non-foods retail offer
Vending
Internet/Home delivery
Own retail stores
IMPLEMENTATION & EXECUTION
HEALTH & WELLNESS AUTHENTIC & RESPONSIBLE EASY & CONVENIENT SENSORY & INDULGENT
New Zealand meat firms are delivering on packaging-driven innovation
Source: various articles or reports; photo credit (fair use; low resolution; complete product/brand for illustrative purposes); Coriolis classifications and analysis
SELECT EXAMPLES OF PACKAGING INNOVATION: NEW ZEALAND MEAT FIRMS2017
59
COMMENTARY
- Traditionally New Zealand produced transport-friendly frozen meat products (e.g. frozen lamb primals)
- Driven by location and use of sea freight (for cost competitiveness reasons)
- Emergence of new packaging forms, materials and technologies is ongoing globally
- Creating opportunities for long distance exports from New Zealand to key markets
- Further innovation in longer shelf-life, in particular, would enable further penetration of New Zealand produced consumer-ready products into new markets
- New packaging is often linked with new processing technologies
INSIGHTS
- Skin packaging technology- Easier view of shape and quality of meat- Reduce need for trays, soakpads and
cellophane- Affco invested $1m in new equipment- Allows range increases in value added meat
cuts- Focus on consumers vs wholesalers
INSIGHTS
- Tegel new modern product packaging design
- Appealing to younger audience- Product description stands out
INSIGHTS
- Heller’s Angus Pure meatballs- Individually packed meatballs, non-stick
packaging, maintains shape of ball- Convenient packaging and presentation
1. PACKAGING INNOVATION
New Zealand meat firms are delivering on product-driven innovation
Source: various articles or reports; photo credit (various firms or fair use; low resolution; complete product/brand for illustrative purposes); Coriolis classifications and analysis
SELECT EXAMPLES OF PRODUCT INNOVATION: NEW ZEALAND MEAT FIRMS2017
60
- Alliance Group, Headwaters New Zealand and MPI (PGP) program
- Producing a carcass lower in saturated fat, higher in polyunsaturated fat and packed with omega-3 oils
- Investing $25m over 7 years
- Targeting New Wealth with High Health -Tapping into increasing demand for premium and healthy foods adding value to exports
- Lamb range in line with health and wellness plus sensory and indulgent
INSIGHTS
- Tegel new free range products and ingredients claiming:
- Animal welfare launch “NZ raised Free Range”
- Premium – 100% chicken breast- Healthy – “No added hormones”- Superfood – quinoa crumbed
- Appeal to quality-conscious consumers
- “Meal Maker” range of ready to eat products in line with convenience mega-trend
- In-line with health and wellness mega-trend
INSIGHTS
- Silver Fern Farms New Zealand’s largest meat company
- “Flat iron aged steak” adding to the range of premium meats featuring “Eating Quality mark, grass-fed, aged
- Reinventing this traditionally lower grade of meat
- +40% of prime beef being sold chilled and +30% of lamb sales
INSIGHTS
2. PRODUCTINNOVATION
COMMENTARY
- Large brands are innovating in the drive to increase value added product lines
- Innovative products target a gap in the market (e.g. premium meat products, demand for convenient snacking)
- Innovation is supported in New Zealand by government supported programs (e.g. MPI’s PGP programs and NZ Food Innovation Network facilities)
- Innovation often enabled by availability of new technology or science
- Emergence of new packaging forms, materials and technologies (e.g. aseptic pouch) is ongoing globally
New Zealand meat firms are delivering on category and channel innovation
Source: various articles or reports; photo credit (various firms or fair use; low resolution; complete product/brand for illustrative purposes); Coriolis classifications and analysis
SELECT EXAMPLES OF CATEGORY & CHANNEL INNOVATION: NEW ZEALAND MEAT FIRMS2017
61
Coastal Spring Lamb Atkins Ranch appealing to high value audience
Magill’s Butchery slow-cooked pulled beef range Silver Fern “Reserve” range
- Coastal Spring lamb founded by co-owners Richard and Suze Redmayne
- Produce a total of 90,000 lambs throughout the year from 12 farm suppliers for domestic and eight export markets
- Strength in provenance and traceability “Growers Story –“Our Families” “Our Farms”; able to track the meat back to the farm via the QR code
- Multiple awards in New Zealand Food Awards 2016
3&4. CATEGORY & CHANNEL INNOVATION
- Silver Fern Farms reserve range- differentiating a premium beef offer - only the finest cuts included in the program
- Featuring :- “Eating Quality System” stamp ( measures seven
scientific criteria to predict the eating quality) - 100% Made of New Zealand- Grass fed- Hormone free- No antibiotic feeding
- Atkins, owned by Progressive Meats, sources lamb from over 100 families; primary processing in NZ plant and shipped to USA for further processing
- Atkins Ranch promote ”Pasture raised Lamb”, “100% Grass Fed” hormone free, antibiotic free, traceable back to farm (FarmIQ); Non-GMO accreditation in USA (2016) withthird party verification
- Certified for GAP step 4 sheep program (2016); gives consumers confidence animals are raised in accordance with strict animal welfare standards
- Exports to Whole Foods Market (USA) plus Canada, markets with high animal welfare requirements
- Magill’s is a family owned “Premier Artisan Butchery” producing a range of Prime beef, lamb, pork and poultry based in the Waikato
- Company was looking for a way to add value to the sub-primal cuts. Developed slow-cooked pulled ready to eat beef (reheat in 3 minutes)
- ‘Haute cuisine’ presentation and packaging
- Slow-cooked pulled Hereford beef NZ Food Awards 2015 – Chilled Winner and Supreme Winner
- Extended range nationally and into wholesale, and foodservice
New Zealand beverage firms are supported with access to advice, research facilities and pilot plants across five locations
Source: www.foodinnovationnetwork.co.nz; Coriolis 62
NZFIN
LOCATION FOCUS CAPABILITIES
Processed/FMCG foods Space/equipment for hireExport registrations ~1000 kg/shift
- Extrusion & Milling/Blending- Liquids/Beverage - High pressure processing- Freeze drying- General processing- Multiple packaging styles- Product development kitchen
Dairy & Infant Formula~500 kg/hourVegetable
- Spray dryer- Evaporator- Other dairy equipment- Packing- Powder (vegetable)
All Food and Beverage Specialist expertise- business development - direct to other facilities
DairyFruit & vegetablesAll Food and Beverage
- Same equipment as Manukau (1/5th scale)- Same equipment as Waikato (1/20th scale) - Post harvest technologies- Meat and small goods pilot plant- Located at Massey University
Processed/FMCG FoodsSpace/equipment for hireExport registrations 20-200L batch size
- Mixing /Blending/Emulsifying- Extrusion- Freezing/Cooking/Baking- General Processing- Product Development Kitchen- Technical and Business development
expertise
New ZealandMeat Firms
+ Enterprises
+ Employment
+ Production share
+ Turnover
+ Ownership
+ Foreign investors
+ Acquisitions
+ Investments
+ Firm Profiles 05
New Zealand has a strong and robust meat processing industry that continues to attract investment
64
OVERVIEW
- The number of meat processing firms in New Zealand is growing and industry efficiency is improving, particularly in poultry
- New Zealand has a large and robust meat products industry with a wide range of participants of various sizes
KEY METRICS
- Employment in meat processing in New Zealand is consolidating in red meat (fewer sheep), while growing in poultry and cured meats; poultry stands out for maintaining or improving efficiency
- Meat processing employs over 30,000 people spread across the country
- While meat processing employment is spread across a large number of firms, the top three meat processors account for over 50% of industry employment and the top eleven for 85%
- New Zealand has a reasonably consolidated meat industry, with a range of strong firms competing; however there appear to be further consolidation opportunities, particularly in lamb and beef
- Lamb processing share continues to change across the industry
- Beef processing share continues to change across the industry
FIRMS
- Silver Fern Farms continues to be the largest meat firm in New Zealand by turnover
- The New Zealand meat industry has an almost even split of foreign and private ownership, while the largest two firms are farmer co-operatives
INVESTMENT
- The New Zealand meat industry has attracted international investment, primarily from China and Japan
- New foreign firms continue to invest in the New Zealand meat industry
- Almost $600m of acquisitions occurred over the last 18 months; overseas firms are looking to secure New Zealand beef and lamb and strengthen their global agrifood position
- Firms are continuing to invest in plant and equipment
- New Zealand meat firms are also investing in new and improved marketing
0
2,000
4,000
6,000
8,000
10,000
12,000
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
2010
2011
2012
2013
2014
2015
Cured meats & smallgoods
2007
10y ABS
Red meat processing
2005 2006
10y CAGR
20132009 201220112010 20142008 2015
Poultry processing
276
3.4%
270
+3
+66
-6
270264
291
270
258
318
270
-2.5%
0.5%
255
267
234
27
192
213
24 2124 24
174177
168186
189186183 183
24
63 6363 63 60 6360 60
18 1824 24
60 60
21
60
The number of meat processing firms in New Zealand is growing and industry efficiency is improving, particularly in poultry
65
NUMBER OF MEAT PROCESSING ENTERPRISESEnterprises; 2005-2015
AVERAGE TONNES/MEAT PROCESSING ENTERPRISET/entity; actual; 2000-2015
AVERAGE TONNES/MEAT PROCESSING EMPLOYEET/employee; actual; 2000-2015
Source: Statistics NZ business demographics database; Coriolis analysis
CAGR2.2%
Poultry
Red meat
35
40
45
50
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
2010
2011
2012
2013
2014
2015
Poultry
Red meat
New Zealand has a large and robust meat products industry with a wide range of participants of various sizes
66
MULTI SPECIES PROCESSORS PROCESSED – BABY FOOD/MEAT BASED MEALS/PIES
VALUE ADDED MEAT PRODUCTSMARKETERS AND EXPORTERS
PROCESSED – BEEF JERKY
PROCESSED – PET FOOD
DEFINED PROCESSED FOODSDEFINED MEAT
PORK BEEF
LAMB
SPECIES SPECIFIC PROCESSORS
POULTRY
Employment in meat processing in New Zealand is consolidating in red meat (fewer sheep), while growing in poultry and cured meats; poultry stands out for maintaining or improving efficiency
67
TOTAL EMPLOYMENT BY MEAT PROCESSING ENTERPRISESHeadcount; as of Feb; 2000-2015
AVERAGE EMPLOYEES/PROCESSOR Head/unit; 2000-2015
AVERAGE HEAD KILL/PROCESSOR EMPLOYEECows/head; 2000-2015
Source: Statistics NZ business demographics database; Coriolis estimates & analysis
Cured & SG
2007
10y ABS
Red meat proc.
2005 2006
10y CAGR
20132009 201220112010 20142008 2015
Poultry proc.
29,090
-0.7%
29,510
+300
-1,800
+100
29,750
31,640
29,460
30,860 31,06030,660
30,320
0.3%
1.7%
32,060
30,870
24,880
3,740
24,300 23,880
3,370 3,3903,610 3,410
26,070 26,72026,680
25,680
23,790 24,28026,020 25,540
3,380
1,400 1,6301,550 1,460 1,760 1,9401,640 1,690
3,760 3,8203,670 3,590
1,570 1,580
3,840
1,640
CAGR-0.4%
0
50
100
150
200
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
2010
2011
2012
2013
2014
2015
Poultry
Red meat
Cured & SG
0
5,000
10,000
15,000
20,000
25,000
30,000
0
200
400
600
800
1,000
1,200
1,400
1,60020
00
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
2010
2011
2012
2013
2014
2015
Poultry (R axis)
Red meat (L axis)
Bubble size is proportional to employment in 2015; a bubble this
size is 1,000 people
Meat processing employs over 30,000 people spread across the country
68Source: Statistics NZ business demographics database; Coriolis analysis
MEAT PROCESSING EMPLOYMENT BY REGIONHeadcount; as of Feb; 2016
10Y CHANGE IN MEAT PROCESSING EMPLOYMENT BY REGIONABS; CAGR; 2016 total; Headcount; as of Feb; 2006 vs. 2016
North Island South Island
12,68317,620
Southland4,050
Taranaki2,350
Mana/Wanga/Well4,400
Waikato3,650
BOP/Gisb/HB3,710
Canterbury5,200
Otago2,850
Auckland/Northland3,510
Other S/I.583
1,000-4%
500-1,000 -500 0
-3%
2%
3%
4%
1%
-2%
-1%
0%
-1,500
Otago
Waikato
Canterbury
1,000
Auck/North
Taranaki
Mana/Wanga/Well
Other S/I.
Southland
BOP/Gisb/HB
10Y ABS
10Y CAGR
While meat processing employment is spread across a large number of firms, the top three meat processors account for over 50% of industry employment and the top eleven for 85%
SFF 7,000 23%
AFFCO, 4,800 , 16%
Alliance, 4,700 , 15%
ANZCO, 3,000 , 10%
Progressive1,900 6%
Other red meat, 3,400 , 11%
Tegel 2,200 7%
Ingham 1,000 3%
Brinks 400 1%
Turks 220 1%
Hellers 600 2%Premier 300 1%
Other cured & proc.1,040 4%
69Source: SNZ business demographics (detailed industry for enterprise units); various firm websites; published articles; Coriolis analysis
NUMBER OF PEOPLE EMPLOYED: NZ MEAT MANUFACTURING BY KEY FIRM People; 2016
− Figures are at peak employment and include seasonal workers
− Talley’s is an estimate (from sum of individual site employee figures across meat operations)
− Progressive Meats is an estimate (from sum of individual site employee figures across meat operations)
COMMENTS/NOTES
TOTAL = 30,660
New Zealand has a reasonably consolidated meat industry, with a range of strong firms competing; however there appear to be further consolidation opportunities, particularly in lamb and beef
SFF21%
Alliance27%
AFFCO15%
ANZCO10%
Taylor Preston6%
Hawkes Bay Meat9%
Blue Sky3%
Wilson Hellaby2%
Crusader2%
Davmet1%
Lean Meats2%
Other2%
70Note: The NZ Meat Board allocates access to quota market on the basis of production history for the three prior seasons; the data here can therefore be seen as a moving average for the three previous years; Source: New Zealand Meat Board EU Sheepmeat and Goatmeat TRQ Allocation data; Coriolis estimates & analysis
NZ LAMB PRODUCTION SHARE% of production [see note]; 2016
NZ BEEF PRODUCTION SHARE% of production [see note]; 2016
NZ POULTRY PRODUCTION SHARE% of production; 2016
SFF30%
Alliance9%
AFFCO19%
ANZCO19%
Wilson Hellaby6%
Greenlea9%
UBP5%
Taylor Preston2%
Other1%
Tegel55%
Ingham38%
Brinks5%
Turks1%
Other1%
CORIOLIS ESTIMATES
Lamb processing share continues to change across the industry
Note: The NZ Meat Board allocates access to quota market on the basis of production history for the three prior seasons; the data here can therefore be seen as a moving average for the three previous years;Source: New Zealand Meat Board EU Sheepmeat and Goatmeat TRQ Allocation data; Coriolis analysis
NEW ZEALAND LAMB PRODUCTION MARKET SHARE% of production [see notes]; 2002-2016
71
2008
Alliance
20062003
Affco
Other
2005
Lean Meats
2007 20132004 2014
Wilson Hellaby
2012
15y ABS
Blue Sky
SFF
2001 2011
Taylor Preston
ANZCO
2010
Crusader
2009
Hawkes Bay Meat
2015
Davmet
20162002
1%
100%
0%
23%
0%
23%
1%
100%
1%
1%
23%
3%
100%
16%
3%
16%
3%
0%
1%1% 1%1%1%
3%
21%
3%
22%
0%
100%
16%
3%
100%
3%
100%
3%1%
100%
2%
22%
2% -4%2%
23%
4%6%
100%
20%
5%
100%
4%2%
+9%
-1%
+2%
+1%+1%+1%-3%
+1%
-18%
2%
+1%
+0%
+6%
+4%
34%
3%
100%
2%
26%
100%
2%2%
23%
2%
100%
2%
25%
2%
100%
28%
6%11%
31%32%
6%
100%
6%6%
100%
2%
29%
100%
11%7%
11%
5%1%
5% 5%6%
6%
11%
12% 13%
6%6% 6%
1%1%
1%
13%
11%
3%
27%
9%
3%
28%
3%
3% 3%
11%
11%
8%6%6%
8% 8%8%
11%
12%
9% 9%9%
4%
10%
4%
4%
9%9%6% 7%5%4%
8%
4% 4%7%
15%
12%
5%4%4%
5% 5%5%
12% 12%14%
4%4%
4%5% 5%5%
13%
3%
2% 2%2%
0%
2%
1%0%
2%2%
2%
26%26%
2%2%
0%
2% 2% 2%1%
1%1%
1%
1%
1%1%
1%1%
1%1%
1%
1%
1%
1%1%
1%1%2%
30%30%
1%
30%
2%2% 2%1% 3%
29% 29%
3%
29%
1% 3% 3%2% 2%
27%27%
2%
26%
1%
1% 1% 2%2%
27%28%
2%
27%
2%2%
2%
Beef processing share continues to change across the industry
Note: The NZ Meat Board allocates access to quota market on the basis of production history for the three prior seasons; the data here can therefore be seen as a moving average for the three previous years; Source: New Zealand Meat Board US Beef TRQ Allocation data; Coriolis analysis
NEW ZEALAND BEEF PRODUCTION MARKET SHARE% of production [see notes]; 2002-2016
72
Affco
20102006 20132008
Greenlea
2001 20122007
15y ABS
2009 2016
ANZCO
2002
Taylor Preston
UBP
2003 20112005
SFF
2015
Wilson Hellaby
Other
2004 2014
Alliance
7%
100%
5%5%
5%
100%
5%
100%
5%3%
5%
6%
100%
6%
100%100%
+3%
2%
+3%
+5%
2%
+0%
3%5%
-5%2%-1%
1%1% 1% 1% 1%1%
+1%
1%
+3%
-9%
1%100%
8%
100%100%
7%8%8%
100%
7% 8% 8%
100%100%
6% 5% 6%
100%
6%7%
100%100%100%
6%
5%
9%9%9% 9% 9%9%9%8%
6%6%5%
6%
7%6%
6%
18%18%18% 17% 19%17%17%18%
17%17%18%
17%
19%19%
19%
31%27%26%
30% 30%30%30%27%
6%6%7%
33%28%
30%31%
4%4%4%
4%
5%
4%4%
4%
29%29%
30%
27%
4%4%3%
7%7%6%
7% 8%7%7%6%
2%2%2%
6% 6%5%5%
5%5%4% 5% 5%5%5%
4%
9%9%8%9%
4%4%5%
20%20%20% 19% 20%20%20%20%
16%14%
19%
16% 18%18%17%
3%3%2% 3% 2%3%3%2%
3%
19%19%
3%2%
2%3%
Silver Fern Farms continues to be the largest meat firm in New Zealand by turnover
$2,147
$1,450
$1,362
$1,200
$600
$582
$400
$385
$378
$280
$240
$240
SFF
ANZCO
Alliance
AFFCO
Progressive + subsidiaries
Tegel
Wilson Hellaby
Inghams
Greenlea
Taylor Preston
Hellers
Brinks
✝
* Pro rata of 15 month revenue in annual report; ✝estimate range of $500-700m. Source: various company annual reports; NZCO; Coriolis estimates and analysis
ANNUAL TURNOVER BY KEY FIRMS: NEW ZEALAND MEAT INDUSTRYNZ$; m; FY2016 or as available
73
Actual from AR or firm
FY16 estimate from available data
INCLUDES CORIOLIS ESTIMATES
The New Zealand meat industry has a wide range of owners; the largest two firms are farmer co-operatives
Private55%
Foreign25%
Public 3%
Farmer Co-Op17%
Source: New Zealand Companies Office; various annual reports; Coriolis estimates and analysis
ESTIMATED PROPORTIONAL SHARE OF TOTAL INDUSTRY TURNOVER BY OWNERSHIP% of turnover/sales; 2016
Partially foreign -owned
Fully foreign-owned
73
The New Zealand meat industry has attracted international investment, primarily from China and Japan
1. via Shanghai Maling Aquarius 75
Shenxzen Mingsheng Duling
South Island meat processing company
Heilongjiang Binxi Cattle Industry Co (CN) – Processing services
Lean Meats Oamaru plant remaining shares
Japan’s #2 BH&SG company (revenue US$6b)
Increases share to 65% of major NZ meat company
Listed Chinese SOE1 food group (revenue US$11b)
50% of NZ’s #1 meat processing company
Large Chinese commercial holding company
New foreign firms continue to invest in the New Zealand meat industry
76
2011 and earlier 2012-2014 2015+
Over $300m of acquisitions occurred over the last 18 months; overseas firms are looking to secure New Zealand beef and lamb to strengthen their global agrifood position
* Also reported as NZ$267m; Source: Coriolis 77
- 50% partnership in NZ’s leading red meat processor; securesupply of New Zealand red meat; increasing NZ agricultural investments; Dec 2016
- Increase share from 48% to 65%; Jun 2015
- Acquire Invercargill based meat processing company; supply of New Zealand meat for export markets
- Feb 2017
- Lean Meats sold remaining shares to Binxi (25% acquired in 2014); 98% product exported; secure supply and processing of New Zealand meat for export to Binxi Foods retail stores and McDonalds (CN); Dec 2015
$40m
$261m*
$13m
N/A
+$314m
Firms are continuing to invest in plant and equipment
78Source: Annual reports, articles, interviews
INCREASING SCALE & EFFICIENCYEXTENDING VALUE ADDED CATEGORIES
Tegel $24m - Upgraded and invested in equipment and plant(e.g. breast deboner)
Alliance $15m - Invested in robotic primal/middle cutters (reduce costs, increase efficiencies)
Alliance N/A - Advanced world class deer processing facility at Lorneville plant, operational in 2018
Alliance $2m
$0.5m
- Commissioned X-ray machine for lean meat measurements (2 plants)
- Built new petfood facility, offal collection upgrade
SFF $7m - Invested in new venison processing and cold chain in Pareora plant
Ingh N/A - Increased automation at plant and building a second hatchery and breeder facility
Tegel $3.5m - Relaunched brand and developed new products
AFFCO $1m - Developed new retail ready skin packaging technology, support move into value added retailing
SFF N/A - Developed numerous value added products to export to China; discussing new value added plant
SECURING SUPPLY
$6-8m - Announced upgrade to Oamaru Meats (formerly Lean Meats) facility over the next two years
New Zealand meat firms are also investing in new and improved marketing
Source: various articles or reports; photo credit (Atkins, Alliance, Tegel or fair use; low resolution; complete product/brand for illustrative purposes); Coriolis classifications and analysis 79
New Brands or Rebranding New Packaging Advertising & Promotion
New Zealand Meat Firm Profiles
Note: Firms are listed in alphabetical order; some firms appear in multiple sector reports; inclusion of profile in this report does not necessarily mean the firm’s metrics are included in the sector’s analysis
05
81* Estimate; Source: various companies annual financial statements (NZ Companies Office or company website); various press releases and news articles; Coriolis analysis
A VERKERK LTD
Terry PiersonChief Executive Officer
DESCRIPTION: Producers of European continental smallgoods and meat products; supplies supermarket, foodservice and convenience channels
KEY PRODUCTS: Salami, continental sausages, gourmet meats, bacon, ham, protein snacks
OWNERSHIP: NZ; Private (Sundstrum, Mills, Verkerk)
COMPANY NUMBER: 125112
ADDRESS: 94 Vagues Road, Papanui, Christchurch
PHONE: +64 3 375 0560
WEBSITE: www.verkerks.co.nz
YEAR FORMED: 1957
STAFF EMPLOYED: 120
REVENUE: $70-80m* (FY14)
COMPANY HIGHLIGHTS: Currently launching new range of protein snacks
ALLIANCE GROUP
David SurveyorChief Executive Officer
DESCRIPTION: 100% NZ farmer owned and supplied meat processor and exporter of lamb, beef and venison to 65 countries; 5,000 farmer shareholders and 8 processing sites; world’s largest processor and exporter of sheep meat; “Pure South” premium brand
KEY PRODUCTS: Lamb, sheep, beef and venison meat cuts, by-products and co-products; 1,600 products
OWNERSHIP: NZ; Co-operative (5,000 farmers)
COMPANY NUMBER: 154786
ADDRESS: 51 Don Street, Invercargill
PHONE: +64 3 214 2700
WEBSITE: www.alliance.co.nz; www.puresouth.com
YEAR FORMED: 1948
STAFF EMPLOYED: 4,700
REVENUE: $1,362m (FY16)
COMPANY HIGHLIGHTS: New strategy to maximise operational efficiency and capture more value from market in‘15; $15m investment in robotic primal/middle cutters online ‘16; new “Pure South” product lines for China, India ‘16; cobranding with GrandFarm; invested $500,000+ to upgrade offal collection in ‘17; $10.6 million processing upgrade at Dannevirke in ‘17
ANZCO FOODS
Peter ConleyChief Executive Officer
DESCRIPTION: Vertically integrated farming and manufacturing facilities; leading exporter of beef and sheep meat over 11 sites; 3 retail stores, ‘Westmeat’ and innovation centre; exports to over 80 countries; 8 offshore offices
KEY PRODUCTS: Beef, lamb, sheep meat, healthcare solutions, offal and co-products, prepared and gourmet foods
OWNERSHIP: Japan; Public (Itoham 65%, Nippon Suisan Kaisha 17%); NZ; Private (Harrison 10%, JANZ 8%)
COMPANY NUMBER: 656378
ADDRESS: 1 Sir William Pickering Drive, Harewood, Christchurch
PHONE: +64 3 358 2200
WEBSITE: www.anzcofoods.com; www.westmeat.co.nz
YEAR FORMED: 1984/1995
STAFF EMPLOYED: 3,000
REVENUE: $1,450m (CY16)
COMPANY HIGHLIGHTS: Acquired Itoham’s half stake in Five Star Beef feedlot to take full control in ’14; increased foreign owership to 82% approved in ‘15; plans to expand to meet growing Asian demand; continued investment into value added products, e.g. range of Angel Bay, Aria Farm, Nourish, Butcher’s Hook etc. in ‘16
BINXI FOODS NZ LTD
Richard ThorpChief Operating Officer/Director
DESCRIPTION: NZ subsidiary of Chinese vertically integrated beef business, feedlots, meat processing plants, fertiliser production and 100 retail stores; processing through Oamaru Meats Limited (OML), formerly Lean Meats; source from over 500 farms; exports to 50 countries
KEY PRODUCTS: Beef, lamb, veal, skins, pelts
OWNERSHIP: China; Private (Heilongjiang BinxiCattle Industry Co. Ltd)
COMPANY NUMBER: 5526405
ADDRESS: 7 Redcastle Road, Oamaru North,Oamaru
PHONE: +64 3 433 0078
WEBSITE: www.bxfoods.co.nz
YEAR FORMED: 2014
STAFF EMPLOYED: 200
REVENUE: $80m
COMPANY HIGHLIGHTS: Acquired 100% of Lean Meats Oamaru in ‘15; looking to invest $6-8m from ‘16-’18; acquired land next to Oamaru Meats for head office and staff accommodation, $580,000 in ‘17
82* Estimate; Source: various companies annual financial statements (NZ Companies Office or company website); various press releases and news articles; Coriolis analysis
BLUE SKY MEATS
Todd GraveChief Executive Officer
DESCRIPTION: Processor of lamb, veal, goat based in Invercargill; “Horizon” and ‘Star” international brands; sheep processing plant in Morton Mains near Invercargill, capacity of 1.3m sheep/year; cattle processing plant in Gore, 35,000 cattle/year; Horizon Meats marketing subsidiary
KEY PRODUCTS: Lamb, beef, venison, veal, goat
OWNERSHIP: NZ; Public Unlisted (Lowe, Richardson, Zheng, Binxi Foods, others)
COMPANY NUMBER: 315886
ADDRESS: 729 Woodlands-Morton Mains Road, Invercargill
PHONE: +64 3 231 3421
WEBSITE: www.bluesky.co.nz
YEAR FORMED: 1986
STAFF EMPLOYED: 350
REVENUE: $124m (FY16)
COMPANY HIGHLIGHTS: Acquired Clover Meats, sales of~$12m, for $3m Dec ’14, renamed to Blue Sky Meats (Gore), adding beef and venison processing capabilities; built chilled meat facility at Morton Mains plant in ‘15; NZ Binxi (Oamaru) Foods, subsidiary of Heilongjiang Binxi Cattle Industry Co withdrew $25.3m, 100% takeover bid in Mar ‘17
CABERNET FOODS
Lyndon EvertonManaging Director
DESCRIPTION: Meat wholesalers, processor, marketer; processes 120,000 sheep, 10,000 cattle, 30,000 pigs and others to distributors, processors and retailers throughout NZ annually; meat processing plants in Gladstone (Kintyre Meats), Wellington (TPL), Hastings (PML), Waikato
KEY PRODUCTS: Carcass and boxed meat; sheep, beef, pork, other under “Pirongia”, “Coldstream” “Hereford Prime”brands
OWNERSHIP: NZ; Private (Everton, Richards)
COMPANY NUMBER: 1205992
ADDRESS: 530 Gladstone Road,Carterton
PHONE: +64 6 372 7882
WEBSITE: www.cabernet.co.nz
YEAR FORMED: 2002
STAFF EMPLOYED: 55
REVENUE: $15-20m (FY16)
COMPANY HIGHLIGHTS:
COASTAL LAMB TRADING
Richard RedmayneManaging Director
DESCRIPTION: Producer/marketers of lamb; 20 family farm suppliers in NI; retail and food service; exports to Hong Kong, Macau, China, Vietnam, Singapore, Thailand, Dubai, Belgium, Rarotonga; 30,000 lambs for domestic, 60,000 for export; Ovation toll processing for export, AFFCO domestic
KEY PRODUCTS: Lamb; Coastal Spring Lamb and Coastal Lamb
OWNERSHIP: NZ; Private (Redmayne)
COMPANY NUMBER: 6199007
ADDRESS: Tunnel Hill, Beach Road, Turakina,Wanganui
PHONE: +64 27 483 3660
WEBSITE: www.coastalspringlamb.co.nz; www.coastallamb.com
YEAR FORMED: 2010
STAFF EMPLOYED: 2
REVENUE: $5-10m (FY16)
COMPANY HIGHLIGHTS: Started exporting in ‘15,60,000 lambs; won Supreme Winner award andtwo other category wins at NZ Food Awards in ’16;cobranding working relationship with Heller’s,starting with Coastal Lamb Hotpot sausages
COLONIAL BACON & HAM CO
Robert CorbettManaging Director
DESCRIPTION: Bacon and ham manufacturer; retail and foodservice
KEY PRODUCTS: Bacon, ham
OWNERSHIP: NZ; Private (Corbett)
COMPANY NUMBER: 909303
ADDRESS: 109 Cavendish Drive, Manukau,Auckland
PHONE: +64 9 278 3420
WEBSITE: www.colonialbacon.co.nz
YEAR FORMED: 1998
STAFF EMPLOYED: 30
REVENUE: $15-20m*
COMPANY HIGHLIGHTS:
83* Estimate; Source: various companies annual financial statements (NZ Companies Office or company website); various press releases and news articles; Coriolis analysis
CRUSADER MEATS NEW ZEALAND LTD
John RamseyManaging Director
DESCRIPTION: Processor and exporter of lamb, sheep, venison and goat; LANZ Supreme, LANZ Finest, King Country Meats brand; exports to Europe, UK, USA, Canada, Japan, Mexico, Pacific Rim
KEY PRODUCTS: Lamb, mutton, venison, goat, pelts, wool
OWNERSHIP: NZ; Private (Ramsey)
COMPANY NUMBER: 711318
ADDRESS: 979 State Highway 30, Benneydale, Te Kuiti
PHONE: +64 7 878 7077
WEBSITE: www.crusadermeats.co.nz
YEAR FORMED: 1967
STAFF EMPLOYED: 170
REVENUE: $90-$100m* (FY14)
COMPANY HIGHLIGHTS:
DAVMET NEW ZEALAND LTD
Ian McGarvieManaging Director
DESCRIPTION: Lamb broker and wholesaler; export chilled and frozen lamb cuts; Hawke’s Bay Natural Lamb brand; toll processed by Progressive Meats
KEY PRODUCTS: Chilled lamb cuts, frozen lamb cuts
OWNERSHIP: NZ; Private (Francis, McGarvie)
COMPANY NUMBER: 404292
ADDRESS: 74 Station Street, Napier
PHONE: +64 6 835 8288
WEBSITE: www.davmet.co.nz
YEAR FORMED: 1989
STAFF EMPLOYED: 8
REVENUE: $50-60m (FY16)
COMPANY HIGHLIGHTS:
FIRST LIGHT FOODS
Gerard HickeyManaging Director
DESCRIPTION: Producers and marketers of venison and grass fed wagyu beef; sales team in NZ, USA & UK; 200 farmer suppliers; out sources processing to third party operators
KEY PRODUCTS: Wagyu beef, venison
OWNERSHIP: NZ; Private (Hickey 64%, Ross 25%, Evans 11%)
COMPANY NUMBER: 1549391
ADDRESS: 211 Market St, South Hastings
PHONE: +64 6 878 2712
WEBSITE: www.firstlight.farm
YEAR FORMED: 2004
STAFF EMPLOYED: 30
REVENUE: $50m (FY16)
COMPANY HIGHLIGHTS: Recent company rebrand; NZ FMCG product launch in ’16; First Light Wagyu and LIC partnership as part of a PGP program to increase quality of dairy beef in ’17
FIVE STAR PORK (NZ) LTD
Kevin MonksActing General Manager
DESCRIPTION: Supplier of fresh pork to food service across upper North Island; specialist pork only cutting room
KEY PRODUCTS: Whole and split carcasses, primal and custom cuts
OWNERSHIP: NZ; Private (37 pig farmer suppliers)
COMPANY NUMBER: 981924
ADDRESS: 3 Andromeda Crescent, East Tamaki,Auckland
PHONE: +64 9 253 9001
WEBSITE: www.fivestarpork.co.nz
YEAR FORMED: 1999
STAFF EMPLOYED: 21
REVENUE: N/A
COMPANY HIGHLIGHTS:
84* Estimate; Source: various companies annual financial statements (NZ Companies Office or company website); various press releases and news articles; Coriolis analysis
FRESH PORK NEW ZEALAND
Lynden GlassChief Executive
DESCRIPTION: Nationwide specialist in NZ pork processing and marketing, one third of NZ pig production; vertically integrated with operations in Timaru, Burnham, Christchurch, Levin and Auckland
KEY PRODUCTS: Pork carcass to consumer ready packs; “Freshpork” wholesale, “Freedom Farms”, “Bees Knees”,“Perfect Pork” consumer brands
OWNERSHIP: NZ; Private (Glass)
COMPANY NUMBER: 264663
ADDRESS: Unit A2, 92 Russley Road,Christchurch
PHONE: +64 348 8525
WEBSITE: www.freshpork.co.nz; www.perfectpork.co.nz
YEAR FORMED: 1985
STAFF EMPLOYED: 160
REVENUE: $100-120m (FY16)
COMPANY HIGHLIGHTS: State of the art packaging technology in place, re-investment in processing facilities at Timaru and Levin plants in ‘17
GREENLEA GROUP
Tony EganManaging Director
DESCRIPTION: Meat processor based in the Waikato, two plants in Morrinsville & Hamilton;farm operations; exports 90% to 40 countries, primarily USA, Korea, Indonesia, Canada, Malaysia, Taiwan; 100% grass fed and antibiotic and hormone free
KEY PRODUCTS: Beef, veal, offal, plasma, serum
OWNERSHIP: NZ; Private (Egan)
COMPANY NUMBER: 152816
ADDRESS: Greenlea Lane, Hamilton,Waikato
PHONE: +64 7 957 8125
WEBSITE: www.greenlea.co.nz
YEAR FORMED: 1992
STAFF EMPLOYED: 450
REVENUE: $378m (‘16)
COMPANY HIGHLIGHTS: Investment in Morrinsville, $10m & Hamilton plants in ‘14, added new 900m2 coolstore to support expansion plans; expanded into high value blood serum in ‘14; strong rise in bull beef to USA and China in ‘15, process 55,000 bulls a year; invested $1m in new value added processing in ‘16, stronger retail ready focus
HELLERS LTD
John McWhirterChief Executive Officer
DESCRIPTION: Bacon, ham and smallgoods manufacturer; 600t/week manufacturing; Santa Rosa Poultry operation; ready meals via “My Main Course” brand plus sauces and marinades via new acquisition of “Flavour House”; exporting sausages to Australia
KEY PRODUCTS:: Bacon, ham, smallgoods (Hellers); poultry: meats, deli and retail ready (Santa Rosa); sauces, marinades, jams, vinegars (Flavour House)
OWNERSHIP: NZ; PE (Rangatira Ltd 62%); NZ; Private (Heller, Harris)
COMPANY NUMBER: 386096
ADDRESS: 67 Main North Road, Kaiapoi, Canterbury
PHONE: +64 3 375 5017
WEBSITE: www.hellers.co.nz; www.santarosa.co.nz;www.rangatira.co.nz
YEAR FORMED: 1988
STAFF EMPLOYED: 600+
REVENUE: $240m (‘16)
COMPANY HIGHLIGHTS: Acquired Goodman Fielder’s meat business, Kiwibacon, Brooks, Hutton, Sizzlers & Milano, in ‘14; acquired Santa Rosa Poultry brands in Jun ‘15; launched ‘My Main Course’ range of ready made meals in late ’16; launch vegetarian product in ‘16; acquired GramartFoods ‘Flavour House’ after 5 year relationship in Jan ’17, 12 staff
INGHAMS ENTERPRISES NZ
Adrian RevellManaging Director NZ
DESCRIPTION: Fully owned subsidiary of Inghams Australia, #2 chicken processor in NZ; vertically integrated with ‘Mega’ primary plant & 2 further processing plants; distribution hubs in North & South Island; 37 broiler farms, 14 breeding farms separate dairy and horse feed businesses
KEY PRODUCTS: Chicken meat (whole, cuts, deli, ready meals; fresh and frozen), Waitoa Free Range chicken, high end dairy nutrition & horse feed
OWNERSHIP: AU; Public (ASX:ING) (TPG Private Equity (USA; PE), others)
COMPANY NUMBER: 464829
ADDRESS: 624 Waihekau Road, Ngarua Waitoa
PHONE: +64 7 884 6549
WEBSITE: www.inghams.co.nz
YEAR FORMED: 1990
STAFF EMPLOYED: 1,000
REVENUE: $385m (FY16)
COMPANY HIGHLIGHTS: Profit of $25m in ‘16;transition to Ross 308 chicken stock in NZ; TPG $1.2b IPO on ASX in Nov ‘16; increased automation at Te Aroha facility in ‘16; increasing capacity over ’17/’18 with second hatchery, new breeder facilities
85* Estimate; Source: various companies annual financial statements (NZ Companies Office or company website); various press releases and news articles; Coriolis analysis
INTEGRATED FOODS LIMITED
Gary AlexanderManaging Director
DESCRIPTION: Vertically integrated lambprocessor; Integrated Foods manages 16,000ha of farmland; Fresh Meats NZ is processing division; process 200,000 lambs; Integrated Foods Marketing does sales and export; Lamb Club brand; Mangatu Blocks agribusiness division
KEY PRODUCTS: Lamb
OWNERSHIP: NZ; Maori Corp (Mangatu)
COMPANY NUMBER: 1266164
ADDRESS: 266 Chiders Road,Gisborne
PHONE: +64 6 869 0952
WEBSITE: www.mangatu.co.nz; www.freshmeatsnz.co.nz; www.lambclub.co.nz
YEAR FORMED: 1989
STAFF EMPLOYED: 130
REVENUE: $25-30m*
COMPANY HIGHLIGHTS:
LEONARDS SUPERIOR SMALLGOODS
Doug Leonard Managing Director
DESCRIPTION: Bacon, ham and smallgoodsmanufacturer
KEY PRODUCTS: Christmas hams, ham, bacon, cooked meats, sausages
OWNERSHIP: NZ; Private (Leonard, Kornman)
COMPANY NUMBER: 411722
ADDRESS: 22 Harris Road, East Tamaki, Auckland
PHONE: +64 9 274 1254
WEBSITE: www.leonards.co.nz
YEAR FORMED: 1989
STAFF EMPLOYED: 60
REVENUE: ~$15m
COMPANY HIGHLIGHTS:
PREMIER BEEHIVE NZ LTD
Dene McKayGeneral Manager
DESCRIPTION: Vertically integrated bacon, ham and smallgoods company; Freedom Farms exclusive licencee; importer of Primo smallgoods; manufactures over 12,000t of pork products, worth over $100m annually
KEY PRODUCTS: Bacon, ham, shaved and sliced meats, smallgoods
OWNERSHIP: Brazil; Private (JBS Foods) via Premier Beehive Holdco (AU)
COMPANY NUMBER: 3820621
ADDRESS: 36 Moreton Road, Carterton,Wairarapa
PHONE: +64 6 379 6701
WEBSITE: www.premierbeehive.co.nz
YEAR FORMED: 1991
STAFF EMPLOYED: 300
REVENUE: $105m (FY16)
COMPANY HIGHLIGHTS: JBS (Brazil) acquired Primo Smallgoods (AU) for $1.45b in ‘15, ultimate parent of Premier Beehive in NZ; total assets in NZ$75m; plans to launch into Asia and new categories in ‘16
PRIME RANGE MEATS LTD
Paul HamiltonGeneral Manager
DESCRIPTION: Meat processors based in Southland; primarily exporting to China through distribution contacts of new Chinese owners; some private processing and local food service and wholesale supply for Foodstuffs South Island
KEY PRODUCTS: Lamb, sheep, prime beef, manufactured beef, bobby calves
OWNERSHIP: China; Private (Shenzhen MingShengDuLing Commercial and Trading Co via Cuilam Industry 75%); NZ; Private (Forde, Tulloch)
COMPANY NUMBER: 549378
ADDRESS: 1 Sussex Street, Gladstone,Invercargill
PHONE: +64 3 215 9079
WEBSITE: www.primerange.co.nz; www.cuilam.com
YEAR FORMED: 1992
STAFF EMPLOYED: 160
REVENUE: $30-40m*
COMPANY HIGHLIGHTS: Chinese majority owner, Lianhua Trading sold to Chinese owned company, Cuilam Industry for $13.4m in ’17
86* Estimate; Source: various companies annual financial statements (NZ Companies Office or company website); various press releases and news articles; Coriolis analysis
PROGRESSIVE MEATS
Craig Hickson Owner and Managing Director
DESCRIPTION: Processors, marketers of lamb, venison; 6 locations in the NI; Progressive Meats (100%); Hawkes Bay Meat (50%) with 100% subsidiaries Ovation NZ, Te Kuiti Meats, Lamb Packers Fielding; Venison Packers (50%); Pasture Petfoods NZ, Progressive Leathers, Atkins Ranch
KEY PRODUCTS: Lamb cuts, co-products, ingredients, mechanically deboned meat (MDM), petfood ingredients; further processing in USA
OWNERSHIP: NZ; Private (Hickson)
COMPANY NUMBER: 36215
ADDRESS: 118 Kelfield Place, Hasting
PHONE: +64 6 873 9090
WEBSITE: www.progressivemeats.co.nz; www.ovation.co.nz; www.tkmeats.co.nz
YEAR FORMED: 1981
STAFF EMPLOYED: 1,900
REVENUE: ~$500-$700m
COMPANY HIGHLIGHTS: Leans Meats Limited sold remaining shares in Lean Meats Oamaru plant to Binxi Foods Oamaru in Dec ’15, Leans Meats Limited renamed to Atkins Ranch, relaunched in USA, toll processed by Progressive; Atkins Ranch certified GAP step 4 sheep programme, around traceability and animal welfare in Oct ’16; beef plant in Wales, lamb further processing facility in San Francisco
SILVER FERN FARMS LIMITED
Dean HamiltonChief Executive Officer
DESCRIPTION: Leading processor, marketer and exporter of lamb, beef, venison; produces 30% of all NZ lamb, beef and venison; 16,000 farmer suppliers; 16 processing sites
KEY PRODUCTS: Meat (lamb, beef, venison, mutton), co-products
OWNERSHIP: NZ; Private (Silver Fern Co-operative (6,200 shareholders) 50%, Shanghai Maling Aquarius Co (China; Public) 50%)
COMPANY NUMBER: 5474064
ADDRESS: 283 Princes Street, Dunedin
PHONE: +64 3 477 3980
WEBSITE: www.silverfernfarms.com
YEAR FORMED: 1948
STAFF EMPLOYED: 7,000 (peak)
REVENUE: $2,147m (FY16)
COMPANY HIGHLIGHTS: 50% partnership with Shanghai Maling (Bright, China) for $267m cash, finalised Dec ‘16; ended JV with NZ Merino in ’16; launched Silver Fern Farms branded retail range in Germany Mar ‘16; processed and sold 15m stock units in ’16; invested $7m in venison processing and cold chain expansion at Pareora plant in ‘16; closed Islington, Mossburn, Wairoa plants in ‘16
TALLEY’S GROUP
Michael & Peter TalleyJoint Managing Directors
DESCRIPTION: Family owned food business; four main divisions: seafood (Talley’s, Amaltal), meat (AFFCO, 9 plants, SPM), frozen vegetables (Logan Farm, Talley’s) and dairy (75% Open Country Dairy, 3 plants, Crème de la Crème brand); total of 18 processing facilities
KEY PRODUCTS: Meat cuts, frozen vegetables, frozen seafood, marinated mussels, seafood by products, ice cream, dairy ingredients
OWNERSHIP: NZ; Private (Talley)
COMPANY NUMBER: 168346/3342490
ADDRESS: 1 Ward Street, Motueka
PHONE: +64 3 528 2800
WEBSITE: www.talleys.co.nz; www.affco.co.nz;www.opencountry.co.nz
YEAR FORMED: 1936/1904
STAFF EMPLOYED: 2,760-4,600 seas (OCD 310)
REVENUE: $2,000 - 2,500m* (OCD $819m (FY16))
COMPANY HIGHLIGHTS: Open Country Dairy revenue of $819m (FY16); ~$260m invested at OCD FY15; acquired 3 coal mines from Solid Energy as investor with Bathurst Resources in order to diversify in ’16; first kale crop in ‘16; shift into retail ready and value added cut packs using new skin pack technology in ‘17 * See further detail in associated Seafood report
SOURCE AND SUPPLY FOOD CO(formerly HOBSON’S CHOICE)
William Curd General Manager
DESCRIPTION: Bacon, ham and smallgoodsmanufacturer; retail and food service; Hobson’s Choice, Grandpa’s Meat and Bacon Co brands
KEY PRODUCTS: Hams, bacon, sausages, specialty meats
OWNERSHIP: NZ; Private (Curd)
COMPANY NUMBER: 806615
ADDRESS: 5 Autumn Place, Penrose,Auckland
PHONE: +64 9 570 1912
WEBSITE: www.hobsonschoice.co.nz; www.grandpasbacon.co.nz
YEAR FORMED: 1980
STAFF EMPLOYED: 66
REVENUE: $15-20m (‘16)
COMPANY HIGHLIGHTS:
87* Estimate; Source: various companies annual financial statements (NZ Companies Office or company website); various press releases and news articles; Coriolis analysis
TAYLOR PRESTON
Simon GatenbyChief Executive Officer
DESCRIPTION: Meat processors processing 1.5m animals annually; based in Wellington; exporting to 60 countries under brands Taylor Preston, Natural Farm NZ, Natural Farm Angus, Natural Farm Hereford; subsidiary Taylored Foods value added products domestic; JV NZ Direct into France
KEY PRODUCTS: Sheep and beef meat cuts, offal
OWNERSHIP: NZ; Private (Taylor 80%, Preston 16%)
COMPANY NUMBER: 519868
ADDRESS: 131 Centennial Highway, Ngauranga Gorge, Johnsonville, Wellington
PHONE: +64 4 472 7987
WEBSITE: www.taylorpreston.co.nz
YEAR FORMED: 1991
STAFF EMPLOYED: 850 (peak)
REVENUE: $260m (FY14)
COMPANY HIGHLIGHTS: Natural Farm Brand chilled lamb the preferred brand (imported) for Metro France; multi million investment in beef boning room winter 2016; establishment of further processing department under the brand TayloredFoods (cooking, slicing, dicing etc.); French JV company NZ Direct offering online home delivery service for chilled NZ lamb and beef in France
TEGEL FOODS
Phil HandChief Executive Officer
DESCRIPTION: Leading fully integrated poultry processor in New Zealand; 3 feed mills, 39 breeder farms, 3 hatcheries, 3 processing plants manufacturing 1,200 product lines; processing 58mbroilers annually; exports to 17 countries; AU, Pacific Islands, UAE, HK, 18% of revenue
KEY PRODUCTS: Free range and barn raised chicken (fresh, frozen, smoked, processed), turkey; Tegel, Rangitikei, Top Hat brands
OWNERSHIP: NZ; Public (NZX,ASX:TGH) (Affinity Equity Partners (Singapore; PE) 45%)
COMPANY NUMBER: 99660
ADDRESS: 100 Carlton Gore Road, Newmarket, Auckland
PHONE: +64 9 977 9000
WEBSITE: www.tegel.co.nz
YEAR FORMED: 1961
STAFF EMPLOYED: 2,200+
REVENUE: $582m (FY16)
COMPANY HIGHLIGHTS: Listed on NZX and ASX May ‘16; 29 new products incl. expansion of free range launched in ’16; record revenue forecast in FY17 $625m; EBITDA $74.9m in FY16; facilities in Taranaki being built ‘16; capex investment of $28m in ‘17; brand refresh with new brand imagery, packaging and products $3.5m in ‘17; expanding export markets in ’17; all cage free, hormone free
TURK’S POULTRY FARM LTD
Ron TurkManaging Director
DESCRIPTION: Vertically integrated poultry processor of corn fed chicken at 5 locations; process 25,000 birds a day; sold mainly in North Island, exports to Japan and other countries; part of egg co-operative; part owner of Le Poulet Fabuleux free range chicken farm
KEY PRODUCTS: Chicken, turkey, eggs, smallgoods
OWNERSHIP: NZ; Private (Turk)
COMPANY NUMBER: 20802
ADDRESS: 8 Purcell Street West, Foxton
PHONE: +64 6 363 0013
WEBSITE:. www.turkspoultry.com
YEAR FORMED: 1966
STAFF EMPLOYED: 220
REVENUE: $85m* (FY14)
COMPANY HIGHLIGHTS: Established Le PouletFabuleux, producing 30,000 chickens a week in 7 new free range sheds near Foxton, 4 staff Jan ‘16; 30 new jobs created at Turks Poultry; aiming to increase free range chicken, currently 65% in ‘16; phasing out egg production over next few years from ‘16
UBP LIMITED
Roger StewartManaging Director
DESCRIPTION: Beef processors
KEY PRODUCTS: Beef, beef jerky (Mountain Beef)
OWNERSHIP: NZ; Private (Lin)
COMPANY NUMBER: 945877
ADDRESS: 18 Waitete Road, Te Kuiti
PHONE: +64 7 878 8926
WEBSITE: www.ubp.co.nz
YEAR FORMED: 1995
STAFF EMPLOYED: 240
REVENUE: $190m (‘16)
COMPANY HIGHLIGHTS: Received China approval for meat exports in Dec ‘16
88* Estimate; Source: various companies annual financial statements (NZ Companies Office or company website); various press releases and news articles; Coriolis analysis
VAN DEN BRINK POULTRY
Karl van den BrinkManaging Director
DESCRIPTION: Vertically integrated poultry processor in New Zealand; third largest; four processing sites; cage free, halal
KEY PRODUCTS: Chicken products primarily for domestic retail and foodservice; Brinks, Best Bird, Good-to-Go brands
OWNERSHIP: NZ; Private (van den Brink, Foster)
COMPANY NUMBER: 66969
ADDRESS: 652 Great South Road, Manukau, Auckland
PHONE: +64 9 262 0903
WEBSITE: www.brinks.co.nz
YEAR FORMED: 1954
STAFF EMPLOYED: ~400
REVENUE: $220m* (FY14)
COMPANY HIGHLIGHTS:
WILSON HELLABY
Fred HellabyManaging Director
DESCRIPTION: Processing and further manufacturing of meat products at two plants, AMP in Auckland, RMP in Hamilton; rendering business (PVL); significant presence in domestic meat market & selected chilled export markets; Hellaby, Grasslands, Saleyards Rd brands
KEY PRODUCTS: Prime beef, lamb, pork and goat; frozen, chilled, cured (smoked, cured, marinated), offal, hides, blood
OWNERSHIP: NZ; Private (Syminton, Hellaby)
COMPANY NUMBER: 900980
ADDRESS: 851 Great South Road, Mt Wellington, Auckland
PHONE: +64 9 276 3800
WEBSITE: www.wilsonhellaby.co.nz
YEAR FORMED: 1873/1998
STAFF EMPLOYED: 500
REVENUE: $400m (FY16)
COMPANY HIGHLIGHTS: Redeveloped RMP into modern pig processing facility; AMP now fully halal; AMP China listing approved in ’16; weekly requirements 3,000 steers, 10,000+ lambs, 2,500 pigs, 800 goats
Appendices
+ Industry bodies
+ Trade codes
+ Glossary of terms
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INDUSTRY ORGANISATIONSAs a major meat producer, New Zealand has a strong range of meat related industry organisations
Source: Coriolis from various websites, annual reports and other sources 90
- Represent meat processors
- Membership fees (Operating Revenue $3.9m; FY16)
- www.mia.co.nz
- Manage export quotas
- Meat Board Act 2004 management of quota and farmer reserves of $81m (FY16); Income $4.6m (FY16)
- www.nzmeatboard.org
- Represent pig farmers
- Pork Levy on slaughtered pigs
- Revenue $2.3m (FY15)
- www.nzpork.co.nz
- Represent poultry meat producers
- Poultry levy based on /head processed
- www.pianz.org.nz
- Represent deer industry
- Levy Venison, Levy Velvet, Animal Health Board Levy
- Commodity Levies (Farmed Deer Products) Order 2001
- www.deernz.org
- Represent sheep and beef farmers
- Commodity Levies (Meat) Order 2010 $27.4m (FY15)
- Other income $11.1m
- www.beeflambnz.co.nz- www.meatnz.co.nz
TRADE CODES
HHSS CCooddee
SShhoorrtt DDeessccrriippttiioonn LLoonnggeerr ooffffiicciiaall ddeessccrriippttiioonn
20110 Beef, chilled carcass Fresh or chilled bovine carcasses and half carcass
20120 Beef, chilled bone-in Fresh or chilled unboned bovine meat (excl. carcasses)
20130 Beef, chilled boneless Fresh or chilled boneless bovine meat
20210 Beef, frozen carcass Frozen bovine carcasses and half carcasses
20220 Beef, frozen bone-in Frozen unboned bovine meat (excl. carcasses)
20230 Beef, frozen boneless Frozen boneless bovine meat
20311 Pork, chilled carcass Fresh or chilled swine carcasses and half carcasses
20312 Pork, chilled cuts Fresh or chilled unboned hams, shoulders and cuts thereof
20319 Pork, chilled nes Fresh or chilled swine meat, nes (unboned)
20321 Pork, frozen carcass Frozen swine carcasses and half carcasses
20322 Pork, frozen cuts Frozen unboned hams, shoulders and cuts thereof
20329 Pork, frozen nes Frozen swine meat, nes
20410 Sheep, chilled carcass Fresh or chilled lamb carcasses and half carcasses
20421 Sheep, chilled carcass Fresh or chilled sheep carcasses and half carcasses
20422 Sheep, chilled bone-in Fresh or chilled unboned meat of sheep
20423 Sheep, chilled boneless Fresh or chilled boneless meat of sheep
20430 Lamb, frozen carcass Frozen lamb carcasses and half carcasses
20441 Sheep, frozen carcass Frozen sheep carcasses and half carcasses (excluding carcasses and half carcasses of lamb)
20442 Sheep, frozen bone-in Frozen unboned meat of sheep (including lamb) – excluding carcasses and half carcasses
20443 Sheep, frozen boneless Frozen boned meat of sheep
20450 Goat, chilled or frozen Fresh, chilled or frozen goat meat
20500 Horse Meat of horses/asses/mules/hinnies, fresh/chilled/frozen
20610 Beef, chilled offal Fresh or chilled edible bovine offal
20621 Beef, frozen tongues Frozen bovine tongues
20622 Beef, frozen livers Frozen bovine livers
20629 Beef, frozen offal Frozen edible bovine offal (excl. tongues and livers)
20630 Pork, offal chilled Fresh or chilled edible swine offal
20641 Pork, frozen livers Frozen swine livers
20649 Pork, offal frozen Frozen edible swine offal (excl. livers)
20680 Sheep, chilled offal Sheep, goat, ass, mule, hinnie offal, fresh or chilled
20690 Sheep, frozen offal Sheep, goat, ass, mule, hinnie edible offal, frozen
Source: United Nations trade codes; Coriolis definitions in conjunction with project steering group
GLOBAL HARMONISED SYSTEM (HS) TRADE CODES DEFINED AS MEATHS2002
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HHSS CCooddee
SShhoorrtt DDeessccrriippttiioonn LLoonnggeerr ooffffiicciiaall ddeessccrriippttiioonn
20711 Chicken, whole chilled Fowls, domestic, not cut (FROZEN)
20712 Chicken, whole frozen Meat of fowls of species Gallus domesticus, not cut in pieces, frozen
20713 Chicken, cuts chilled Fowls, cuts & offal, fresh
20714 Chicken, frozen Fowls, cuts & offal, frozen
20724 Turkey, whole chilled Turkeys, not cut, fresh
20725 Turkey, whole frozen Turkeys, not cut, frozen
20726 Turkey, cuts chilled Turkey cuts & offal fresh
20727 Turkey, cuts frozen Turkey cuts & offal frozen
20732 Ducks, whole chilled Ducks, geese, not cut fresh
20733 Ducks, whole frozen Ducks, geese, not cut frozen
20734 Goose/duck liver chilled Fatty livers of geese or ducks, fresh or chilled
20735 Poultry, cuts fresh Poultry cuts&offal, fresh
20736 Poultry, cuts frozen Poultry cuts&offal, frozen
20810 Rabbit Rabbit or hare meat, offal, fresh, chilled or frozen
20890 Deer, fresh & frozen Meat and edible offal nes fresh, chilled or frozen (includes deer meat)
20900 Fat, pig & poultry Pig and poultry fat, fresh, chilled, frozen, sa
21011 Pork, bone-in hams Unboned swine hams, shoulders and cuts thereof,
21012 Pork bellies Bellies and cuts thereof of swine, salted, dried or smoked streaky cuts thereof
21019 Pork, smoked Meat of swine, salted... or smoked, nes
21020 Beef, salted/smoked Meat of bovine animals, salted... or smoked
21092 Dolphin & whale, smoked Meat & edible meat offal of whales/dolphins/porpoises (order Cetacea)/manatees & dugongs (order Sirenia), salted/in brine/dried/smoked, incl. edible flours/meals
21099 Deer, salted/dried Meat & edible meat offal, nes., salted/in brine/dried/smoked, incl. edible flours/meals
150200 Animal fats Fats of bovine animals, sheep or goats, raw
150300 Lard stearin, etc. Lard stearin, lardoil, oleostearin, oleo-oil
160100 Sausages Sausages and similar products; food preparation
160210 Baby food? Homogenized preparations of meat and meat offal
160220 Pate & prepared livers Livers of any animal prepared or preserved
160231 Processed turkey Preparations of turkey meat
160232 Canned chicken Fowls meat and meat offal of poultry
160239 Canned chicken Preparations of poultry (excl. turkey)
160241 Swine, hams Swine hams & cuts thereof, prepared or preserved
160242 Swine, shoulder cuts Swine shoulders & cuts thereof, prepared or preserved
160249 Swine, prepared nes Swine meat or offal nes, prepared,preserved, not liver
160250 Canned beef Bovine meat, offal nes, not livers, prepared/preserved
160290 Canned sheep Meat, meat offal and blood, prepared or preserved, nes
350300 Gelatin Gelatin and derivatives; isinglass; glues of animal origin
GLOSSARY OF TERMS
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A$/AUD Australian dollar n/a Not available/not applicable
ABS Absolute change NA/ME/CA North Africa / Middle East / Central Asia
ANZSIC AU/NZ Standard Industry Classification N. America North America (USA, Canada)
AU Australia Nec/nes Not elsewhere classified/not elsewhere specified
Australasia Australia and New Zealand N/C Not calculable
b Billion N.H Northern Hemisphere
CAGR Compound Annual Growth Rate NZ New Zealand
CN China NZ$/NZD New Zealand dollar
C/S America Central & South America (Latin America) R&D Research and Development
CRI Crown Research Institute S Asia South Asia (Indian Subcontinent)
CY Calendar year (ending Dec 21) SE Asia South East Asia
E Asia East Asia S.H Southern Hemisphere
EBITDA Earnings before interest, tax, depreciation and amortization SS Africa Sub-Saharan Africa
FAO Food and Agriculture Organisation of the United Nations T/O Turnover
FOB Free on Board UHT Ultra-high temperature
FY Financial year (of firm in question) US/USA United States of America
GBP British pounds US$/USD United States dollar
HK Hong Kong UK United Kingdom
IQF Individually quick frozen YE Year ending
JV Joint venture YTD Year to date
m Million
AUSTRALIACoriolis Australia Pty Ltd
PO Box 5831St Georges Terrace
Perth, WA 6831Australia
+61 8 9468 4691
NEW ZEALANDCoriolis (New Zealand) Limited
PO Box 90-509Victoria Street West
Auckland, 1142New Zealand
+64 9 623 1848
www.coriolisresearch.com
Coriolis is the leading Australasian management consulting firm specialising in the wider food value chain. We work on projects in agriculture, food and beverages, consumer packaged goods, retailing & foodservice. In other words, things you put in your mouth and places that sell them.
WHERE WE WORK
We focus on the Asia Pacific region, but look at problems with a global point-of-view. We have strong understanding of, and experience in, markets and systems in Australia, China, Japan, Malaysia, New Zealand, Singapore, South Korea, Thailand, the United Kingdom and the U.S.
WHAT WE DO
We help our clients assemble the facts needed to guide their big decisions. We develop practical, fact-based insights grounded in the real world that guide our clients decisions and actions. We make practical recommendations. We work with clients to make change happen. We assume leadership positions to implement change as necessary.
HOW WE DO IT
All of our team have worked across one-or-more parts of the wider food value chain, from farm-to-plate. As a result, our work is grounded in the real world. Our style is practical and down-to-earth. We try to put ourselves in our clients’ shoes and focus on actions. We listen hard, but we are suspicious of the consensus. We provide an external, objective perspective.
WHO WE WORK WITH
We only work with a select group of clients we trust. We build long term relationships with our clients and more than 80% of our work comes from existing clients. Our clients trust our experience, advice and integrity.
Coriolis advises clients on growth strategy, mergers and acquisitions, operational improvement and organisational change. Typical assignments for clients include…
FIRM STRATEGY & OPERATIONS
We help clients develop their own strategy for growing sales and profits. We have a strong bias towards growth driven by new products, new channels and new markets.
MARKET ENTRY
We help clients identify which countries are the most attractive –from a consumer, competition and channel point-of-view. Following this we assist in market entry planning & growth.
VALUE CREATION
We help clients create value through revenue growth and cost reduction.
TARGET IDENTIFICATION
We help clients identify high potential acquisition targets by profiling industries, screening companies and devising a plan to approach targets.
DUE DILIGENCE
We help organisations make better decisions by performing consumer and market-focused due diligence and assessing performance improvement opportunities.
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We provide expert witness support to clients in legal cases and insurance claims. We assist with applications under competition/fair trade laws and regulations.
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