In another article this week – Strawberry fields forever? – we discussed a disruptive change underway in leading edge farming … farming indoors. One might think of that, ironically, as ‘out there’, maybe a bit of a novelty ‘add-on’ to dirt farming.

But it’s happening at greater pace than complacent NZ might think.

From a different branch of the farming sector and one of huge significance to Hawke’s Bay – sheep and beef – I received a message about change from one of the sector’s major players both here in the region (Takapau) and around NZ … Silver Fern Farms.

You see, as BayBuzz has reported previously, Grim musings on NZ/HB sheep and beef, sheep and beef numbers are trending down. Which of course impacts meat processors.

Progressive Meats founder Craig Hickson, former Agribusiness Person of the Year and New Zealand Entrepreneur of the Year, has worked in meat processing since 1981. He told BayBuzz: “So we’re getting to the point where I think, particularly those companies that have got multiple plants, they’ll be thinking about whether they close one and consolidate their kill in another plant. That’s likely to happen in the next 18 months, in my estimation. Just because there aren’t the numbers to support it.’’

Adding: “I feel disappointed to the extent that, in combination with everyone, we haven’t been able to deliver returns through sheep and beef production that makes it a continuing competitive land use option.”

To treat this as a merely ‘cyclical’ hiccup would be to ignore much more enduring factors affecting meat consumption (protein more broadly) and how and by whom it is to be supplied in the future. As this message indicates, the pathway for Hawke’s Bay sheep and beef farmers leads overseas. Which brings into sharp focus how we grow what we grow.

A challenge for our regional economic development planners to think about?

Here in its entirety is the message sent this week by Silver Fern Farms chief executive Dan Boulton to that company’s constituency. It seems long on warnings and short on possible solutions … presumably soon to come.

“New Zealand’s red meat industry has a proud history behind it, and a bright future ahead of it.

“However, this bright future will not simply be gifted to the industry. We must earn that future through clear thinking and pragmatic decisions on the collective challenges facing our industry, whether those are onshore, across our global supply chains, or in our markets.

“We are facing one of those collective challenges right now, and the decline in New Zealand’s livestock numbers has been the focus of much discussion in recent weeks. In truth, this challenge has existed for some time, although recent seasons have certainly returned the spotlight to it.

“At Silver Fern Farms, we don’t accept this trend as a given that will continue, but we also know that the industry is going to have to continue to evolve to remain competitive.

“For New Zealand’s sheep, beef and venison farmers to thrive, they need a strong and viable processing and marketing sector which both operates efficiently and can commit the type of investment required to differentiate our products in market.

“Of course, Silver Fern Farms has had its own challenges in the past. These were periods in our history which seriously tested the business, but above all, have given us an appreciation for the fact that the success of the whole industry is greater than the sum of all its parts.

“That’s why we want to be constructively involved in achieving the best outcome for the long-term success of all farmers and NZ Inc, and why we’re supportive of an industry solution to Alliance Group’s considerations.

“With the challenges we face both domestically and globally, we believe Silver Fern Farms’ support is the only way to create truly long-term value for both parties and the broader sector. Nothing else will offer the same as an NZ Inc play, alongside the benefits Silver Fern Farms can bring, such as our forward-looking focus on our markets.

“While we are confirming our intention to be constructively involved, it would be premature to speculate on the potential specific outcomes of our involvement. That detail and those conversations will come in time.

“What we do know for certain now, is that in the long-term, the only place our industry can win is in our global markets. There is a growing awareness about what New Zealand farmers can offer to the world through our farming systems and the quality and provenance of the product we deliver. [BayBuzz added italics.]

“However, to win in our markets we must first be as fit as we can be in New Zealand. Clear thinking and pragmatic decisions will be required to move from simply surviving to thriving, and to ensure we have a robust industry and vibrant rural communities.

“Our starting point is that a “from industry, by industry” approach will provide the best chance to support the ongoing vibrancy of our farmers and New Zealand’s rural communities, which rely on the success of the pastoral farming sector.”

Dan Boulton
Chief Executive
Silver Fern Farms