In this edition:

2022 Roadshow Dates announced
Regional Roundup webinars
Your chance to go in the draw to win a $250 Pure South voucher
South Island flooding
Partners committed to He Waka Eke Noa
Applications for the 2023 Graduate Programme open now
Welcoming overseas workers back to the Alliance family
Global market update

2022 Roadshow dates announced

We are pleased to announce the dates for our Annual Roadshow in September and October.

Twenty meetings will be held across the country, starting in Feilding on 27 September and finishing in Mossburn on 18 October.

The roadshow is a great opportunity for our farmers to hear first-hand from directors and senior managers. The meetings will include an update on the co-operative’s performance, progress, strategy and plans for the future as well as outlining the challenges, opportunities and market outlook.

Details including registration links will be sent separately this week.

Regional Roundup webinars

Join us online tomorrow or Wednesday night for our quarterly regional roundup. The topics to be covered include:

Regional Roundup: General Manager Livestock and Shareholder Services Danny Hailes
Our decarbonisation journey: General Manager Manufacturing Willie Wiese
Managing labour shortages: Group Manager HR Stephanie Manning
Alliance Farmer Portal Review: Support Analyst Shona Frengley
Roadshows: Group Manager Communications Renée Walker

To join the webinars, please click on the links below:
Monday 29 August, 7pm – 8pm
Wednesday 31 August, 7pm – 8pm

Thank you for your feedback

Thank you to everyone who has completed our Annual Supplier Survey. Your feedback helps us to make sure we are focusing our efforts on the things that make the most difference to you.

The survey is important so we are giving those who haven’t yet participated more time to complete it. If you can’t find your link, just let your livestock representative know or email communications@alliance.co.nz and we’ll get a new one sent out to you.

We know you’re all busy, so as an extra incentive, everyone who replies (including those who already have) will go into the draw to win one of five $250 www.puresouthshop.com vouchers.

South Island flooding

Our thoughts are with those farmers affected by the flooding in the Nelson and Marlborough regions. Processing at our Nelson plant has not been impacted, however there has been some disruption to livestock pick-ups due to the damage to the New Zealand road network. This has meant in some cases extended travel times for livestock. Transporters have also been encountering difficulties accessing some farms. Please speak with your livestock representative if you have any questions.

Partners committed to He Waka Eke Noa

As you are aware, the Government has been clear it will price agricultural emissions and already has the legislation in place to bring the primary sector into the Emissions Trading Scheme (ETS) in 2023, if the sector can’t come up with a suitable alternative. The industry, including Alliance, is working hard to get farmers the best outcomes through the He Waka Eke Noa Primary Sector Climate Action Partnership. The Government is now considering He Waka Eke Noa’s recommended option for a farm-level, split-gas levy with the ability for farmers to offset their emission costs by being paid for using technologies that reduce their emissions, or for the recognition of a lot more sequestration than is currently in the ETS. Going forward, there is a need to ensure the reduction targets are appropriately set to reflect science-based outcomes.

Our priority is to keep agriculture out of the ETS because that would be a far worse option for farmers and our sector. The ETS would mean farmers would lose the split gas outcome and be at the mercy of a rising carbon price. Farmers would also get less recognition of their sequestration. He Waka Eke Noa is not perfect, but by being outside of the ETS we should have the ability to refine and improve it over time, in line with the latest science. Beef + Lamb New Zealand is also arguing for a cautious approach to be taken to pricing and pushed for the inclusion of a proposal for a maximum starting rate of 11c per kilo of methane for the first three years. In parallel with this process, Alliance will be working with B+LNZ and other industry groups to press for the methane reduction targets in the Zero Carbon Bill to be reviewed in 2024 to ensure they are appropriate. Thank you to everyone who attended Greenhouse Gas workshops jointly presented by Alliance and Beef + Lamb New Zealand over the last month. Your input is extremely valuable and will help inform the sector’s ongoing discussions with the Government.

Applications for the 2023 Graduate Programme open now

From January 2023, we will welcome four new graduates into the co-operative to participate in an exciting two-year programme that will see them work in various functions, locations and roles across our business.

The ultimate goal of the Alliance Graduate Programme is to build a pipeline of talented individuals with leadership potential to meet the future capability needs of the co-operative. Applications are open now. For more information, please visit: www.alliance.co.nz.

Welcoming overseas workers back to the Alliance family

The Government recently announced a new sector agreement with the meat processing industry, which includes access to migrant workers for entry-level red meat processing roles with a cap on the number of visas. Migrants taking up these places will receive seven-month visas and the wage threshold will be updated each year to reflect changes in the median wage to maintain its relative value. This sector agreement should go a long way to addressing the significant labour shortages in the industry and is a welcome boost to our own domestic recruitment efforts.

Update from our global markets

Lamb

Global inflationary pressure continues to create market negativity, particularly in North America. A significant increase in exports out of Australia is creating pressure on price in a number of key markets including Taiwan and Malaysia. China’s zero tolerance COVID-19 policy is still impacting consumption in China, particularly in the food service sector. Demand in the Middle East is steady but there is limited business during their summer months. Ongoing global supply chain issues remain a concern, particularly for perishable product.

Mutton

Our strategy of market diversification and product mix is ensuring price and sales velocity is being maintained on low seasonal processing volumes. The pivotal market of China will determine future demand and revenues.

Venison

Frozen key account business has been concluded with the product now on the water. Game Season chilled negotiations have concluded with demand exceeding supply along with improved pricing. Diversification across a number of markets remains the key to ensuring the market is favourable in the future. An improved supply chain is critical if we are to ensure timely chilled arrivals to meet the Game season demand.

Beef

Pricing is stable in China. Our beef cuts and offal sales commitments to China over the last week (September/October production) have been secured on pricing similar to previous months. Importers continue to have challenges with liquidity and supply chain issues. Lockdowns are continuing across China with smaller cities being affected, although these are not as severe as the lockdowns in Shanghai/Beijing earlier this year. The US market is slowly improving with greater interest across importers although pricing is staying within a narrow band. Inflationary concerns remain as the US economy slows with retail feeling the brunt of lower economic activity, which is being exacerbated by the current heat wave. NZ and Australia continue to supply limited volumes at premiums over the South American suppliers (NZ@43% and Australia@20% of annual quota). Demand in Asia has slipped with pressure coming from Australian and South American shippers. Both Korea and Japan markets have slowed dramatically as COVID-19 outbreaks in both countries are creating major economic downturns. Both countries are experiencing high inflationary pressures and sluggish economies. The Korean government has responded by opening a 100,000MT duty free window for beef in order to reduce protein pricing. The long term outlook is for pricing and demand to be steady in China and demand average for the US.

Co-products/Specialty Ingredients & Materials

Tallow pricing remained steady at our Lorneville auction this week. Calf skins for this season are being shipped to our customers in Europe. Consultation is beginning on annual contracts across specialty ingredients & materials for the 2023 financial year. Demand and pricing are expected to be similar to this year across all categories.