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The interdependence of livestock farmers and meat processors has been on full display following the cyclone damage, a time when loyalty can be rewarded in many important ways

Rural News / opinion
The interdependence of livestock farmers and meat processors has been on full display following the cyclone damage, a time when loyalty can be rewarded in many important ways
Sheep crossing swollen river

Hawke's Bay and Gisborne meat plants have reopened after varying periods out of action following cyclone damage, but access remains a major problem. AFFCO Wairoa was the first facility to get back into action two weeks after its closure and was initially able to provide the town with water from its own bore. Its status as the town’s biggest employer meant it was important to reopen as quickly as possible and the mayor was willing to repay the compliment, allowing access to the town’s water supply as soon as it was operational.

The plant is now running two beef shifts five days a week, but lamb is slower with two shifts for four days at present. AFFCO has also been killing lamb and mutton for Silver Fern Farms to avoid excessive transport time.

Ovation’s Gisborne plant wasn’t so fortunate, but after three weeks was able to run one shift with a limited water allowance, restricting it to half its normal throughput. The main difficulty for both plants is accessing livestock, while many farmers are unable to get either store or prime stock off their farms. Ovation’s procurement manager Hylton Bayliss said the growth window on higher altitude farms was narrowing which would become a major issue the longer it continued. He is concerned at the number of paddocks that are no longer usable and fears the impact will be a reduction of ewe numbers which will be felt for several years.

There is only one road out of the region open at present via Matawai and the Waioeka Gorge. This involves a two stage 15 hour journey via Taupo where drivers change over to comply with mandatory limits. This will continue until the Wairoa – Napier highway is reopened. This unavoidable situation is a logistical challenge which causes stress to the stock, as well as costing a lot more than normal. The other major road closure was the Napier – Taupo highway, but this has now reopened during daylight hours, but it is fragile and remains subject to closure if conditions dictate. Coastal shipping has been introduced between Gisborne and Napier so produce can be transported faster.

AFFCO’s livestock manager Tom Young is more optimistic about the future outlook for livestock numbers once farms recover. He notes the difficulty of access across the whole Hawkes Bay and Gisborne regions, although stock has started to come out slowly, affecting lambs more than beef. Where trucks can’t get onto more remote properties, the solution when possible is to drove the cattle or lambs to the end of the accessible road.

Grant Bunting, ANZCO’s GM Supply, thinks it will take time for a clear pattern of processing requirements to become clear, but once infrastructure has been largely restored, there will be a bow wave. This may result in a bottleneck with western North Island farmers hitting peak at the same time.

SFF’s Pacific plant was flooded and heavily affected by silt. All the inventory had to be moved to an off-site cold store, while the  cold chain rooms were defrosted and cleaned; although all the inventory maintained its temperature and hygiene standards, there were three inches of ice and silt on the floor which had to be prised off with a jack hammer before the pallets could be moved. This plant is where SFF’s market-led beef programmes – 100% Angus, 100% Prime, Reserve EQ and Angus – are processed normally, but stock for these programmes were processed at Te Aroha and Hawera during the closure. The 100% Lamb Programme was able to be processed at Takapau as usual, but in some cases lambs may have fallen out of specification owing to delays from road closures.

Rissington is an example of a badly affected community with lack of road access until the old bridge can be replaced with a class 1 bridge which will enable heavy trucks and cars to resume for livestock movements and supplies. This is scheduled to be completed by the end of this month. Jeremy Absolom says the recent spell of mostly fine weather has helped to restore morale, but this can only last so long without proper access which will enable more self-help and an increase in business activity. At present access in and out, when dry, is only by 4x4.

As well as getting plants operating again, MIA reports meat companies have all stepped up to provide support for regional communities. The Greenlea Foundation Trust has made a $1 million donation to the East Coast Rural Support Trust to help clean up and recovery operations, and the Greenlea Rescue Helicopter has been transporting people in need of urgent medical care to nearby hospitals and care facilities. In addition, a further $1 million has been earmarked for ongoing support for affected communities.

Alliance Group has donated $200,000 to the East Coast Rural Support Trust and launched a shareholder-supplier stock donation programme for farmers to donate lamb, sheep, cattle or deer, with the proceeds being donated to the Trust. Meanwhile, AFFCO has donated $100,000 to the Wairoa Mayoral Relief Fund, distributed lamb to the community and provided bore water, while letting the Army use the plant site to fly in emergency provisions, stored AFFCO’s dry stores and chillers, for distribution by the army and the council.

Silver Fern Farms has provided over 10 tonnes of product to those in need, including maraes, mosques, churches, fire stations, shelters for displaced persons, and isolated communities. The company is also co-ordinating helicopter drops to the most isolated areas of Rissington, Patoka and Tutira, helping get much-needed equipment and services to thosecommunities. Unaffected Silver Fern Farms farmers are also donating animals to Meat the Need and cash contributions to the Rural Support Trust when they have animals processed.

This latest climate disaster has emphasised the importance of sheep and beef farmers being loyal to their processor of choice, in return for which they can expect to receive loyalty and commitment in return. Never has the sector’s interdependence been so graphically illustrated.


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3 Comments

It is gratifying to read here that there is now positive cooperation between the major processors, particularly at the time of crisis. Far cry from the old days of Schadenfreude! 

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Big shout out to Stock agents too . 

with my boundary fences down, not only did they find space at the works for my 2yo's, they arranged transport for all my stock to their yards , overnighted them , and put Nait tags in a couple that had lost them for me. all at no extra charge, and a decent paddock price for the younger ones.   

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5

Yes, right now is a great time to make friends out there.

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