Briefing from Beef and Lamb New Zealand

Transcription

1 Briefing from Beef and Lamb New Zealand Report of the Primary Production Committee Contents Recommendation 2 Introduction 2 Changes in the beef and lamb industry 3 Export markets 3 Health and safety concerns 4 Appendix 6

2 Briefing from Beef and Lamb New Zealand Recommendation The Primary Production Committee has considered a briefing from Beef and Lamb New Zealand and makes the following recommendation to the Government: That the Minister of Immigration reconsiders the immigration status of Halal slaughtermen in light of the contribution they make to the New Zealand meat industry, in order to simplify the complex and repetitive process related to the renewal of their visas. Introduction On 30 April 2015, the committee received a briefing from representatives from Beef and Lamb New Zealand, including Scott Champion, the chief executive, and James Parsons, the chairperson. We also heard from representatives of the Meat Industry Association of New Zealand, including Tim Richie, the chief executive, and Bill Falconer, the Chair. We discussed recent changes in the industry, issues around health and safety, including mental illness and farm-related injuries, changes in export markets, and the marketing of the New Zealand brand internationally. Beef and Lamb New Zealand overview Beef and Lamb New Zealand (B+LNZ) is responsible for the promotion of beef and lamb products within New Zealand, and represents 12,500 commercial beef and sheep farmers around the country. B+LNZ operates with a budget of approximately $29 million annually, which it invests in areas such as: research and development, and the marketing of New Zealand beef and lamb overseas attracting and retaining talent in the sector an economic analysis and data programme to support decision making in the sector growing prosperity in rural communities environmental conservation supporting farmers in making informed business decisions assisting succession by the next generation of sheep and beef farmers. Meat Industry Association of New Zealand overview The Meat Industry Association of New Zealand (MIA) is a voluntary trade association representing New Zealand meat processors, marketers, and exporters. It is an incorporated society that represents companies supplying the majority of sheep and beef exports, 2

3 collectively producing 22 percent of New Zealand s primary sector revenue. 1 MIA works to support farmers in making informed business decisions, and works closely with B+LNZ. Changes in the beef and lamb industry We were interested to hear that despite a decrease in stock numbers, the sector s productivity and revenue have both increased. Several factors have contributed to this, including the automation of parts of the industry, investment in research and development, and the use of more parts of each animal than was traditionally the case. We heard that there has been a change in the type of market, particularly in Asia, where demand exists for parts of the animal that are not widely consumed in Western countries. Not only has this meant greater productivity per animal, but it has also meant less meat is wasted. Coproducts, such as offal, pelts, and tallow, now account for $1.5 billion of export revenue. Halal slaughtermen Halal slaughtermen are responsible for killing cattle and sheep in accordance with the customs of Islam. New Zealand has over 240 halal slaughtermen, with halal meat making up 25 percent of beef and sheep meat exports. We were told that insufficient numbers of halal slaughtermen can be recruited from within New Zealand, so most are brought in from offshore. We asked about the visa application process for halal slaughtermen, which is expensive and requires workers to reapply each year in order to remain in New Zealand. Many of these slaughtermen have been working in New Zealand for over a decade and have established themselves and their families in New Zealand. In spite of this, an application for visa must be made each year for the worker and their family. The feeling from the industry is that they have not been heard, and the committee sympathises with their view. We expressed concern that there might be too many barriers for new and existing workers to work in New Zealand, with the potential for adverse effects on our exports of halal meat. We were told that B+LNZ has worked with Immigration New Zealand in the past to try to simplify this process, but that no conclusive decisions have been made. We will follow any progress with interest. Upcoming referendum We heard about the upcoming referendum in September 2015 which, as part of the process under the Commodity Levies Act 1990, will determine whether farmers will continue to fund B+LNZ and its operations. We were told that B+LNZ believes that support amongst farmers is high, mainly due to an increased understanding of what the organisation does and where it operates. We will follow the referendum and its outcomes with interest. Export markets China We asked whether a rapid exit from Chinese markets would leave an excess of sheep meat products to be allocated elsewhere. We heard that the main sheep meat products sent to China were lower-end products that have traditionally gone to Pacific island nations. We were told that there had been a shortage of these products overall and a readjustment was 1 About Us, Meat Industry Association of New Zealand, 3

4 made that resulted in decreased demand from China. However, it is expected that demand should return to normal soon. We heard that a competitive tension in the market was not a bad thing, and vying for other markets such as India s through a free-trade agreement is also a consideration in the medium- to long-term. We were concerned that it might be hard to build up relationships with countries if our exports to them are not consistent. B+LNZ said that changes in the market are not as sharp as they may appear, and though quota markets in those countries are not always filled by New Zealand products, that is because demand is also high in other countries for our meat. European Union We asked about market access in the EU. We noted that New Zealand has complementary seasons with most countries there. We asked whether anything is being done to inform Europeans about this, or to highlight the lack of threat that our exports pose. We heard that B+LNZ works closely with its counterparts in European countries, such as Interbev in France, and also participates in forums and work programmes with countries such as France, the UK, and Ireland. We were interested to hear about some of the initiatives, such as a project to develop common carbon footprint methodologies, and encouraging youth engagement in the sector. However, we noted that progress in this area is likely to be slow, as a concerted effort will be required to bring about a shift in public perception. International reputation We asked about how B+LNZ sees the beef and sheep meat industry contributing to the preservation of our international reputation as clean and green, as we recognise how instrumental this reputation is to all of our exporters. We were interested to hear about three initiatives that are currently aimed at addressing this issue. The first initiative is the ongoing Land Environment Planning Workshops for farmers, which encourages them to analyse and respond to environmental concerns on their land. Secondly, there is the Red Meat Profit Partnership a consortium of agribusinesses that have partnered with the Government to create sustainable and long-term profits for the red meat sector which aims to create an underlying narrative of the clean and green brand. Finally, we heard about the farmer council, which acts as a bridge between farmers and B+LNZ. This council helps engage regional farming communities in discussions about creating enduring, well-supported environmental solutions. Some of us were concerned that, despite the fact that value can be added to meat products through processing, value may be lost due to the impact of environmental concerns on our international reputation, particularly regarding the use of genetically modified substances in animal feed and the use of pesticides. We heard that B+LNZ is working on branding initiatives, but that pesticide reduction is not a part of this. Health and safety concerns Restrictions on farms We heard that regulations disallowing passengers on quad bikes on farms may be detrimental to farmers ways of life. We were told that regulations imposing this restriction can create a lot of hassle for farmers, and that passenger-related injuries are actually quite 4

5 rare. In addition, the consequence of disallowing passengers may mean that quad bike drivers may be unskilled and actually create more risk. We asked whether a cap on age should be imposed on the use of quad bikes to prevent children from using them. We were told that manufacturers have a recommended minimum age of 16, though this is not currently enforceable by law. We suggested that there could perhaps be consultation with manufacturers as to whether design changes can be made to make quad bikes safer for passengers. We heard that the stringency of current health and safety legislation in general means that farmers are either avoiding the rules or otherwise overcompensating and becoming overly risk averse. We were told that B+LNZ is in conversation with WorkSafe New Zealand about this issue, and are also thinking about the potential for workshops to be held to come up with personalised health and safety plans. B+LNZ also said that it would like to see more input from farmers on health and safety regulations for farms. We understand the concerns raised, but believe an industry good organisation could be playing a more proactive role in building a better culture of health and safety across the farming sector. We encourage B+LNZ to take a greater role. Mental health We asked whether mental health was a large concern in the industry, and were told that it is. We heard that the number of suicides amongst farmers is actually higher than farmrelated deaths such as quad bike incidents. We were told that not much attention is given to these deaths, or to the prevalence of mental health disorders, such as depression, amongst farmers. We were interested to hear that there are some initiatives being developed, such as event-related programmes to raise awareness of these issues, but there is still need for more attention, and acknowledgement of the seriousness of such conditions. We asked whether there is any relationship between the dangerous nature of farming and suicides. We asked whether financial pressures might also contribute to suicides amongst farmers, and were concerned that not enough people are aware of this. We were told that, while financial pressures are present in every industry, in farming the problem lies with how visible these pressures can be, especially in small rural communities where farmers identities can be strongly tied to the prospects of their farm. However, we also noted that it can be difficult to ascertain whether deaths are farm-related, particularly considering that many deaths over the past few years have been amongst older generations. 5

6 Appendix Committee procedure The committee heard evidence from Beef and Lamb New Zealand on 30 April 2015 and considered it on 23 July Committee members Ian McKelvie (Chairperson) Todd Barclay Hon Chester Borrows Steffan Browning Barbara Kuriger Hon Damien O Connor Richard Prosser Stuart Smith Meka Whaitiri 6