I had a call from a reporter the other day asking who was ‘winning’. He was talking about procurement costs being higher this season, and I was pleased to be able to clarify that it was in fact possible to have a win-win situation in the meat industry, where both the farmer and processor make good returns. This is one of those seasons.
The reporter then asked me about the competition between the meat companies and speculated that the industry was on the brink of another restructuring. Again, I was able reassure that this was not necessary and that although there were no silver bullets, we were doing fine. That we were no different to any other business.
Somewhat exasperated, the reporter asked what our secret for success was, and I said we didn’t have one … rather there were a hundred different things that keep us focused every day!
Over the past three years, this focus has included forming a JV at Waitoa to buy and upgrade a tannery and build a new state-of-the-art protein (rendering) plant from scratch. Not to mention the wastewater treatment ponds, substation, composting from paunch grass, and other infrastructure including purchasing the surrounding farmland. There has been a lot of
investment, and these upgrades are now all up and running, making a real difference to our bottom line. We see this as a win-win solution for what was previously an Achilles heel for us, as we now have direct control over our byproducts, and this has made our value chain stronger for us all.
At the same time, we have upgraded our plants, ploughing money back to both simplify and automate more. We can now process more cattle, more efficiently, and extract more value. I can assure you that this constant quest to be the best will never stop. It drives everything we do. These pictures paint a thousand words, and so here are some of our recent developments. The Greenlea Team is committed to this business and to an industry that is not only having a good year but that is getting better and more exciting by the year. At this rate, I’m never going to be able to retire!
All the best,
WAITOA NATURAL PROTEINS
TALLOW TANKER
FIRST RAW MATERIAL DELIVERY
GREG’S COLUMN
These are indeed unusual times. The majority of the Greenlea catchment area is experiencing extremely dry conditions, with some regions facing drought. Despite being in autumn, when cattle, particularly cull cows, should be abundant, there are no significant wait times to report. Farmers can transport their livestock and have them processed within a week. This contrasts sharply with the situation three years ago, when we had the capacity to process approximately 4,000 cows per week but had over 10,000 scheduled for slaughter, resulting in wait times of up to a month for farmers.
The current supply situation has resulted in stabilised schedule levels and, in some cases, even increased schedules, contrary to the historical trend of processors reducing them. This is a straightforward application of School Cert Economic (Year 11 NCEA) principles, specifically supply and demand. The market’s demand for the product remains strong while its availability decreases, leading manufacturers to pay higher prices to secure the limited available supply. But is it? Industry data tells us the North Island kill is half a percent up on last season and very similar to five-year averages. Thus, I would say that it is the lack of a compressed, overcrowded cull cow supply that is pushing schedules up and also ensuring every bull that is available is being processed as quick as any cull cow and making good schedule returns for farmers.
What to expect then? We might either continue
through the season as we have since January 1st, with slow but steady supply and end with normal kill numbers or face a lean winter supply. Both scenarios should reassure farmers about schedule levels. It is likely that stability will be maintained at worst, with an increase through winter being more probable.
And what’s that I hear from the sidelines of most sports fields or agricultural shows I’m attending, speculation of a $8 schedule for prime in September and for bull in October. While I am not committing to this prediction as I did with $7 back in 2023, if President Trump’s tariffs do not have a significant impact, and the market and NZ dollar remain stable, it is possible.
While the compliance and regulatory demands on farmers have not been completely eliminated, they have somewhat eased under the current government. I would say it is advisable for red meat farmers to retain any work you have completed regarding carbon accounting, farm plans, and environmental planning. I firmly believe that there will be a need in the near future for a comprehensive farm plan addressing carbon, freshwater management, social responsibility, traceability, and biosecurity on your properties. Greenlea will ensure that our farmers are kept as well informed in this space as possible.
So onward we go. I suspect despite the dry most dairy and beef farmers will be happy enough with returns but mindful of the need to have some meaningful rain through autumn to rejuvenate pasture. Supplement can only stay relevant for so long, and with the high cost of replacement beef and dairy production, it would be good to head into winter and spring in good order.
Be well.
Greg Clark
– 14 JUNE 2025
CHANGE IS CONSTANT
This issue our guest columnist is David Kidd. David farms sheep, beef, and dairy on the South Head of Kaipara Harbour. David’s family have farmed the area for generations, and while David started his career in banking, he was unable to stay away from the farming lifestyle. He farms alongside his wife and three children, and with that spare five minutes he has every day, commits time to Beef & Lamb duties.
As I reflect on the current world geopolitical challenges and their potential impact on my farming life, I am reminded of the study that I undertook in 2017. A time when our current PM was the CEO of an airline and Donald Trump was a reality TV star. In 2017, Beyond Meats had released their “Impossible Burger”. A patty made of plant-based protein, which ‘bled’ like a traditional beef burger. Plant based protein was all the rage, with supermarkets giving up animal protein chiller space to allow these products to be offered to consumers at the expense of traditional protein sources. Venture capital was predicting that plant-based protein was the “next big thing”, with skyrocketing valuations and talk of traditional protein sources becoming redundant. Fast forward to 2025, beef prices are at record levels due to short and constrained supply and Beyond Meats is continuing to turn losses with an expectation that they may not be able to meet bond repayments as they come due – they are in trouble.
I was optimistic of the future of the NZ beef industry in 2017, and I remain optimistic in 2025. However, the world continues to evolve and change, and simply, so must we. Correspondingly, we must recognise that the rate of change is probably faster than ever before and will continue to increase as we see the benefits (and challenges) of technology such as AI. 2025 has certainly started with a bang! From military war to trade wars, traditional allies being turned against one another and warming of previously frozen relations, we are seeing the geopolitical landscape being upended daily. For a country that relies on a rules-based system, it is apparent that challenges await. Free trade (which is the structure I have seen implemented for most of my lifetime) is being replaced with tariffs and protectionism, which does not suit our business model. We rely on our product
forming a part of supply chains in different markets across the world. When local product is protected, our product may not be attractive or cost effective to our current end users.
Further exploring the present state of the farming industry, I even suggest that these are some of the most positive times that I have seen in my tenure in the industry. While confidence usually comes before a fall, we have seen a remarkable lift in prices across the past 12 months leading to a time when I see an opportunity to reinvest in the business from a position of strength. Globally, supply appears constrained and even locally with the well predicted ‘shortage’ of cattle potentially having played out or playing out over the next 12 months. This has of course been driven to a degree by our own political decisions – carbon farming has certainly changed the landscape. Through this change alone, we have seen a dramatic decline in the number of beef cows, which (positively for NZ Inc) may lead to better integration with the dairy industry.
To sum up, I would like to share some of the best advice I have received. Focus on doing what you do well, well. As farmers, we are best placed to manage what we can control inside the boundaries of our farmgate. We are well supported by industry bodies who raise our concerns and fight for our interests, and importantly there is a huge range of supportive professionals in our industry that can help advise what we may (or may not!) need on farm at any time. During my travel I had the opportunity to visit McDonald’s headquarters in Chicago and a discussion from that visit strikes as appropriate right now. I was told that NZ formed an important part of their beef supply chain. That will not have changed despite the current trade challenges, although I suspect if worst comes to worst our product may take a more circuitous route.
Good quality, well looked after animals that are well processed and sent to the right markets, will, in my opinion always be an important part of a supply chain somewhere in the world. We need to remind ourselves to focus on doing our part on-farm and to always make every day a growing day.
