Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Early Christmas present for sheep farmers

Early Christmas present for sheep farmers

Meat company Lean Meats has announced a bonus payment to its farmer supplier shareholders after a stronger company performance in 2013.

Lean Meats chief executive Richard Thorp today announced a return to its Atkins Ranch Producer Group (ARPG) providing shareholder farmer suppliers an average of 31 cents a kilogram or $5.74 a lamb.

This year’s payment is split with an average of $1.85 per head paid at six weeks after processing and the remaining $3.89 per head being paid in the last working week of December.

Mr Thorp said the financial return can be attributed to farmers supplying lambs at a market reflected procurement price; through the company being able to market and sell more packed items from a carcass and gaining export status to China earlier in the year via its Oamaru plant.

“We’re pleased to be in a position to provide a return to our loyal shareholder farmer suppliers. The sector has seen difficult times and everyone in the supply chain has worked hard to get into a better position.”

“Our approach hasn’t changed over the last 25 years, we have encouraged our farmers to be part of the value chain and they have stuck by us and this year we can now reward ARPG members with a return above schedule.

“There has been a market correction at the farm gate but returns have improved for suppliers from the previous year and export certification to China has opened up a market opportunity to a growing demand for lamb cuts.

“We remain very confident that we can continue to perform at similar levels based on increased demand from China and sales of lamb primals into the United Kingdom, Europe and North America.

“Our strategic direction for doing business with China is based on keeping it simple, building strong customer relationships and not attempting to be everything to everyone,” Mr Thorp said.

He says the company has also strengthened its sales and marketing focus with several key appointments in New Zealand and in the United Kingdom. In 2012 it appointed Alister King as Marketing Manager and recently appointed Chris Balaam in London as its UK & Europe sales and marketing representative.

To become an ARPG member, farmers are required to buy 2000 shares. ARPG members receive a payment of 90 percent six weeks after slaughter and then the remaining 10 percent, three months after slaughter.

ends


Lean Meats farmer supplier James Rogers from Koeke Estate, near Taihape, said the bonus above schedule is a timley windfall following recent tough times.

“It’s been a tough time for farmers throughout the North Island and around Taihape. Due to the drought we supplied lambs a bit lighter than we would have liked, but we’re thrilled to be getting a return above schedule,” he says.

The decision to excusively supply Lean Meats has been a good one according to Mr Rogers.

“What’s not appealing about Lean Meats? We like to be involved beyond the farm gate in our industry by being shareholders in the company we supply to.”

“Our aspiration is that Lean Meats will be the “Tatua” of the Sheep Meat industry, enabling it to deliver superior returns to it’s loyal suppliers and shareholders.

“It’s exciting and it’s great to have an outlet for slightly less value cuts, which increases the whole value of the lamb,” Mr Rogers said.


ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Efficiency: Businesses And Households To Save From New Energy Plans

Minister of Energy and Resources Simon Bridges today announced three energy efficiency initiatives to improve business productivity, save money and reduce carbon emissions. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news