Supplier Update 20 January 2023
Happy New Year and welcome to 2023 – I hope you had a chance to celebrate with friends and loved ones, although I know that this time of year can also be one of the busiest on farm.
Across the country we have seen contrasting weather patterns in recent weeks. Around the North Island rain has persisted, with consecutive weather events and little sunshine, and more rain forecasted. This is seeing demand for processing space ease in some areas as animals take longer to reach killable weight or farmers are taking advantage of favourable feed conditions and further weight gain.
Meanwhile parts of the South Island are facing long dry spells and higher temperatures, particularly around Southland, Otago and the West Coast. Unfortunately, these climatic conditions were compounded by disruptions to labour and absenteeism in our South Island site network.
This resulted in significant demand for local processing space in the South. Backlogs grew due to the dry weather conditions and our constrained capacity, however we have adapted and capacity is now back to planned levels. Sites are maximising overtime however in some regions it will take time to work through backlogs from December and January.
Please read the report at the link below for more detail on the processing season to date, and the outlook for the next few months across the North and South Islands.
This weekend marks the beginning of Chinese New Year celebrations – welcoming in the Year of the Rabbit, which I’m told is meant to be more stable than the previous Year of the Tiger which I’m sure is something we will all be hoping for.
Already in 2023 we have experienced some strong headwinds but, as always, we are working hard in market and in our processing operations to bring as much stability to your business as we can.
In this week’s report:
- An update on the processing season to date
- Our Venison has taken out a top award in Shanghai
- Some important dates for your diary including our 2023 Conference
And the latest from the markets.