Celebrating
125 Year s
A N N UA L R E P O R T 2 0 0 5 - 2 0 0 6
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Contents
1
Greetings
2
Refrigeration – the Technology That Changed Our Destiny
4
New Zealand Meat Industry Timeline
10
Chairman’s and Chief Executive’s Report
13
The Board of Directors
14
Financial Statements
28
Use of Statutory Powers
Celebrating
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H
Greetings
On behalf of the New Zealand Meat Board I am
This report will be presented at our Annual
pleased to present our Annual Report for the
General Meeting to be held at the offices
2005-2006 year.
of the New Zealand Meat Board, Level 13,
2007 marks the 125th anniversary of New Zealand
frozen meat exports to the UK and to acknowledge
this achievement two special features are included
PricewaterhouseCoopers Tower, 113-119
The Terrace at 3pm on Thursday 29 March 2007.
Regards
in this publication.
Year s
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Jeff Grant, Chairman
New Zealand Meat Board
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
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Refrigeration – the Technology That Changed
The pioneer of the New Zealand frozen meat
industry was Edinburgh-born William Soltau
Davidson, who arrived in the country in 1865.
He worked as a shepherd at the Levels Station
in South Canterbury, which at that time had
a flock of over 85,000 merinos. Davidson set
about developing a new pure half-breed more
suited to imported English pasture grasses, by
crossing merino ewes with imported Lincoln
stud rams.
In 1878 Davidson returned to Scotland and became General
Manager of the New Zealand and Australia Land Company. Two
years later, following the success of two cargoes of Australian
frozen meat to Britain, he recognised the possibilities for New
Zealand. He approached the Albion Shipping Company, and
as a result one of its best and fastest ships – the Dunedin, a
barque-rigged iron ship of about 1,250 tons – was fitted out with
insulated meat chambers, boilers and refrigeration machinery.
Meanwhile, back in New Zealand, Thomas Brydone arranged the
preparation of sheep for the first shipment.
A killing shed was erected on the company’s Totara Estate,
south-west of Oamaru, and the services of first-rate butchers
were secured. The Dunedin arrived at Port Chalmers, and each
morning 240 carcasses were sent to the ship by train, packed in
special vans cooled with large blocks of ice.
William Davidson had returned to New Zealand on the Dunedin
on 7 December 1881, and he and Brydone personally began
stowing the first frozen sheep ever loaded in New Zealand. Things
proceeded well, until a fracture in the engine’s crankcase stopped
work and necessitated the sale of 641 sheep already packed in icy
chambers between the decks, as well as the 360 others killed and
on their way to the wharves. As a result it was New Zealanders,
not Britons, who got to eat what would have been an historic load
of frozen meat. Repairs were carried out and the Dunedin finally
sailed on 15 February 1882. Along with mutton, lamb and beef,
the ship carried an extremely mixed cargo of pheasants, hares,
rabbits, turkeys, geese, ducks, chickens, fish, butter, milk and eggs.
Although there were no problems with the refrigeration
machinery during the voyage, there were some anxious moments
when sparks from the funnel of the boiler set fire to the sails
on several occasions. There was added drama when a tropical
hurricane tore spars away and staved in all the ship’s boats. When
the ship was in the tropics it was discovered that the cold air was
not circulating as intended, and so the captain personally crawled
into the main chamber to cut an extra opening to ease the
situation. In the process he became so numb from the cold that
the mate had to rescue him by tying a rope to his legs and hauling
him out from behind.
2
Originally, about 60 passengers had booked passage on the
Dunedin but, because of fears of a recurrence of mechanical
problems mid-ocean, all but two opted out. One who stayed was
a 17-year-old, who soon became aware of the benefits heralded by
that historic voyage and observed how pleased the crew were to
be fed fresh mutton instead of their traditional “salted junk” and
bully beef. When the Dunedin arrived safely off the Isle of Wight,
directors of the shipping company – now Shaw, Savill & Albion
– came aboard and were able to enjoy some of the fresh-tasting
frozen fare from New Zealand.
The ship reached the London docks after a voyage of 98 days.
The precious cargo – which, according to one source, amounted
to 4,311 carcasses of mutton, 598 of lamb, 22 of pork and
2,226 sheep’s tongues – arrived in good condition, and the only
casualty was one carcass which had been “bumped”. The shipment
was sent to London’s Smithfield Market and was all sold within
a fortnight, with mutton and lamb fetching 6½ pence per pound
– a profit of 3¼ pence per pound. Although some of the sheep
had been frozen for over four months it looked like freshly killed
mutton, and the shipment even received a favourable mention in
the House of Lords.
The Dunedin has been described by historian Gavin McLean as
“the ship that changed our destiny”. In all, it made 10 trips carrying
frozen goods to London before it met its own refrigerated destiny
in 1890.
The success of these early shipments saw freezing works
established around the country. The first in operation was the
New Zealand Refrigerating Company at Burnside (Dunedin)
in 1882. The next was the Canterbury Frozen Meat and Dairy
Produce Company Ltd, and a third pioneer was the Gear Meat
Preserving and Freezing Company in Wellington.
Within nine years of the Dunedin’s voyage there were 17 freezing
works in New Zealand. By 1889 the number of carcasses exported
exceeded one million, and in the first half-century of operation
approximately 200 million carcasses were sent to Britain.
At first this new era in retail meat was dominated by mutton,
but by 1900 lamb was firmly established, reflecting customer
tastes in Britain and bringing necessary changes to the farms
of New Zealand.
Within little more than a decade of the first voyage of the
Dunedin, the most important industry in New Zealand based
on the value of manufacturing or produce was its meatworks.
By 1894 the country had 43 establishments dedicated to
freezing, preserving and boiling down animals. They employed
1,568 people. Sheep were the main source of raw materials,
and also contributed to the colony’s second most important
manufacturing industry – tanning, fell mongering and wool
scouring – which engaged 1,196 people. In tenth place were eight
woollen mills providing work for another 1,175 people, while
19 soap and candle works around the country dealt with another
by-product of the sheep.
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d Our Destiny
1
H
When the frozen meat trade was
initiated there was some debate as to
whether New Zealand would be able to
provide a million sheep each year
without depleting its breeding stock.
But within a decade the number of
carcasses exported had reached
1,607,754, and at the same time the
national flock had increased by just over
800,000 to 19.38 million. Sheep farming
accounted for 59 per cent of the
country’s exports.
H
H
H
William Soltau Davidson
H
Extract from A Short History of Sheep
in New Zealand by Richard Wolfe,
published by Random House.
Thomas Brydone
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New Zealand Meat Industry Timeline
1860
1870
1880
1890
1900
1910
1920
1930
3
2
4
1883
1860 to 1869
2 November 1869 Canterbury Meat Export Company Ltd opens
meat preserving works at Templeton (then
Islington).
1870 to 1879
1870s
1871
10 May 1876
7 May 1878
Early attempts are made to freeze and
transport meat in Australia and Argentina.
Sheep numbers = 9,700,000.
Cattle numbers = 436,592.
Canterbury Meat Export Company Ltd goes
into liquidation. Plant is transferred to Bank of
New Zealand.
First entirely successful shipment of frozen
meat arrives at Le Havre from Buenos Aires on
the Paraguay.
February 1883
1883-1884
1885
1890 to 1899
1891
1892
1880 to 1889
Canterbury Agricultural College is established
at Lincoln.
2 February 1880
Strathleven arrives in London with the first
cargo of frozen meat from Australia.
1881
Sheep numbers = 12,985,000.
Cattle numbers = 698,637.
19 August 1881
New Zealand Refrigerating Company Ltd is
registered in Dunedin.
15 September 1881 Wellington Meat Export Co Ltd is registered.
11 January 1882
Contract is let for construction of the first
freezing works in New Zealand at Burnside,
Dunedin.
15 February 1882 First shipment of frozen sheepmeat from
New Zealand is arranged by William Soltau
Davidson of the New Zealand and Australia
Land Company. The shipment leaves from
Port Chalmers on the Dunedin and arrives in
London on 24 May.
15 March 1882
Canterbury Frozen Meat and Dairy Produce
Company Ltd (CFM) is registered in Christchurch.
12 June 1882
Mataura departs Port Chalmers with a second
shipment of New Zealand frozen meat (loaded
by New Zealand Refrigerating Company Ltd).
The ship arrives in London on 25 September.
1880
4
Gear Meat Company Ltd starts freezing works
operations in Wellington, using the hulk of the
ship Jubilee which contains sufficient freezing
machinery to freeze 600 carcasses per day.
CFM freezing works opens at Belfast.
William Nelson establishes a freezing works at
Tomoana near Hastings.
New Zealand Industrial Exhibition is held in
Wellington. Gear Meat Company Ltd uses a
frozen meat carcass as the centrepiece of its
display.
1894
1894
Sheep numbers = 18,128,186.
Cattle numbers = 831,831.
Department of Agriculture is established
from the former Livestock Branch and the
Agriculture Branch of the Crown Lands
Department. It has a permanent secretary who
is also the chief inspector of stock.
New Zealand has 43 meat freezing and
preserving establishments.
Industrial Conciliation and Arbitration Act
is passed. The Act recognises the status of
trade unions, and provides the protection
of enforceable minimum wage rates and
conditions of employment. It also recognises
industrial unions of workers on the one hand
and individual employers or industrial unions
of employers on the other as the responsible
parties in negotiating wages and other
conditions of employment under the Act.
1900 to 1909
1901
Sheep numbers = 20,233,099.
Cattle numbers = 1,256,680.
26 September 1907 New Zealand is constituted as a Dominion.
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1860-1949
1940
5
7
9
8
6
1939
1910 to 1919
1911
1 March 1915
Sheep numbers = 23,996,126.
Cattle numbers = 2,020,171.
British government takes control of all meat
(and cheese) imports under the bulk purchase
agreement/or “the commandeer”. All New
Zealand exportable meat is requisitioned and
sold under contract to the UK government.
1920 to 1929
30 June 1920
1921
9 February 1922
10 March 1922
August 1923
1925
Bulk purchase contract is terminated. Some
180,000 tons of meat are held in store in New
Zealand, leading to oversupply on the UK
market in 1921 and consequently lower prices.
Sheep numbers = 23,285,031.
Cattle numbers = 3,139,223.
Meat Export Control Act establishes the New
Zealand Meat Producers Board (NZMPB) with
wide powers of control over the New Zealand
meat export industry.
First meeting of the NZMPB. Chairman is
David Jones, General Manager is John Fraser.
NZMPB opens London office. Manager is
Robert S Forsyth.
Imperial Economic Conference is held to
consider how to increase the consumption of
Empire food products in Britain.
1930 to 1939
1931
1932
Sheep numbers = 29,792,516.
Cattle numbers = 4,080,525.
Ottawa Conference is held. Negotiations
take place with Commonwealth members
to protect the UK market from oversupply
of meat and further develop Empire trade.
Commonwealth preferences in trade are
reaffirmed. There are no access restrictions on
the import of frozen meat from New Zealand
for an initial two-year period to 1934, then to
1938. Severe quota restrictions are imposed on
non-Commonwealth suppliers.
New Zealand government signs bulk purchase
agreement with UK Ministry of Food, with all
meat purchased by the New Zealand Marketing
Department and sold direct to the UK.
1940 to 1949
1941
Sheep numbers = 31,751,660.
Cattle numbers = 4,575,873.
1941
Shipping difficulties cause stockpiles of frozen
meat. Beef is boned out, and lamb and mutton
carcasses are telescoped to save both storage
and shipping space.
15 December 1942 New Zealand Economic Stabilisation
Scheme is introduced, and the Meat Industry
Stabilisation Account is established to
complement the Meat Pool Account.
1943-1944
New Zealand negotiates a second “long-term”
contract with the UK for the exportable
surplus of meat and edible offals to be supplied
to the UK for the four years to 1948.
1945
Agricultural Development Committee is
formed at the end of World War II.
1946-1947
Experiments begin with aerial topdressing to
improve soil fertility, using a superphosphate
base on rock phosphate from Nauru and
Ocean Island. (Aerial topdressing was first
tried by Alan Pritchard in 1939, and further
developed after the war by Doug Campbell.)
1948
General Agreement on Tariffs and Trade
(GATT) is formulated as the provisional
multilateral instrument governing
international trade until the establishment of
the World Trade Organisation in 1995. The
organisation provides a framework within
which international trade negotiations are
conducted and trade disputes resolved.
1948
Meat rationing in New Zealand ends.
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New Zealand Meat Industry Timeline
10
11
1950 to 1959
1960 to 1969
1950
September 1960
Establishment of the Meat and Wool Boards
Economic Service.
1951
Sheep numbers = 34,786,386.
Cattle numbers = 5,060,024.
1951
Prolonged waterfront dispute in New Zealand.
State of emergency is declared.
October 1952
UK signs a 15-year agreement giving New
Zealand meat the right to free and unrestricted
access to the UK.
1953
New Zealand Marketing Department merges
with Department of Agriculture.
1954
Meat Industry Reserve Account is established
based on the accumulated funds derived
from meat built up during the period of bulk
purchase. The funds available are NZ₤39
million (or $78 million).
30 September 1954 Termination of the bulk purchase contract
with the UK government.
1955
Meat Export Prices Act is passed, which
provides for the annual determination of
minimum prices by class of all exported meats,
with the provision of supplements if market
prices fall below the minimum. The scheme
is to be funded by the Meat Industry Reserve
Account.
1957
New Zealand begins expansion of beef exports
to the USA, and subsequently to Canada.
1958
Treaty of Rome is signed by France, Germany,
Belgium, Netherlands, Luxembourg and
Italy to establish the European Economic
Community (EEC). The Treaty defines the
general principles of a Common Agricultural
Policy (CAP).
1959
NZMPB has its Act strengthened to give
greater control over exports of meat. The
Lamb Market Diversification Scheme, to
encourage sales to markets outside the UK, is
introduced.
6
1961
1962
1963
1963
1964
1964
Meat Export Development Co, which has
statutory authority to control the marketing of
lamb in North America, is established. (This
has since been renamed New Zealand Lamb
Company (North America) Ltd.)
Sheep numbers = 48,462,310.
Cattle numbers = 6,445,789.
CAP for the EEC – based on the principles
of market unity, community preference and
financial solidarity – comes into force.
Meat Division is created as part of MAF.
Previously, meat inspection was managed by
general agriculture divisions of MAF. This
allowed the meat hygiene service, which
included inspection and food safety functions,
to become a specialised unit for the first time.
Agricultural Development Conference is held
to assist the government in framing policies to
bring about increased primary production.
Meat Act 1964 brings the entire range of meat,
game and fish processing activities under the
surveillance of the Meat Division of MAF. (The
industry had to adapt enormously to meet the
requirements of first the United States and
later the European Union.)
US Meat Import Law is enacted (further
amended in 1979), providing for the
imposition of import quotas if imports of
certain meat products exceed the trigger level.
(This limit was calculated from a formula
based on domestic import quota meat
production and cow-beef production. The law
applied to fresh, chilled and frozen meat of
cattle, sheep (except lamb) and goats, as well as
certain prepared and preserved beef and veal
products.) The four main suppliers (Australia,
New Zealand, Ireland and Mexico) agree to
voluntarily restrain their shipments to within
the trigger point.
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1950-1979
1950
1960
1970
M
M
M
M
1964
November 1964
EEC establishes the CAP for beef and veal.
(In addition to establishing a series of measures
and guide prices to ensure an “adequate
return” for EEC producers, this provided a
comprehensive array of barriers to the import of
beef and veal into the EEC, including minimum
import prices, duties, levies and supplementary
charges. There was a small levy-free quota of
20,000 tonnes for imports of frozen beef for
manufacturing purposes. New Zealand was
allocated a small proportion (0.5 per cent)
of the total high-quality (Hilton) beef quota of
40,300 tonnes.)
Agricultural Production Council is established by
the Minister of Agriculture, Hon B E Talboys.
July 1971
December 1971
1972
June 1972
1973
1 January 1973
1975
1976
1970 to 1979
1971
1974
Sheep numbers = 58,911,525.
Cattle numbers = 8,818,902.
UK imposes import levies on New Zealand
sheepmeat as a lead-up to the EEC common
customs tariff of 20 per cent.
NZMPB intervenes in the export marketing of
lamb to support producer prices as the statutory
minimum prices are considered inadequate.
Meat Export Control Act is amended to allow
NZMPB to market lamb. Profit of $8.6 million
is passed into a Meat Marketing Research and
Development Account.
Meat Exporters Council (MEC) is established.
The first NZMPB/MEC delegation goes to Iran
to assess market potential.
Labour government introduces the Stock
Retention Incentive Scheme, paying $1 per
head for sheep held on farms at 30 June 1972.
Oil price shock disrupts trade and causes the
introduction of bunker surcharges on shipping
freight rates.
UK joins the EEC, along with Denmark and
Ireland. Common external tariff for sheepmeat
is set at 20 per cent.
1978
1978
April 1978
1979
December 1979
Japan imposes controls on beef imports, with
the Livestock Industry Promotion Corporation
setting annual quotas and purchasing all
imports. Korea takes similar action, using their
Livestock Products Marketing Organisation.
NZMPB intervenes in the export marketing of
beef, and subsequently supports prices through
a supplementary payments arrangement which
costs some $32.8 million. The supplements, and
a government payment of $1 per head on lamb,
are funded from a new account – the Meat
Income Stabilisation Account (the forerunner of
the Meat Price Smoothing Scheme introduced
in 1976). NZMPB also intervenes in lamb and
mutton marketing.
Meat Export Prices Act introduces the Meat
Price Smoothing Scheme, with minimum
and trigger prices. Meat Amendment Act
establishes the Meat Industry Authority as an
independent licensing authority for processing
plants in the industry (disbanded in 1981).
Government introduces Supplementary
Minimum Prices (SMPs) to provide additional
support to the price smoothing arrangements
operated by the producer boards.
Meat included in the Export Market
Development Incentive Scheme first
introduced in 1976.
NZMPB intervenes in the mutton market.
Second oil crisis occurs. Iran declares a
development market, and a contract is signed
with the Iran meat organisation to supply
200,000 tonnes or more over a four-year
period. NZMPB introduces “Storage Under
Board Control” for lamb in the UK.
US Meat Import Law is amended, with the
introduction of a “countercyclical formula”
aimed at reducing meat (mainly beef ) imports
when domestic supplies are abundant and
consumer prices are low. Conversely, imports
can increase when domestic supplies are low
and prices are higher.
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New Zealand Meat Industry Timeline
M
1980 to 1989
May 1980
1981
1981
1981
1 January 1981
October 1982
1983
1984
1984
1985
4 March 1985
November 1985
1986
1986 - 1989
8
EEC sheepmeats regulation agreed. New
Zealand is guaranteed access at a GATT bound
tariff of 10 per cent, but with a Voluntary
Restraint Agreement (VRA) tonnage limited
initially to 245,500 tonnes for the community
of 10 after Greece joins.
Sheep numbers = 69,883,765.
Cattle numbers = 8,035,468.
A “lamb for oil” deal is negotiated by the
NZMPB/MEC with Iran. An amendment
to the Meat Act disbands the Meat Industry
Authority and promotes the deregulation
of the meat industry. Joint Meat Export
Marketing Council is established.
Lamb prices are low, and NZMPB stores lamb
in the UK.
Greece joins the EEC.
NZMPB intervenes in lamb marketing,
which continues until November 1985.
Various schemes are introduced, including
the Lamb Carcass Purchase Agreement For
Further Processing (LCPAFFP or Buyback) to
encourage further processing of lamb.
Meat Industry Task Force proposes a Meat
Industry Council and a national pool for
marketing, but these are not implemented.
Sheep numbers peak at 70 million.
Labour government begins deregulating the
New Zealand economy.
SMPs are withdrawn and producer boards are
charged with operating their own price support
schemes. US imposes countervailing duties on
New Zealand lamb imports to offset the effects
of the price support and other subsidies.
New Zealand dollar is floated.
NZMPB withdraws from ownership of
sheepmeats.
North Island meat industry rationalisation
occurs.
Major rationalisation of the processing
industry driven by increased procurement
competition for stock (the “procurement
wars”) and withdrawal of foreign ownership.
12
1 January 1986
October 1986
1988
1989
Portugal and Spain join the EEC.
Meat Export Prices Act is repealed.
Chilled packaging progresses with the launch
of the CAPTECH process.
European Community (EC) (formerly the EEC)
agrees a four-year derogation from the VRA.
Sheepmeat levy is reduced from 10 per cent to
zero but with a reduction in the VRA quota to
205,000 tonnes plus chilled lamb restriction.
1990 to 1999
3 October 1990
1991
1991
1991
31 March 1991
1 October 1991
1993
1994
Former German Democratic Republic joins
the EC as part of the unified Germany.
Sheep numbers = 55,161,643.
Cattle numbers = 8,099,996.
Taiwan lifts restrictions on beef imports.
Korea allows mutton imports for domestic
consumption.
Employment Contracts Act is passed to
promote an efficient labour market and
freedom of association.
Japanese beef market is “fully liberalised”.
Previous quota arrangements that had been
under the control of the Livestock Industry
Promotion Corporation are replaced by a tariff.
This is initially set at 70 per cent but reducing
to 50 per cent by 1994.
The controversial Meat Planning Council is
established to “solve the industry problems”
by restoring industry profitability, particularly
through rationalisation of marketing. The
Council comprises seven meat company Chief
Executives and four NZMPB appointees.
EC becomes European Union (EU) – a single
market.
GATT Uruguay Round of trade negotiations
concludes successfully with positive results
for New Zealand agricultural exports. New
Zealand achieves certainty of access to key
markets that had been absent since the UK
entry into the Common Market, which
provides confidence to the industry to
undertake substantial new investment and
long-term planning. Specific benefits include
guaranteed entry for 225,000 tonnes of
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1980-2007
1980
M
1990
2000
M
Export Lamb Product Mix
1970-71 to 2005-06
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
Carcass
Cuts
2005-06
2004-05
2003-04
1999-00
1995-96
1990-91
1985-86
1980-81
1975-76
1970-71
0%
Boneless
M
1995
1 January 1995
1 January 1995
1996
1997
22 July 1999
sheepmeat to the EU, with tariff bound at
zero and the absence of restrictions on chilled
lamb exports. In addition, New Zealand
secures a 230,000 tonne country-specific beef
quota into the USA at a duty rate of 4.4 cents
per kilogram.
USA lifts the countervailing duties on
New Zealand lamb imports.
Austria, Finland and Sweden join the EU.
World Trade Organisation (WTO) is
established as a result of the Uruguay Round
of trade negotiations. The WTO is the legal
and institutional foundation of the worldwide
multilateral trading system, providing the
contractual obligations that guide how
governments implement trade policy.
BSE outbreak in the UK.
Meat Board Act 1997 provides the New
Zealand Meat Board (NZMB) (a statutory
entity) with powers to collect compulsory
levies on meat to support a range of activities,
including research and development,
information provision, market access and
promotion, and other trade-related activities.
Meat Planning Council is disbanded.
US President Clinton announces the imposition
of trade-restricting tariff quota on lamb imports
from New Zealand and Australia, to safeguard
the operations of US sheep producers who had
claimed serious injury caused by the increase in
lamb shipments.
31 August 2001
November 2001
2003
26 June 2003
2004
1 May 2004
1 January 2007
15 February 2007
2000 to 2007
2 October 2000
2001
18 May 2001
Employment Relations Act is passed to
promote good faith collective bargaining.
Sheep numbers = 40,033,000.
Cattle numbers = 9,281,000.
WTO Appellate Board upholds complaints
by New Zealand and Australia against the
imposition of “safeguard tariffs” on lamb
imports into the USA.
US implements the recommendations of the
WTO Dispute Settlement Body by removing
the safeguard measures on lamb imports from
New Zealand and Australia effective from
15 November 2001.
Opening of the Doha Round of world trade
reform negotiations.
BSE incidents in Canada and USA lead to the
imposition of beef export bans to key markets
in North Asia, and growth and demand in
these markets for New Zealand.
EU farm ministers adopt a fundamental
reform of the CAP, based on almost entirely
“decoupling” subsidies from particular products
or crops. (New “single farm payments” linked
to respect for environmental, food safety and
animal welfare standards were introduced.)
Meat Board Act 2004 is passed to restructure
the NZMB established under the Meat Board
Act 1997, enabling the NZMB to establish and
operate meat export quota management. The
Act also makes provision for the transfer of
ownership and use of the NZMB’s assets to an
“industry-good organisation” – Meat & Wool
New Zealand Ltd.
Cyprus, Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Malta, Poland, Slovakia and
Slovenia join the EU.
Bulgaria and Romania join the EU, which now
has 27 member countries.
125th anniversary of the first shipment of
New Zealand frozen meat.
References
An Encyclopaedia of New Zealand. 1966.
Calder, Mick & Tyson, Janet. Meat Acts. 1999.
Campbell, A G (ed). New Zealand Beef
– Production Processing and Marketing.
NZIAS, 1970.
Hawke, Gary & Lattimore, Ralph. Visionaries,
Farmers and Markets – An Economic History
of New Zealand Agriculture. Report to
the Foundation for Research, Science and
Technology. January 1999.
Hayward, Dai (ed). Golden Jubilee – The story
of the First Fifty Years of the New Zealand
Meat Producers Board. 1972.
Loach, Cyril. A History of The New Zealand
Refrigerating Company. 1969.
MAF Timeline. www.maf.govt.nz.
various authors. War Economy. New Zealand
Electronic Text Centre.
Wolfe, Richard. A Short History of Sheep in
New Zealand. 2006.
Timeline researched by Mick Calder.
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Chairman’s and Chief Executive’s Report
A surplus of $0.9 million was achieved by
the New Zealand Meat Board in its reserves
management activities, and a small surplus
of $70,000 from quota management activities
heralded a stable and constructive year for
the Board.
Reserves Management
The Act requires the Board to maintain a prudent level of net
assets, and to maintain and comply with a reserves policy. The key
points of the Board’s reserves policy are:
•
Under the Meat Board Act 2004 the Board has
two key functions: reserves management
and quota management.
The net assets of the Board should remain at between
$55 million and $60 million, to ensure there are sufficient
funds to cover the costs of the Board’s obligations and
maintain a contingency fund for the industry in the event of a
major crisis impacting upon the New Zealand sheep and beef
industries. Any surplus funds are available for investment in
industry-good projects.
•
Financial Performance
Currently, the contingency fund is $57.75 million after
inflation adjustment.
•
Other reserve funds are used for special projects
that collectively benefit the meat industry such as
biotechnology investments in Ovita Ltd, Bovine
Genomics and Pastoral Genomics. Consultation was
undertaken on all of these investments during the 2003
Farmers’ Choice referendum. They are discussed later
in this report. Meat & Wool New Zealand Ltd manages
all industry-good projects on behalf of the Board.
•
Inflation-adjusted income from interest on contingency
funds, and from the remaining reserve funds, is also available
for industry-good projects.
A surplus of $0.9 million was recorded for the year from reserves
management activities and a small $70,000 surplus from quota
management activities (where the objective is to break even).
Following a review of the methodology for charging out quota
management activities in 2005, the 2006 financial year was the
first full year of full cost recovery for quota management. The
Board reviews charging methodology annually when activities
relating to quota management are planned in the budget process.
Income generated from the New Zealand Meat Board reserves
totalled $8.6 million for the year ended 30 September 2006. This
was generated from the following sources:
•
Interest income
•
Gain on equity investments $2.7 million
•
Foreign exchange gains
$5.1 million
$0.7 million.
Interest income represented a 7.04 per cent return on New
Zealand fixed interest securities for the year compared to the
benchmark indicator used by the Board of 6.48 per cent.
Equity investments are held in the Future Directions International
Share Fund managed by AMP Capital. The annual return from
the equity fund was 21.58 per cent, which compared to our
benchmark Morgan Stanley Capital Index of 21.27 per cent
annual return.
Foreign exchange gains are unrealised on the translation of fixed
interest foreign currency bonds. These bonds had a carrying
value of $10.2 million at 30 September 2006. The Board also
received income of $1.8 million (2005: $1.75 million) for service
fee recoveries from Meat & Wool New Zealand Ltd for use
of the overseas office premises and staff in London, Brussels
and Washington where services are utilised for non-quota
management activities relating to market access and market
development activities.
The Statement of Financial Position shows equity of $90.6 million
(equity ratio of 97.4 per cent).
10
The Board operates a conservative approach to managing
the reserve funds, with liquidity and risk profiles carefully
managed. Bonds are held to maturity, and no trading of fixed
interest securities is undertaken. Commentary on the financial
performance of reserves follows later in this report.
Reserves Policy Review
The Meat Board Act 2004 does not require consultation on the
reserves policy unless changes are proposed; however, the Board
invited submissions on the policy at its AGM in March 2006.
Following this meeting one written submission on the policy was
received and considered by the Board. While it raised issues that
were useful, the Board considered that no policy changes were
required as a result of it. Therefore, the policy approved by the
Board in October 2005 remains current, and can be viewed on
the Board’s website (www.nzmeatboard.org.nz).
Reserves Investment Consultation
Consistent with the requirements of the Meat Board Act 2004,
farmers were consulted on the proposed investment of
$3.3 million, on specific industry-good projects, to be undertaken
by Meat & Wool New Zealand Ltd in the 2006-2007 financial
year. The consultation process, undertaken between June and
August last year, included a range of informal and formal public
meetings held around New Zealand by Meat & Wool New
Zealand Ltd, as well as distribution of the publication Proposed
Work Plan 2006-2007.
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
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Feedback on the plan was actively sought and investment
proposals were generally supported by farmers. The Board
therefore approved investment in the following specific projects
for the 2006-2007 year:
•
Special-project funding – $6.5 million
•
Industry-good project funding to Meat & Wool New Zealand
Ltd – $3.3 million.
Research and Development
In the 2005-2006 year New Zealand Meat Board reserves were
invested in research and development activities in Ovita Ltd,
Pastoral Genomics and Beef Genetics.
During the year research done by Ovita resulted in some
excellent outcomes for New Zealand, including two gene test
products which are now being launched by Catapult Global Ltd.
In addition, three gene tests have been developed which are
currently in the product development process.
Jeff Grant
Chairman
The programme has also produced 11 papers published in peerreviewed journals, and four new international patent applications
were filed and one new patent application was lodged in the USA.
Intellectual property developed in the programmes also resulted
in three new companies (Catapult Global Ltd, Paraco Ltd and
Orico Ltd) being developed from Ovita for the 2006-2007 year so
that product leads could be fast-tracked.
Pastoral Genomics has built one of the leading databases in
the world for genetic information on ryegrass and clover. The
Consortium is focusing on genes to increase drought tolerance
and improve feeding value. It is working with PGG Wrightson Ltd
and Grasslanz to commercialise its research discoveries.
Beef Genetics has progressed well, investing in genomic research
which has been carried out by AgResearch to find gene-markers for
facial eczema resistance, meat tenderness and parasite resistance.
In addition, interest earned from the New Zealand Meat Board
reserves was invested in a range of other research projects.
The Elite Lamb flock continued to provide the industry
benchmarks, with 92 per cent of singles, 90 per cent of twins
and 77 per cent of triplets surviving. Lamb birth weights were
high, without increasing the incidence of difficult births. Breed
differences in triplet lamb survival were observed (East Friesian
cross and Finn cross at 80 per cent compared to Romney at 66 per
cent). These differences are being examined in order to provide a
better understanding of the factors contributing to triplet mortality.
High lamb growth rates were achieved over winter on newly sown
pastures of different annual and perennial ryegrasses. At the same
pasture cover (albeit at different stocking rates), lambs grazing on
perennial ryegrasses grew significantly faster (389 g/d) than lambs
grazing on the more highly rated annual ryegrasses (353 g/d).
The Profitable Sustainable Beef project is monitoring the impact
of changes in beef practices on eight focus farms around New
Zealand. It has identified good levels of production from breeding
cows grazing pasture two ME units lower than other stock classes.
Mark Jeffries
Chief Executive Officer
In some instances the performance of finishing cattle on hills has
been as good as that on flat land, and information is being provided
for farmers to make informed decisions on finishing systems that
suit their specific environment.
Attendance at field days has been excellent, showing that the
project is meeting a real need in the beef industry.
The Meat Quality Science and Technology programme has
had a number of highlights this year. A second-generation
Tenderometer has been developed which is faster and easier
to use. Smart stimulation – the use of customised electrical
stimulation to reduce meat quality variability and predict ultimate
pH and tenderness – has been installed in four plants and a
patent has been filed. The meat stretcher, which adds value to
lower-value cuts, has been significantly improved in the past year.
The Food Safety programme is still at the forefront of developing
bacterial detection assays (tests) and mitigation strategies.
Detection assays are being used to detect new spoilage organisms
more quickly and accurately. Good bacteria are being investigated
to see if they can outcompete pathogenic bacteria in the animal
digestive tract and on meat. Bacteriophages (viruses that kill their
host bacteria) have been tested for their ability to reduce the
incidence of E coli in animals and on meat.
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:11
11
1/3/07 1:14:04 PM
Quota Management
The New Zealand Meat Board allocates and administers New
Zealand’s country-specific tariff rate quotas for EU sheepmeat
and goatmeat (227,840 tonnes carcass weight equivalent), EU
high-quality beef (1,300 tonnes product weight), and US beef and
veal (213,402 tonnes product weight).
Quota Utilisation
In the 2005 quota year (1 January 2004 to 31 December 2005)
New Zealand utilised 98.6 per cent of the EU sheepmeat and
goatmeat tariff quota and 93.8 per cent of the US beef and veal
tariff quota, based on the certificates issued by the New Zealand
Meat Board.
The 2006 quota year also recorded 99.8 per cent utilisation of
the EU sheepmeat and goatmeat tariff quota and 87.8 per cent
utilisation of the US beef and veal tariff quota. This was due to
lower beef production in the 2006 season.
The EU high-quality beef quota year runs from 1 July to 30 June.
For the 2005-2006 quota year, utilisation was 98.9 per cent, based
on the certificates issued by the New Zealand Meat Board.
In the export year ended 30 September 2006 the EU sheepmeat
and goatmeat tariff quota market earned NZ$1.54 billion (free
on board (FOB)) and the US beef and veal tariff quota market
earned NZ$839 million (FOB) of export receipts. These markets
represented 65 per cent and 48 per cent of the total export
receipts respectively for sheepmeat and beef returns.
The amended Act confirms that the Board is able to allocate
export meat quota to all registered meat exporters, whether
they are currently exporting meat or not. This confirmation was
consistent with the Board’s prevailing practice, and therefore has
not resulted in any change in the way the Board allocates quota.
The review has tightened up new-entrant criteria, lowering the
reserved quota allowance pool to 2 per cent for each quota in order
to better reflect historical utilisation by the new-entrant applicants.
Data Exchange
The Board remains concerned that there is no reconciliation
between the records maintained in New Zealand and EU Customs’
records. It has informal data-share arrangements with UK
Customs, and continues its effort to progress a similar data-sharing
programme with other member states for the 2007 quota year.
Overseas Offices
The Washington, Brussels and London offices are maintained by
the New Zealand Meat Board in the quota markets with a total
annual cost of $2 million.
Back-to-back arrangements exist with Meat & Wool New Zealand
Ltd, which uses these offices and resources for trade policy and
market development activities. These costs ($1.8 million) are
charged back to Meat & Wool New Zealand Ltd, with only the
proportion of services relating to quota management being met
by the New Zealand Meat Board.
Quota Review 2005
The quota review begun in 2005 was completed in November
2006. The review process was interrupted early in the 2006 year
when the government introduced legislation to clarify definitions,
within the objectives of the Board, as to who should benefit
from any quota allowance allocation system. The Board delayed
the review until the parliamentary process was completed, and
an amendment to the Meat Board Act 2004 was enacted in
September 2006.
GOVERNANCE STATEMENT
The Board is committed to a governance framework for the New
Zealand Meat Board that ensures the strategic guidance of the company,
the effective monitoring of management by the Board, and the Board’s
accountability to the company and its stakeholders.
The principal functions of the Board of Directors are:
• setting the governance framework
• strategic planning and risk management
• monitoring
• authorisation
• fiscal control.
12
During the year the Board adopted the following governance objectives
(which are in line with best practice principles recommended by the
Securities Commission of New Zealand).
The Board will:
• lay solid foundations for management and oversight
• structure itself to add value
• promote ethical and responsible decision making
• use committees where this enhances its effectiveness in key areas,
while retaining Board responsibility
• encourage enhanced performance
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:12
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The Board of Directors
Jeff Grant (Chairman)
Farmer Representative,
Southern South Island
Served since: 1994*
Term expires: 2008
Telephone: 03 201 6368
Email: jeff[email protected]
Mike Petersen
Farmer Representative,
Eastern North Island
Served since: 2004
Term expires: 2008
Telephone: 06 858 7230
Email: [email protected]
Jeremy Austin
Farmer Representative,
Western North Island
Served since: 1996*
Term expires: 2007
Telephone: 06 342 7752
Email: [email protected]
David Douglas
Farmer Representative,
Central South Island
Served since: 2004
Term expires: 2007
Telephone: 03 431 2585
Email: [email protected]
Tom Mandeno
Farmer Representative,
Northern North Island
Served since: 2004
Term expires: 2009
Telephone: 09 233 3160
Email: [email protected]
Andy Fox
Farmer Representative,
Northern South Island
Served since: 2006
Term expires: 2009
Telephone: 03 314 3763
Email: [email protected]
Colin Francis
Meat Industry Representative
Served since: 2005*
Term expires: 2008
Telephone: 06 835 4537
Email: [email protected]
Owen Poole
Meat Industry Representative
Served since: 2006
Term expires: 2009
Telephone: 03 443 7612
Email: [email protected]
Alastair Bisley
Government Appointee
Served since: 2004
Term expires: 2009
Telephone: 04 475 3014
Email:[email protected]
Brian Lynch
Government Appointee
Served since: 2004
Term expires: 2007
Telephone: 04 970 3444
Email: [email protected]
* Served on New Zealand Meat Board prior to 1 July 2004
•
•
•
safeguard the integrity of its reporting (both financial and business
performance) and make timely disclosures on the New Zealand
Meat Board’s affairs
ensure that the company has appropriate processes to recognise and
manage risk
remunerate fairly and responsibly.
The Board has three standing committees to assist it in discharging its
responsibilities:
• Audit & Risk Committee
• Investment Committee
• New Entrant Allowance Committee.
These committees operate in accordance with their Board-approved
charter, which is annually reviewed by the Board. Special ad hoc
project committees are formed as required. All committees make
recommendations to the Board.
The Board also maintains a formal set of delegated authorities that
clearly define the responsibilities which are delegated to management
and those which are retained by the Board. These delegated authorities
are approved by the Board and are subject to formal review by the
Board on a regular basis.
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:13
13
1/3/07 1:14:09 PM
Statement of Financial Performance
For the year ended 30 September 2006
Note
INCOME
Investment Income
Dividend Income
Service Fee Recoveries
Quota Management Recoveries
Other Income
TOTAL INCOME
EXPENDITURE
Personnel Expenses – Overseas Offices
Personnel Expenses – Other
Board & AGM Costs
* Other Operating Expenses – NZ
* Other Operating Expenses – Overseas
Insurance
Fees (Audit, Legal and Consultancy)
TOTAL OPERATING EXPENDITURE
Grant Funding to Meat & Wool New Zealand Limited
Special Projects (Capital Reserve Funding)
TOTAL EXPENDITURE
NET OPERATING SURPLUS BEFORE TAX
1
19(a)
Income Tax Expense
NET SURPLUS AFTER TAX
2
12
Reserve
Quota
Management Management
2006
2006
($000)
($000)
8,551
-
Total
2006
($000)
Total
2005
($000)
8,551
31
1,828
1,050
20
2,929
8,582
1,828
1,050
20
11,480
7,725
168
1,752
651
10,296
4
75
99
20
33
231
3,201
4,203
7,635
916
1,402
265
108
286
646
100
52
2,859
2,859
70
1,402
269
183
385
646
120
85
3,090
3,201
4,203
10,494
986
1,283
298
175
510
545
65
607
3,483
3,248
2,881
9,612
684
916
70
986
684
* Other operating expenses include the direct costs of the quota management functions provided by Meat & Wool New Zealand Limited
and overseas office expenses of Brussels, London and Washington. Personnel expenses include the staff-related costs of the same.
For the 2006 financial year, the New Zealand Meat Board moved to a full cost recovery regime for quota management activities. This is now
reported separately for the first time.
This statement is to be read in conjunction with the accounting policies and notes on pages 17 to 26.
Statement of Movements in Equity
For the year ended 30 September 2006
Note
EQUITY AT START OF YEAR
Surplus for the year
EQUITY AT END OF YEAR
Comprises:
General Accumulated Funds for the New Zealand Meat Board
Contingency Fund
3
3
2006
($000)
89,630
986
90,616
2005
($000)
88,946
684
89,630
32,862
57,754
90,616
33,667
55,963
89,630
This statement is to be read in conjunction with the accounting policies and notes on pages 17 to 26.
14
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:14
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Statement of Financial Position
As at 30 September 2006
2006
($000)
90,616
2005
($000)
89,630
25
18,139
7,991
2,049
28,204
22
27,017
4,001
2,547
33,587
7
5
8
9
98
40,296
10,196
14,218
64,808
93,012
91
36,526
9,770
11,475
57,862
91,449
10
2,396
2,396
90,616
1,819
1,819
89,630
Note
3
TOTAL EQUITY EMPLOYED
Represented by:
CURRENT ASSETS
Cash at Bank
Short-term Deposits
Fixed Interest Stock
Trade Receivables/Prepayments/Accrued Interest
Total Current Assets
4
5
6
NON-CURRENT ASSETS
Fixed Assets
Fixed Interest Stock
International Fixed Interest Stock
Investment in Unit Trust
Total Non-current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Sundry Payables
Total Current Liabilities
NET ASSETS
J J Grant
Chairman
M C Petersen
Chairman Audit & Risk Committee
The Board of Directors authorised these financial statements for issue on 6 December 2006.
This statement is to be read in conjunction with the accounting policies and notes on pages 17 to 26.
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:15
15
1/3/07 1:15:06 PM
Statement of Cash Flows
For the year ended 30 September 2006
2006
($000)
2005
($000)
2,969
5,854
8,823
2,548
6,020
491
9,059
5,112
65
4,684
9,861
(1,038)
6,642
2,359
9,001
58
8,029
31
8,060
23,000
1,006
24,006
Net cash flows from investing activities
15,823
74
15,897
(7,837)
22,850
35
22,885
1,121
FINANCING ACTIVITIES
Net cash flows used in financing activities
Net increase in cash held
Add: Opening Cash Position 1 October
Closing Cash Position 30 September
(8,875)
27,039
18,164
1,179
25,860
27,039
25
18,139
18,164
22
27,017
27,039
OPERATING ACTIVITIES
Cash was received from:
Receipts from Customers
Interest Received
Net GST Received
Cash was applied to:
Payments to Suppliers, Employees and Statutory Expenses
Net GST Paid
Capital Reserve Funding to M&WNZ
Net cash flows from operating activities
INVESTING ACTIVITIES
Cash was received from:
Maturing of Investments
Maturing Foreign Currency Hedge Contracts
Disposal of Fixed Assets
Cash was applied to:
Purchase of Investments
Purchase of Fixed Assets
CASH AND CASH EQUIVALENTS COMPRISE
Cash at Bank
Short-term Deposits
This statement is to be read in conjunction with the accounting policies and notes on pages 17 to 26.
16
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:16
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Statement of Accounting Policies
For the year ended 30 September 2006
Reporting Entity
The New Zealand Meat Board operates under the Meat Board Act
2004. The object of the New Zealand Meat Board is to facilitate
the capture of, for New Zealand and in the interests of the meat
industry, the best possible ongoing returns available from
quota markets and to manage the Board’s reserves and other
assets in the interests of livestock farmers (persons engaged in
New Zealand in the business of farming sheep, cattle and goats
for the purpose of producing meat).
C.
Depreciation
Depreciation of fixed assets is calculated on a straight-line
basis so as to allocate the cost of the assets over their useful
lives as follows:
Leasehold improvements
5-15 years
Motor vehicles
5 years
Furniture & fixtures
The financial statements have been prepared in accordance with
the requirements of the Financial Reporting Act 1993.
3-15 years
Computer equipment & software
3-5 years
D. Revenue Recognition
General Accounting Policies
The general accounting policies recognised by the New Zealand
Institute of Chartered Accountants as appropriate for the
measurement and reporting of earnings and financial position
on an historical cost basis have been followed in the preparation
of these financial statements. Accrual accounting is used in the
recognition of expenses and revenues. Reliance is placed on the
fact that the New Zealand Meat Board is a going concern.
Revenue is recognised when earned.
E.
Foreign Currencies
Transactions in foreign currencies are converted at the
New Zealand rate of exchange at the date of the transaction
except where forward exchange contracts have been taken
out.
At balance date foreign monetary assets and liabilities are
translated at the closing rate and exchange variations arising
from these translations are included in the Statement of
Financial Performance.
Specific Accounting Policies
The specific accounting policies used in the preparation of these
financial statements are as follows:
The financial statements of integrated foreign operations
are translated to New Zealand dollars as if the underlying
transactions had been entered into by the reporting entity.
A. Investments
Investments, where there is both the positive intent and
ability to hold to maturity, are recorded at cost or at cost
adjusted for the amortisation of premiums or discounts.
Premiums or discounts are capitalised and amortised from
the date of purchase to maturity.
Exchange rates to New Zealand dollars were:
Investments not expected to be held to maturity are stated
at market value, with the resulting gains or losses taken to
earnings.
UK Sterling
US Dollar
Euro
All other investments are stated at the lower of cost or net
realisable value.
B.
Fixed Assets
Fixed assets are stated at historical cost less accumulated
depreciation.
F.
Statement of
Financial Position
(closing rate)
2006
2005
0.3499
0.3917
0.6568
0.6908
0.5167
0.5730
Statement
of Financial
Performance
(approximated
transaction rate)
2006
2005
0.3749
0.3577
0.6905
0.6568
0.5324
0.5179
Receivables
Receivables are stated at their net estimated realisable value.
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:17
17
1/3/07 1:15:07 PM
Statement of Accounting Policies continued
G. Goods and Services Tax (GST)
J.
The financial statements are prepared exclusive of GST with
the exception of receivables and payables, which are stated
inclusive of GST.
The New Zealand Meat Board is party to financial
instruments as part of its normal operations. These financial
instruments include bank accounts, investments, debtors
and creditors. All of these are recognised in the Statement
of Financial Position. Revenues and expenses in relation to
financial instruments are recognised in the Statement of
Financial Performance.
H. Income Tax
The income tax expense charged to the Statement of
Financial Performance includes both the current year’s
expense and the income tax effects of timing differences.
Tax effect accounting is applied on a comprehensive basis
to all timing differences using the liability method. A debit
balance in the deferred tax account, arising from timing
differences or income tax benefits from income tax losses, is
only recognised if there is virtual certainty of realisation.
In accordance with section 85 of the Meat Board Act 2004,
the New Zealand Meat Board and Meat & Wool New
Zealand Ltd and its subsidiaries form a consolidated tax
group for income tax purposes.
I.
Statement of Cash Flows
The Statement of Cash Flows is stated exclusive of goods and
services tax.
The following are the definitions of the terms used in the
Statement of Cash Flows:
i.
Operating activities include all transactions and other
events that are not investing or financing activities.
ii. Investing activities are those activities relating to the
acquisition, holding and disposal of property, plant and
equipment and of investments. Investments can include
securities not falling within the definition of cash.
iii. Cash is considered to be cash on hand and current
accounts in banks, net of bank overdrafts.
18
Financial Instruments
K. Employee Entitlements
Provision is made in respect of the New Zealand Meat
Board’s liabilities for annual leave and long service leave.
Annual leave is calculated in accordance with the Holidays
Act 2003 on an entitlement basis at the higher of the
employee’s current rate of pay or average weekly earnings
over the past 12 months.
L.
Leases
The New Zealand Meat Board leases office premises, motor
vehicles and overseas staff accommodation. As the lessor
retains all risks of ownership, these leases are classified as
operating leases. Operating lease costs are expensed in the
period in which they are incurred.
M. Commitments
Commitments are disclosed at the point a contractual
obligation arises, to the extent that there are equally
unperformed obligations. Commitments relating to
employment contracts are not disclosed, as they arise in the
normal course of business.
Changes in Accounting Policies
There have been no changes in accounting policies. All policies
have been applied on bases consistent with those used in the
previous year.
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:18
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Notes to the Financial Statements
For the year ended 30 September 2006
1.
INVESTMENT INCOME
Interest
Unrealised Gain on equities
Realised Gain on foreign currency derivatives
Dividends
Unrealised Gain on exchange fluctuations
2.
2005
($000)
5,034
1,454
1,006
150
81
7,725
2006
($000)
2005
($000)
OPERATING EXPENSES
Net operating surplus before tax & movements in investments is stated after charging:
Audit fees paid to principal auditors
Other fees paid to principal auditors
Depreciation
Rental and leasing costs
Directors’ fees (note 15)
Bad Debts written off
Loss on sale of fixed assets
And after crediting:
Foreign exchange gain
3.
2006
($000)
5,127
2,744
711
8,582
9
57
310
159
20
8
6
75
356
118
5
-
(711)
(1,006)
2006
($000)
2005
($000)
Accumulated Funds
Balance at beginning of year
Transfer to Contingency Fund
Net Surplus for the year
Balance at end of year
33,667
(1,791)
986
32,862
34,507
(1,524)
684
33,667
Contingency Fund
Balance at beginning of year
Inflation Adjustment – transfer from Accumulated Funds
Balance at end of year
Total Equity at end of year
55,963
1,791
57,754
90,616
54,439
1,524
55,963
89,630
EQUITY EMPLOYED
The inflation adjustment aims to protect the capital value of the contingency fund over time.
4.
DEPOSITS
The market value of term deposits held at balance date was $18,139,027 (2005: $27,017,377).
Range of yield rates: 7.26%-7.57% (2005 yield rates: 6.02%-7.28%).
Range of maturity:
2006
($000)
Short-term deposits:
– 0 to 90 days
– within one year
Total deposits
11,639
6,500
18,139
2005
($000)
12,019
14,998
27,017
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
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Notes to the Financial Statements continued
5.
FIXED INTEREST STOCK
Vector Limited
TCNZ Finance Ltd
Bank of New Zealand Limited
Dunedin City Treasury Ltd
Dunedin City Treasury Ltd
TCNZ Finance Ltd
Christchurch City Holdings
Auckland International Airport Ltd
Auckland International Airport Ltd
Meridian Energy Limited
ANZ National Bank
Merrill Lynch
Deutsche Bank AG New Zealand
Fonterra Cooperative Group Limited
Morgan Stanley
Bank of New Zealand Limited
Fonterra Cooperative Group Limited
TCNZ Finance Ltd
Total 2006
Total 2005
Coupon
Rate
%
6.50
7.25
7.50
7.50
7.50
7.40
6.84
7.50
7.50
7.36
6.82
7.05
7.14
6.64
6.86
7.50
6.86
7.04
Maturity
Date
04-Apr-07
15-Apr-07
15-Sep-07
15-Oct-07
15-Oct-07
15-Apr-08
15-Jul-08
15-Nov-08
15-Nov-08
07-Feb-09
17-Feb-09
02-Sep-09
16-Sep-09
21-Apr-11
06-Sep-12
15-Sep-12
21-Apr-14
22-Mar-16
Carrying
Value
($000)
3,990
999
3,002
1,515
3,523
4,018
1,999
5,539
4,791
1,525
2,991
1,986
2,012
1,983
1,472
1,548
1,394
4,000
48,287
40,527
Face
Value
($000)
4,000
1,000
3,000
1,500
3,500
4,000
2,000
5,500
4,755
1,500
3,000
2,000
2,000
2,000
1,500
1,500
1,400
4,000
48,155
40,255
Market
Value
($000)
3,973
995
3,003
1,553
3,623
3,975
2,010
5,598
4,840
1,491
2,981
1,978
2,031
2,059
1,487
1,556
1,424
4,061
48,638
41,186
2006
($000)
2005
($000)
7,991
7,991
4,001
4,001
11,055
20,827
8,414
40,296
48,287
7,972
25,018
3,536
36,526
40,527
Range of yield rates: 6.40%-7.46% (2005 yield rates: 6.40%-7.46%) – no change from the comparative period.
CURRENT ASSET – FIXED INTEREST STOCK
Range of maturity
– within one year
NON-CURRENT ASSET – FIXED INTEREST STOCK
– within one to two years
– within two to five years
– within five to 10 years
TOTAL FIXED INTEREST STOCK (DOMESTIC)
6.
TRADE RECEIVABLES/PREPAYMENTS/ACCRUED INTEREST
Trade Debtors and Notes
Prepayments
Withholding Tax Receivable
Accrued Interest
20
2006
($000)
50
65
244
1,690
2,049
2005
($000)
139
57
253
2,098
2,547
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:20
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Notes to the Financial Statements continued
7.
FIXED ASSETS
Cost
2006
($000)
1
198
34
376
609
Leasehold Improvements
Furniture & Fixtures
Motor Vehicles
Computer Equipment & Software
INTERNATIONAL FIXED INTEREST STOCK
East Japan Railway Company
Tokyo Electric Power Company
Nippon Telegraph & Telephone
Halifax PLC
Total 2006
Total 2005
9.
Depreciation
Charge
($000)
2
12
5
38
57
Cost Accumulated Net Book Value Depreciation
2005 Depreciation
2005
Charge
($000)
($000)
($000)
($000)
169
150
19
5
126
103
23
8
130
130
11
412
363
49
51
837
746
91
75
Leasehold Improvements
Furniture & Fixtures
Motor Vehicles
Computer Equipment & Software
8.
Accumulated Net Book Value
Depreciation
2006
($000)
($000)
0
1
160
38
5
29
346
30
511
98
Coupon
Rate
%
Maturity
Date
7.250
5.125
2.500
6.375
11-Oct-06
27-Mar-07
25-Jul-07
03-Apr-08
USD
EUR
JPY
GBP
Face
Value
($000)
Foreign
Currency
2,650
530
145,000
1,100
Carrying
Value
($000)
NZD
Market
Value
($000)
NZD
4,039
1,039
1,911
3,207
10,196
9,770
4,321
1,060
1,916
3,294
10,591
10,164
2006
($000)
11,475
201
2,542
14,218
2005
($000)
7,904
168
1,949
1,454
11,475
2006
($000)
20
1,955
421
2,396
2005
($000)
10
1,405
105
299
1,819
105
(41)
(64)
0
189
(109)
25
105
INVESTMENT IN UNIT TRUST
Opening Balance
Net Distributions Received and reinvested
Deposits
Unrealised Gain on Investment
10. SUNDRY PAYABLES INCLUDING PROVISIONS
Employee Entitlements
Related Party Payables
Legal Provision
Trade Payables
Movements in Provision for Legal Fees
Balance at beginning of year
Legal expenses incurred
Release of provision
Balance at end of year
The provision for legal fees provides for the estimated cost of defence of any cases currently before the courts in which the
New Zealand Meat Board is a defendant. Refer to note 13 for further details.
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:21
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Notes to the Financial Statements continued
11. COMMITMENTS
Operating Leases
The lease commitments are based on current rentals. The New Zealand Meat Board leases premises in Brussels, London and
Washington with lease terms of 1-9 years (2005: 1-4 years).
The New Zealand Meat Board’s non-cancellable lease commitments are as follows:
Within one year
Within one to two years
Within two to five years
Later than five years
2006
($000)
334
256
488
350
2005
($000)
168
117
69
-
The lease commitments have increased in 2006 as lease contracts have been renegotiated due to new staff postings. Three motor
vehicles and some items of office equipment are also leased.
Contracts
There are no contractual commitments as at 30 September 2006 (2005: nil).
Funding Commitments
The New Zealand Meat Board was committed at 30 September 2006 to contribute funding to Pastoral Genomics Research
Consortium, Ovita Ltd and Paraco Ltd. In 2005, the New Zealand Meat Board was committed to funding Pastoral Genomics
Research Consortium and Ovita Ltd.
The funding for these commitments is paid to Meat & Wool New Zealand Ltd from the New Zealand Meat Board’s reserves
according to the mandate received in the Farmer’s Choice referendum in 2003.
Within one year
Within one to two years
Total commitments
2006
($000)
4,922
4,544
9,466
2005
($000)
5,739
6,674
12,413
2006
($000)
986
325
(884)
559
-
2005
($000)
684
226
(534)
308
-
Capital Commitments
There are no capital commitments as at 30 September 2006 (2005: nil).
12. TAXATION
Surplus before tax
Prima facie tax @ 33 per cent
Taxation effect permanent differences
Tax loss not previously recognised
Adjustment for future tax benefits – no virtual certainty of recovery
Current taxation expense
Provision for taxation per Statement of Financial Performance
Income tax expense comprises:
– current tax
– deferred tax
-
-
Future Tax Benefits and Deferred Taxation
Unrecognised tax losses of $58,487,952 (2005: $59,740,767) are available to the consolidated tax group (which includes the New Zealand
Meat Board and Meat & Wool New Zealand Limited), subject to agreement of the current year losses by the Inland Revenue Department.
The future income tax benefits in respect of these losses have not been accounted for as there is no virtual certainty of recovery of the
benefits in future periods.
22
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:22
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Notes to the Financial Statements continued
13. CONTINGENCIES
(a) As at 30 September 2006 the New Zealand Meat Board had one ongoing claim in the New Zealand courts (2005: two claims):
Crusader Meats New Zealand Ltd v New Zealand Meat Board
In 2004 Crusader filed a claim against the Board seeking damages of $11,196,799 plus interest in relation to decisions made by
the Board between 2000 and 2002. The Board has filed a statement of defence, and the claim is continuing through its pre-trial
stages. No date for a hearing has yet been set.
The claim by J W Hartnell against the Board reported in the 2004-2005 Annual Report was resolved when the Court of Appeal
dismissed Mr Hartnell’s appeal (with costs for the Board) in a judgement dated 14 February 2006.
(b) The New Zealand Meat Board is party to letters of credit from the Bank of New Zealand for the sum of $20,000 to cover payroll
direct credits.
(c) The New Zealand Meat Board indemnifies officers against liabilities that may arise in the course of their duties.
14. SEGMENT INFORMATION
The group operates predominantly in the meat industry. It is considered that the provision of detailed segment information does not
provide any greater insight into the operations of the group.
15. DIRECTORS’ FEES
2006
($000)
25.0
14.9
14.9
14.9
Chairman
Producer Directors
Commercial Directors
Government Appointees
2005
($000)
21.0
9.6
9.6
14.9
The above fees represent the annualised fees payable to Directors. The New Zealand Meat Board pays no other fees to Directors.
The New Zealand Meat Board Directors and Officers are covered by Directors’ and Officers’ Liability Insurance.
16. REMUNERATION OF NEW ZEALAND MEAT BOARD EMPLOYEES
The following table represents the number of employees during the financial year to 30 September whose remuneration was
greater than $100,000. The remuneration of staff in Washington, Brussels and London has been converted to a New Zealand dollar
equivalent. Remuneration comprises salary and other benefits provided.
($000)
130-139
150-159
180-189
190-199
290-299
310-319
2006
No
1
1
1
-
2005
No
1
1
1
17. FINANCIAL INSTRUMENTS
The New Zealand Meat Board is party to financial instruments as part of its everyday operations. These include instruments such as
bank balances, investments, accounts receivable, trade creditors and interest rate management derivatives.
Revenues and expenses in relation to all financial instruments are recognised in the Statement of Financial Performance. All financial
instruments except interest rate management derivatives are recognised in the Statement of Financial Position.
The New Zealand Meat Board is risk averse and seeks to minimise exposure from its treasury activities. Its policies do not allow any
transactions that are speculative in nature to be entered into.
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
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Notes to the Financial Statements continued
Interest Rate Risk
The following table outlines the effective interest rates for investments:
Deposits
Fixed Interest Stock
2006
7.40%
6.38%
2005
6.88%
6.25%
Credit Risk
Credit risk is the risk that a third party will default on its obligations to the New Zealand Meat Board, causing the New Zealand Meat
Board to incur a loss.
Financial instruments, which potentially subject the New Zealand Meat Board to credit risk, consist principally of bank balances,
accounts receivable and short-term investments.
The New Zealand Meat Board only invests in creditworthy counterparties. Creditworthy counterparties other than government are
selected on the basis of their current Standard and Poors (S&P) rating, which must be “strong” or better.
The group may invest in the following instruments:
•
Government investments, which include treasury bills and stock
•
SOE investments, which include promissory notes and bonds
•
Registered bank investments, which include money market call and term deposits, transferable and negotiable certificates of
deposit, bank accepted or endorsed bills
•
Local authority investments, which include debentures, stock and promissory notes
•
Approved corporate investments, which include promissory notes, bonds and unit trusts.
The New Zealand Meat Board limits the amount of credit exposure to any one financial institution.
All of the financial instruments the New Zealand Meat Board is party to are unsecured unless otherwise disclosed within the
Financial Statements.
The bank overdraft facility is $20,000 (2005: $20,000).
Fair Values
The fair value of assets and liabilities is equivalent to the carrying amounts disclosed in the Statement of Financial Position.
18. CASH FLOW RECONCILIATION
Reported surplus after taxation:
Add/(less) non-cash items:
– depreciation
– bond amortisation
– exchange fluctuations in International Fixed Interest Bonds
– (gain) AMP investment – unrealised
– (gain) AMP investment – realised
– foreign currency translation adjustment
– dividends received
Add/(less) movements in other working capital items:
– decrease in accounts receivable
– increase in accounts payable
Add/(less) items classified as investing or financing activities:
– net gain on sale of fixed assets
– gain on foreign currency hedge
Net cash flows (used in)/from operating activities
24
2006
($000)
2005
($000)
986
684
57
318
(711)
(2,542)
(201)
(3,079)
75
281
(1,454)
(81)
(168)
(1,347)
498
577
1,075
939
788
1,727
(20)
(20)
(1,038)
(1,006)
(1,006)
58
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
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Notes to the Financial Statements continued
19. RELATED-PARTY TRANSACTIONS
Meat & Wool New Zealand Limited
The New Zealand Meat Board provides grant funding to Meat & Wool New Zealand Ltd for industry-good projects in accordance
with its reserves policy and the Meat Board Act 2004. Refer to note 19(a).
The New Zealand Meat Board operates offices located in Brussels, London and Washington. These offices are shared with Meat &
Wool New Zealand Ltd for market access and development work. The costs associated with running these offices, inclusive of staff
costs, are recovered from Meat & Wool New Zealand Ltd as noted below.
2006
($000)
1,828
Service recoveries: Overseas Offices
2005
($000)
1,752
The New Zealand Meat Board pays costs in relation to services provided by Meat & Wool New Zealand Ltd. Overseas Offices’ staff
are employed directly by the New Zealand Meat Board, which also seconds staff and services contracts from Meat & Wool New
Zealand Ltd for quota administration. These services are as follows:
2006
($000)
69
49
56
16
16
81
287
Administration & Information Technology
CEO and Corporate
Finance
Human Resources
Legal Counsel
Trade Policy for Quota Administration
2005
($000)
69
49
56
16
16
24
230
Disclosure of Interests By Directors
Some of the Directors on the New Zealand Meat Board own shares in or own New Zealand meat companies. Some of the Directors
are directors, employees or trustees of New Zealand meat companies.
19(a). GRANT FUNDING TO MEAT & WOOL NEW ZEALAND LIMITED
During the year to 30 September 2006, grants totalling $3,200,699 (2005: $3,248,050) were provided by the New Zealand Meat Board
to Meat & Wool New Zealand Ltd. This grant relates to industry-good activities and is as follows:
Grant Funding to Meat & Wool New Zealand Limited
Capital Reserve Funding to Meat & Wool New Zealand Limited
Total Funding to Meat & Wool New Zealand Limited
2006
($000)
3,201
4,203
7,404
2005
($000)
3,248
2,881
6,129
20. INVESTOR INTEREST RATE SWAP
The New Zealand Meat Board has two investor rate swaps with a face value of $2.5 million each. Floating rate interest receivable
obligations have been swapped for fixed rate interest receivable obligations to reprofile and provide greater certainty in the interest
income line over the medium term.
The fair value of these swaps is a liability of $52,023.
21. EVENTS SUBSEQUENT TO BALANCE DATE
Other than those already disclosed in note 13, there are no significant events subsequent to balance date requiring disclosure in these
financial statements.
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:25
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Notes to the Financial Statements continued
22. ADOPTION OF NEW ZEALAND EQUIVALENTS TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS
In December 2002 the Accounting Standards Review Board (ASRB) formally announced that New Zealand reporting entities would
be required to comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) for financial years
commencing on or after 1 January 2007. The ASRB also allowed the option of adopting NZ IFRS one or two years earlier.
Transition Management
A conversion project involving professional advisers and finance staff (monitored by an internal NZ IFRS project team) has been
established. The project team is:
•
assessing the impact of changes in financial reporting standards on the New Zealand Meat Board’s financial reporting and other
related activities;
•
designing and implementing processes to deliver financial reporting under NZ IFRS; and
•
dealing with any related business impacts.
This project is largely complete and the New Zealand Meat Board expects to be in a position to comply with the requirements of NZ
IFRS for the year ending 30 September 2008.
Transition to NZ IFRS will affect a number of the New Zealand Meat Board’s accounting policies and procedures. In particular,
accounting for derivative financial instruments, investments and deferred taxation are areas likely to be affected by the changes.
Derivative Financial Instruments
The New Zealand Meat Board currently uses interest rate management derivatives. The fair values of these derivative financial
instruments are not currently recognised in the Statement of Financial Position under Generally Accepted Accounting Principles
(GAAP) but are disclosed in the notes. Under NZ IFRS there is a requirement to recognise all derivative financial instruments in the
Statement of Financial Position at fair value.
This will result in an immediate increase in non-current liabilities and reduction in equity from 1 October 2006, being the first
comparative period. The amount is expected to be relatively minor, with the 30 September 2006 fair value of the swap being a liability
of $52,023 (refer note 20). Thereafter, in so far as the derivative financial instruments do not meet the requirements for hedge
accounting, any mark to market revaluation will be recognised in the Statement of Financial Performance. The New Zealand Meat
Board only intends to adopt hedge accounting for interest rate management derivative instruments where likely fair value changes
through profit and loss are considered material.
Classification of Investments
The classification of the New Zealand Meat Board’s investments will change. All investments will be classified into either available for
sale, trading or held to maturity categories. Held to maturity assets will continue to be valued at amortised cost but available for sale
and trading investments will be carried at fair value. The value of this change has yet to be quantified.
Deferred Tax
Under GAAP the accounting policy for income tax is to calculate income tax expense in the Statement of Financial Performance
based on the accounting surplus adjusted for permanent differences between accounting and tax rules. The impact of all timing
differences (eg differences in depreciation rates and unrealised derivative carrying) between accounting and taxable income is
recognised as a deferred tax liability or asset in the Statement of Financial Position.
IFRS requires the comparison of the Statement of Financial Position carrying values with the tax base values to determine the
deferred tax liability or asset to be recorded in the Statement of Financial Position. Recognition of the movement in the deferred tax
balances for the period will be determined by the underlying transaction.
A comparison of the Statement of Financial Position carrying values with tax base values as at 30 September 2006 will be required.
Fixed assets values are largely aligned with tax values due to a revision of depreciation rates undertaken during 2005. The impact of
the value of interest rate management instruments will need to be determined, but is not expected to be material.
It is not possible at this time to estimate reliably all the impacts of the changes on the New Zealand Meat Board’s reported financial
performance and financial position. The actual impacts of adopting NZ IFRS may vary from the information presented.
The New Zealand Meat Board will be a late adopter of IFRS, with the first IFRS Financial Statements being for the year ending
30 September 2008.
26
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:26
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Audit Statement
To the stakeholders of New Zealand Meat Board
We have audited the financial statements on pages 14 to 26. The financial statements provide information about the
past financial performance of the Board and its financial position as at 30 September 2006. This information is stated in
accordance with the accounting policies set out on pages 17 to 18.
Directors’ Responsibilities
The Directors are responsible for the preparation of financial statements which give a true and fair view of the financial
position of the Board as at 30 September 2006 and the results of its operations and cash flows for the year ended on that date.
Auditors’ Responsibilities
It is our responsibility to express an independent opinion on the financial statements presented by the Directors and report
our opinion to you.
Basis of Opinion
An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. It
also includes assessing:
•
the significant estimates and judgements made by the Directors in the preparation of the financial statements
•
whether the accounting policies are appropriate to the Board’s circumstances, consistently applied and adequately
disclosed.
We conducted our audit in accordance with New Zealand Auditing Standards. We planned and performed our audit so
as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient
evidence to obtain reasonable assurance that the financial statements are free from material misstatements, whether caused
by fraud or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the
financial statements.
Other than in our capacity as auditors we have no relationship with or interests in the Board.
Unqualified Opinion
We have obtained all the information and explanations we have required.
In our opinion the financial statements on pages 14 to 26:
•
comply with New Zealand generally accepted accounting practice
•
give a true and fair view of the financial position of the Board as at 30 September 2006 and the results of its operations
and cash flows for the year ended on that date.
Our audit was completed on 6 December 2006 and our unqualified opinion is expressed as at that date.
Wellington
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:27
27
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Use of Statutory Powers
For the period 1 October 2005 to 30 September 2006
Registration
Quota Management
Sections 48-56 of the Meat Board Act 2004 outline the
requirements in relation to meat export registration.
Under Part 3 of the Act, the Board must consider the
establishment and operation of mechanisms for the allocation of
quota in country-specific tariff quota markets.
Export Registrations issued under the Meat Board Act 2004 are
valid for a period of three years and expire on 30 September in
the final year of the registration period, unless they are renewed
earlier. During 2005-2006, 24 Export Registrations were issued
and 27 Export Registrations were cancelled.
As at 30 September 2006 a total of 228
Export Registrations were current. The
holders of these Registrations are listed
as follows:
Name
ABB Grain (NZ) Ltd
ABBEX International Ltd
Adambrooke International Ltd
Advance Marketing Ltd
Aegean Oceanic Ltd
Affco New Zealand Ltd
Agri-lab Co-Products Ltd
All the Word Export Company
Limited
Alliance Group Ltd
Alpine Export Limited
Amalgamated Marketing Ltd
AMC Marketing Company
Limited
AMI Export Trading Ltd
Anthony Goodman
ANZCO Foods Green Island
Limited
ANZCO Foods Limited
APJ Meats Ltd
Arex International
(New Zealand) Ltd
Aroma NZ Ltd
Asia New Zealand
Pacific Foods Ltd
Astra Farm
Ataahua Group Ltd
Auckland Meat Processors Ltd
Back Country Foods Ltd
Ballande NZ
Barbarossa Ltd
Bernard Matthews NZ Ltd
Biotissues NZ Ltd
Bizsmart International
Boss NZ Ltd
Brightwater Ltd
Brookland NZ Limited
Buchanan’s Beef
C Sullivan (NZ) Ltd
Cabernet Foods Ltd
Cambrian Meats
Canterbury Fresh Ltd
Canterbury Meat Imports &
Exporters Ltd
Canterbury Meat Packers Limited
Caprine Cuisine NZ Ltd
CERCO Limited
Chevalier Wholesale Produce Ltd
Ciara McBride
Clover Export Ltd
28
ELN
Number
1390
1273
1027
1152
1009
1279
1381
1165
1103
1033
1247
1426
1359
1443
1019
1301
1239
1194
1166
1371
1257
1405
1062
1199
1054
1412
1105
1430
1406
1307
1130
1106
1447
1078
1347
1183
1271
1450
1142
1414
1420
1358
1410
1044
During the year, three quota allocation mechanisms operated in
accordance with Part 3 of the Act: EU sheepmeat and goatmeat,
US beef and veal, and EU high-quality beef.
Name
CMP Kokiri Ltd
Columbia Exports Ltd
CR Grace Limited
Crosby Exports Limited
Crown Marketing Limited
Crusader Meats New Zealand Ltd
CSI Seafood Ltd
CUL (Australia) Limited
Dairy Meats (NZ) Limited
“Darling on the Wharf ” Ltd
Davmet New Zealand Ltd
Dickie & Co Ltd
DM Palmer NZ Limited
Duncan & Co Ltd
Dunnett & Johnston Group Pty Ltd
E & J Company Ltd
Ellis Agricultural Services Ltd
Evenrude Trading Ltd
Export Services
Fairleigh Enterprises Ltd
Farmlands Industries Ltd
Fern Ridge Ltd
Fernbryn Holdings Ltd
Fishers Meats Ltd
FJ Ramsey Meats (Paerata)
Limited
Forty Degrees South Ltd
Forventa Ltd
Franklin Foods Ltd
Frasertown Meat Company Ltd
Fresh Meats NZ Ltd
Fresha Export Ltd
Frontiers Group Co Ltd
Fungamahofa Enterprises (NZ)
Limited
GANA International Ltd
Garra International Ltd
Garra Protein Limited
Garrett International Meats Ltd
Genesis Bio-Laboratory Ltd
Georand Ltd
Global United New Zealand Ltd
Glovers Foods Ltd
Gordon Dennis
Greenlea Premier Meats Ltd
GTL Limited
Halabi Holdings Ltd
Hao Pang Jarm
Harrier Exports Ltd
Heinz Wattie’s Limited
Hellaby Meats (South Island) Ltd
Highford Marketing Group Ltd
Horizon Meats NZ Ltd
Ian Price Provedors Ltd
Independent Provedoring Co Ltd
ELN
Number
1137
1107
1097
1065
1069
1160
1333
1073
1310
1118
1068
1041
1125
1362
1275
1059
1280
1375
1304
1402
1422
1014
1254
1243
1159
1153
1432
1111
1026
1380
1049
1327
1428
1323
1015
1423
1034
1116
1444
1398
1099
1317
1119
1449
1395
1397
1016
1145
1388
1029
1214
1425
1043
Name
Integrated Foods Marketing Ltd
International Marketing Corp Ltd
Invitrogen New Zealand Ltd
Itoham New Zealand Ltd
Jatra Corporation Ltd
Jerry (Chih Chung) Ting
Jong Won Park
Juken New Zealand Ltd
Juno Exports Ltd
JW Hartnell 2000 Ltd
Kaiser Enterprise Ltd
Kanematsu New Zealand Ltd
Kato Farming
KFM International Trading
Kiwi Pacific Foods Ltd
Konig Gourmet Foods Ltd
Koru International Ltd
Lamb Packers Feilding Ltd
Land Meat New Zealand Ltd
Lanexco Limited
LANZ Company Limited
Lean Meats Limited
Levin Meats Ltd
Lincoln Wu
Lotus Exports Ltd
Lowe Corporation Limited
LSG Sky Chefs Limited
Lyford & Burkhart Exports
(NZ) Ltd
Mainland Products Ltd
Mana Pasifika Ltd
Marcol Meat New Zealand
Limited
Marquet Trading Ltd
Master Butchers Marlborough Ltd
Mathias NZ Ltd
McCallum Industries Ltd
McDonald’s Asia-Pacific
Consortium Pty Ltd
McDonald’s Distribution Centre Ltd
MCK Export/Import Ltd
Menu Magic (New Zealand) Ltd
Milton Marketing Ltd
Miranda Farm Ltd
Mount Erin Exports (NZ) Ltd
Mountain Valley Organic
Meats Ltd
Musgrave Meat Holdings Ltd
NASA 1 Export Limited
National Meats NZ Ltd
Nelson and Robertson Pty Ltd
Nestle New Zealand Limited
New Century Company Limited
New Zealand Exports
International Ltd
ELN
Number
1392
1121
1300
1445
1431
1438
1344
1216
1240
1150
1352
1024
1355
1367
1030
1343
1446
1028
1342
1221
1270
1133
1386
1440
1147
1256
1007
1340
1112
1400
1451
1227
1417
1262
1122
1411
1299
1023
1128
1083
1418
1212
1017
1093
1322
1424
1129
1126
1427
1429
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
9597 NZMB AR 06 2.9.indd Sec1:28
1/3/07 1:15:11 PM
During the year the Board continued a review of allocation
mechanisms, as provided for by section 29 of the Act. This review
was suspended during the passage of the Meat Board Amendment
Bill 2006 through Parliament, and was subsequently completed in
November 2006 following further consultation with the industry.
Name
New Zealand Pacific Meats Ltd
New Zealand Supreme Ltd
Nippon Meat Packers NZ Ltd
Norman Evans Ltd
Nutura New Zealand Ltd
NZ Angus Beef Ltd
NZ BY Products Ltd
NZ Lamb Co
(North America) Ltd
NZ Trade Corporation Ltd
Oriental By-Product Processors
Limited
ORION 2000 Ltd
Ottogi New Zealand Ltd
Outlands New Zealand Limited
Owen Macdonald Douglas
Pacific Basin Exports Limited
Pacific Natural Gut String Co Ltd
Panamex Pacific Limited
Pasifika Trading Ltd
Pilot (NZ) Ltd
PPCS Limited
PPCS Limited
Pratima Agro Traders
New Zealand Limited
Premium Halal Meats
International (NZ) Ltd
Prepared Foods Processing Ltd
Prime Range Meats Limited
Progressive Gisborne Ltd
Progressive Meats Ltd
Projects NZ Ltd
Quality Food Brokers Ltd
RCI Limited
Reliance Impex Limited
Richard Kidd Marketing Ltd
Richie Smith Ltd
Riverlands Ltd
Robert J Aitchison
Rossendale Holdings Ltd
RTD (NZ) Import Export Ltd
Samex Australian Meat Co Pty Ltd
Samho Natural Food (NZ) Ltd
SDP Marketing Ltd
Seed Home NZ Co Ltd
ELN
Number
1433
1403
1050
1144
1360
1416
1229
1020
1314
1037
1452
1040
1146
1161
1139
1124
1011
1089
1131
1018
1046
1436
1415
1035
1079
1004
1364
1331
1008
1259
1434
1088
1399
1289
1366
1127
1439
1374
1409
1404
1448
The Board did not use any other statutory powers during the
period 1 October 2005 to 30 September 2006.
Name
Serosa NZ Ltd
Shinpoh NZ Ltd
Shore Mariner Ltd
Son’s Agro Business Ltd
South Pacific Meats Limited
South Pacific Sera Limited
Southland Meat Exporters Ltd
SPANZ Ltd
Stand Out Marketing Ltd
Stratford Meat Brokers Co Ltd
Swift & Company Trade Group
Tara Exports Limited
Taylor Preston Ltd
Te Kuiti Meat Processors Ltd
Te Mania International Ltd
Tevita Tamahanga Tukunga
The Farmhouse
The Neat Meat Company Ltd
Tian Long International Co Ltd
Top Hat Convenience Foods Ltd
Toshi Farm
Towers Thompson
(New Zealand) Ltd
Trade Meats New Zealand Ltd
Tradexport Corporation Limited
True South Limited
Tulimanu Exports Ltd
Turner New Zealand Limited
UBP Limited
Urban Food Distributers’ Limited
Van Hessen (NZ) Ltd
W H Grove & Sons Ltd
Waitaki Biosciences
International Ltd
Walcovit New Zealand Limited
Wallace Corporation Limited
Wallace Trust Meats Ltd
Wei Young International Ltd
Wilderness Foods Limited
Wilson Hellaby Limited
Wrightson Ltd
WWA Import/Export Ltd
ELN
Number
1335
1236
1377
1407
1348
1074
1296
1232
1435
1224
1134
1123
1047
1091
1237
1143
1413
1370
1394
1148
1419
1135
1357
1102
1441
1437
1080
1272
1442
1264
1039
1060
1288
1138
1230
1421
1176
1022
1312
1408
As per the Meat Board Act 2004
the following Export Registrations
were cancelled or lapsed as at
30 September 2006:
Name
NZ Pacific Resource Group Ltd
Waipuna Processors
Solobio Ltd
L & M Trading Limited
Martin T J Ralph
Kiwi Beef Packers
Konder Holdings Limited
Abco Meats Ltd
Guy Bennett Sargent
Nita Karnadi
Winning Solutions Limited
Zhouzheng
Global Foods Corporation Ltd
Global Links Ltd
Romm Pvt Ltd
47 Degrees South Ltd
Mahendra Prasad
Bellbird Ranch Ltd
Tuesday Trading Ltd
South Pacific Meats North Island
Ltd
New Zealand Standard Exports
Ltd
Nes Working Holiday Co Ltd
ABQM Ltd
Sesang Trading Ltd
Mohammed Nurul Karim
Q Exports International
(NZ) Pty Ltd
Mike Halaoui
ELN
Number
1228
1233
1245
1248
1251
1261
1269
1276
1277
1361
1363
1365
1368
1369
1372
1373
1376
1378
1382
1383
1384
1385
1387
1389
1391
1393
1396
Image Credits
M Meat & Wool New Zealand collection.
H Hocken Collections, Uare Taoka o Hakena, University of Otago. (Includes Dunedin images.)
Page 8 Container ship image courtesy Maersk New Zealand Limited
Following images courtesy Alexander Turnbull Library, Wellington, NZ.
1 Gear Meat Company. [1880-1890.] Eph-F-MEAT-Gear-002-3.
2 Photographer unidentified. [ca 1880s-1920s.] G-8870-1/1.
The Press (Christchurch) Collection.
3 Photographer: Steffano Francis Webb. [ca 1910.] G-19436-1/1. Steffano Webb Collection.
4 Photographer: William Archer Price d. [ca 1910.] G-1869-1/2. Price Collection.
5
6
7
8
9
10
11
12
Photographer: Sydney Charles Smith. [192-?.] G-45403-1/2. S C Smith Collection.
Photographer: Sydney Charles Smith. [1933.] G-46510-1/2. S C Smith Collection.
Photographer: Steffano Francis Webb. [192-?.] G-3961-1/1. Steffano Webb Collection.
Photographer: John Dobree Pascoe. [ca 1943.] F-151-1/4. John Pascoe Collection.
Photographer: John Dobree Pascoe. 19 August 1943. F-629-1/4. John Pascoe Collection.
Photographer unidentified. [ca 9 March 1951.] 114/267/04.
Photographer: Morris James Hill. December 1956. F-177219-1/2. Morrie Hill Collection.
Photographer: Ross Giblin. 10 August 1985. EP/1985/3577/16. Dominion Post Collection.
NEW ZEALAND MEAT BOARD 2005-2006 ANNUAL REPORT
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