ANZCO Foods CEO Update - October 2023
Posted on Monday, 16 October 2023
I recently returned to China for a visit that took place in four major cities and included meetings with many of our key customers. This was my first visit back to China since 2019 and an opportunity to see first-hand how the market is changing, and the challenges faced post-Covid.
The visit certainly reinforced the difficult situation currently, with consumers trading down as they look to save money and recover from the challenges of the last three years. Additionally, a significant volume of inventory in market will need to clear before pricing starts to improve.
Despite this, there is evidence that meat consumption per capita in China continues to grow and this underpins the potential that this market will offer to New Zealand producers. That is why we continue to invest in the market, including establishing an office this year as we look to the future.
ANZCO Foods takes pride in its involvement with AgriZeroNZ, a groundbreaking collaboration between the government and key stakeholders in the New Zealand agribusiness sector. Established in February, the government holds a 50% stake, and ANZCO Foods is in partnership alongside Fonterra, Rabobank, Ravensdown, Silver Fern Farms, and Synlait.
Agri-ZeroNZ aims to ensure that all New Zealand farmers have access to affordable and effective solutions for reducing biogenic methane and nitrous oxide emissions. The objective is to achieve a 30% reduction by 2030 and facilitate the development and adoption of solutions to approach 'near zero' emissions by 2040. This goal is pursued by expediting the development of tools and technology through targeted investments.
With almost half of New Zealand’s greenhouse gas emissions coming from agriculture, the importance of reducing methane emissions cannot be understated. Our global customers are setting ambitious greenhouse gas reduction targets, and if we can’t meet these targets, export revenue could be under threat.
The Agri-ZeroNZ team is making good progress and is currently in the process of ramping up investments prior to the research and commercialisation of approved investments. Here is a snapshot of where things are at. For more information, check out Agri-ZeroNZ.
ANZCO Foods Chief Executive