A Southland meatworks is buying lambs from Christian farmers, promising that they will not be killed in accordance with Islamic rules reports The Southland Times.  Ricky Larsen, manager of Invercargill’s Blue Sky Meats, said the company was the only meatworks in NZ deliberately rejecting halal processing.

About a quarter of its daily 4400 lambs came from farmers not wanting a halal kill, he said. The farmers believed their stock were as Christian as they were. “There is a significant proportion of our supply base that hold that principle and choose to supply us because we don’t process to the Muslim halal requirements,” Mr Larsen said.

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Southland-based Blue Sky Meats is eyeing the prospect of supplying high-value meat products to China but warns it could take 10 years to achieve the full market potential. Company chairman Graham Cooney said the signing of a Free Trade Agreement with China last year and an expectation that the Chinese currency would continue to appreciate over time had triggered the move reports The Southland Times.  The focus would be on higher value products, a step forward from the lower value meat and offal currently sold in that market, which would continue.

Traditionally, the lower value product had been sold as a commodity to suppliers and finishing product companies that developed it into customer-ready goods. It was felt there was an opportunity to supply a premium product to target expatriates and increasingly affluent Chinese, as well as luxury restaurants and hotels, he said. However, it was not likely to happen immediately and could take up to 10 years to develop the market and see the full benefits.

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Southland processor and exporter Blue Sky Meats has turned around a poor performance last year to report a much improved $3.9 million after tax profit for the year to March 31. This compared with a $282,000 after tax profit for the previous year, with the turnaround attributed to a high kill of capital stock from April to June last year and significant increases in returns due to improved market prices and a more favourable exchange rate reports The ODT. The turnaround was marked by company revenue reaching $99.9 million, compared with $79.4 million in the previous corresponding period (pcp), while expenses were $94.3 million ($79.1 million). A dividend of 15c a share will be paid, similar to previous years, except last year when none was paid.

Blue Sky Meats operates a small meat works north of Invercargill and chairman Graham Cooney said in the company’s annual report that its size worked to its benefit in the past year. While it could not take advantage of farmers suddenly wanting large numbers of animals killed, its opportunities came on the shoulders of the season, and last year it took advantage of the high kill of capital sheep stock from April to June as farmers converted farms to dairying. The spring bobby calf kill was 12.5% higher than the previous year, but still historically low. Mr Cooney said interest was strong from farmers wanting supply contracts, and the kill from December to February was high before dropping away.

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