In the sunlit setting of Wanaka's A&P show, Dom George joins Tom Young, Livestock Manager at AFFCO, for a discussion on the current state and future outlook of the meat industry.
Young is optimistic about the meat market's future, forecasting diversified global demand and opportunities for farmers beyond traditional products. He indicates a shift in market dynamics, saying, "So there's a product moving around the world that was finding its way into China, and China's probably the bottom now if I'm honest, and now other markets {are} prepared to pay a little bit more."
His outlook is buoyed by the increased competition among international markets, which could lead to better pricing and opportunities for meat producers. Delving deeper into AFFCO's strategies, Young hints at a distinct business model that differentiates the company from its competitors, without revealing too much.
"We think we do an okay job... We see things, you know, quietly improving," he notes, highlighting their approach to finding the best markets and extracting maximum value for their products.
Young also touches upon the current trends in export volumes, acknowledging the growth in the United States and the corresponding dip in China. He explains the shift in the Chinese market, citing historical issues like African Swine Fever and the effects of the COVID-19 pandemic on global economies.
"Now we've got the situation where interest rates have gone mad, there's not a lot of free money floating around anymore... so it's probably got a bit more realistic."
Despite acknowledging some dips in export numbers year on year, Young is confident that recent market activity signals a positive turn.
"We're just starting to see more inquiry and more interest," he shares, conveying a sense of hope that the worst may be behind and the industry is heading towards recovery.
The conversation with Young provides an insider's perspective on the challenges and resilience of the meat industry.
His insights into market adaptations and the strategic maneuvers of AFFCO South Pacific Meats offer a nuanced understanding of how the industry is navigating current economic landscapes and preparing for future opportunities.
Listen to the full chat between Tom Young and Dominic George above.
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