Challenge Meats contracts on offer from mid-October onward

Press, 9 October 1987, Page 25

Challenge Meats contracts on offer from mid-October onward

Challenge Meats will be offering Its supply contracts for the IM7/M season from mid-Octo-ber.

Operations controller, Mr Neil Cochrane, said much work had gone into the fine-tuning of last season’s highly successful contract system In order to offer the optimum contract options for fanners.

He said the new season contracts placed special emphasis on grade requirements. Challenge needed Increasing numbers of heavier lean lambs for further processing, as Its upgraded plants to cater for the increased needs for special cuts of lamb. Stock also needs to be

in good condition. Presentation of stock is paramount, and stock needs to be free from dags, dirt, dust and stain. It is costly to clean stock and consequently the more handling prior to slaughter, the more costs would be incurred.

Increased handling could also increase the pH of the product and shorten the shelf life of chilled meat.

While most Challenge suppliers were particular In the presentation of their stock, some still did not realise their obligations, he said.

To increase farmer awareness, killing sheets would this year show Challenge’s assessment

of stock received for slaughter. Assessments would range from excellent to marginal, pointing out problems like staining and dustiness.

Mr Cochrane said Challenge would reward suppliers who had contracted stock last season with higher advance payments for contracted stock.

“Our relationship with our suppliers is very important and we want our relationship to be a longterm partnership. “Therefore, we are determined to make our . contract system beneficial not only to Challenge Meats, but to our suppliers. “Challenge needs that

good working relationship with its farmers in order to achieve its objectives of year-round production and market supply,” he said.

Mr Cochrane said a survey of suppliers who contracted stock last season revealed that farmers were very pleased with the system. Eighty per cent of all ' suppliers had contracted supply, and most said that they would do so again this season.

The major benefits to the farmers of contracting stock-was a certainty in killing -dates which assisted with financial management and guaranteed cashflow. The benefits to Chai-,

lenge were guaranteed supply during the season, greater control over all grades, particularly for the further processed operation. This in turn led to significant improvements in production management, material purchases and work flow. Guaranteed supply also gives reassurance to Challenge’s workforce for continuity of long-term employment.

Mr Cochrane said farmers would also notice an improvement in livestock administration systems In the coming season as Challenge " is implementing -an up- ; .graded,." more.., efficient computer processing sys- . tern. ■ •