Vero Marine - Exporting Meat in the 1970s & 1980s

Exporting Meat in the 1970s & 1980s

This Photo Feature delves back into our archives, to a time when - as the Marine Insurance Company, and then International Marine Insurance Agency, our company was involved in changing how cargoes of meat were insured to the United Kingdom. Our General Manager of that time, David McKellar, was instrumental in changing the UK practice way from "nominals". Nominals were traditional depreciations allowed by UK meat trade surveyors to importers, that added greatly to the costs of exporting from New Zealand.

Some of the following photographs and detail come from a report written by David McKellar and Bill Tucker (South British Insurance), acting on the instructions of the marine committee of the Insurance Council of New Zealand. The report was prepared for presentation overseas, to convince UK underwriters and the meat trade that nominals, principally moulds and freezer burns (dehydration), were more imagined than real. This was because cargo handling was much improved. The real reason behind the continuation of these discounts in the UK meat trade was the self-preservation of jobs by the UK meat trade surveyors.

There had been efforts to curb nominals in the 1960s, but the practice was only discontinued in the 1970s. The London insurance market was wary of upsetting the meat trade bodies, and the UK meat import industry itself was highly unionised.

From the minutes of an unofficial Working Party of Lloyd's and Company (i.e. Institute of London) underwriters, February 1969:

"It was explained that whereas it is possible to insure meat on “A” Clauses from Australia / New Zealand to the U.S.A. at say 10/-%, the burning cost of claims on shipments to the United Kingdom is more than three times this rate i.e. at least 30/-% net and it was suggested that one reason for this state of affairs was the age old practice of claiming Nominal Allowances irrespective of condition on delivery which have been costing a regular 10/% net in addition to some 3/-% net for unpiling costs and survey where incurred. The meeting was sought to bring the present unsatisfactory position to the attention of Meat Trade in the hope of obtaining their cooperation in finding a remedy, as a preferred alternative to leaving the solution to unilateral action by Underwriters ..."

" ... It was made clear that the persistent deterioration of underwriting results over recent years now demanded a substantial increase in rates, or restriction of cover to “C” Clauses conditions only, or alternatively drastic amendments of “A” Clauses and/or the imposition of an excess of say 2% on each consignment ..."

" ... The IMTA (International Meat Trade Association) for their part intimated their readiness to give any assistance within their power towards the elimination of frivolous claims for Nominals ...."

The IMTA was previously the Import Meat Trade Association, but changed name.

The New Zealand report - "in order to ascertain the condition of frozen meat at the time it is shipped overseas" - followed "a typical and normal load-out of meat from the freezing works and receipt and stowage of the frozen meat by the vessel." In this case the freezing works were the Whakatu Works of the Hawkes Bay Farmer's Meat Company Limited and the P&O M.V. "Taupo". In this Photo Feature article we have used some other archive photographs to illustrate these earlier export practices.

"Taupo" (10,983 GRT). Specially built in 1966 for the New Zealand and Australian trades. The vessel had five refrigerated holds: a lower hold, lower tween deck and upper tween deck. For cargo handling and discharging the ship was fitted with Hallen derricks.
Captain: C.B. Cooke, Chief Engineer: G.A. Davies, Chief Officer: K.N. Metcalfe, Refrigeration Engineer: A Johnson.

"Our investigation commenced at the end of the killing chain where carcasses of meat were ready for grading and forwarding to be packaged and frozen down. It is at this point that a decision is made as to where the particular carcase will finally be destined. All carcasses have by then been examined by Meat Inspectors of the Ministry of Agriculture and Fisheries. Carcasses which show evidence of a disease or defect, such as bruising, are detained on a special rail under the control of an Inspector, and after further examination are either condemned entirely as unfit for human consumption or the defective part is removed and condemned. Carcasses from which a part has been removed are not exported as carcasses, but are cut and packaged for export as primal cuts or boneless manufacturing meat. Carcasses destined for the North American Market are separated at this stage as they are subjected to a conditioning and ageing process before being cut and packaged."

"The carcasses then travel along an overhead rail to a special temperature controlled room where they are sorted according to grade. They are hung here for a sufficient time to allow the carcase to dry before being bagged. Bagging is normally in stockinette but there is an increasing demand for carcasses to be first bagged in a polythene bag. (This is a type of packaging very often requested by E.E.C. Countries other than the United Kingdom). It was pointed out to us that once the animal is dead there is no way in which the carcase can be bruised."

"The carcasses are then railed to Freezing rooms. In the Freezing room the carcasses are hung and blast frozen by huge overhead fans. This process generally takes 12-14 hours. After freezing the carcasses are then railed to a sorting area where they are put on steel frames and transported to the Freezer Stores where they will remain on the frames until they are eventually loaded out of the Works. Cartoned meat is blast frozen under a similar process except that the cartons are in a freezer tunnel with the fans at the side. As they are a more solid block of meat the freezing process takes 24 hours."

"The whole process under temperature controlled conditions with as little handling as possible eliminates the possibility of mould growth and physical damage to the meat. "The Company's Quality Control staff maintain a constant surveillance of all production to see that the highest standards are maintained at all times. Ministry of Agriculture and Fisheries Inspectors also maintain a watch on the product at all stages of production until such times as it is loaded out and ensure that only properly packaged product leaves the Works. It should be noted that the New Zealand Meat Producers Board employs Supervising Meat Graders. These people see that the Boards grading standards are maintained in all Works. In addition they maintain an inspection service on the Wharf for all meat shipments. They see that the meat arrives at the wharf in good condition, properly packaged and at the correct temperature. In consultation with ships engineers they will reject meat and have it returned to the Works if it is not at a sufficiently low temperature. They will ensure that the rail wagons are clean, that they are properly closed up at meal breaks and that damaged or improperly packaged carcasses or cartons are returned to the Works."

"Before loading they inspect the ships hold or lockers and will not permit loading to commence if conditions therein are not satisfactory."

"One of the main reasons given for nominal depreciation is due to the meat suffering perishing, bleaching and discolouration. An approved surveyor of the Import Meat Trade Association in the United Kingdom has stated that such a condition is brought about by holding meat in cold store for too long a period prior to shipment together with the length of time in any delays in transit. With more diversified and efficient marketing methods no export meat is kept in store for longer than necessary. Stock inventory control is computer controlled which ensures that product is loaded out on a "first in - first out" basis."

"It is also stated that such a deterioration of meat is caused by the meat being too close to forced air delivery openings. In the more modern freezer stores the air ducts are well away from any meat stored therein and in the older type of freezer store the freezing is by the brine pipe system and the stacks are kept well clear of the actual pipes."

"The writers were amazed by the security throughout the Works. The blast freezer rooms and storage rooms were kept locked at all times unless meat was being stored or removed from them. We considered that there was no possibility at this particular works for the meat to become soiled or for any defrosting to take place unless a major accident should occur. There was also very little possibility of any broken, chafed or torn carcasses or cartons leaving the works. All transits within the works are on the steel frames thus avoiding handling of the meat, and the method of loading into rail-wagons and containers is such that the meat is not allowed to be dropped from any height where possible deterioration or breakage could be caused. In the event of a carcase being found damaged, the defective parts may be removed and that undamaged portion cut and packed in cartons. The freezer stores were right alongside the loading bays so that there is no possibility of meat being stolen whilst being transported on the steel frames to the loading area nor is there any chance of defrosting as there is no long transit without refrigeration. Not only is each carcase or carton tallied into the rail-wagon or container but also a second person is recording the weight of each carcase or carton."

VR type rail wagon. The report extols cleanliness - but note the seagulls!!

"For the meat that was being transported to the "Taupo" a list of the contents of each rail-wagon or container is sent with the train. The details shown on the list include overseas destination, quantity, description, vessel, name of freezing works, consignor, port of destination, wagon number and date of loading out. The same information is also put on a card on the outside of the rail-wagon or container. Currently frozen meat packed in reefer containers leave the Whakatu Works by rail on the 1500 shunt and the containers arrive at the Wellington container depot by 0500 the next morning. With meat being shipped out of the port of Napier the wagons and rail containers are loaded as required owing to the short distance between the freezing works and the wharf. There are normally three shunts to the wharf each day and four if supplementary hours are being worked. The majority of meat destined for the port is loaded in either insulated railway containers or in the V.R. & V.S. type wagon. It is very rare indeed to see a W. wagon being used."

"The N.Z.R. type reefer containers are fixed at each end of a U.K. type wagon in such a manner as to permit central space between the two containers to facilitate the handling of the contents of those containers. The doors of the containers face inward on the unloading space. At the other end of each container, shall we say the buffer end of the railway wagon, was the special fittings of the container as would permit refrigeration either by means of forced cold air or the entry of liquid nitrogen, etc. The very short distance from the works to the ship, in this instance, would not necessitate refrigeration. The refrigeration engineer on the "Taupo" stated that the N.Z.R. reefer containers were extremely satisfactory and that he had also had no problems with V.R. & V.S. wagons."

"When the wagons arrive on the wharf they are immediately inspected by the refrigeration engineer and the duty deck officer. The deck officer is mainly interested in the shipment details such as quantity, port of destination and marks to ensure that the meat is loaded in the correct order. The refrigeration engineer checks the type of wagon that has been used and the loading out date. If he is not satisfied with the time between loading out and arrival at the wharf, or the type of wagon used, he will immediately have the meat inspected to ensure that its condition and temperature is satisfactory. If possible, he will then ensure that that meat is loaded onboard first."

"Once loading commences for the day spot checks are made by the refrigeration engineer on the temperature of the carcasses, and also the duty officer keeps an eye out for any sign of soft or thawed meat. In addition to this wharf labour immediately draws their attention to any meat they consider not frozen hard enough. They usually identify soft meat either by the noise it makes (i.e. a dull thud as opposed to a solid thump) when it lands on the floor of the wagon at the end of the conveyor belt or else from the feel of the carcase during the handling of it. When questioned further on this matter the refrigeration engineer stated that this occurred in all New Zealand ports and in smaller ports such as Napier and New Plymouth the labour will put any soft carcasses to one side, but in ports such as Wellington and Auckland they will insist on the whole wagon loaded of meat being returned to the works."

"When questioned with regard to broken or damaged carcasses or cartons, the refrigeration engineer stated that it is very rare to get a damaged carcase or carton and this was evident by the methods used for unloading from the rail-wagons and loading onboard the vessel. No longer can wharf labour throw carcasses out of rail-wagons on to slings lying on the wharf. In all cases either wooden chutes or rollers are used and they ensure that they are set up in such a way that the ends of the rollers or chutes are never greater than six inches above the ground. The cargo slings are placed on trollies and when one has been filled it is then wheeled into position under the derrick. The sling is lifted off and then lowered into the hold. If the wharf labour in the hold is not working directly under the derrick head then the sling is lowered on to another trolley and wheeled over to the working face of the stow. This prevents wharf labour using previous bad habits of trying to drag the slings as far as possible into the wings of the hold, and from throwing carcasses some distance on to the stow. In addition to this, if wharf labour is working on top of a stow in the hold, they are now required to lay down boards to walk on, instead of the old type canvas cover. This prevents the breakage of legs on carcasses as their weight is evenly distributed over the total carcase on which they are walking. During the period we were on the wharf and onboard the vessel we did not see one damaged carton or carcase either being loaded onboard the vessel or in the stow in the hold."

"There have also been improvements in the packing of cartoned meat. At one time it was normal for the cartons to be filled so full that they were bulging. Frequently the wire bands around the cartons would break and it was usually necessary to have a machine on the wharf where the cartons could be re-wired. Nowadays the cartons are flat and are banded thrice across the width and once longitudinally with a strong thick plastic material. Not only are these cartons now easy to handle but they are also far easier to obtain a flat stow in the hold."

"To ensure adequate space for the air flow it is necessary for dunnage to be laid under the stow. Carpenters working onboard the vessel during loading are continually making up sections of dunnage flooring. Under no circumstances is dunnage allowed to be laid in the hold until its temperature is the same as that of the hold temperature. During loading operations bundles of pre-fabricated sections of dunnage flooring are stacked in the hold prior to their use, and at the end of each day's work the duty deck officer ensures there is enough dunnage stacked in the hold to be sufficient for the next morning's work."

"During loading the temperature in the hold must not drop below 16°F otherwise wharf labour will not work onboard. If the temperature should drop below 16°F then the vessel has two hours in which to bring the temperature back up to a satisfactory level. At the end of work each day the hatches are closed and the forced air refrigeration turned on to reduce the temperature ready for the commencement of work the next day. With the approval of the chief engineer we sighted the logbook to see what temperature recordings were logged during a typical day's work. The temperatures are taken at not less than four hourly intervals of both the carcasses or cartons and the air temperature in the hold. The readings we saw indicated that in addition to bringing the temperature down during the night, it was also lowered during meal hours. On taking the readings for previous day's work we noted that at the commencement of work in the morning the air temperature in the holds was 14°F whilst the carcase temperature was 11°F. The highest temperatures reached during the day in any of the five holds being worked was an air temperature of 59°F and a carcase temperature of 25°F. These figures prove that adequate precautions are taken to ensure that the temperature of the meat in the hold is not allowed to rise to the point of thawing thus avoiding nominal claims on mis-shaping, icing and blood staining."

"The next matter we raised with the officers of the "Taupo" was the method used for marking off cargo. One obvious method with both cartoned and carcase meat was the different colours of the cartons or dyes on the mutton cloth of the carcasses. If this was not possible then the cartons were marked either with a chalk dye similar to that used for marking sheep or else with a liquid dye, which is applied with a roller. With regard to the carcasses cargo the methods varied depending on whether the marking off was for a horizontal or vertical stow. For a horizontal stow bright coloured tapes were used and with the vertical stows either a string netting or a coloured polythene mesh netting was used. All methods of marking off appeared completely satisfactory with the possible exception of the string netting where the mesh appeared to be too large and therefore not so distinctive to wharf labour during discharge. The only disturbing feature we learnt was that the wharf labour in the United Kingdom is not so careful with the different marks during unloading and very often will break into another mark before the first mark has been finished."

"The method of cooling the holds is by forced air and during loading the cargo officer ensured that no meat was stowed so as to block off air vents. When a particular hold or tween deck is completed the insulated hatch covers are then put in place. To prevent any possible entry of warmer air from the tween deck above, especially if general cargo is to be loaded, the joins of each cover are not only sealed with strips of paper, but in addition to this a polyurethane foam called "Fomofill" is put into the join to ensure it is completely airtight. The chief engineer advised us that there were four separate refrigeration units onboard the vessel. When leaving New Zealand they normally only need to run two of these units to hold the temperature at a satisfactory level, but as they enter the tropics a third unit is brought into use. At all times there is one spare unit in case one should break down or need to be serviced. Should there be a total freezer break down the chief engineer stated that after three days they would start being concerned with the air temperature in the holds, although this would possibly hold for a maximum period of seven days."

"Every care was taken to make sure that all meat loaded onboard the vessel was in perfect condition and that the temperature was controlled at all times during loading, and there was obviously no reason for the ship's officers to try and hide any particular aspects of loading and stowage."

Loading palletised carcasses on board MV "Winter Star"

"In the last 15 years there has been no decrease in the percentage value of claims for nominal depreciation. This fact is rather astounding when it is considered that in the last 15 years the standard of vessel and rail conveyance used for the carriage of frozen meat is much higher than previously. In addition the packing and securing of carton meat is far superior and many improvements have been made to avoid so much handling of meat. In addition to this, regulations from the United States and E.E.C. countries has forced freezing companies to modernize their works to conform with these regulations, with the result that most U.K. meat is killed, processed and stored in freezing works far above the standard required by the Import Meat Trade Association in the United Kingdom."

"To view a works such as Whakatu with its temperature control, almost fully automatic process and rigidly kept cleanliness, it is rather ludicrous that all meat shipments to the United Kingdom under A Clauses can be subject to automatic claims for nominal depreciation when some of it is eventually going to lie in sawdust in unrefrigerated and unhygienic conditions such as exists at Smithfield in London."

"It could be argued by the surveyors in the United Kingdom that the Whakatu Works are not a good example with their completely new extensions where all processing of the meat is carried out after killing, and their close proximity to the port of Napier, thus reducing the possibility of any meat becoming soft during transport to the wharves. If this argument is used then it is equally fair to ask the surveyors why the same nominal depreciation applies to meat from works such as Whakatu as it does to older works with not such modern equipment and many miles from the nearest port."

"In addition to this, there should also be a large variation between nominal depreciation claims for container meat as opposed to meat carried on a conventional ship, where it is handled more often and is at times not under refrigeration during loading and unloading of the vessel."

The ICNZ report concludes:

"Despite this perfect system of killing, processing, and transporting, meat claims continue to be lodged for perishing, bleaching, discolouration, mis-shaping, icing, blood staining, breakages, chafing, tears, soiling, tainting, mould growth, decomposition and sea water damage. Except in cases where a proper accident has occurred such claims can only be regarded as an insult to the freezing works of New Zealand and the shipping companies who so ably serve this country's transport needs."

Clip-on reefer units to porthole containers became more common as less carcase and more cut meat was exported: prepared cuts in New Zealand brought jobs to New Zealand at the expense of plants in the UK; shipping cartons is more efficient than carcases.

Empty porthole container slots on board the "Remuera Bay" - early refrigerated containers were supplied with cold air by ships' machinery.

Vero Marine invite any one involved in the meat export trade with any further observations and photos (that we can scan) to contact us by e-mail.

Vero Marine

We look forward to you adding to this glimpse of New Zealand's export history.

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