Meat Sector: Latest Version Of Meat Strategy Aims To Lift Profits
August 23rd, 2010
Meat Industry Association (MIA) chairman Bill Falconer says there are no pre-conceived ideas of what the MIA/Beef & Lamb NZ sponsored meat sector strategy should produce. The strategy, whose terms of reference have just been released, is aimed at addressing a fundamental lack of profit behind the farm gate and at the processor/marketer side of the red meat spectrum.
Falconer says “it’s aimed at well-researched options that might enable sustainable profit across the value chain. What participants do with those options is their own decision. We’re not justifying an outcome at the beginning stage, but looking to establish sensible options which participants can respond to. This could include decisions in collaboration with others.” Recognition lack of profit is the main issue means “we can concentrate on that rather than saying, let’s assume that this or that is the solution to the sector’s situation.”
He says the first two months will be an intensive interrogation, including whether what the sector has is a production-driven supply chain, or a market driven value chain. Pinpointing of the steps in such a value chain will also show what steps add value and what don’t. Falconer says the initial report, to be co-ordinated by Deloitte Consulting’s Alasdair MacLeod, will be delivered before Christmas, with more discussion and conclusions to come in the New Year.
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