Proposal looms for all-encompassing red meat strategy
May 18th, 2009
David Carter will announce plans to develop a red-meat industry strategy in the next few weeks. “Considerable work is being done by MAF. The industry needs to sit down and work out where it wants to be in 10-20 years time.” The proposal will bring together leaders of the meat processing companies and farmers – no mean feat in an industry which has struggled to forge alliances and develop a NZ Inc. plan selling local product to the world.
The work by MAF dovetails with FedFarmers’ T150 campaign, which sets a target of a lamb price of $150, about 67% more than the average lamb price this season of about $90. Finding accord means steering a line between the balance sheets of processors and farmers, who have enjoyed strong prices this season. One prominent rural executive says diplomatic skills are required “to navigate through the minefield of the meat industry.”
There’s more optimism on an industry-wide strategy now Silver Fern Farms has settled its dispute with PGG Wrightson. Rival South Island processor Alliance Group has previously pooh-poohed a super-alliance between the companies. Processors, though, may be more amendable to talk as the season end looms and the supply of livestock tails off from already low levels.
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