Avoiding Another Disastrous Year

20 August, 2007

Avoiding Another Disastrous Year

Federated Farmers is warning farmers and meat companies they must work together to avoid another disastrous year, said the Federation’s Meat and Fibre chair Keith Kelly.

His comments come as early season lamb is due to hit the market.

“We appreciate that the kiwi dollar has fallen, which is good news for sheep farmers. But the currency is just one part of the problems in the sheep industry: others include procurement and lack of transparency.

“We want to remind farmers what went wrong last year so they don’t get caught again. There must be no procurement war. Farmers and companies must commit themselves to livestock supply contracts as a way to move the industry forward.

“And meat companies must be more transparent with their suppliers and not reward volume of supply.

“Farmers are sympathetic with meat companies about costs and difficulties, but it is unacceptable for the current lack of transparency to continue.

“The Meat and Fibre Producers’ Council agreed some remits at our recent conference to take this industry forward and avoid the pain many of our members felt last year,”said Mr Kelly.

Remits included:

* That farmer owned co-operatives have a transparent and fair livestock procurement system that does not reward volume supply.
* That farmer’s demand greater co-ordination between New Zealand meat companies marketing our lamb to improve price, promotions, and research and development.
* That farmers and companies commit themselves to livestock supply contracts as a way to move the industry forward.

“These remits will not be buried. They come with strong feelings from members and will be developed into policy. We are warning that dark times are coming if things don’t change,” said Mr Kelly

Keith Kelly is chair of the meat and fibre industry group of Federated Farmers.

ENDS

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