18 October 2007
The Way Forward for our Two Co-Operatives PPCS and Alliance
Farmer shareholders need to commit to a philosophy, according to MIAG Chairman Mark Crawford.
“Farmers need to be encouraged to produce a quality product on time and to certain specifications through long term
supply agreements.
“With a floor price and certainty of supply, the companies could then focus 100% on the market with innovation where the
real gains are to be made.”
Currently over the last two seasons, it has been a shambles. The Companies are competing vigorously for stock and
patting themselves on the back for high throughput in their processing facilities and then freezing down over a million
animals that had a spring chilled non market related premium paid and no home to go to.
More communication and understanding is needed between our Marketers and Procurement Team, we need to become Marketers
who process, not Processors who market.
“With the current inability of lamb to compete for land use profitability, we are seeing an exodus of sheep leaving the
industry, further exacerbating the over capacity of processing facilities.
“We need to close down unprofitable plants and urgently implement the practice of toll processing, form an Independent
Marketing Company with Global Presence and Expertise that is open for all NZ Meat Companies to be part of, Mr Crawford
said.
To survive, our Co-operatives need to return to their core values and principles with ‘mutuality’ being the key, with
equal benefits being passed onto all shareholders.
“Why should farmers stay with a Company that does not provide a fair, transparent and consistent procurement policy and
persists with the use of special deals through third party traders.”
The terms of reference and the benefits identified in the PWC Report have to be released to the shareholders who paid
for this report. What is everybody hiding?
“MIAG (the Meat Industry Action Group) is a group of farmers, passionate about seeing a long term future for our
industry.
“We need to have a robust supply chain between supplier and customers and demand optimisation at every level. Unless
somebody on the supply chain is adding value to our product then there is no point in having them.”
We encourage farmers to vote directors onto our Co-operatives that are willing to make the hard decisions and stand up
and ask the curly questions of management.
“We need new blood, new direction and strong leadership throughout the entire Meat and Wool Industry.”
MIAG will be endorsing two candidates to contest the upcoming Alliance elections and urges farmers to vote for a
positive change for your industry!
ends