Wide range of views at consultation meetings

Media Release
20 May 2009

Wide range of views at consultation meetings

Wide ranging views from sheep and beef farmers at referendum consultation meetings around the country present a challenge to compiling a final proposal, Meat & Wool New Zealand Chairman, Mike Petersen says.

There are also a number of issues requiring clarification including the fact that under the Commodity Levies Act, Meat & Wool New Zealand can only put one proposal to farmers and not a range of options for farmers to consider. There is also confusion regarding what happens if there is a “no” vote in August.

“Quite simply put, voting no would end all current activity by Meat & Wool New Zealand. This is not a threat but a fact of life for all organisations operating under the Commodity Levies Act.

“A no vote in August will mean that either farmers have not spoken loudly enough or we have not listened well enough. That is why this first stage of consultation is so important to ensure the final proposal is one that farmers will support.”

Nineteen of the 55 consultation meetings have been held so far and the numbers attending are modest considering there are around 22,000 eligible sheep, beef and dairy farmer voters.

Mr Petersen said there had been some lively debate at most of the meetings and that was a valuable part of the consultation to help shape the final proposal for circulation to farmers before voting in August this year.

Sheep returns remain an area of contention for many famers.

“While returns for lamb have improved significantly this year, there are many farmers in drought affected regions that have not been able to capitalise on these better prices. The mood is definitely different in areas where they are now selling lambs in excess of $100 per head.

“Farmers are feeling particularly frustrated with wool and one of the ideas we are testing is a levy for some market development work for wool, similar to that currently undertaken for meat. This is drawing polarised views with some farmers urging us not to give up on wool, and others saying this is the role of commercial companies.”

Mr Petersen said the farmers attending the meetings recognised there was a need for farmer investment through Meat & Wool New Zealand and were broadly comfortable with most of the activities areas proposed – Leadership, representation and influence; Information and analysis; Innovation and uptake; Market access; Market development; Skills and education.

“They understand the need for one organisation that works for them, doing work they couldn’t do as individual farmers. However we are also getting the clear message that we need to present a focused proposition to get their support in the vote in August.”

Falling stock numbers due to drought and changing land-use will have an impact on the amount of levies that can be collected over the next five years. Forecast lower income from New Zealand Meat Board reserves and higher costs for offshore activities with a lower New Zealand dollar are also contributing to lower income available.

“The hard question is how to fund these activities, and some farmers have supported the idea of using some New Zealand Meat Board Reserves to offset levy increases. We are also looking at co-funding options with industry and government to share the cost of the activity areas supported.”

Mr Petersen urged farmers to make sure they attended a consultation meeting so they were heard by the organisation.

“Now is the time for farmers to take an interest in their industry and shaping the next five years of activity for Meat & Wool New Zealand.”

ENDS

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