Federated Farmers Meat & Fibre AGM address
Released 30 Jun 2009
Bruce Wills, Federated Farmers Meat & Fibre chairperson, Federated Farmers Meat & Fibre AGM, Auckland
T150 Report Card
Nine months ago meat and fibre farmers were licking their wounds, having just survived their most unprofitable season for 50 years.
Nine months ago the average return for a prime lamb was just $55.
That's why Federated Farmers Meat & Fibre kicked the T150 campaign off. The goal - to reach a target of $150 for a good mid-season lamb within five years.
Why T150?
New Zealand had just experienced its largest fall in sheep numbers, ever. Sheep farmers were leaving the industry in droves. While dairying was booming, the sheep industry was in crisis.
Sheep farmers desperately needed some hope and direction. T150 alone was never intended to be the silver bullet that would change the dynamics of a dysfunctional industry. But what it did offer was a vision, a goal, an aspirational target that focussed on where we felt lamb prices needed to be in order to return profitability to sheep farming. It was what I call, our stake in the ground, where we as sheep farmers wanted to be within five years.
In 1961, John F Kennedy announced to the American people that by the end of that decade the United States would have a man on the moon. Many did not believe him, but the challenge had been set, the vision and the goal established. The rest as they say, is history.
Our goal, our T150, was very well received when we announced it to a rather stunned sale yards last year in September. We, just as JFK did, had a few disbelievers, but let me assure you; we didn't set this goal to fail.
What Have We Achieved?
Lamb returns have lifted by from $55 to $90 for a good mid-season lamb. Sure, much of this increase is due to a supply/demand imbalance and a little help from a softer currency. But the lift in returns for sheep farmers has been great and so is the almost universal awareness that T150 has garnered throughout the sheep farming sector.
Meat company executives know that farmers are focussed on this goal. And they also know that Federated Farmers Meat & Fibre is intent on achieving this goal.
Where To Now?
Progress has been made but there is still much to be done. For a start, wools contribution to T150 has been sadly lacking. When this campaign was formulated last year, it was assumed that over the five years wool would add a good $10 or more to the $150 target. Now I ask, what happened to our dual purpose sheep?
There are things that we farmers can do better. We can enter longer term supply contracts with our processors, spread our selling season and grow heavier lambs. Our meat companies have lifted their game but again more can be done.
We know where we want to be. The real issue for me, however, is how we get there. Currently, the industry lacks a good, clear road map to take us to our goal. Farmers and meat companies have voiced their desire to work more closely together. What we need now is a united approach, a pan-industry strategy that will map out a course for the future.
After the first nine months my report card for T150 is accompanied by a B+. Once we have a good inclusive strategy, giving the entire industry a clear understanding of what we need to achieve for a profitable and sustainable future for both sheep and cattle farmers, then I think we will finally deserve that A.
When, not if, we achieve our goal of $150 for a good mid-season lamb, we will get our A+.
For further information contact:
Federated Farmers Meat & Fibre Chairman, Bruce Wills, 027 234 1516
