BRUCE WILLS - CHAIRMAN FEDERATED FARMERS MEAT & FIBRE

Welcome to the fourth edition of RamBull for 2009. The focus of this issue is on the Meat & Fibre Conference, held at the Rendezvous Hotel in Auckland on 30 June as part of One Event proceedings. I would like to thank those members who attended what continues to be an important event in the meat and fibre calendar. As many of you were unable to be there, I would like to take this opportunity to share with you the address I gave to both delegates and observers that were present.

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 focused 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 focused 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

ELECTION RESULTS

The 2008/2009 Executive were re-elected, with the Executive again comprising of:

• Chairperson: Bruce Wills
• Vice-chairperson: Jeanette Maxwell
• Executive members: Hamish Cave, Tony Gray, Dugald McLean

GENERAL BUSINESS

Remit to National Conference

"That Federated Farmers supports the Animal Health Board eradicating TB from New Zealand", The Remit was passed at National Conference on 2 July.

Matters for Executive action

To take on board the message that, "the Meat & Fibre Group of Federated Farmers take steps to ensure that it becomes more actively involved in promoting industry change in both the wool and meat sectors for the benefit of farmers."

CONFERENCE HIGHLIGHTS

Four senior industry figures spoke at the conference and answered questions from the floor following their presentations:

Stuart Chapman, managing director of Elders Rural Holdings Ltd and David Lowe, the commercial operations manager of Elders Rural Holdings Ltd, spoke on the Elders Wool Marketing Plan and their vision for the future of the New Zealand coarse wool industry.

Mike Petersen, chairman of Meat & Wool New Zealand spoke to both the Meat & Fibre and Dairy Councils about the upcoming Commodity Levies Act Referendum.

Stuart Weston, chief executive of AFFCO New Zealand, spoke on The Meat Industry: An AFFCO Perspective, which included his observations of the industry.

Presentations by Elders Rural Holdings and AFFCO are available upon request and the draft minutes of the meeting are to be sent to Meat & Fibre Council members soon.

CLAIMS FOR CONFERENCE EXPENSES

A reminder to delegates that claims for expenses incurred at the Meat & Fibre Conference should be submitted to David Burt no later than Monday, 31 August. To contact David, please call 0800 FARMING (327 646). Expense claims can be emailed by clicking here or faxed to 04 473 1081. David is also happy to provide expense claim forms on request.

The consultation process for the Meat & Wool New Zealand Commodity Levy Act Referendum is now complete and the referendum roll is closed. Meat & Wool New Zealand have considered farmer feedback and have published the proposal to be voted on. All enrolled levy payers will receive the referendum proposal and voting papers shortly.

Federated Farmers strongly encourages members to make an informed decision on the referendum and take part in the postal vote.

Federated Farmers has actively consulted members on issues surrounding the referendum and has presented a submission to Meat & Wool New Zealand on these views. Please click here to view this document.

MAF's report on the opportunities and challenges for the New Zealand red meat industry over the next 10 to 15 years was launched last month on 24 June. Don Nicolson, Bruce Wills and Conor English represented Federated Farmers at the launch, with Bruce Wills' speech linking the launch and T150. Bruce, Don Nicolson and Conor English also took part in the post-launch meeting where Federated Farmers, along with key stakeholders were able to work towards developing an industry strategy to ensure our T150 goal is realised.

The MAF report does not provide solutions, but does use the views of stakeholders to develop a number of possible scenarios going forward.  To find out more information, please contact Bruce Wills or David Burt. The report itself can be found by clicking here, alternatively you can request a hard copy by writing to:

Policy Publications
MAF Policy
PO Box 2526
Wellington 6140

NZFSA notice - The New Zealand Food Safety Authority (NZFSA) Animal Products (Regulated Control Scheme - Hormonal Growth Promotants) Notice has recently been issued. It will take effect from 1 August 2009. Under this notice, the entry of Hormonal Growth Promotants (HGP) information will be entered into the NZFSA database under the direction of a veterinarian. The notice also passes the administration cost of the HGP implanting process on to the owner of the implanted animal. For more information, please click here.

2009 Farm Employee Remuneration Survey - The Federated Farmers 2009 Farm Employee Remuneration Survey is now underway.  Federated Farmers Farm Employee Remuneration Survey is the leading source of farm employee remuneration levels and employment information. This annual farm survey will be sent to every Federated Farmers member to complete. The information gathered will enable us to ensure our reporting on farm employee remuneration remains at a comprehensive level. Federated Farmers appreciates your assistance in filling out and returning the questionnaire, and all those who do so will go in the draw to win one of 10 $50 petrol vouchers.

Agribiz - For the latest market update from Westpac's economics team including the outlook for dairy, beef and lamb, please.  

Rural Press - Looking to advertise to rural New Zealand? Well, look no further. NZ Rural Press is the country's largest agricultural publisher with well known and respected titles including Straight Furrow, The Dairyman, AgTrader and NZ Lifestyle Farmer. We offer all Federated Farmers members a 10 percent discount on their advertisements. Please call 0800 55 55 44 now to place your advertisement or click here to visit the Rural Press website.

Free Agrichemical Handling Course - Open Polytechnic and GROWSAFE® are offering a free one-day course in handling and using agrichemicals. The course is a step towards an Introductory GROWSAFE® Certificate and an Approved Handler Certificate, which will allow you to legally buy and use agrichemicals. For more information, please call 0508 650 200 or click here.

More members' benefits and offers - To view special discounts exclusive to Federated Farmers members, please call 0800 327 646 or click here to log onto our members only area.

Employment contracts and agreements - The Federation's online shop stocks a range of contracts to assist with your farm business.  Remember, it's a legal requirement to have an employment contract for EVERY employee so if you don't have a current employment agreement, then order one now by calling 0800 FARMING or click here.

Contracts, agreements and leases - These include land, stock, contractor; sales and purchase, agreement to grow, log books, access pads and Over Dimension Certificates. Call 0800 FARMING or click here.

E-contracts, e-agreements, e-leases - Members can purchase online, electronic Federated Farmers contracts and agreements. Click here to log in and purchase.

Please remember that if you have any issues or queries you would like to discuss, please feel free to contact Federated Farmers on 0800 FARMING (327 646) or contact your local Federated Farmers Meat & Fibre representative or one of the Executive team as listed below.

Federated Farmers of New Zealand
PO Box 715
Wellington 6140
Tel:  04 473 7269
Fax: 04 473 1081
www.fedfarm.org.nz

Policy Advisor
David Burt
Tel:  0800 327 646
Fax: 04 473 1081

Chairman
Bruce Wills
Tel/Fax:  06 834 9704
Mobile:   027 234 1516

Vice-Chairwoman
Jeanette Maxwell
Tel:         03 302 8860
Fax:        03 302 8849
Mobile:   027 357 4464

Executive Member
Hamish Cave
Tel:         06 863 9861
Fax:        06 863 9500
Mobile:   027 687 1141

Executive Member
Tony Gray
Tel/Fax:  06 328 4575

Executive Member
Dugald McLean
Tel/Fax:  03 313 5442

A full list of the Federated Farmers Meat & Fibre team can be found by clicking here.