BRUCE WILLS - CHAIRPERSON FEDERATED FARMERS MEAT & FIBRE

The Meat & Fibre council has recently held another successful meeting with the usual quality list of speakers again providing ‘food for thought' for delegates and observers. For those farmers who were unable to attend the meeting, a summary of the presentations is provided for you below and we are hopeful we can provide copies of many of the presentations on request.

In a departure from our recent gatherings (held in main centres), this meeting was held in Methven, in the heart of Mid-Canterbury. I am delighted to report that the combination of a more rural location and a field trip - to ANZCO's Five Star Beef feedlot at Wakanui - was extremely well received by attendees. Serious consideration will therefore be given to holding next year's council meeting away from the main cities, perhaps at a venue in the North Island.

With the approach of the festive season, it is timely to consider what presents sheep and beef farmers might like this year:

• On the first day of Xmas, my true love gave to me, lower interest rates ...
• On the second day of Xmas my true love gave to me, a cheaper ACC scheme ...
• On the third day of Xmas, my true love gave to me, laws that maintain private property rights ...
• On the fourth day of Xmas, my true love gave to me, a cost effective pest management strategy ...
• On the fifth day of Xmas, my true love gave to me, affordable broadband that covers the country ...
• On the sixth day of Xmas, my true love gave to me, a local government system that is responsive to farmers needs ...
• On the seventh day of Xmas, my true love gave to me, news that the National Animal Identification and Tracing system has been abandoned! ...
• On the eighth day of Xmas, my true love gave to me, an emasculated Resource Management Act ...
• On the ninth day of Xmas, my true love gave to me, a unified meat industry ...
• On the tenth day of Xmas, my true love gave to me, news that agricultural emissions were not to be included in the ETS ...
• On the eleventh day of Xmas, my true love gave to me, five dollars per kilogram for my wool ...
• On the twelfth day of Xmas, my true love gave to me, much higher farm gate prices for beef and lamb ...

Lastly, I wish everyone well and hope that the festive season is enjoyed with family and friends.

Bruce Wills
Chairperson
Federated Farmers Meat & Fibre
Mobile: 027 234 1516
Phone: 06 834 9704
Email: bwills@fedfarm.org.nz

METHVEN, 4 - 5 NOVEMBER 2009

The Federated Farmers Meat & Fibre council meeting was held on Wednesday, 4 November to Thursday, 5 November 2009 at the Methven Resort, Methven.

MATTERS FOR EXECUTIVE ACTION

To investigate whether information can be obtained, possibly from Meat & Wool New Zealand, on the producer's share of meat retail prices.

DAY 1: WEDNESDAY, 4 NOVEMBER

Four high calibre guest speakers delivered interesting addresses on key issues facing farmers. 

Hon Tim Groser, Minister of Trade and Associate Minister of Climate Change Issues - International Negotiations, spoke on Climate Change, Trade and Agriculture - possible implications for farmers.

The Minister spoke to a substantial audience, with a large number of local farmers turning up to his hugely informative speech. The address considered trade and agriculture in the context of four interlinked themes:

• The future need for increased food production globally
• The likelihood of long run continued economic growth, particularly in Asia
• Much improved trading prospects for New Zealand agriculture
• The political challenge of climate change for agriculture producers

The Minister concluded by stating how we face unusually favourable long-term prospects for New Zealand trade and how there is a strong likelihood of increased demand from developing countries for protein to feed their emerging middle classes. He also commented on how our trade policy around market access has been outstandingly successful, but that we do however face new challenges. These challenges include needing to develop new, more complex supply chains with customers that we do not understand deeply in the Asian markets. Our traditional markets of Europe and North America will also face new demands from customers. For the full version of the Minister's presentation, please click here.

Iain Abercrombie CEO of Wool Partners International Ltd (WPI) spoke on Realising the true value of wool. He discussed what WPI see for the future of New Zealand strong wool and how they propose to guarantee a strong future for the industry.

WPI has chosen four guiding principles:

• Unification
• Consolidation
• Collaboration
• Innovation

As well as three strategic initiatives:

• Establishing an integrated supply chain via WPI.
• Establishing a means for growers to collaborate via Wool Grower Holdings Ltd.
• Developing the best marketing structure (via Wools of NZ Ltd) to achieve its goal.

Iain also stressed the importance of an integrated supply chain that is able to take wool from the grower (farmer) to the market (manufacturers and retailers). The presentation also identified, in some detail, the linkages between growers and the market and discussed components of the supply chain. While noting that wool returns to farmers at the moment are poor, Iain commented the industry is in an exciting position looking ahead. New Zealand wool has unique attributes which mean it is it is highly valued in the fibre market and therefore it will not remain as a commodity. He made it clear that the challenge will be getting the price paid to farmers for wool up and to achieve this it is essential farmers work together.

Keith Woodford, Professor of Farm Management and Agribusiness at Lincoln University was one of two speakers to talk on Cooperatives - a good option for farmers? Keith discussed how cooperatives are important in situations where there is lack of competition or an imbalance of power as well as in situations where producers want to influence agribusiness chains and participate in entrepreneurial profits. He stated that cooperatives only succeed if there is a common vision amongst producers plus strong governance and that co-operatives will succeed or fail according to the standard business principles of ‘meeting a need' and doing so with efficiency. He also stressed that a key challenge with ordinary cooperatives is how to raise the necessary capital and that hybrid cooperatives can work when there is a defined market price for the product (i.e. lots of competition) and it is agreed in advance as to who will get the profits. He emphasised the importance of producers committing to supply a specific processor for a season as a prerequisite for the effective working of integrated supply chains and stated that companies should not reward producers who ‘sell on the day'.

Owen Poole, Chairman, Alliance Group Ltd (AGL) was the second speaker on the topic of cooperatives.  His presentation addressed a range of topics relating to AGL's role as farmer owned meat processor and noted how AGL is fully competitive in both supply and in return to farmers. AGL has the biggest brand presence in Europe and UK outside the retail sector and noted that food service sectors around the world are under some stress currently. AGL has the ability to move between sectors and its products in this sector are generally under the AGL brand. Owen stated how it is important to recognise that there are alternatives in the marketplace to acquiring resources in place. AGL's marketing channels are through companies who are all large players (all of whom are larger than AGL itself). He noted that from a supply point of view, a cooperative can be as good as other company structures.

DAY 2: THURSDAY, 5 NOVEMBER

The second day of the council meeting included presentations by Alistair Polson, the New Zealand Special Agricultural Trade Envoy (SATE) as well as general council business, which updated delegates and observers on topical issues. Two trip reports were also presented and the final afternoon of the function was spent on a field trip.

Rob Lawson, Federated Farmers Otago Meat & Fibre chairperson, described his trip to Australia to take part in the Woolworths Agricultural Business Scholarship Program, run in association with the University of Western Sydney and the Royal Agricultural Society of New South Wales. Rob discussed the position of Woolworths in the Australian food sector and emphasised Woolworths focus on building relationships with their suppliers and how market share and cost control are critical for them to achieve this. Rob also stressed how sustainability (and related matters such as ‘carbon footprints') is seen as a very important issue and how there is opportunity for us to work with them in future on issues that we have in common.

Bruce Wills, Meat & Fibre chairperson, provided some feedback on his recent trip to Europe to attend the International Sheepmeat Forum in Brussels. Bruce discussed key observations from the International Sheepmeat Forum and other meetings with sheep meat producers and European farming organisations. He noted how current prospects for lamb sales remain strong and that New Zealand lamb is well known and well regarded. A complimentary and year round supply are important, while aging farmers, land values, compliance and poor profitability are all common concerns in sheep producing countries. Bruce also discussed how climate change is real in the minds of consumers and how there is a big focus on buying local.  Feedback also indicated how important diversification to other, non-traditional markets is, how market access and market development requires more discussion and how there are concerns around the power of the supermarket and their margins.

Bruce's trip was funded by the Ministry of Agriculture and Forestry (MAF), AGMARDT and Meat & Wool New Zealand. Their assistance in making this trip possible is greatly appreciated.

Field trip to Anzco Foods' Five Star Beef Feedlot at Wakanui. Delegates and Observers were transported by bus to the site and were met by Graeme Harrison, Chairman of Anzco Foods, who hosted the visit. The field trip began with a drive around the feedlot, which is unique to New Zealand, and was accompanied by an informed commentary from Graeme and senior site staff who accompanied us. At the completion of the tour, Graeme provided his perspective on the business, including a presentation on food safety and related material and answered questions on a range of topics. 

MEAT & WOOL NEW ZEALAND 2010 DIRECTOR ELECTIONS

Elections will be held on March 10 for the Western North Island and Central South Island Director positions. Nominations for these positions close at 5pm Wednesday, 20 January 2010. For more information about nominations or for voter information, contact the Meat & Wool New Zealand (MWNZ) election hotline on 0508 666 336.

MEAT & WOOL NEW ZEALAND 2010 AGM

The 2010 MWNZ AGM will be held on 24 March in Te Kuiti. Livestock farmers who want to propose remits at this meeting are advised that they must be submitted by Wednesday, 20 January. Remits must be submitted on the official form, obtainable from the MWNZ General Counsel, Dave Harrison, on 0800 696 328. Remits require 10 registered levy payer signatures.

WOOL INDUSTRY TASKFORCE

The terms of reference for this body have been finalised. The taskforce objectives are to:

1. Develop a set of principles on how to increase profitability across the strong and mid-micron wool value chain for New Zealand wool-based products and consequently to wool growers and
2. Articulate what the principles are trying to do and why this necessary (while recognising the constraints faced by the sector) and provide a clear set of actions that industry participants can take to contribute to improving the returns from strong and mid micron wool.

The Taskforce is to report back to a second Wool Sector Meeting early in 2010. The full text of the Terms of Reference can be found by clicking here.

We have seen early signs of growth in the membership of the Meat & Fibre industry group over the latter part of 2009, following a tough year for many farmers. With the many challenges that farming presents and knowledge of the value that your membership provides, now is the time to encourage fellow farmers to join Federated Farmers. The Federation has a number of initiatives planned to grow the membership in 2010 including putting field officers ‘on the ground' in provinces to get to know our members' needs and bring on board new farmers. We have had four field officers working in selected areas over the last few months and this has proved positive in getting new members involved.

If you know of someone who should be a member please email the General Manager of Membership and Business Development, Helen Mexted, by clicking here and we'll get in touch with them. Every member who joins up as a result of your recommendation will receive a $50 discount off their membership and we'll send you a $50 petrol voucher.

One of the many benefits of belonging to Federated Farmers is the training offered to members.  Each year a programme of leadership courses and support seminars are run in Wellington and throughout the country and are either free or heavily subsidised. 

LEADERSHIP COURSES

The Federation held six leadership courses in Wellington throughout the year. These courses are designed to provide a challenging and highly interactive environment for learning and practising new leadership and confidence skills. These skills are highly practical and very beneficial when returning to the rural community. Past participants have used these new skills on their farms or with local organisations such as committees, schools, councils, boards or social groups. These highly sought-after courses are valued at $1,200 - $1,500 and are provided free to members. Courses fill up fast so to find out more about the 2010 courses, please click here.

Federated Farmers are proud to have been educating and supporting rural leaders for 60 years.

RURAL SUPPORT SEMINARS

This year Federated Farmers provided three seminar programmes across 27 provinces. Seminar topics included employment relations, legal obligations, risk prevention, cash flow management and tax advice. These informative and supportive seminars are facilitated by experienced professionals who are the leaders in their fields of expertise and commercial experience. The rural support seminars are extremely well attended especially during the more difficult times and the Federation assists by providing the seminars either free or at a very low registration fee for members. Please look out for the 2010 rural support seminar programme which will be available soon.

LEGAL ADVICE

We continue to receive regular calls from members and positive feedback on the employment and legal services offered by the Federation.  When you have an issue, it's reassuring to know that FREE legal advice is available simply by calling 0800 FARMING (0800 327 646) from 8.30am to 5pm. Common queries recently include fencing and the escape of stock, grazing and business structure issues. Naturally we recommend a range of legal agreements to assist with issues arising that are available from just $45 for two copies of each agreement. Click here to see the full range of contracts and agreements.

BEN & MARK, BOYS OF THE HIGH COUNTRY

Christine Fernyhough's true story of two boys who live on one of New Zealand's largest high-country stations, with stunning photographs by John Bougen is now available for sale on the Federated Farmers website. Federated Farmers have this wonderful book for the special price of $30 for members (non-members $36.99). Ben & Mark, Boys of the High Country is destined to become a New Zealand classic and would make a beautiful Christmas gift. We have a limited number so get online, by clicking here, and order yours today. 

MORE MEMBER 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. 

CONTRACTS, AGREEMENTS AND LEASES

These include land, stock, contractor, sales and purchase, agreement to grow, log books, access pads, Over Dimension Certificates and employment. 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. Contracts, agreements and leases are available in both electronic and hard copy formats for your convenience. To purchase, call 0800 FARMING or click here.

Federated Farmers Meat & Fibre

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

Staff contact

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

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

Vice-chairperson
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.