Meat Industry Issues
Recent strong demand for meat and wool in the marketplace overseas has resulted in much better farm-gate returns for meat and fibre producers. The Federation's aspirational T150 by 2013 goal is already being achieved in some cases, although $150 is still not the average price for an average mid-season lamb. Improved returns must, however, be placed in the context of very poor on-farm returns over much of the recent farming experience of many sheep and beef farmers.
A key part of a sustained meat and fibre sector resurgence will be the implementation of recommendations in the recently released Red Meat Sector Strategy. Federated Farmers recognises there is no silver bullet solution, but rather a range of options, based on careful analysis of the sector and its issues, enabling farmers, processors and other participants to move from an untenable position to one that is both sustainable and profitable.
For meat and fibre to take its rightful place as a strong, sustainable and profitable business sector, the underlying business fundamentals must move beyond the failed, reactive ‘boom and bust' strategy that has typified the industry recently. To not do so will continue to expose meat and fibre businesses to more attractive land use options such as forestry and dairy and dairy support operations.
The sector appears to have moved on and there appears to be a willingness to bring about changes, both in practices in the underlying behaviours that drive business practices in the sector. We believe this will lead to stakeholders working effectively together for a better outcome for all concerned.
Federated Farmers wants
- All industry players to fully participate in the Red Meat Sector Strategy.
Spokesperson
Federated Farmers Meat Insustry spokesperson is Meat & Fibre Chairperson Jeanette Maxwell, you can contact her at jmaxwell@fedfarm.org.nz.
