Recognising that farmers need something to take their minds off poor returns and the drought, the government has chosen to signal measures that will be put in place to deal with climate change impacts.

While the science around the issue is debated, farmers will have to pay the price of their substantial contribution to the country's export earnings using self-contained, efficient, mobile meat factories otherwise known as sheep and cattle. Regrettably, no-one has informed the animals that the efficiency with which they convert pasture into meat is placing the future of the planet at risk.

While sustainability has not always been a "buzzword", it has always been one of the principles underlying farming practices. Sustainable production is about balancing market, resource and environmental supply and demand.

In the current situation, with its focus on the pressures being placed our physical environment, it is important to realise that the ability to feed a growing world population must also be a key factor in the development and implementation of policy. Sustainability then must encompass not only environmental considerations, but also the economics of farming businesses.

Two instances of where environmental concerns have overridden this balance are the retirement of 1.2 million hectares of hill country and regional councils imposing so many impositions on land owners, who want to improve their land, that the process can be a financially crippling and time-consuming exercise.

Carbon caps, credits and charges are like the sword of Damocles hanging above our head. Our industry is looking forward to change. The free trade agreement with China is very good news and there are many positive-thinking and very capable people leading us forward so we can carry on help feeding the world.

Like so many industries, families and individuals before us, we cannot move offshore. We can and will move food production forward but it will be a lot easier if we don't have to look behind us to see who is trying to hamstring us.

Keith Kelly: kkelly@fedfarm.org.nz
Phone: 027 480 0015

One Event June 2008 In Christchurch - Three Industry Group National Conferences, Meat and Fibre, Grain and Seed and Dairy, will take place on Tuesday 24 and Wednesday 25 June, with the National Conference following on Wednesday 25 and Thursday 26 June. In addition, the Meat and Fibre executive will meet on Monday June 23.

The focus of the Meat and Fibre Conference will be a meat industry forum on the afternoon of Tuesday 24 June. The four speakers will be Owen Poole (Chairman, Alliance Group Ltd), Simon Gatenby (Chief Executive, Taylor Preston Ltd), Mike Petersen, (Chairman, Meat and Wool New Zealand) and Keith Woodford (Professor of Farm Management and Agribusiness, Lincoln University). The event will present a great opportunity to both listen to and present your views about the industry restructuring initiatives to this group of senior industry figures.

Planning for the event is well advanced and registration papers will be sent out this week.

Restructuring Initiatives - The New Zealand meat processing industry is undergoing an industry driven reorganisation.

While the decision to support or reject this is one that farmers will make on its merits, its implementation would significantly alter the meat processing and sheep and beef farming industry.

Federated Farmers is working to identify the key issues that members should take into consideration when assessing whether or not to support this. The results of this work will be sent to members prior to the June conference.

Any thoughts on the matter are welcomed and can be sent to David Burt dburt@fedfarm.org.nz

0800 DROUGHT line 0800 376 844 - It has been over two months since this service was established to help put people who need feed in touch with those that have feed for sale. In addition, it serves, on occasion, as a referral point to the Rural Support Trusts 0800 RURAL HELP line 0800 787 254 who help rural communities to cope and who can provide advice about the assistance measures that are available.

The DROUGHT line service has been well utilised and is still running. The list of feed suppliers can now be accessed from our website. The list will be updated regularly. If you are unable to access the website, but require feed, ring the 0800 DROUGHT line.

China and Japan Visit - Jeanette Maxwell, Mid Canterbury Meat & Fibre Chair and Meat & Fibre Executive Member recently visited China and Japan as part of the FAME (Food Agribusiness Marketing Experience). She reports this provided a marvellous insight into how these countries work.

"The growth in China is incredible. New buildings are going up everywhere. There are some great business opportunities for those who want to work in China. You need to be prepared to work hard, build good relationships and definitely have staff present in China to maintain the relationships. Good business relationships are made with the people of the company rather than the company. The Chinese seem to be ready to embrace new investment in their country, Jeanette said.

"Japan was a really interesting country to visit as well. The economy in Japan has been in a stable but in a low pattern for several years now. There is a demand in the market place for premium quality food products. Food hygiene standards are very high in Japan this includes an environmental ISO standard. Japan is very concerned about its food production levels as it now only produces 39 percent of the food it requires. There are business opportunities in Japan but, just like China, you will need to work hard, build the relationships, and have staff on the ground to maintain them, she said.

"Overall the trip was incredibly interesting and the two countries in many ways quite diverse. Both have embraced western culture in some ways while maintaining strong traditions in others. Jeanette thinks this will provide for some interesting business relationships in the future," said Jeanette.  

Feedback Requested On Meat Board Issues - A circular has been sent out to ask for your comments on two issues:

The current Meat Board Reserves Policy - the document that describes the way in which industry reserve funds (money held for specific purposes) are managed.

A request by the Meat Board and Meat and Wool New Zealand that up to $2 million of industry-good reserve funds be used for an evaluation of the restructuring initiative recently proposed by the Alliance Group.

Your comments on these important issues would be much appreciated. Responses are needed by Tuesday 22 April. Respond to David Burt, Meat and Fibre Policy Advisor, dburt@fedfarm.org.nz, Phone: 0800 327 646 or 04 494 9182, Fax: 04 473 1081

Meat Industry Taskforce Membership - This heavily processor focused group was established by Meat and Wool New Zealand to develop a vision and a plan to restore profitability in the red meat industry. The taskforce has met and has endorsed the Alliance Group proposal. The taskforce members are: Sir John Anderson (Chairman); Rob Fyfe (CEO Air New Zealand), Sam Robinson, Reese Hart (Former Chair, PPCS), Mike Petersen (Chairman, Meat and Wool New Zealand), Owen Poole (Chair, Alliance Group), Stuart Natrass (Director Fonterra), Graeme Harrison (Chair ANZCO), Colin Francis (Chair, Davmet Ltd), Sam Lewis (Chair, AFFCO Ltd) and Bill Falconer (Chair, Meat Industry Association).

Enquiries about the taskforce should be directed to Mike Petersen.

Photos Of Sheep - The Animals In Schools Education Trust (AISET) is the process of publishing a book on Cold Snap Lambs. They would like photos to illustrate the book and especially (though no particular order), photographs of:

• A "pin up" lamb for the front cover
• Cast sheep
• Snow/storm lots of snow, close up of lambs/sheep in snow, farmer feeding out/managing in snow, roads with graders
• Ewes and lambs using shelter
• Ewes with multiple lambs
• Lush spring pasture versus poor summer pasture
• Fly-strike close up with maggots
• Lambing paddock with ewes and lambs
• Sad/forlorn lamb
• Weaning process - farmer drafting race
• General farming practices eg. dipping/spraying, drenching (needs to show correct drenching technique, vaccinating
• Farmer looking out over stock

If you have photos that you think might be suitable, please contact Jan (jan@agcarm.co.nz), before 25 April, to discuss. Please do not send photos without first arranging it with her.