Greetings - Welcome to another issue of RamBull, the Federated Farmers Meat & Fibre industry group newsletter. While there are still a number of serious issues to be addressed, the recently published Meat & Wool's New Season Outlook provides good reason to believe the 2008/2009 season will be much better than the one before. On the immediate horizon, the important issue of animal identification and traceability needs to be addressed. In the next section, the situation has been summarised from a Meat & Fibre perspective.

Meat & Fibre chairman, Bruce Wills, 027 234 1516, bwills@fedfarm.org.nz

Recap - Last year Meat & Fibre delegates passed a resolution supporting, in principle, the electronic identification and traceability of cattle. No detailed information was available at that time but it appeared a reasonable and worthwhile idea based on biosecurity and market assurance issues.

In July 2008 the Meat & Fibre executive received the National Animal Identification and Tracing's Biosecurity Discussion Document giving the first detail of the proposal and were asked for submissions by 1 August 2008.

A number of issues are of concern:

1. The financial analysis doesn't stack up. Costs outweigh the benefits. Some of the assumptions regarding on farm benefits are wildly optimistic.
2. The scope of the NAIT document has grown enormously and now suggests inclusion of sheep. There are also onerous on-farm compliance requirements.
3. There is reference to the NAIT database being used for other purposes including the emission trading scheme.

This is a very different proposal to what was outlined 12 months ago. Farmers would be burdened with yet more cost and compliance for little proven benefit. The NAIT concept has taken on a life of its own and farmers are again faced with more rules, regulations and costs with no apparent commercial gain.

Action taken - Meetings and discussions were held with the NAIT Governance Group and their funding organisations (Meat & Wool New Zealand, Dairy NZ, DINZ, MIA, and DCANZ) to seek further information and clarification. Most of these groups share Federated Farmers concerns and many are also talking with NAIT. At this stage Federated Farmers awaits clarification on issues raised with NAIT before forming its final view. The close off for the Federated Farmers submission has been delayed until this information has been supplied.

Meat & Fibre's position - There are some positives around electronic identification and traceability. However, Federated Farmers remains unconvinced over the commercial drivers and overall benefits and see little reason to support the NAIT proposal in its current form. Federated Farmers is also concerned about use of collected data for other purposes. The Federation is not convinced that enough consideration has been given to a more cost effective alignment within existing capabilities and structures like the Animal Health Board. Members can be assured that Federated Farmers will continue to pursue the above issues to ensure that the interests of Meat & Fibre producers are protected.

Have your say - If you wish to have your say about the issue, the easiest way is to use the Feds blog. You can also find it in the "Our Work/Have Your Say/Is NAIT on right track?" part of the Federated Farmers website.

Executive portfolios - At the 14 August Meat & Fibre executive meeting it was decided specialist areas of responsibility would be assigned to executive members. As well as taking advantage of the executive‘s strengths and experience the skill base of the industry group will be extended and enhance succession planning within Federated Farmers. As chairman, Bruce Wills is responsible overall for the Meat & Fibre industry group. Specialist areas of responsibility include: wool, Jeanette Maxwell; meat, Dugald McLean; environment, Tony Gray; and NAIT, Hamish Cave.

Conference minutes - Draft minutes from Federated Farmers Meat & Fibre conference in June 2008 will be circulated this week.

Follow up from conference - Two remits were passed at conference.

1. "That this meeting requests Federated Farmers Meat & Fibre to take whatever action possible to encourage their companies to commit to a sustainable and workable agreement in order to save the sheep meat industry."
2. "That Federated Farmers Meat & Fibre take a more active and aggressive approach to meat industry restructuring."

The Meat & Fibre chairman and executives are very uncomfortable with the current meat industry situation. The chairman has issued a number of media statements about these issues and is in regular contact with key players within the industry.

Federated Farmers strongly encourages members to be active in this area. This includes absorbing as much information as possible, attending meetings and making decisions that best reflect your interests.

The vote for the proposed PGG Wrightson Ltd/Silver Fern Farms Ltd partnership will be held on 8 September 2008.  Federated Farmers strongly encourages all eligible voters to participate fully in this process. Information about the proposal is available from the Silver fern Farms Ltd website www.silverfernfarms.co.nz/. In addition the Grant Samuel independent advisors report on the proposal was published on August 20 and is also available from the Silver Fern Farms website or at http://www.silverfernfarms.co.nz/files/Grant-Samuel-Report.pdf

Members may also wish to view information about meat industry restructuring on the MIAG website.

Meat & Wool meeting - Mike Petersen, the chairman of Meat & Wool New Zealand, met with the executive to discuss a number of issues including the recent Farmer Consultation round, the upcoming Commodities Levy Act referendum, NAIT and the Tri Lamb Group meeting that will take place on October 12 to 14 in Napier.

Strategic plan - The Meat & Fibre executive met with the Federated Farmers' Chief Executive, Conor English who facilitated a session on Meat & Fibre's strategic plan. The result of the process will be a draft plan for presentation to the Meat & Fibre council in November.

Compliance programme - As a result of issues raised by European Union market access related audits, the New Zealand Food Safety Authority Verification Agency has been required to increase the amount of on-farm verification work they undertake to ensure New Zealand complies with requirements. The programme encompasses animal identification, origin of animals, animal treatments including withholding periods, animal feeds, animal welfare and Hormonal Growth Promotants.

The programme is designed for farms where the predominant activity is the supply of beef cattle, sheep/lambs, deer, goats or horses to export meat slaughter premises.  Farms where the predominant activity is the supply of ostriches/emus, pigs and poultry, and dairy farms are not included.

More information about the programme will be published and made available to members. The verification programme is due to start on 1 October 2008.

NZFSA VA has published a draft annual plan and activity schedule. Federated Farmers has submitted on this and are awaiting a response. For more information, contact David Burt, Meat & Fibre policy advisor on 0800 327 646 or dburt@fedfarm.org.nz

Much of the NZFSA VA programme is concerned with matters relating to Animal Status Declaration requirements. It is very important that this document be completed fully and correctly. It is a statutory declaration and any obvious and deliberate attempt to avoid or breach statutory duties or obligations is taken seriously.

Import risk - MAF Biosecurity recently called for submissions on a draft Import Health Standard for frozen, boneless sheep-meat from the United States of America for human consumption. This document is to be reissued at a later date and its publication, and request for comment, will be advised. MAF Biosecurity has also issued three draft Import Risk Analyses for public consultation:

• Live sheep and goats from Australia
• Cattle germplasm from all countries
• Cattle from Australia, Canada, the European Union and the United States

Comments on any or all these documents are required by 29 August. The documents can be found on the MAF Biosecurity website MAF Biosecurity website.

Season outlook - The Economic Service of Meat & Wool published this week their New Season Outlook. It can be accessed from the Meat & Wool site Meat & Wool website.

Diary date - As previously advised, the Meat & Fibre Council Meeting will take place on Wednesday 12 November and Thursday 13 November in Wellington. The agenda is currently being developed. 

Special discounts - To find out more about special discounts for members call 0800 327 646 or login the members area for special discounts.

Contracts and agreements - Members can purchase Federated Farmers contracts and agreements at a discounted rate. Order agreements or other products by visiting the Federated Farmers website or call 0800 327 646.

If you have any questions or comments about matters raised in this newsletter, contact a member of the Meat & Fibre council or policy advisor David Burt 0800 327 646, dburt@fedfarm.org.nz.