T150 - Target $150 a lamb
Released 29 Sep 2008
What is T150?
The T150 campaign sets a goal of $150 a lamb for the sheep-meat and wool industries to work towards over the next five years. The campaign is being lead by Federated Farmers Meat & Fibre.
What is the problem?
The average lamb price received by farmers over the past three years was only $55 per lamb, and the average sheep farmer's income was $19,400 last year. This has resulted in many sheep farmers leaving the industry.
The Federation believes that the targeted return should be at least $150 to restore viability to the sector.
Why has it got so bad?
For several years now sheep farmers have been getting inadequate returns on their efforts and capital. New Zealand is seeing large changes in land use and as a result a very large drop in sheep numbers - from around 40 million to 34 million over the past two years alone.
These poor returns have had a flow-on impact in New Zealand's towns and cities with job losses at freezing works being an example of this. Lamb exports contribute over $2 billion per annum to the New Zealand economy and it is of grave concern to the country that such an important industry is in crisis.
This downward spiral is potentially terminal and will continue if the value farmers receive for their lambs stay at current low levels. To continue to have viable sheep-meat and wool industries, to preserve the tens of thousands of down-stream jobs many communities rely upon and to maintain major overseas earnings for New Zealand, it is essential that farmers get more for their stock.
Why is a target important?
While there have been different proposals and discussions on ownership and structure in the meat processing sector of late, there is no clear focus on what the industry should be aiming for over the next five years. The T150 campaign will provide that focus.
Meat & Fibre leaders know that $150 will not be an easy target to meet but Federated Farmers believes T150 is a target that is tangible, inspirational but above all, achievable.
Federated Farmers also believes that a recognised target will give farmers a context within which to make decisions about how they farm and a focus on future changes to industry structure. Those proposing change should ask themselves, "How will this initiative help reach the $150 lamb target?".
What about consumers?
Even though New Zealand sheep farmers are receiving very poor prices for lamb, consumers are not paying less for their lamb racks or Sunday roasts at the supermarket.
If the national sheep flock continues to decrease the price of lamb for consumers will only increase as demand outstrips supply.
Famers getting $150 a lamb is not expected to make a huge difference to the price consumers pay for lamb but if the campaign doesn't work consumers could have to pay much more.
Federated Farmers encourages all New Zealanders to back the T150 campaign.
What can you do?
Federated Farmers of New Zealand wants all those involved in the lamb supply chain to lift their sights and help achieve the T150 goal. Anyone involved from the paddock to the plate, from farmer members to processors, researchers, marketers, transporters and supermarkets should be thinking T150. Have your say »
Who do you contact for more information?
Federated Farmers Meat & Fibre section is leading the charge on T150.
The chairman of Meat & Fibre is Hawke's Bay sheep and beef farmer, Bruce Wills. He can be contacted on 06 834 9704, 027 234 1516.
Within each of Federated Farmers 24 provinces is a Meat & Fibre section and representatives. These chairman or chairwoman for each province make up the Meat and Fibre Council.
