Federated Farmers - September 2010

The Rambull

The bi-monthly newsletter from Federated Farmers Meat & Fibre industry group

Chairperson's commentary

BRUCE WILLS - CHAIRPERSON FEDERATED FARMERS MEAT & FIBRE

There has been much mention recently about two new developments designed to help restore our industry to profitability. The first is a partnership between Government's Pimary Growth Partnership (PGP) fund and a consortium of SFF, Landcorp and PGG Wrightson and the second is the launch of the Meat Sector Strategy by Beef + Lamb New Zealand and the Meat Industry Association.

Federated Farmers has always been supportive of any initiative that aligns to our vision for the meat and fibre sector. T150 is where we need to aim and our target of $150 for a good mid-season lamb by 2013 is still achievable and realistic. Although the focus of the above two initiatives is ‘meat', it has always been our view that ‘T' also stands for total. In this instance a total return of $150 would include meat, wool, pelt and by-products (milking is included here). The meat component has been carrying the load, wool has a long way to go, pelts have improved but remain well short of where they used to be and by-products hold considerable potential. When you add them all up, T150 is not that hard!

It has also been our view that the ‘T' can also stand for total commitment from all sectors. Farmers need to do their bit, as do the meat companies, the wool companies, the stock agents and trucking firms etc. Why do all these parties need to commit? Because if we don't achieve a significant improvement in overall lamb returns, then we all face an uncertain future.

Federated Farmers has three guiding principles to help achieve T150:

A pasture-to-plate supply chain, bringing greater returns back to the grower.
Structure to capture efficiencies and economies of scale.
A sense of loyalty, pride and confidence in the red meat sector.

Let me briefly comment on each.

We all know that a more efficient, integrated supply chain is a must. We understand the need to supply what the consumer wants and we start at the pasture end because that's where we are. The next bit is a given - greater returns back to the grower.
In our view there are too many companies, competing for too few lambs. Too many processing plants and not enough collaboration. Too much competition at the procurement end and too many trucks driving past the nearest works. There remains huge scope to better capture efficiencies and economies of scale.
When we achieve these principles, we know that T150 is in the bag! Just imagine a sense of loyalty, pride and confidence in the red meat sector. That will be a day to celebrate.

In other news, the Meat & Fibre council meeting is to be held in Wellington just after Labour Weekend, on Tuesday, 26and Wednesday, 27 October 2010. If you are unable to attend, please feel free to contact your local Meat & Fibre chairperson so they can bring up any points on your behalf at the meeting. To find out who your local chairperson is, please click here.

If you are able to attend, I would be delighted to see you there and can promise an informative and enjoyable couple of days. Speakers include the Hon David Carter, Minister of Agriculture and Forestry, John Allen, Chief Executive and Secretary of the Ministry of Foreign Affairs and Trade (MFAT), as well as Jeff Grant, William McCook, Rob Davidson and others.

Kind regards,

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

2010 Meat & Fibre council meeting

TUESDAY, 26 AND WEDNESDAY, 27 OCTOBER 2010

This event will be held at the Mercure Wellington, 345 The Terrace, Wellington on Tuesday, 26 and Wednesday, 27 October. The Meat & Fibre executive will meet the previous day, on Monday, 25 October, Labour Day.

The agenda is currently being finalised but, as noted above, the event offers sheep and beef farmers a very interesting two days of informed discussion and fellowship. If you would like to attend this event, please contact Events and Leadership Manager, Kimberley Wadsworth, by clicking here or Meat & Fibre Policy Advisor, David Burt, by clicking here. Alternatively, the registration form can be downloaded directly from the Federation's website by clicking here.

Industry news

MEAT SECTOR STRATEGY - FARMER INPUT REQUESTED

The red meat sector strategy has been launched by Beef + Lamb New Zealand Ltd and the Meat Industry Association. The purpose of the strategy is to clearly identify the issues that face the sector and to identify how they may be addressed so that the sector achieves a level of profitability that is sustainable for farming businesses.

A key part of this work will be to obtain information from stakeholders about the barriers they face and the opportunities that are available. This work is being facilitated by Deloitte, who is keen for farmers to have their say about the strategy development process. We urge farmers to participate in the survey, which can be completed by clicking here.

BEEF + LAMB NEW ZEALAND NEW SEASON OUTLOOK PUBLISHED

The Beef + Lamb New Zealand new season outlook has recently been published and, underpinned by the continuing tight global supplies (especially for lamb), is predicting that the good demand for New Zealand lamb and beef will continue, although the projected farm profitability figures in the report make for sober reading.

At what is, currently, an optimistic exchange rate of 68 cents/US$, all classes average sheep and beef farm profitability before tax is estimated to average $54,000 per farm for 2010-11. This is down 5 percent on 2009-10 and a less favourable exchange rate of 72 cents US to the NZ dollar would see sheep and beef farm profitability fall further, to $34,000 per farm.

The full report can be downloaded by clicking here.

PGP/SFF PROGRAMME

A partnership between Government (in the form of the PGP fund) and industry (Silver Fern Farms (SFF) in association with Landcorp and PGG Wrightson) will invest $151 million over seven years into the development of an integrated ‘Plate-to-pasture' value chain. The vehicle used to manage to process will be a new entity named FarmIQ Systems Limited. We will advise members about how this programme will operate as more information becomes available.

THE WOOL GROUP

The Wool Industry Taskforce successor, the Wool Group, is now under the chairmanship of Colin Harvey and continues its endeavours to develop a more cohesive industry voice. Farmers' interests are represented by Bruce Wills, Federated Farmers Meat & Fibre Chairperson, who sits on the Group.

Legislative news

THE NEW ZEALAND PRODUCTIVITY COMMISSION BILL 2010

The New Zealand Productivity Commission Bill 2010 has been designed to "establish the New Zealand Productivity Commission as an independent Crown entity with the purpose of improving productivity in both the public and private sectors in a way that is directed at supporting the overall well-being of New Zealanders".

The New Zealand Productivity Commission will have a wide brief and is based on the highly credible and authoritative Australian Productivity Commission.

The Federation has submitted in support of this legislation and members can request a copy by contacting National Policy Manager, Nick Clark, on 0800 327 646 or by clicking here.

Notices

NOTIFICATION OF THE REBATE CHANGE

From 1 October this year, FMG is introducing the convenience of paying your FMG premiums through your CRT, Farmlands or ATS cardholder statement, with a rebate on top of your already competitive premiums. This replaces the current FMG rebate to Federated Farmers members due to reducing use of that arrangement and it also means we can guarantee strong ongoing support for local Federated Farmers provinces, through yearly support payments based on the number of FMG members who identify themselves as Federated Farmers members to us. FMG also continues to support Federated Farmers at a national level, as a Gold sponsor and through support of Federated Farmers Farm Day and other initiatives.

ARE YOU INTERESTED IN CARROT SUPPLY FOR RABBIT CONTROL?

Federated Farmers has been contact by a member near Temuka who has surplus tonnage of carrots for sale. The surplus will be available until the end of September, as the quality will deteriorate after that point. Pricing on these current season carrots would be very attractive to the buyer. The member would also be interested in looking at ways to supply direct to those interested on a long term basis for the 2011 year and beyond. This would allow them to have a direct relationship and plan for potential volumes needed to be grown, rather than letting the buyer rely on a spot market. This also allows them to deliver a better product at a better price. If anyone is interested, please contact Hamish McFarlane on 021 447 701 or by clicking here.

Training and education

RURAL STAFF MANAGEMENT PROGRAMME

Staff performance can make a real difference to your farm's productivity and profit. To inspire your employees, and maximise the performance of your team, you need strong processes for hiring, training and managing your employees. Agriculture ITO's Rural Staff Management programme is a series of four, one day workshops covering employer responsibilities, legal obligations, recruitment and selection of employees, as well as teaching you the skills and strategy to motivate your staff and develop a high performing team. To enrol, or find out more, contact your local Agriculture ITO training adviser on 0800 691 111 or visit www.agricultureito.ac.nz.

EMPLOYMENT WORKSHOPS

Federated Farmers will be holding its highly popular employment workshops throughout October and November 2010 and then again in February and March 2011. The major topics covered include the 90 day trial period, discipline and dismissal, ACC claims, best practice, holidays and leave. The cost per workshop is $35 for members and $60 for non members. For more information on attending a workshop and to find out workshop dates and venues, please click here, call 0800 327 646 or email events@fedfarm.org.nz.

Member benefits

RAVENSDOWN FLYSAFE®

Trust Ravensdown to protect your sheep from flystrike with new Flysafe® Liquid and Flysafe® Spray-On. Call 0800 100 123 for more information.

PAYING TOO MUCH FOR YOUR HEALTH INSURANCE?

Federated Farmers has partnered with Accuro Health Insurance to offer members a minimum of 5 percent off standard premiums along with a special 90 day (1 September - 30 November) offer. To find out more and for a quote, click here and login to the members only section of the website or call 0800 222 876.

CONTRACTORS ON YOUR PROPERTY?

Make sure you have a written agreement in place for any contractor working on your farm. This ensures both parties know what is expected of each other and most importantly, details where the responsibilities lie for payment of ACC levies and health and safety compliance. Don't forget, Federated Farmers members save up to $105 per contract or agreement, click here to buy yours now.

ENJOY A DROP OF CENTRAL'S FINEST

Federated Farmers members are spoilt for choice this week with a fantastic selection of award winning Central Otago Pinot Noirs - all at less than half price. You can check out these, and many other great wines, at www.winesonline.co.nz.

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.

Recruitment

NORTHERN SOUTH ISLAND FIELD OFFICER VACANCY

We are seeking a Field Officer for this exciting rural services organisation, to manage the northern South Island region. You would preferably be based in North Canterbury but we would consider other options. You will be selling memberships to prospective members, act as the key liaison point with farmers, current members and our local provincial executive. To be successful in this role you will need superb sales, communication and organisation skills with the ability to build and sustain long term business relationships. You will have a solid understanding of the business of farming, be results orientated with a strong and proven sales record. A qualification in Agribusiness or equivalent practical experience would be of an advantage. To find out more about this opportunity and receive a copy of the job description please contact Tim Wood on 0800 327 646. Applications should be sent to jleathley@fedfarm.org.nz by 5pm Monday, 27 September 2010. We would look at the possibility of two part time people depending on the quality of applicants.

Contacts

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.