Neal Wallace

There is no shortage of farmers who have visited Europe and returned with horror stories about the presentation of New Zealand lamb.

The global financial crisis has increased the reliance on meat markets in emerging markets, as consumers in traditionally high-value markets trade down the value of cuts they buy, according to Rabobank.

While confidence and prospects for sheep farmers may be at a low ebb, there are some projects under way in a bid to reverse fortunes.

Fonterra is treading a cautious line, deciding to maintain its forecast payout for the coming season despite an expectation global prices will improve this season.

Promoters of a new business model for the ailing meat industry say it will transform the sector and boost the New Zealand economy by $521 million in the next seven years.

The Government has changed the emissions trading scheme rules, which will benefit owners of 1.5 million ha of exotic forest planted before 1990 - the cut-off date at which the Kyoto Protocol acknowledges the carbon-absorbing role of trees.

Meat company Alliance Group is investigating the merits of sheep milking to help its shareholders develop a new income stream.

The adage "if you keep on doing what you have always done you will always get the same result," could have been written for the sheep industry. Agribusiness editor Neal Wallace reports that unless there is change, the future for the sheep industry looks bleak.