Farmers of fine wool appear to be flocking to support a new meat marketing structure which its promoters say could be a blueprint for the wider meat industry.
Between 400 and 500 South Island farmers of fine wool recently attended eight meetings to hear details of the joint venture between the New Zealand Merino Company and Silver Fern Farms, which would result in fine wool sheep meat being promoted under its own brand, built around the attributes of the high country.
Northern Southland farmer Brian Hore described the venture as "a tremendous opportunity", and he welcomed the fact it coincided with a period of high export sheep meat prices rather than when prices were low and a structure was being created to push them higher.
Three-year contracts for both store and prime fine-woolled sheep are being offered, something farmers spoken to welcomed, saying contracts had successfully provided stable income from merino wool.
Mr Hore said he hoped to also benefit from higher by-product prices such as fine wool pelts, which had previously been discounted but were believed to have new higher value uses.
This was another example of fine wool growers uniting for the greater good, he said; and of looking for a new idea to address a problem.
Lake Hawea farmer Tom Rowley said contracts for his merino wool had given him certainty, but the terms around meat contracts were more favourable.
He was concerned spot meat prices were getting too high and he said contracts would provide some certainty for farmers, processors and customers.
Speaking as chairman of Merino Inc, Mr Rowley said while overall reaction from fine wool sheep growers was positive, there were some reservations about ending existing processor loyalties and also about the 4% marketing levy farmers were expected to pay.
He saw the levy as a cost of doing business.
"We've got to remember that we do have to put money into these things to make them work."
As for grower loyalty to meat companies, Mr Rowley said that had to be weighed up with the opportunity.
"There are certainly reasons for it [loyalty] but at the end of the day this opportunity is hard to turn down."
New Zealand Merino chief executive John Brakenridge said the grower turnout was the highest since the company was formed in 1996, and there was overwhelming support for the venture.
"This is groundbreaking. To be able to have something happen which will have the broad effect on incomes and profit, and which will complement what is happening to the fibre side of farmers' business, has real appeal," he said.
The level of support was also evidence fine wool growers understood the benefits of selling branded products as opposed to commodities.
The plan is to create a joint venture company, initially called Alpine Iron, to market and promote sheep meat and by-products from fine-woolled sheep.
A brand extolling the high country environment, sustainable production and the providence of the story will be developed.
The new venture will use consumer tasting and marketing to question the current meat structure.
Many farmers believe two-tooth fine wool sheep are the best eating but companies penalise sheep of that age.
Consumer testing could see that change.
Mr Brakenridge acknowledged grower concerns about changing loyalty, but said most people acknowledged the meat industry had to change and this could be a blueprint.
Initially they were hoping to attract 500,000 sheep, and Mr Brakenridge said more details were being sent.