Meat plan may be unpopular

A proposed meat industry strategy could end up telling some home truths which may prove unpopular, sector leaders say.

While not pre-empting the findings of the strategy, Beef and Lamb New Zealand chairman Mike Petersen said the strategy could force farmers to change the way they operated.

"I'd expect many farmers may not like the message that comes out of it," Mr Petersen said.

Meat Industry Association chairman Bill Falconer said the strategy could send his members a similar message, to switch from a supply model to a model that captured more product value from the market.

"That is the difference between saying, `This is what we produce, find me a market', to the world saying, `This is what we want you to produce'."

The $500,000 strategy will be compiled by Deloitte.

To achieve this, the company will canvass the opinions of all interested parties from farmers to the market, coming up with options to improve the profitability of the $6 billion export business.

Mr Petersen said the horticulture, aquaculture and dairy industries all had sector strategies, and he said it was no coincidence the meat industry was facing "challenging times" and it did not have one.

The strategy would "put a stake in the sand" identifying issues and opportunities.

Mr Falconer said all his members were supportive of the initiative, but he conceded there was no guarantee they would adopt its findings, as it was up to companies to make commercial decisions.

He said the company would not start with a preconceived point of view.

Beef and Lamb, the Meat Industry Association, New Zealand Trade and Enterprise and the Ministry of Agriculture and Forestry are contributing $125,000 each to the project.

Mr Petersen said while some farmers would be interviewed as part of the process, they all could make submissions.

Initial findings were expected by the end of the year, with the full report to be released by March next year.

 

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