A proposed strategy for the meat industry will look at ways to improve the $6 billion export sector's profitability, not its structure.
Beef and Lamb New Zealand and the Meat Industry Association yesterday announced the two-stage project which will initially look at issues and opportunities across the sector, from the market to the farm.
That report was expected to be completed early next year, with the second phase involving the collaboration of "willing participants" to "adopt and implement initiatives to drive change", the groups said in a statement.
This could include research and innovation, market development or supply-chain initiatives.
But many believe the industry's structure was the root of its problems.
Companies wanting to keep processing chains busy encouraged competition for stock, which drove up prices, and competition for market share when product was sold drove prices down.
Equally, there was general acceptance that any structural changes would be commercially driven and not imposed.
Beef and Lamb chairman Mike Petersen said the strategy grew out of farmer frustration at the volatile and marginal profitability of the sector.
He said pleased processors and exporters - through the Meat Industry Association - also recognised the project's importance.
Association chairman Bill Falconer and Mr Petersen both believed quick benefits would flow from the first phase of the project.
Funding will come from Beef and Lamb, the Meat Industry Association, New Zealand Trade and Enterprise and the Ministry of Agriculture and Forestry.
A partner with the accountancy firm Deloitte, Alasdair MacLeod, will be the independent facilitator.
Agriculture Minister David Carter welcomed the sector's co-operation as a step towards improving profitability.
