A proposal to develop on-farm management capability to enable productivity gains in the red meat sector has been approved by the Primary Growth Partnership investment advisory panel to business plan development phase.
The announcement has been welcomed by Beef and Lamb New Zealand chairman Mike Petersen who said, while there was still a lot of work to do, the support from PGP, alongside the investment from farmers and a range of industry and service providers, would enable a "step change" in the performance of the sector.
The proposal, led by Beef and Lamb, focused on implementing the on-farm elements of the red meat sector strategy, which was released in May last year and aimed at improving the sector's viability and increasing its earnings from $8 billion to $14 billion by 2025. It centred on the development and adoption of new farm management tools and capability.
A final decision on funding was expected later in the year, subject to the development of a satisfactory business plan.
The proposal involved investment of up to $37 million by PGP, matching an equivalent investment by the Beef and Lamb-led consortium.
Farmer contribution to the programme would come via farmer reserves held by the New Zealand Meat Board, which would be leveraged alongside the funding contributions of the other partners and the Government, Mr Petersen said.
Approval to invest farmer reserves was gained in the 2009 referendum and that would be reconfirmed as part of the round of Beef and Lamb farmer meetings each year, he said.
