Meat Plan A Catalyst

The PGG Wrightson/Silver Fern Farms proposal offers a much needed capital injection for the cooperative meat company, says newly elected Federated Farmers Meat and Fibre section chairman Bruce Wills.

‘This may be the catalyst the industry needs to move forward,’ says this rural banker turned sheep and beef farmer from Hawke’s Bay.

Also, because the venture is commercially driven, it will happen over a much shorter timeframe than other alternatives, he says.

‘Action sooner rather than later is positive for everyone involved… the key issue will be whether farmers want to retain total control of their industry or are happy to work in a partnership arrangement.’

Such commercial decisions have to be made by shareholders, not the federation, but it is the latter’s role to provide a forum for debate and to inform members as best it can.

Wills says he will continue to work closely with all participants in the hope that the final decision will provide a better outcome for the entire meat industry.

‘For some time now meat and fibre farmers have been demanding change. This proposal gives some hope and an alternative to the impasse that has occurred around recent restructuring initiatives in the meat processing industry.’

The PGW/SFF proposal is the second major development in the meat industry saga to hit the headlines since Wills was elected on June 24, putting his election pledge of ‘a stronger voice for farmers on meat industry reform’ to the test. The first was the disbandment of the Meat Industry Taskforce, which he says farmers are ‘aghast’ at.

‘Farmers were convinced this process would come up with the key analysis and ideas necessary to take the ailing industry forward,’ he says, reiterating his view that cross-industry talks continue.

‘Members can be assured I will be talking to other industry players so the restructuring, desperately needed by the sector, continues.’

Wills sees profitability of the meat and fibre sector, not just on the farm but for processors as well, as the main issue on the agenda.

‘No one has been making enough to generate funds for proper market development or R&D really.’

Reform inside the farmgate, as well as in processing and marketing, is needed, he says.

‘A lot of this change that’s required has to happen behind the farmgate, supplying contracts and engaging in long-term production plans.’

On the fibre side he says he welcomes the Wool Industry Network approach and the formation of Wool Co ‘is a good start.’

‘We know the current model is broken, so I very much support the change… the situation has become quite ludicrous. We have this wonderful product and on a net basis we are losing money on it.’

Traceability and the recently announced National Animal Identification Tracing (NAIT) scheme will be an area the federation will keep a close watch on.

‘The last thing we need is bad legislation without good research or science behind it that doesn’t deliver a tangible return to farmers.’