Shipping crisis deepens
The shipping crisis caused by Houthi rebel attacks in the Red Sea and problems with a lack of water in the Panama Canal appears to be deepening by the day.
The meat industry must stop dancing on a pinhead and get serious about protecting the future of beef, sheep and deer farming, says Jeff Grant, a candidate for meat processor Alliance board elections.
"The consumer market is providing a window of opportunity, with current returns on-farm above the long-term average – thanks to supply and demand, rather than marketing efforts. But is the industry taking this opportunity to consolidate and form marketing alliances, so the focus moves to where it should be: the market?"
In a media release, Grant says that, if the two farmer cooperatives, Alliance and Silver Fern Farms, are truly committed to the prosperity of their shareholders, they would be leading the charge. "We all know that it's an issue of 'when', not 'if'.
"Amalgamation doesn't need to happen tomorrow, but we need to see a commitment from both co-ops that they are prepared to work towards such a position. We want to see more action in the market, not silly antics in procurement."
Meanwhile, as dairy land increases, beef and sheep land decreases, putting pressure on the red meat industry to survive with a diminishing volume of product to market.
For the grass-fed beef industry, it gets worse, he says.
"As more cull cows and dairy-sourced beef enter the market, it keeps the focus on commodity product – not prime product – and results in less promotional activity."
Grant says meat cooperatives should consider all business opportunities that can increase shareholder returns.
"I believe the co-ops need to look at the future of strong wool marketing and establish a wool marketing entity on behalf of their shareholders. Anything would be better than the shambles of the past 25 years. Farmers are desperate to see change.
"The co-ops are well resourced to take a lead, especially when they are already large players in slipe wool."
A joint venture for wool between Alliance Group and Silver Fern Farms would be no different than the New Zealand Lamb Company, which both cooperatives use to sell sheep meat into North America, he notes.
Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.
Shipping disruption caused by Houthi rebels in the Red Sea has so far not impacted fertiliser prices or supply on farm.
The opportunity to spend more time on farm while providing a dedicated service for shareholders attracted new environmental manager Ben Howden to work for Waimakariri Irrigation Limited (WIL).
Federated Farmers claims that the Otago Regional Council is charging ahead unnecessarily with piling more regulation on rural communities.
Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.
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