Friday, 25 November 2011 11:16

Act before it’s too late

Written by 

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.

More like this

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.

Limmer signs off from SFF

Silver Fern Farms chief executive Simon Limmer has signed off after six years at the helm of the meat processor and exporter optimistic about the future of New Zealand red meat.

Wrong!

The Hound is quick to put the boot in when someone gets things wrong, so he has to confess to his own major cock-up in the last issue of 2023.

Tough times

OPINION: The Hound reckons that Rob “I’ll be chair, I don’t care where”’ Hewett will be looking forward to the Christmas break more than most – despite being named chair of the year at a recent business awards ceremony.

Featured

Sheep drench resistance costly

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.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Knowing bugs means fewer drugs

A mastitis management company claims to deliver the fastest and most accurate mastitis testing available at scale for New Zealand…

Machinery & Products

AGTEK and ARGO part ways

After 12 years of representing the Landini and McCormick brands in New Zealand, Bay of Plenty-based AGTEK and the brands’…

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

JD unveils its latest beast

John Deere has unveiled its most powerful tractor ever, with the launch of the all new 9RX Series Tractor line-up…

Biggest Quadtrac coming to NZ!

In the biggest announcement that Case IH Australia/New Zealand has made around its tractor range, its biggest tractor is about…

» Latest Print Issues Online

The Hound

Why?

OPINION: A mate of yours truly wants to know why the beef schedule differential is now more than 45-50 cents…

Fat to cut

OPINION: Your canine crusader understands that MPI were recently in front of the Parliamentary Primary Sector Select Committee for an…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter