Three of the country's big farming firms have joined forces to seek government funding for a plan they claim will transform the red meat sector reports Stuff. Silver Fern Farms , PGG Wrightson and Livestock Improvement Corporation have sought government funding under the Primary Growth Partnership for a programme that will set up an integrated red-meat supply chain with the three playing key roles. LIC is the herd genetics specialist, SFF the meat processor and marketer and PGGW supplies services to farmers and is a stock buyer. They said yesterday the Government body considering their application for funding, the Investment Advisory Panel, had confirmed the proposal had advanced to business plan stage. PGGW managing director Tim Miles said he did not want to blow up the story, because the firms were only part-way through the application process, but had decided to put out a statement because rural people were asking about it. It was not a done deal, but a "bloody good idea", which would not be exclusive to the three firms. Others could join. The PGP funding was introduced in last year's Budget to provide funding for growth and innovation proposals on a dollar-for-dollar between the industry and Government. In the year to June 2010 there is funding of $30 million, $40m for 2010-11, $50m for 2011-12, and $70m for 2012-13. Each programme will be a joint investment between the Crown and industry. Contributions by the co-investors must be equal to or greater than the Government funding. Mr Miles said he did not want to reveal yet what the three companies proposed to invest and what they were requesting from the government. Their proposal covered all parts of the value chain, starting with understanding future consumer requirements and using that information through the chain including market research, product development, production, farm nutrition, genetics and improving production capacity. The target was to produce a sheep, beef and deer model that got the best out of the economics of meat production in a similar way that other food industries had identified the optimal model.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.