By Tony Chaston
Is that it? Ditch all the independent stock agents and all the meat sector woes will disappear. I don't think so.
Questions must be asked why farmers are using all these agents, ahead of the processors procurement people in the first place.
Lack of trust and transparency by processors to treat and communicate with them fairly are the root cause of the issue.
Secret deals, an "us and them" mentality even from companies owned by the very shareholders they were meant to serve, has soured many farmers and they looked to independent agents to source a fair deal.
An industry approach is the only way to heal the wounds but with the two Co-Operatives still miles apart there appears little hope of that being achieved.
Attitudes have improved significantly over the last 5 years , but will this report be just another cost of consultants to the industry, or will it ignite real change?
Jon Morgan also shares his concerns that present high prices will hide the real issues that need to be faced, if the red meat sector is to survive.
Sheep and beef farmers ditching stock agents and supplying meat processors directly could reap up to $100 million in earnings in the first year, according to the architect of a new sector strategy reports Stuff.
Deloitte partner Alasdair MacLeod, who has been leading the work on the red-meat sector strategy, presented initial findings to about 100 fa rmers and industry representatives at a meeting in Gore yesterday, the first of 11 planned throughout New Zealand.
The research showed farmers wanted meat companies to carry out more collaboration in marketing, but they also wanted a procurement process that gave them the best price. "I'm telling you now, you can't have both and have a sustainable future."
The sector needed to become more market-led, while there was an opportunity to improve profitability without any further investment by taking advantage of existing scientific knowledge and technology to lift on-farm productivity.
Piloting in-market collaboration and increasing automation in meat plants, which was already under way, could bring benefits of up to $190m in the third year, he said.Throughout the initial stage of research, it had been made clear the "threats" to the industry from competing land use including dairy and forestry were "very real", Mr MacLeod said.
Dairy was more of a threat than he had assumed, with new grass cultivars predicted to move into areas drier than those normally considered for dairy land, he said.
The aim of the meeting was to road test the initial findings, before the completion of a final report, due in late March. During the past four months about 50 farmers had been interviewed, along with a further 50 people from various organisations, including meat processors and government agencies. while 542 online surveys had been completed.
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