News that the red meat industry has again been able to attract more public funds to grow its business in the future, is good news. Last year this sector achieved funding for two major meat projects and now with this one, over $75 million has been invested to try and improve returns for meat producers.
With the red meat strategy report due to be released next week, livestock farmers will soon get a view of where the sector is headed in the years ahead. The two Primary Growth Partnership projects are less than a year old, but taxpayers and farmers have seen little news or communication about their progress.
Can you shed any light how the Integrated Value Chain, and NZ Merinos project are progressing?
An $850,000 contestable fund has been established to drive further growth of the red-meat industry reports The ODT. The Red Meat Market Development Contestable Fund is an initiative between NZ Trade and Enterprise and Beef and Lamb, with funding allocated to successful applicants on a 50/50 basis. Yesterday's announcement, by acting Economic Development Minister David Carter, comes less than a week before the launch of the red-meat sector strategy report, which is aimed at improving the viability of the sector.
Red meat generated around $5 billion in export revenue last year and the Government believed a more concerted approach by the industry could considerably lift that figure, Mr Carter said.The contestable fund aimed to encourage innovative industry-led projects that would lift the profitability, competitiveness and sustainable growth of the meat sector.It further enhanced the Government's primary growth partnership, which has so far pledged more than $60 million towards a joint $150 million red-meat programme.
An interim report released by Deloitte partner Alasdair MacLeod in January identified three areas to be addressed: livestock procurement, especially the role of stock agents and third parties; in-market behaviour of exporters; and variable farm performance. Meat Industry Association chief executive Tim Ritchie said it was very timely, with the impending launch of the strategy report, and he imagined there would be some themes within that document that could well be applicable to it.
North Otago Federated Farmers president Ross Ewing, who farms at Kauru Hill, said any assistance was "in the right direction".He did not believe there was a problem selling meat; rather he felt there was a need to produce more and ensure costs did not get out of control. He was also concerned about biosecurity.
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