ANZCO chief says meat report wrong

A meat industry leader says a recent MAF report misses the mark on the key issue facing the sector. Anzco chairman Graeme Harrison says contrary to what the report and farmers say, the supply of sheep and cattle to processors is the main issue facing the sector, not marketing reports The Rural News. According to Harrison, unless farmers make up their minds on how to behave with processors there is little chance of a culture change in the industry. He says a company like Anzco is servicing two markets "“ suppliers at home and customers offshore. "˜For Anzco, we are delivering very well on the customer end, having started as an offshore marketing company,' he told Rural News. "˜For us the issue is supply side, the other market where we get our raw materials.' He suggests meat processors like Anzco will start taking more interest in farm ownership to ensure a secured supply of raw material for its plants. Federated Farmers Meat and Fibre chairman Bruce Wills says he can understand the comment that processors see weaknesses around supply. He says the shortage of lambs this season has exacerbated the situation, but talks of processors buying farms is "˜a bit of overplay'. Wills says a lot of farmers are loyal to processors. The meat sector study launched by Agriculture Minister David Carter follows two years of failed industry attempts to instigate mergers and partnerships and to change the way it operated. Respondents have a vision for the sector in 10 to 15 years but want greater focus on coordinated marketing. The study highlights the conflict between suppliers and processors over the supply of stock. But Harrison says marketing is not a problem for Anzco, which began as an offshore marketing company but has expanded into processing and manufacturing and also owns a beef feedlot. He says as the industry moves further into the chilled meat markets overseas, security of supply of sheep and cattle will become more important. "˜I think you will see more commercial sheep and cattle farms and with meat processors increasing investments,' he says. "˜It will be a gradual process.'