MIAG mans says meat plan won't fly

The farmer who spearheaded the failed bid to merge major meat processors doubts that a new Government initiative will lead to consolidation in the sector. John Gregan, who headed the now defunct Meat Industry Action Group (MIAG), believes there is no real willingness between meat cooperatives Alliance and Silver Fern Farms to work together. Gregan says pressure exerted by the Government on the meat sector is good but a mega meat company is still far away. "˜We take some heart from the fact the industry and the Government are now talking about what we have already raised,' he told Rural News. "˜It's certainly encouraging but the ill-feeling among the meat cooperatives is too high.' The meat sector study, released by MAF last month, reveals stakeholders remain optimistic about the long-term future of the sector. However 87% of the respondents thought that the culture of the meat industry was a major constraint for the sector. Agriculture Minister David Carter agrees the meat sector needs to change for the good of all farmers. Addressing the Federated Farmers annual conference in Auckland last week, he said change in the meat sector would only be lasting if driven from within the sector. Carter, who met stakeholders after the release of the report, hopes that it will kick off a process where stakeholders work together for mutual benefit. However, he stops short of backing a mega merger of the meat processors. "˜It makes sense for one company to do all it can to stay ahead of its competitors, but when there are opportunities for collaboration that allow all parties to benefit without losing their independence, these should be explored,' he says. Federated Farmers Meat and Fibre chairman Bruce Wills says meat companies are sending mixed messages on the benefits of a mega meat company. "˜Some companies say amalgamation won't achieve anything while others say yes,' he says.