The Meat Industry Action Group (MIAG) says it has received an overwhelming mandate to continue but will take a more conciliatory "˜watchdog' role in its efforts to bring about reform. "˜We are hugely proud of what MIAG has tried to achieve,' says chairman John Gregan, who was reappointed at the group's annual meeting in Dunedin last month reports Rural News. "˜A group of concerned, self motivated farmers whose only concern was to improve the industry they were a part of, stepped up to the plate. But we also recognise MIAG has not always got it right.' So in future the group aims to work with meat industry companies and organisations to facilitate consolidation or greater cross-industry co-operation, rather than trying to force reforms as it has in the past. "˜The problems in the industry that all the companies agreed existed are still there"¦ We need a plan for a better industry. This survival of the fittest is not healthy for farmers because effectively the companies are continually beating each other up.' Deals where one farmer receives a better price than another for the same weight and grade lambs, sold to the same company, on the same day, for no apparent reason remain rife, as do inefficiencies due to a fragmented, uncooperative industry structure, says Gregan. And while under-cutting in the market place to "˜get the sale done' and retain quota may have disappeared this season due to the crash in lamb supply, it will be back if nothing changes, he believes. The good times being enjoyed by sheep farmers are mostly due to a favourable exchange rate reports the ODT. M&WNZ Economic Service executive director, Rob Davison, said export lamb prices from last October to this March were up 27%, to $8670 a tonne, compared with the corresponding period the previous year. But 18% of that increase was because of a more favourable exchange rate. On a trade-weighted basis, the exchange-rate effect had boosted lamb returns 18% over that period, while global market prices had increased just 5%, Mr Davison said.
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