Jon Morgan from the Dominion Post looks at three movers and shakers within the industry, that have put their money where their mouths are. John Gregan, Don Nicolson, and Bruce Wills either have, are about to, or seriously considering, exiting the sheep industry.
All are disillusioned after years of poor profits, increasing costs and working in a deeply divisive sector, that has failed to agree on a unified vision going forward.
And now even the chief of the biggest processor, SFF, concedes that "the industry is culturally inept and driven by egos"!! Meat and Wool chair Mike Petersen also comments that "a pessimistic mood pervades the industry", but believes a mixed portfolio of systems will allow better profits for most.
The sheep industry is in trouble, and only substantial change will save it.
The sheep industry is fighting for its life as farmers turn to dairying and forestry for better returns. As much as anyone, John Gregan has worked hard to engineer a revival of sheep farming. He is a founder of a ginger group that at its height drew hundreds of farmers to meetings in both islands with a determination to force a restructuring of the fiercely combative meat industry.
The group succeeded at electing members to the boards of the co- operatives running the two biggest companies, in one case famously toppling a chairman, but failed in its ultimate objective. Disappointed and frustrated, Mr Gregan is now turning his back on sheep farming and converting to dairying.
Federated Farmers president Don Nicolson expects to have sold all his sheep by the end of winter and will rely on dairy grazers for a living on his farm near Invercargill. "In 30 years in the sheep industry I've made as much or better than the average wage just three times. I can't keep on like this," he says.
Bruce Wills, who farms near Te Pohue in the hills beside the Napier- Taupo highway, is surrounded by farms for sale. "Most of the lookers are offshore investors intending to plant trees," he says. He was spurred by drought to borrow to increase his farm's resilience, digging dams and putting in new fencing, but wonders if it was a good investment. "It might be better to close the farm, put it in trees and go to the beach."
The frustration is evident in his voice. "I could make more money per hectare doing nothing and enjoying the carbon credits rather than working seven days a week eking out an existence, producing world-class meat and fibre products and not being paid nearly adequately enough for them."
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