Beef and lamb industry 'risks being insignificant player in NZ's economic recovery', according to the country's biggest rural lender

Beef and lamb industry 'risks being insignificant player in NZ's economic recovery', according to the country's biggest rural lender

The beef and lamb industry, is at risk of being an "insignificant player" in New Zealand's economic recovery, according to the country’s biggest rural lender ANZ Bank.

ANZ's managing director of commercial and agri Graham Turley said business that developed NZ primary products into desirable products were "the new stars of the economy".

Among all this, the beef and lamb sector - "one of the historical foundation stones of the New Zealand economy" - was stuck in its ways "and won’t benefit unless bold action is taken”.

Turley has been a strong advocate of change in the red meat sector and has said that attitudes need to change.

"Beef and lamb exports have been an important foundation stone in New Zealand’s economic development. But the fractured nature of the industry, with its poor planning, means it’s now at risk of missing out in the country’s economic recovery."

The third annual Red Meat Sector Conference, which starts on Sunday at Auckland's Langham Hotel and runs through Monday, came at a critical moment in the industry’s history, Turley said.

"The dairy industry has done really well in recent years as a result of investments across the whole supply chain and the red meat sector needs similar attention.

“Top of the agenda for all participants at the conference should be how to inject new thinking and new leadership into the industry.”

The conference is jointly hosted by the Meat Industry Association of New Zealand Inc and Beef + Lamb New Zealand Ltd. ANZ is the principal sponsor.

Turley said that among the key challenges for the industry were reversing the trend of decreasing supply of lambs, lowering production costs, and increasing profit. This would require reinvestment across the whole industry, integration of the supply chain so farmers are rewarded for supply of the right product at the right time.

"It’s crucial that farmers make a commitment to the supply chain so that the marketers and processors can invest in efficient processing and new markets with confidence to enable higher returns.

"Fortunately, there is increasing recognition of the need for a new industry model integrating the supply chain.”

Turley said the conference would be a great opportunity for the entire sector to meet, network and address the fundamental issues facing the industry.

"I have enormous confidence that red meat will be a key part of New Zealand’s economic future, but a lot of brave decisions and hard work must happen first."

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9 Comments

"This would require reinvestment across the whole industry".............So there you are all you red meat producers...get down to the credit creation lot and borrow heaps....and the next time some ticket clipping yahoo in a suit puts a tag in your ear...don't get angry...turn the other ear!

Mr Turley - you state:
"It’s crucial that farmers make a commitment to the supply chain so that the marketers and processors can invest in efficient processing and new markets with confidence to enable higher returns.
 
Perhaps you have put the cart before the horse. Farmers are by their business activity  committed to the supply chain.....(this should not need further explanation) the Processors need to lift their game and the farmers will respond by supplying what is needed.
 
 
 

Last time I had a contract with Silver fern to supply weaned deer they bullied me to deliver early threatening to not accept stock on agreed date so I did not achieve the weight expected so no profit - result no more Deer for Silver Fern. It is likely their early call was due to stock short for killing so the message is to all processors tell us what you want/when you want and how much a Kg - late delivery at your request OK as long as price per Kg is same and you should with good planning have full chains at your works subject to natural disasters etc.

So if meat misses the 

"economic recovery"
 
 What pray will be leading our economic erecovery?
 
 After a day pruning grapes in my vineyard it isnt going to be wine.
 Why do we give the banks so much power they are the 'Problem'.
 

http://mondediplo.com/1997/09/marcos

An interesting read....and I think pretty spot on.
thanks
regards
 

How to vertically intergrate the meat sector as if it has been done in the dairy sector -- 90% milk is now supplied to cooperatives!!

The problem IS THE CO-OPERATIVES or at least one of them because farmers are silly enough to hold shares in both. Silver Fern should have been let go into receivership or liquidation a few years ago and the over capacity issue would have been solved. It is a situation  unique to NZ where farmers belong to more than one co-op and then play them off against each other.

Well as the money man he is one of the best placed to "fix" things....
 
We doubt that its investment of land/property/plant assets that is needed, rather funding of working capital/process inventory/export credits or, in new speak "business models" beyond farmgate.....
(lending against other than landed property, that will sort the men from the boys bankerwise)...
 
We feel sure that pretty much the desired specification and the volume can be delivered ex farm gate, provided its adequately paid for in respect of FWE (we are including advance pmts etc...).
 
All he need do is find the "industry proposition/supply chain logistics model" most agreeable to he and fund that (as we mentioned we don't see much onfarm investing/debt taking needed) .....
 
We feel he/they would benefit from the exercise.......