Beef + Lamb rethink as processors reject plan

Rick Powdrell

The decision by New Zealand meat processors to reject a marketing proposal by Beef + Lamb NZ will not come as a surprise to many farmers.

Bay of Plenty Federated Farmers president Rick Powdrell said the initial idea had merit and was a step in the right direction.

Beef + Lamb hoped to establish a 50/50 funded market development entity focussing on a country of origin promotion and spent two years trying to gather support.

"A lot of farmers would say Beef + Lamb should not be in that area and their levy money shouldn't be spent there," said Mr Powdrell.

However, Beef + Lamb had already been putting money into that area and a joint approach could have had benefits but since it had been turned down the organisation "will have to go away and have a rethink," he said.

Beef + Lamb chairman James Parsons said it was disappointed with the outcome.

"We've had a lot of dialogue and constructive discussions with processors, considering how market development could be funded and delivered in the future.

"After all the hard work, it's disappointing that we weren't able to get agreement. However, we respect processors' preference for their own commercially-focused marketing given, they are the ones who sell the product. What became apparent over the two years of one-on-one meetings and workshops with meat companies was the wide ranging views on how we should promote New Zealand's sheepmeat and beef."

Parsons said, while a joint marketing entity was not landed, the processors had acknowledged that by choosing not to be involved in joint market promotion with Beef + Lamb New Zealand they accepted responsibility for red meat promotion and additional investment will be needed by them.

"We know from our own independent research that farmers place a lot of value on the promotion of beef and sheepmeat in our international markets. Pleasingly, a number of processors I've talked with ... have told me they will accept responsibility for this work through their own commercially focused activities."

That was a positive outcome, he said. "The Beef + Lamb New Zealand board and senior management team is now taking a deep breath and considering next steps before we shape up our final proposition to put to farmers for the 2016-2022 commodity levy cycle.

"We are a grassroots farmer organisation governed by farmers, so our fundamental rule of thumb when directing farmers' investment is that it must deliver value back behind the farm gate."