Boards research joint venture

The meat and wool producer boards are looking at creating a joint venture to manage their research, technology transfer and training functions.

Woolpro chairman Terry Heiler is heading a steering committee for the project, which has the interim title of Basco, the Beef and Sheep Co.

The concept has gained momentum since the recent McKinsey report recommended the Wool Board be dismantled.

The report recommended the setting up of a research and development company, to be funded by a 1 per cent levy on growers.

But Science Minister Pete Hodgson and Agriculture Minister Jim Sutton have expressed concern at another recommendation, of reducing levy funding for wool-processing research and development from $3.5 million to $2 million a year.

Mr Heiler said the Meat and Wool Boards were initially set up with a prime focus on marketing, and only in the past decade had they seen the need to spend levy money on research and development.

"There have been difficulties because there are two separate institutions involved," he said. "When we set up Woolpro in 1998 it was pretty obvious that it should be 'Sheep-pro'."

But it was difficult to set up a new company without having to solve the problems relating to another institution.

In the past two or three years the sheep sector had reached a strong agreement on the need for a combined body.

The Dairy Board had just completed a similar assessment but it was too early to say whether dairy farmers would support the venture, even though there was common ground in areas such as pasture research.

The committee hopes to make a firm proposal at Meat New Zealand's annual meeting in March.

- NZPA