Meat firms announce details today of joint venture to boost industry

Photo / Brett Phibbs

The meat industry is expected to get a shot in the arm today from an initiative involving some of the biggest companies in agriculture.

Meat processor co-operative Silver Fern Farms, listed rural services business PGG Wrightson, and state-owned farming company Landcorp Farming will hold a joint press conference today in Wellington.

The organisers of the briefing describe the news as "a significant development which will positively impact the ongoing growth and development of New Zealand's red meat sector".

A Ministry of Agriculture report this month said farm surplus for reinvestment on sheep and beef farms fell 37 per cent to $19,300 in the 2009/10 season, while cash surplus dropped to $6900.

In April, Silver Fern Farms and PGG Wrightson said the Investment Advisory Panel of the Government's Primary Growth Partnership had confirmed that a joint proposal to design a "transformational model" for the red meat sector would advance to business plan stage. The Herald understands the briefing today will be about this joint proposal, which now appears to involve Landcorp.

In April the companies said they were focused on implementing an integrated value chain, plate to pasture, to advance the country's position as a high-quality producer and ensure the sector had a sustainable future.

"This is an end-to-end programme covering all facets of the value chain, starting with understanding existing and future consumer requirements and distilling back to every part of the value chain including market research, product development, production optimisation, on farm nutrition, genetics and productive capacity enhancement," they said.

The Government's Primary Growth Partnership was launched last year to invest in primary industries, with $190 million of funding over four years.

Government investment would be matched by industry.

In July, another initiative was launched to create a strategy for the red meat sector, sponsored by the Meat Industry Association and Beef and Lamb New Zealand.

Federated Farmers Meat & Fibre chairman Bruce Wills said more than one initiative could be run.

"There's much to be done in this industry and let's get on and do it - and if we've got two running side by side, well, that's great," Wills said.