Farmers feel pain of trimmed meat prices

By Glenys Christian

Heard over the gate

Three French francs - about $1 at present exchange rates - does not seem a lot to get excited about.

But when two New Zealand meat exporters trim that much off the per-kilo price of lamb legs in the oversensitive French market, sheep farmers get alarmed.

Affco chief executive Ross Townshend - already marked out as a straight-shooter after only a few months in the industry - took a lot of care in lighting the fuse on this particular bomb before lobbing it into the post-morning-tea torpor at the Federated Farmers meat and wool conference in Hamilton recently.

It might be possible to blame the discounted prices on British supermarkets cancelling New Zealand lamb orders as a show of support for their own struggling producers.

But revelations about weak selling are nothing new; nor is the exasperated response of farmers.

A key difference is that in the past there would almost certainly have been calls for the Meat Board to drag meat company cowboys into line.

But there was none of that this time, and when the matter was obliquely raised at the Meat Board's annual meeting the next day, it was almost as obliquely swept out of the way by its chairman, John Acland.

The fact is, the board has received the message loud and clear that farmers want less of it in their lives, and that has meant a radical rethink of its role.

Late last year the board put its restructuring plans to the Government, signalling a corporate look but little change in its functions.

At the annual meeting Mr Acland revealed a much-slimmed-down board, which would manage quota arrangements on behalf of the Government, but beyond that would collect only the agreed levies from farmers to finance reduced spending on research and development and promotion.

Most of those attending seemed happy with what amounts to a considerable backdown on the board's part. And while a remit was put up asking that single seller type structures again be investigated, it was resolutely voted down.

So how will this new enlightened, light-handed regulatory environment deal with matters such as the three-franc folly?

The chief executive of South Island company Primary Producers Cooperative Society (PPCS), Stewart Barnett, assured the meeting there was already a lot of cooperation in the industry.

And Mr Townshend talked of an honour-based scheme the Meat Industry Association is working on to ensure companies that develop new markets remain in them as stable players.

But most farmers would place honour and meat companies at opposite ends of the spectrum.

They know the meat marketing business is a brutal one, where winning against the competition, from overseas or in your own backyard, is all that really matters.

That is why farmers have always felt the need for a body such as the Meat Board, even if they haven't appreciated its every action.

* Glenys Christian can be contacted by email at glenysfarm@xtra.co.nz