Farmers want fair prices - and a little gratitude

By Glenys Christian

Over the gate


If meat company Affco were being appraised by a livestock buyer, it would be "not quite prime beef but putting on condition," the chief executive, Ross Townshend, told its annual general meeting last week.

Using that analogy, the Boston Consulting Group audit report on Meat New Zealand would rank the producer board as having the potential to achieve that prime state - but not just yet.

The report does give credit in the areas of global organisation and research and development, saying Meat New Zealand is in line with best practice on most dimensions. But it scores poorly on issues close to farmers' hearts - in market services and investments.

Some farmers would argue that Meat New Zealand has no role in the market, and meat companies should put up all the cash required.

The report notes that Meat New Zealand has been unable to adequately measure performance and the value it has added.

And before meat company smirks are invited, it cuts straight to where the real problem lies, saying that full cooperation from all industry participants is necessary to get true measurement.

Cooperation, or lack of it, is again part of the problem where Meat NZ's investments are concerned. The Boston Consulting Group says the risk that farmer levy payers are prepared to accept in investment decisions has yet to be calculated as plans are made for spending on "special projects." Industry endorsement is required to "ensure maximum value is delivered."

Maximum value is something that is never far from farmers' minds but seldom reaches their hands.

Northland farmer Neil Muldoon took Mr Townshend to task over lamb cuts he saw in United Kingdom supermarkets last year for $29 a kilogram. They were exactly the same as those produced in cutting rooms here but a number of middlemen were gaining margins of over 100 per cent, he said.

Mr Townshend said the awesome power of UK supermarket chains had to be remembered. The same complaints were likely to be heard from UK farmers.

Locally, there have been complaints about restaurant mark-ups.

Reports that steak prices were rising in Auckland because of strong overseas demand and the lower dollar got Warkworth farmer Dean Blythen going.

Farmers are delighted they are receiving better prices, he says, but when they calculate the 65 per cent increase for a 250g steak at a whopping $11.40 a kilogram, they know someone other than the producer is receiving over $10 of that.

Farmers just want their fair share of the final price and some appreciation from their meat company, industry organisations and the average diner.

Affco did its bit, sending farmers at its AGM away with the forecast of an improved half-year result, soon to be announced six-month contracts and a thick-cut sample of its newly launched, vacuum-packed, Affco Angus Classic steak.

Meat New Zealand is doing its bit at 21 meetings nationwide, where staff and directors are putting the hard yards into the all too easily espoused communications strategy.

And restaurant diners do their bit when, after ordering beef or lamb, they send their compliments to the chef and raise their glasses to the farmer in thanks.

* Glenys Christian can be contacted on email at glenys@farmindex.co.nz