Multi-million-dollar plan to lift meat and wool returns

By LIAM DANN

A list of ambitious targets that could add tens of millions of dollars to the nation's export returns has been drawn up by Meat and Wool New Zealand.

The newly merged industry body's key goals include increasing beef export returns by $50 million, boosting sales of lamb legs to Britain by 10 per cent, increasing the value of beef carcasses by 3 per cent and lifting lambing survival rates by 3 per cent.

Meat and Wool, which handles research, development, marketing and trade issues, yesterday released a strategic overview of how it will spend its $36 million in farmer levies over the next 12 months.

Some $13.8 million will be spent to boost lambing rates, and to cut the productivity losses and drench costs associated with treating sheep for internal parasites by 10 per cent over the next three years.

Sheep meat farming has benefited hugely from research and development during the past decade. The average weight of a lamb has risen from 14.5kg to more than 17kg.

And while sheep numbers have fallen by 32 per cent since 1990, increased lambing percentages and heavier weights mean there has been an 11 per cent increase in the amount of sheepmeat exported in that time.

Meat and Wool aims to promote similar results in the beef industry, which will benefit by $10.2 million. It hopes to increase the average value of beef carcasses by 3 per cent over the next five years by developing new added-value products.

The goal of lifting total export returns for beef by $50 million over the next year will be achieved by building on the market share New Zealand has developed in North East Asia.

Meat and Wool will spend another $11.9 million in the wool sector. It aims to achieve a 5 per cent increase in the amount of wool exported as a value-added product. It will also try to reduce the cost of harvesting wool over the next three years.

Meat and Wool chairman Jeff Grant said the merger - of Meat NZ and Sheepco - had saved the industry $1.8 million in administration costs.

Budget breakdown

Total expenditure for 2004/05: $36 million

Market development - 25 per cent.

Research & development - 50 per cent.

Trade policy - 8 per cent.

Skills and education - 3 per cent.

Admin, statutory costs and other activities - 14 per cent.