Miles Anderson.
Calls have been made for more regulation in the stock and station industry, following action against South Island firm Rural Livestock Ltd.
Farmers Weekly recently revealed five civil claims had been made against Rural Livestock and a Serious Fraud Office investigation was under way into a former employee.
The issue was raised at Otago Federated Farmers annual meeting in Balclutha yesterday and Federated Farmers national meat and wool chairman Miles Anderson, from South Canterbury, said it had again highlighted the lack of regulation or transparency around the industry.
It also highlighted the ''odd rogue agent'' or agency could do ''a hell of a lot of damage'' to the reputation of many stock agents who were doing their best for their clients, Mr Anderson said.
In his report, Otago meat and wool chairman Simon McAtamney said the investigation arose from disputed dealings from one former agent.
''Many farmers ... are aware of this issue and it is not hard to find someone to talk to who has been implicated [sic].
''Many farmers have decided to write off smaller losses as the effort and legal costs to prove the loss are too great.
''But several farmers believe they have been severely left out of pocket ...
''The total shortfall owed to those farmers might well be in the millions of dollars. For some, it may yet force them out of business if not resolved adequately,'' he said.
Questions had been raised about the ethics of some of those involved in livestock trading, Mr McAtamney said.
There were many good people involved in the industry who provided a valuable role for farmers and many deals were still made ''on a handshake''.
''A lot of farmers and their agents enjoy a very friendly business relationship. But there are clearly some rogue agents and, unfortunately, it is very hard to hold them to account,'' Mr McAtamney said.
He questioned whether the stock and station agency industry needed more regulation.
The New Zealand Stock and Stations Agency Association was self-governing and had its own rules for settling disputes.
Many smaller independent agents/agencies were not members. The association had clear rules for auction sales, but it was unclear how other transactions should be conducted by members.
''Is a code of practice for all livestock transactions needed, with input from farmers and other bodies independent of the NZSSAA, which is backed up by an independent disputes tribunal similar to what the real estate industry has to resolve issues?''
Many livestock transactions had a greater monetary value than house sales and commissions were also often greater.
''Total turnover through livestock agencies will run into the billions of dollars.''
While such a proposition was likely to be unpopular with many livestock agencies, ultimately it should give their industry far greater credibility among farmers, he said.
Mr Anderson said the national meat and wool executive had undertaken this year to look at some way of bringing in a code of conduct, or regulation ''or something''.
It had not yet been settled on yet and it would need to be done in a considered fashion, not a knee-jerk reaction with a whole lot of regulation in place that caused more cost to farmers, he said.
sally.rae@odt.co.nz