Hi Dave,
He is referring to the meat industry not dairy as I am sure you realise.
In current market conditions the one thing you could not accuse the NZ
dairy industry is leading a race to be bottom.
Tom Mason
NZ
Dave Gneiser wrote:
>
>
> ----- Original Message ----- From: "Cowan Dairy" <cowandairy@charter.net>
>
>>
>> Dave,
>>
>> Go back to sleep
>
>
>
> Consider that we all might learn from your admitted tendency to "race
> to the bottom" as your very own Keith Kelly cites during his July
> speech. It isn't only "too many NZ farmers competiting in the same
> market that drives prices down". Playing the fools' game of beating
> each other up for the privilege of being the low bidder affects all
> farmers negatively and only benefits the mega-multinational
> corporations. I'm glad Keith Kelly sees part of the problem.
> Dave G. WisCOWsin.
>
> Chair of Meat and Fibre Producers
> Keith Kelly
>
> Address to Meat and Fibre Conference/AGM
>
> Langham Hotel, Auckland
> Delivered at 10.30am, 17 July 2007
>
>
> --------------------------------------------------------------------------------
>
>
> Welcome to conference.
>
> Your time here over the next two days is highly valued and much
> appreciated by the membership of the meat and fibre industry group and
> on behalf of members, thank you for attending this important event in
> the Federation's diary.
>
> Conference is important because the meat and fibre industry group is a
> key part of Federated Farmers. Just over half of Federated Farmers'
> members identify themselves as meat and fibre farmers. The Federation
> therefore puts much effort into representing the interests of our sector.
>
> Today I will be speaking about driving farming forward in to a stable
> and sustainable future.
>
> Learning from the past and farming for the future is simple common
> sense. The question is what can we learn and how can we put that
> knowledge to work for us as farmers?
>
> Some of us farmed through the "black time" of the 1970's and 1980's
> and all of us must ensure it never returns.
>
> Meat and Fibre producers are currently facing a challenging time -
> costs are up and income is down.
>
> Lessons of the past show us we must work together to have a successful
> industry. We know from experience that too many New Zealand producers
> competing in the same market drives prices down. No one intends it to
> be a race to the bottom but that is the result of an uncoordinated
> effort. We are in that race now. So let us put on the brakes and make
> a u-turn for the good of our industry.
>
> We do not want to go back to the situations of old instead what we can
> do is encourage a coordinated approach. Marketing is power. Farmers
> need to rally behind the importance of putting in place a coordinated
> international approach.
>
> The way forward - marketing
> I have participated in many meetings locally, nationally and
> international, on lamb prices. The recurring theme is marketing. In my
> role as chair I have to ask the hard questions.
>
> And today I ask you: Has the British market been our safety net for so
> long we have stopped being inventive in selling product?
>
> We are told by overseas experts the lack of marketing and poor
> presentation of our product lets us down. Marketing needs an urgent
> shake up. John Turner, chair of the Alliance Group board, was quoted
> recently saying: "We have had the same marketing system for a hundred
> years and it has failed us."
>
> The world was not brought up on legs of lamb and mint sauce. We need
> to cater to international tastes and look at new innovative ways to
> place our product on menus around the world.
>
> As an industry we need to decide our stance on marketing and who pays
> for what. Under the Commodities Levies Act referendum held three years
> ago farmers withdrew their monetary support for generic marketing.
> This needs to be reviewed. We know our product is excellent. There
> needs to be a balance of responsibility in how it is presented and
> return for the value invested.
>
> Let us collectively discuss our industry and put guidelines in place,
> formulate policies so that we can present a sound well thought out and
> united front.
>
> Let us start discussions with regard to Lamb Quota
> The allocation of quota has come under fire. Once again an inter
> island disagreement on who gets what, and why, is bubbling away. Quota
> is a delicate, diplomatic subject and should be treated as one.
> Failure to achieve a good return from lamb sold under the present
> quota system should be investigated fully.
>
> We currently have a European Union quota for sheep meat and goat meat
> of 227,854 tonnes. Federated Farmers Meat and Fibre Producers ran a
> survey on the quota review held in 2006 and the consensus was not to
> change.
>
> The Meat Board Act gives the NZ Meat Board the right to allocate
> export quota to all registered meat exporters, whether they are
> currently exporting meat or not.
>
> Following on from lamb quota
> The procurement policies run by South Island co-operatives are under
> fire. The sheep farmers that supply lamb and agree to these contracts
> are the ones to negotiate a fair to all contract. North Island
> companies are accused of spot market selling.
>
> The investigation into the possible amalgamation of PPCS and Alliance
> will provide some clarity. If the investigation proposes a merger, 75
> percent shareholder approval is still required, then a stamp of
> approval from the Commerce Commission. The next step is to prove to
> the world that it is not a monopoly. If all of these actions are
> approved it could change the face of the New Zealand lamb trade.
>
>
> What about beef?
> Prime beef must receive prime prices. New Zealand has a European Union
> quota for high quality beef of 1,300 tonnes and a US beef and veal
> quota of 213, 402 tonnes. The fright over BSE is wearing off and Asia
> is being lobbied to return to grain-fed American beef. We need to look
> at the Asian palate and getting them to acquire a taste for New
> Zealand grass-fed beef.
>
> I am crystal ball gazing but it is easy to speculate the dairy boom
> will result in more second class dairy beef on the market and this
> could see a drop in the price of prime beef. We need to ensure prime
> beef continues to receive top dollar. For good or bad the rapid rise
> in milk powder has the potential to drive calf rearing towards
> unsustainablity.
>
> Turning now to the processors, meat companies are currently running at
> an average profit of one to three percent, which is about the same as
> farmers. Farmers need to support meat companies and be wary of
> demanding too much from them while their financial state is far from
> robust.
>
> We also need to be wary of the amalgamation of AgriQuality and Asure
> New Zealand in the meat inspection role that has lead to a monopoly
> with strong unionist bargaining power.
>
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