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Wake Up Call For Meat Companies

13 March 2006

Wake Up Call For Meat Companies

Federated Farmers is calling for greater transparency and more communication from meat companies, said the Federation's Meat and Fibre Chairman Ian Corney.
His comments follow concern about the differential between North and South Island prices, and falling returns for lamb, despite a lower dollar and firm prices in our key markets.

"Meat companies must be more transparent with their suppliers. Access to reliable information is scarce. This problem has been worsened by the end of regular publication of schedules and weekly export processing figures by the meat companies," said Mr Corney.

"Meat companies are asking farmers to continue supplying them on the basis of blind trust. Without access to good information such as schedule prices and processing figures, it is difficult for farmers to make informed decisions about when and where they send their product."

Mr Corney conceded that there are probably many factors impacting on prices offered to farmers - increasing compliance costs is one example.

"Farmers are sympathetic with meat companies about these costs and difficulties, but it is unacceptable for the current lack of transparency to continue.

"We encourage suppliers to shop around for prices, as loyalty could be costing them money," Mr Corney said.


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