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Federation Negotiates Fair Compensation

14 December 2006

Federation Negotiates Fair Compensation

Federated Farmers has negotiated increased compensation for farmers out of pocket after using an ineffective sheep vaccine.

The Federation has succeeded in negotiating a compensation package of 85 cents a lamb, up from the original offer of 35 cents a lamb.

"This is a very good outcome for the substantial number of farmers who vaccinated their sheep with one batch of a vaccine made by Schering-Plough Animal Health," said Keith Kelly, chair of the meat and fibre industry group of Federated Farmers. "We congratulate Schering-Plough for improving its offer."

The vaccine, Scabine, is a vaccine against scabby mouth, a sheep disease.

Federated Farmers sought to renegotiate the initial offer after concerns were raised at a meeting of the meat and fibre industry group late last month. The NZ Meat and Fibre Producers Council is made up of representatives of Federation sheep and beef farmer members from 24 provinces.

"The Meat and Fibre Council considered the compensation offer of 0.35c per lamb was inadequate because in general it did not cover the cost of re-vaccinating lambs, including mustering costs, for protection against scabby mouth," Mr Kelly said.

Federated Farmers obtained quotes from contractors in Southland, North Otago and Central Otago for the labour cost of revaccination. The quotes came in much higher than 35 cents a lamb.

Schering Plough has written to affected farmers about the offer. The letter says the compensation will be paid following receipt of copies of invoices from a veterinary clinic detailing the quantity of product provided for revaccination and from any contractors used, and any other documentation required to identify actual costs incurred.

If they have not already done so, affected farmers should register their details by phoning 0800 773 777.


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