PPCS Supports Meat Industry Plan

13 February 2008

PPCS Supports Meat Industry Plan

The concept of a mega meat industry business was an exciting opportunity for farmers to take control of their industry’s future said PPCS Chairman Reese Hart.

“PPCS has, and will continue to pursue any initiative that contributes to improving farmer returns on a long term sustainable basis.

“The concept of a new single entity with at least 80 percent of New Zealand’s livestock supply is capable of delivering sustainable change for the long term.

Anything less will likely to see only short term benefits which are eroded over time,” said Mr Hart.

“We recognise that a combined industry model has been viewed as unrealistic in the past. However, the recent downturn in sheepmeat returns has created the desire and impetus for real change in the industry.

“There is now a serious and robust concept on the table. A combined industry structure would remove the duplication of costs within the industry and will allow the new entity to base its profitability on its success in international marketing rather than on its processing throughputs.

“We encourage the industry to consider the option within a timeframe that leads to a clear direction for the industry within the next few months. That would ensure that the new season commencing in October 2008 is the starting point for a new New Zealand meat industry.

“Real change will require farmer support and a willingness to alter current supply methods. Farmers have the opportunity to have an immediate say in the long term future of the meat industry by supplying livestock to those companies who are prepared to be part of this process going forward.

“PPCS will support the process of industry consultation on the concept while continuing to implement our current business plan."

“Our business plan is not contrary to the proposed concept, but which will offer further improvements in the procurement options available to all suppliers, better utilisation of assets and includes a branded marketing strategy” said Mr Hart.

ENDS

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