Farmers leader

Ruapehu Bulletin, Volume 13, Issue 626, 5 March 1996, Page 4

Farmers leader

• When are we going to get a farming leader who speaks for farmers? Bill Garland' s recent media comments on the exchange rate would suggest that he is actually representing the meat industry. To blame the exchange rate as the sole cause of farmer misfortune is quite frankly simplistic. This is just another lame excuse for non-performance of an industry that has for far too long hidden behind a veil of excuses and mis-information.. If the exchange rate is such a problem why is it that the dairy farmers are at present looking forward to an increase in their payout. Why is it that venison is currently trading approximately three times the price of our lamb? The answer lies in exchange rate management and coordinated marketing strategies — essential ingredients for any company trading product in the international market place. The fact is that initiatives such as the Weddel Consortium have ensured that the farmer suppliers are shut out of the marketing process. Their relationship with the processing sector is now based purely on the ability to secure killing space. To identify farmers and the meat industry in the same breath is in fact a fallacy. The farmers are to the meat industry as the goose was to the golden egg. The meat companies have no real incenti ve to maximise their profits in the international market place. Any losses can just be

passed back to the farmers. The debate over the last year has seen a lot of emphasis placed on the improvement of the culture of trust between the companies and their farmer suppliers. I would suggest that the level of confidence between farmers and meat companies is at an all time low. And little wonder late last year farmers were listening to predictions from meat company bosses of $40 average prices for lamb. The reality is quite a lot different. We are now told by those same bosses that the situation is unfortunate. Unfortunate for whom? Farmers are going broke. Banker and politically-led initiatives have ensured that meat company debt has been effectively transferred to farmer balance sheets. This is a totally iniquitous solution. We now have a situation where farmer fortunes, representing approximately $20 billion, are dictated by the processing and exporting sector, representing approximately $2 billion. There are laws pertaining to "fair trading" in this country . The relationship of the farmer to the meat processor are not good examples of them. I believe this situation to be quite patently unfair and in my role as an aspiring politician am calling for a commission of inquiry into the structures surrounding the meat industry. The sheep and beef industries were one of the cornerstones of the development of New Zealand as was the concept of the family farm. They are too important to give up without a fight.

John

McCarthy