Farmers need $30 per lamb

Waimarino Bulletin, Volume 6, Issue 263, 15 November 1988, Page 2

Farmers need $30 per lamb

Farmers must receive a minimum of $30 a lamb this season if the industry is to halt the continuing decline in stock numbers said Federated Farmers Meat and Wool Chairman David Petersen.

"I don't believe this season's lamb kill will be above 25 million head and if returns don't improve considerably the implications for next season's kill could be disasterous," sdys Mr Petersen. He said to achieve $30 for a lamb the industry had to look at improved returns and cost savings throughout the industry, from the farm gate to the market. "There are significant savings to be made through reform of

our ports and the ACC scheme. Together the iriefficiencies of these two areas cost farmers $1.50 a lamb alone." "We must also look at the areas of stock procurement, road transport, shipping and continue to improve the areas of processing and marketing." He said there were a number of reasons why this year's opening lamb schedule should be higher than last year's. "I recognise we are experiencing a p o o r performing pelt market but exchange and interest rates have moved in our favour. We are s e e i n g strengthening prices from our markets and we must expect some benefit to flow on to farmers from the processing and marketing rationalisation that has already occurred." "Other opportunities are also on the horizon. The removal of New Zealand's import tariff on our sheepmeat exports to the E E C represents an extra $1.50 per lamb across our total export lamb kill. It is important farmers gain this $1.50 and not the middle men in the chain." Mr Petersen said farmers must recognise returns of $12 budgeted for lambs some months ago are far too low. Turn page 3

$30 lambs

From page 2 He also urged farmers to sell their lamb crop in a commercial manner this season. They should negotiate the best possible deal with transport firms and freezing companies. This includes farmers joining together to use their c o 1 1 e c t i v e strength when negotiating prices.

Mr Petersen urged all involved in the meat industry, including farmers, meatworkers, plant managers, watersiders, marketers and government to confront the hard decisions facing the industry. "If everyone meets the challenge and tackles the hard decisions I can see the industry having a very positive future."