No risk for producers' money

Waimarino Bulletin, Volume 6, Issue 271, 24 January 1989, Page 3

No risk for producers' money

"Farmers strongly oppose placing any further producer's money at risk in a rescue operation of the meat industry," Federated Farmers Meat and Wool Council Chairman, David Petersen, said recently.

"Any further injection of producers' funds

must be made on a purely commercial ba-

sis and must guarantee increased returns to the producers. If a further injection of capital is needed, Federated Farmers will need to be totally convinced that those funds are not in any way at risk." Mr Petersen said the. meat industry is suffering from years of failure to address the basic question of processing costs. This failure has been brought to a head by continued high interest rates and an over-valued kiwi dollar. "This has led to a

sharp fall in returns to producers and a resulting dramatic decline in the lamb kill. "As a consequence we recognise that further restructuring of the meat processing sector is required and we appreciate that it will result in job losses. "The social consequences of this must be of concern to the country as a whole, but that is a social welfare issue and a Govemment responsibility - not ours," said Mr Petersen.