B+L agrees on remit actions

The board had its first meeting since the annual meeting in Christchurch this week and Beef + Lamb New Zealand chairman, James Parsons says directors supported the request from the Wool Levy Review Group.

This asks to use remaining Meat & Wool New Zealand wool levies - from pre 2010 - to prepare a referendum proposal for a wool levy under the Commodity Levies Act.

Parsons says this independent wool group had been formed after a remit to Beef + Lamb New Zealand's 2011 annual meeting directed an investigation into the effects of the discontinued wool levy. The remit also sought to understand if there was support for returning to a collective grower investment and that a value proposition be brought to the 2014 Beef + Lamb New Zealand annual meeting.

"Beef + Lamb New Zealand has provided support along the way as views were canvassed and this work culminated in the business case that farmers voted to support in March. The business case is for a wool levy to be raised and to focus on increasing a demand for wool and wool products, information, policy and advocacy, research, development and extension.

"Given the funding support of the Beef + Lamb New Zealand Board, the independent Wool Levy Review Group will be able take the proposal to a referendum for wool growers, to be held before the end of this year."

This would not be a Beef + Lamb New Zealand referendum. It would be conducted by the independent wool group.

Parsons says directors also recognised the support farmers had given to the Meat Industry Excellence (MIE) Group remit requesting financial support for its efforts to reform the red meat sector. The remit was supported by farmers in the March vote.

"We have taken on board the majority view of farmers who voted. It will be important now for MIE to shape up a funding application and business plan that levy funds can support.

Parsons says it should be noted that these two remit actions – from the Wool Levy Review Group and MIE - were at very different stages of development.

"The wool levy action is well down the track and it was quite clear what farmers were asking Beef + Lamb New Zealand to fund. By comparison MIE's remit was very high level and Beef + Lamb New Zealand will now work with MIE as they develop a more detailed project plan, and importantly one that Beef + Lamb New Zealand can fund.

"To be clear, the board recognises the farmer support for MIE through the recent vote. What we must understand and agree on now is how levies would be invested."