Red meat rebound
The red meat sector is poised for a strong rebound this season, with export receipts forecast to top $10 billion and farm profitability to almost double.
If adopted, the higher levy will cost an average sheep and beef farm an extra $260 per year and an average dairy farm an extra $55 per year.
BLNZ says it proposes to increase sheepmeat and beef levies to get started on several key programmes: the international activation of the ‘Taste Pure Nature’ origin brand and the ‘Red Meat Story’, helping the sector lift its environmental performance and reputation, telling the farmer story better, and strengthening BLNZ’s capability to address biosecurity risks.
BLNZ chairman Andrew Morrison says sheep and beef farmers are facing unprecedented challenges -- environmental pressures, trade issues, the rise of alternative proteins, biosecurity incursions, and eroding public confidence in farming.
“But there are strong opportunities for beef and lamb exports if we are able to tell our story. There is growing demand globally for grass fed, hormone free and antibiotic free red meat that consumers are willing to pay a premium for.
“Following feedback from farmers about what is important and what support farmers need, BLNZ has developed a new strategy, re-organised its structure and refocused resources to combat these challenges and realise our opportunities.
“So far this year we have launched a range of initiatives aimed at positioning the sector for the future including a report on alternative proteins, the ‘Taste Pure Nature’ origin brand and ‘Red Meat Story’ and a new environment strategy.
“However, given the scale and speed of change, we believe a modest increase in the sheepmeat and beef levies is necessary so that we can accelerate these programmes. We see a window of opportunity to get ahead of the curve in these areas if we increase our investment now.
“This includes investing more in the roll-out of ‘Taste Pure Nature’. The additional funds would be used to support greater targeted promotion in key markets such as the US and China to capture more value for farmers before alternative proteins gain traction and our competitors cement their positions.
“There is also a risk of significant regulatory change in the environment space. This investment will give farmers the tools to make onfarm changes, measure environmental progress and provide evidence for telling their story. This will help us engage with government to ensure they develop sensible policies.”
Morrison says the extra money being sought by BLNZ falls within the range supported by farmers in the BLNZ Commodity Levies Act referendum in 2015.
Chief executive Sam McIvor says the proposed levies increase would raise just over $4 million.
“We have reprioritised resources over the last two years, allowing us to save about $1.4m. We’ve reallocated those savings to the most pressing issues for farmers. However, to fully realise the opportunities and deliver better outcomes for farmers, BLNZ requires additional investment.”
The levy increase consultation will run to July 13; farmers can have their say in a variety of ways. Consultation packs have been sent to farmers’ mailboxes.
Farmers will also be able to state their views at www.beeflambnz.com/levy2018, by attending one of the local meetings that will be held nationwide or by contacting BLNZ directly on This email address is being protected from spambots. You need JavaScript enabled to view it. or 0800 233 352.
Once consultation has closed on July 13, BLNZ’s board will consider all feedback and notify farmers of the outcome by mid-August. If adopted, the changes will take effect on October 1, 2018.
Full details of the levy proposal can be found at www.beeflambnz.com/levy2018
