Monday, 10 March 2025 13:25

Board elections 'a transparent process'

Written by  Jessica Marshall
Beef + Lamb New Zealand chair Kate Acland. Beef + Lamb New Zealand chair Kate Acland.

Beef + Lamb New Zealand (B+LNZ) chair Kate Acland says there are clear governance processes in place to ensure fairness and transparency.

Her comments follow an open letter to B+LNZ directors from Groundswell which claimed there was not full transparency in the processes surrounding the appointment Meat and Wool Trust and the Wool Research Organisation New Zealand (WRONZ) members.

The rural lobby group says there is “concern among grassroots farmers about ‘boardroom deals’ and loading positions with ‘groupies’ – people that will more likely stay with the narrative desired by industry groups”.

The letter highlights concerns surrounding the recently announced attempt to increase remuneration for B+LNZ directors.

Last month, B+LNZ said it would ask farmers to vote on a 3% rise in director fees. For the chair, this would mean an increase to $83,320 a year.

This is lower than the Director Independent Remuneration Committee’s (DIRC) recommended 6% rise. However, it is the second time in as many years that B+LNZ has made an attempt to increase director remuneration.

“Groundswell NZ are disappointed that after all this time we are still having to spend our time holding industry groups to account for issues of honesty and transparency,” Groundswell founders Bryce McKenzie and Laurie Paterson wrote in their letter last week.

However, Acland – who also chairs the board of the New Zealand Meat Board (NZMB) and sits on the board of the Wool Research Organisation New Zealand (WRONZ) – says the claims of a lack of transparency are not accurate.

“B+LNZ directors are elected through an open and transparent election process and then appointed to the NZMB as set out in the Meat Board Act,” Acland told Rural News.

The NZMB itself is a statutory body separate from B+LNZ, she says.

“It plays a vital role in managing red meat export quotas and overseeing reserves designed to protect farmers in the event of biosecurity threats, such as a Foot and Mouth disease outbreak or market disruptions,” she explains. “Currently, these reserves total $86.6 million and are carefully managed under strict farmer oversight.”

Back in 2003, the NZMB was deregulated when farmers opted to retain those reserves within the NZMB as opposed to transferring them to B+LNZ or distributing them directly to farmers.

“This decision ensures the reserves remain available to re-establish New Zealand’s exports in the event of a crisis.”

Acland says that subsequently, in an effort to improve efficiency and reduce costs for both organisations, it was decided that farmers would serve on both boards but with independent directors who don’t sit on both.

 “In 2023, we introduced a formal, open appointment process for governance roles at WRONZ,” she says. “Positions are now widely advertised and filled through a structured selection process, ensuring the best candidates are chosen.”

Acland says that as part of that governance review, a maximum term for directors was also introduced.

She says the Meat and Wool Trust Ltd, which holds B+LNZ shares in trust for farmers, ensures sheep and beef producers retain control of the industry-good organisation.

“The trust also has the authority to appoint WRONZ directors, safeguarding industry funds for their intended purpose and preventing any commercial entities from taking control.”

Acland says the boards encourage those interested in shaping the future of the industry to consider applying for governance roles

“Constructive engagement and positive participation are key to the ongoing success of our sector,” she says.

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