Editorial: Sensible move
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Meat and fibre spokesperson Rick Powdrell says the figures show primary industries in farmers-keen-for-meat-export-boost.
"Beef + Lamb New Zealand has identified we aren't putting enough effort into promoting our meat exports at the moment and it has been working with the meat industry to get a joint farmer/industry promotion of NZ$7 - $8m a year commitment together. I commend that.
"It's been disappointing over the past few years for farmers, who are heavily investing in more efficient production on farm, to then see the value of their product being let down overseas. The need for collaborative marketing was identified back in the Red Meat Strategy back in 2011. I would hate to see meat industry politics derail or water down this proposal."
Powdrell says he is confident that the great majority of farmers back him and believe the promotion is important.
"Time after time market surveys have shown overseas consumers rank New Zealand food very highly."
Powdrell says he understands New Zealand meat exporters are competing with each other.
"They need to do that for their shareholders and stakeholders. But they should not be short-term trading at the expense of long term collaborative promotion for the benefit of both them individually and their farmer suppliers.
"You just need to visit the marketplace to realise the competition is not from here in New Zealand, but it's from the mega animal proteins, such as pork and chicken," he says.
"We need to market sheepmeat from New Zealand as a distinctive product and the fact that our beef animals are grass fed – and not grain fed – is a market plus, which we haven't put enough effort into."
Powdrell warns any such promotion will take a while to make a real difference in prices.
"The Norwegian salmon industry is a benchmark for well researched, managed and funded international promotion. The Norwegians are quite clear their international marketing is a long-term project. But in that long term the evidence is that it makes a huge difference to producer returns."
