Meat & Fibre section national chair Jeanette Maxwell says the solutions within the options are "more like a pick a mix" and suggests the processor focussed option will generate much discussion.
"There is a push by some in the industry to merge the cooperatives, something that's much easier said than done. If the thinking is 'just copy Fonterra' then it will not succeed. To work, any merger needs a reassessment of the entire industry but especially its capital structures."
Maxwell says the paper also looks at tradable processing rights as an option, a concept similar to fisheries quota.
"It would need legislation and there are fishhooks, but if they can be worked through, it could help to reduce overcapacity in the industry.
"We also raise the option of toll processing which separates out processing and marketing."
A "truly innovative concept" of total value transparency is another idea advanced.
"Again it would require legislation but Federated Farmers is taken by the Uruguayan model, which is widely regarded as having the best meat information systems in the world.
"We feel total value transparency merits discussion as it could drive a material change in behaviours at the marketing end. It is one means to improve coordination, collaboration and in-market behaviour while generating value and demonstrating where that value is being added."
A behaviour focused option in the paper reflects that the dairy industry was static until the industry, from the grassroots up, decisively reshaped it for the better, says Maxwell.
"It is about behavioural change to shift the focus from procurement to what the market wants. This involves a matching of suppliers with companies that share similar philosophies.
"We know from our research that there is a mutual cultural and business alignment to be built upon here.
"We also explore the positive role stock agents could play, a very different outlook on them than what others have reached."
The third section in the paper discusses marketing options.
"We look at things that are being discussed in the industry right now, from the WTO-unfriendly single desk model to more realistic in-market collaboration by our exporters.
"Being marketing focussed could include multiple marketing companies involving strong producer and customer/consumer relationships. This option is dependent upon toll processing indicating how interrelated our options are.
"A twist on market collaboration is for an ANZAC approach, where Australia and New Zealand unite to achieve greater scale while improving research investment and market development.
"Going larger still, could see an alignment between the Northern and Southern hemispheres to match seasonality of supply. This could help to keep red meat products on the shelves in the face of competing proteins."
Maxwell says it is up to farmers as to what they want the red meat industry to look like in five, 10 and 20 years time.
"If we genuinely believe it is time for a change, then change will happen."
