Killing season off to a slow start
Variable weather conditions across the country are being blamed for the slow start to the meat processing season.
Working with Alliance, which was due to announce results of its director elections as Rural News went to press, would be one way to achieve that, especially if Alliance’s shareholders “vote for change” by electing MIE-backed candidates Mandy Bell and Russell Drummond, says Hancox.
“It would certainly be easier if we do get a change of directors there,” she told Rural News.
“More of the same is not going to work but if there was a slightly different focus, a consolidated cooperative going forward, then farmers would be more motivated to put in more capital,” she added, when asked if sheep and beef shareholders had enough money to fund Silver Fern Farms’ quest for $100m.
To persuade farmers to invest, Silver Fern Farms needs “a really good strategy” and to show where the return on the further investment would be, as “in the past they’ve felt they’ve got their fingers burnt,” says Hancox.
Ensuring shareholders get the best prices from their cooperatives, rather than third party traders, is essential, but premiums for third party supply is “absolutely” still happening, she maintains.
“I would be very surprised if it’s not throughout the industry [ie not just SFF] with the falling stock numbers and overcapacity among the four main processors. It’s that overcapacity that drives the bad behaviour. They need those lambs on hooks and they have to source that extra 20-30% through third party traders. It’s the only way they can survive at the moment.”
Lack of cooperative principles and transparency is what’s driven many suppliers away from the two cooperatives, she believes.
“A lot say they will return [to supply a cooperative] if that transparency returns. The companies need to behave as a farmer cooperative and not as a corporate.”
Hancox is a former MIE executive member whose candidacy for SFF’s board has the ginger-group’s backing.
Meat Industry Excellence (MIE) chairman John McCarthy says it is vital shareholders engage with SFF’s election process despite it running during a busy time on and off farm.
“Having completed two weeks of farmer meetings throughout the country, it’s clear that sheep and beef farmers want change. Ensuring they have directors on their co-op boards who understand the vision is crucial.”
Hancox said there was a strong consensus at the meetings that the red meat industry must provide profits, grow and capture returns for farmers. It also needs to work together, with Alliance at the table.
