Tuesday, 02 December 2014 00:00

No silver bullet!

Written by 
James Parsons Beef + Lamb NZ James Parsons Beef + Lamb NZ

FARMERS WILL support any agreement between meat processors on a moratorium on new plants, says Beef + Lamb NZ chairman James Parsons.

 However, Parsons says the agreement must be backed by a large majority of the processors and be beneficial to farmers.

He confirmed support for a June discussion document that proposes a 12-year moratorium on new beef and sheep processing chains, including expansion of existing plants.

BLNZ has not taken a position on the proposal; Parsons is leaving the decision to directors and management of meat companies.

He says the proposal is not a silver bullet for meat industry woes but has the potential to “de-risk” issues of over-capacity. “A meat company which rationalises capacity at a plant won’t face the prospect of another company setting up a new plant down the road,” he says.

On the other hand, Parsons says some farmers would not see the over-capacity as an issue, given droughts over the last few years. “The last thing farmers would want is to have stock waiting to be killed.”

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