By Hamish Clark
The Government is to invest $144 million in the dairy and meat industry, in an effort to stimulate exports.
Sheep and beef are of most concern. The sector was once the backbone of the country, but now it's in dire straits.
Our once mighty meat industry is in big trouble. Stock numbers are down, profits are declining and sheep farmers especially are facing a bleak future.
“The industry is in a dire strait it needs changing,” says Chris Kelly, chief executive of Landcorp.
John Gregan is one farmer who's turned his back on sheep farming.
“We are into the dairy cows now the sheep have gone,” he says.
For years he worked tirelessly to revive the meat industry, without success.
“I think Fonterra is the difference between the two industries. I would argue that sheep is the better product particularly lamb but I think if Fonterra was running the sheep industry I would be converting to sheep,” he says.
Seventy five percent of all lamb eaten around the world comes from New Zealand.
We dominate the export markets and yet we seem to be more focused on production than what consumers want to eat in say France or Britain.
Now industry leaders and the Government are investing $151 million on an innovative programme focusing on consumer demand.
“We have never tested the consumer, what do you really want in terms of taste preferences tenderness or what else do you want that you are prepared to pay a premium for,” says Keith Cooper, chief executive of Silver Fern Farms.
Mr Kelly says the new investment from the Government will be the “saviour” of the struggling sheep meat industry in New Zealand.
“This is the kick start we need to get it back on track again,” he says.
The challenge for the meat industry now is to stop more farmers switching from sheep to cows while it gets on with reorganising itself.
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