Farmer views sought on funding for restructure

Media Release

2 April 2008

Farmer views sought on funding for industry restructure

Meat & Wool New Zealand and the New Zealand Meat Board are asking farmers if they support the use of farmer reserves to evaluate the meat industry restructuring concept being proposed by the Alliance Group.

Meat & Wool New Zealand Chairman, Mike Petersen said the directors, meeting today for their first board meeting since the Annual General Meeting, had proposed that application be made to the New Zealand Meat Board for up to $2 million from the reserves. This is to ensure momentum continues to fully investigate the merit of forming a new company with sufficient size to improve the procurement and marketing of New Zealand sheep meat and beef.

“The funding will evaluate benefits of the restructure for farmers and New Zealand as a whole, and provide an assessment of regulatory implications.

“The Meat & Wool New Zealand Board considers that the proposal warrants support and the funds would be drawn down by Meat & Wool New Zealand for approved activities,” Mr Petersen said.

To use reserves, the New Zealand Meat Board policy requires that these funds, subject to farmer consultation, will benefit the entire meat industry.

Mr Petersen said the Meat & Wool New Zealand Board expects this proposal to deliver improved marketing, more efficient procurement and processing, and it would build a foundation for better and sustainable profits to farmers and the wider industry.

“We’re encouraging farmers to support this proposal to ensure that the concept of a new comprehensive business model for our industry is fully explored.”

Submissions in writing, on the use of the reserves for this proposal should be directed to the Board Secretary, c/- Meat & Wool New Zealand, PO Box 121, Wellington, or by email: concept[at]meatandwoolnz.com, by no later than Friday 5pm, 18 April 2008.

In other business, Mike Petersen was re-elected as Chairman of Meat & Wool New Zealand for a further term.

ENDS

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