Farmers say no to higher levies

Farmer consultation meetings are being held around the country and conclude in the South Island later this month. JILL GALLOWAY reports.

Farmers are telling Meat and Wool they want it to be the glue that brings meat companies together rather than it being a statutory big stick.

Chairman Mike Petersen talked to about 40 farmers in Feilding recently as part of the farmer-funded organisation's consultation meetings. Farmers said times were tough and they couldn't afford the increased levy payments for stock that were being suggested.

However, they wanted more collaboration between the meat companies, saying competitive behaviour was destructive to farmers.

"We spend about $42 million each year. Of that, $32 million is from levies and $10 million comes from Meat Board reserves," Mr Petersen said.

The Meat Board, which administered quotas, had about $90 million.

Mr Petersen said farmers have to decide what work they wanted Meat and Wool to undertake, and how it should be funded.

"We are not proposing to double the levies, as some media have suggested. But farmers have to decide whether funding should be totally from levies, interest from the Meat Board's money, or whether some of the principal should be used."

The discussion document suggested a cattle levy of $5.50 to $6, rather than the current $3.60. An increase from 40 cents to between 60c and 80c is proposed for sheep. The wool levy would drop 20c to 5c a kilogram.

"Farmers are telling us they're broke. They've had a tough couple of years and so, yes they think there is a real need for an organisation such as Meat and Wool to do core activities, but they're telling us we'll have to re-shape this proposal," Mr Petersen said.

Meat and Wool planned to focus activities on leadership and education in the sheep and beef industry, analysis, innovation, as well as uptake of innovation and technology and market access.

Because the meat and fibre market remained fragmented, he said there was still core work that Meat and Wool New Zealand had to do.

Farmers will vote in August on the new proposal which Meat and Wool expects to produce after this round of consultation meetings around the country.

- Central Districts Farmer