The only way is ... UP

23-08-2010 | Annette Scott

The future of the sheepmeat industry lies in changing farmers' mind-set, Beef + Lamb New Zealand's incoming farmer council chairman Malcolm McConochie says.

Farmers need to look at how they do business if they want a sustainable industry in the future.

And the "Sunday night trader" has to go.

While acknowledging the meat companies created the Sunday night trading scenario McConochie said farmers had the power to change the way do they business.

"Looking at the dairy model farmers know where their milk is going from the start of the season to the end of the season.

"Companies know they have committed supply.

"The majority of sheep farmers couldn't tell you when they start their lambing where their lambs are going.

"They will be waiting to see who has got the best money on Sunday night."

McConochie says the practice has to change.

"Farmers need to see the opportunities and pick up on them.

"We are seeing huge technology changes happening from a lot of little bits happening all the time, on a daily basis.

"Farmers are not picking up the ongoing bits of opportunity in their business.

"Put change in front of farmers and they are very reluctant to change.

"It's about taking opportunities and it's not necessarily doing anything outrageous.

"As an industry we tend to be price takers, we don't always look at cost.

"There is a lot to be gained with little cost, even to mating the hoggets and heifers."

McConochie, a fourth generation farmer on his 1000ha Lake Station farmed in partnership with his brother in the Nelson Lakes area, said dairy could be an option.

But why would it be for a man with such bubbly enthusiasm of for the sheep industry?

"Right now sheep can only go one way, we know that is only (to) get better.

"Dairy can only go one way too and we know which way that is."

Lake Station has increased its sheep numbers by 500 over the past two years to a stocking rate of 3000 sheep and 350 breeding cows.

McConochie's daughter is the farm's stock manager.

The property has been in the family since the late 1800s and the passionate meat producer is looking only at good times ahead.

"The meat aside, wool is also poised to come right - $50,000 each year from wool off the property is a lot of money and I am confident we are going to do better than that in the near future."

To achieve sustainable marketing strategies the bid comes back to farmers and how they sell their stock.

Farmers and meat companies must work together, he says.

"The meat companies alone are not going to find the silver bullet."

McConochie believes the South Island, given its company structure, could turn around very quickly.

"We hear farmers need leadership.

"Farmers must learn to follow too."

McConochie has been involved with the NZ Hereford Association, the Performance Beef Breeds of NZ and both the former Meat and Wool NZ beef council and amalgamated sheep and beef council.

He now looks forward to his role as national chairman of the Beef + Lamb NZ farmer council that will act as the bridge between the grassroots farmers and the organisation with a new mandate to improve the connection and transfer of information between parties.

A key area of focus for the council is the Farm programme where it will undertake an advisory role for research investment in addition to guiding the development and delivery of extension, identifying the opportunities and facilitating understanding of the broader issues affecting sheep and beef farmers.

McConochie said the council welcomed the chance to play a greater role in driving increased industry performance and in particular the change to help prioritise levy investment in regional programmes.

The council will operate at two levels.

Each region's council will determine the shape of their own extension activities and act in an advisory capacity to guide the investment decisions.

At a national level the council will be the link between farmers and the board, identifying technical issues needing focus at policy or research levels.

"The industry has allowed itself to get a little bit fragmented.

"We need to work around that as we get the next generation into farming," McConochie said.

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