Meat industry leaders have agreed terms of reference and funding to set the way ahead for the industry over the next five to 10 years.


The first of two stages agreed by industry organisations Beef & Lamb NZ (BLNZ), the Meat Industry Authority (MIA), Trade and Enterprise and MAF entails an “umbrella” study of the issues and opportunities across the sector from market to farm.


It is a critical step towards improved profitability within the sector, which currently represents 15% of New Zealand’s exports and employs 5% of the country’s workforce, according to the project co-chairmen, MIA chairman Bill Falconer and BLNZ chairman Mike Petersen.
Petersen and Falconer are optimistic there will be a number of “quick wins” identified from the first phase of the process.


In phase two, industry participants will collaborate to adopt and implement initiatives to drive change. These may include research and innovation, market development or whole of supply-chain initiatives.


Falconer expects phase one to be complete in the first quarter of 2011. It is being facilitated by Deloitte partner Alasdair MacLeod, who has assisted similar strategy development processes within the primary sector.


“Results of an initial period of information capture and analysis will form the basis for broad consultation within the sector. All interested parties will be offered an opportunity to engage in the process,” Falconer says.


He stresses the project will focus on identifying opportunities across the value chain from market to farm, not on proposing new commercial structures.


“Value in any debate around industry strategy can only come from robust analysis that objectively demonstrates the opportunities for improved profitability,” he says.


“This project will identify opportunities that participants within the supply chain can evaluate and invest in on their merits.”


Immediate opportunities within the value chain will be identified for rapid action, Petersen says.


“We need to be able to move quickly to implement the results of this work and will be looking for like minded partners to get on with it. Support for implementation could come from industry alongside New Zealand Meat Board funding, and through bids to the Government’s Primary Growth Partnership.”


While expressing gratitude for government assistance, Petersen and Falconer say it is critical that this strategy is owned and developed “by the sector, for the sector”.