14 June 2007 -- Until recent years our two large cooperative structures have done the fundamental job they were originally designed to do. That is procure, process and sell commodity lamb products around the world, particularly into the UK and Europe, on behalf of shareholder suppliers.

Unfortunately this structure of old does not perform well in our modern environment, but then again, nor should it, this is according to Meat Industry Action Group executive member, Jason Miller.

Mr Miller, a Lincoln University graduate and Southland Sheep farmer who farms just over 4000ha in a family partnership at Te Tipua is keen to drive the cooperative structures towards a new era of modern marketing and sales.

"There are endless opportunities available to us," Mr Miller said.

At present our cooperatives are reliant on efficiencies at the processing and procurement end. This causes an unhealthy focus resulting in an industry that looks backwards in a vain attempt to maintain its market share.

Mr Miller described the good prices experienced by farmers two to three years ago as a 'blip' on the general radar of things.

"This happened by default not design, we are now being told that next year prices may be more favourable because of the Aussie drought, an improving exchange rate, or the fact there will be less sheep. Clearly this is not sustainable. We can't stay in sheep farming on the basis that every so often things may line up delivering better returns."

Mr Miller's focus is to help create positive change in the areas that will deliver real returns to farmer shareholders. While there are gains to be made onshore, there are immediate and significant improvements to be had offshore by simply improving market coordination.

"Due to the largely fragmented nature of our meat exporters in the market place it is difficult to return the optimum price to growers, when supply demand imbalances occur. The farmer owned cooperative structure is potentially an important point of difference in the market place, as is our world-leading technologies used within our plants and our farm assurance programmes".

MIAG does not want to re-create the wheel - many of the fundamentals we need to turn our marketing and sales around are already there but we see them presently being under utilized.

Mr Miller is currently completing his Kelloggs project through Lincoln University and has been offered the resources necessary to have the model assessed and reviewed.

Whilst this concept is not new it will require a quantum shift and innovative leadership within our cooperatives in the way they view meat marketing.

"I believe we can create a point of difference for our cooperative-produced lamb in the world market and by doing so shift it from a commodity to a branded product.

Within New Zealand we only have to look at Merino Wool, the commodity, transformed into Icebreaker the highly desirable branded product, to see what is possible, he said.