Peter Morris explains the UK position to MIAG and FF delegates.

28 January 2008 -- We know the meat industry is in trouble when sheep farmers start turning up from the UK to see what on earth is going on over here.

Several representatives from the National Sheep Association are in Southland at the moment. They are Peter Morris (CEO) David Raine (Chairman), Jonathan Barber (vice-Chairman) and Chris Lloyd (EBLEX Industry Development Manager).

The men began their talks with representatives from Federated Farmers and also from the Meat Industry Action Group, in Invercargill on Thursday.

MIAG Chairman Keith Milne said he was very excited to be able to discuss "our mutual meat industry problems with our UK counterparts."

Several issues, which affect the industry both here and in the UK, were identified and discussed with potential solutions looked at and itemised for further discussion with the wider industry.

CEO Peter Morris said that, in the UK, farmers were in dire straits and that the attitude of his country's government was proving detrimental to farming.

"We cannot keep this up. We're going out of business.

Peter Morris (left) discusses the way forward for the meat industry with Keith Milne (centre) and David Raine.

"At the moment, we are two sets of producers who dominate the market and supply 95% of the lamb to the UK and yet we are at the mercy of the supermarkets and we are going broke fast.

"If sheep farmers continue to disappear at this rate, where are the supermarkets going to get the lamb from?"

The number of breeding ewes has dropped by a staggering number in the past few years in the UK and it seems unlikely that there will be a turnaround in national flock figures.

Meanwhile, Mr Barber said that despite sheep farmers being squeezed out of business the amount of sheep meat being consumed in the UK was rising.

"It went up 9% last year compared with 1 to 4% in previous years."

The contingent met with Alliance Group Ltd yesterday.

Chief Executive Office Grant Cuff said several members of management, including himself, were present as were several directors.

"I thought the meeting was positive and constructive and I believe dialogue will continue."

"Our positions, relative to the producers, appear very similar in both countries. The big outline was identical to ours, flocks declining, land use change and big retailers holding all they chips.

"They could have been speaking on behalf of NZ farmers."

Mr Cuff also said he was keen to further discussions for the mutual benefit of both NZ and UK farmers.

The NSA farmers are not the first to venture to NZ in an effort to fix a few industry problems. Representatives from the National Farmers Union came over earlier in the season but did not visit the deep south.

This was unfortunate when two of the two biggest meat companies are based in Dunedin and Invercargill.