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Alliance Group & the meat industry

6 December 2007

Firstly I'd have to say that I find it unfortunate when people make comments without declaring their vested interests. Alliance voters need to be aware there are several groups gaining substantial financial benefits from the current flawed structure of our industry.

But to address Mr Hammond's points which he made in the opinion section of the Southland Times:

1. I do not see the proposed remits as the salvation of the industry rather a starting point to urgent reform.

2. I am not self appointed and have never stated that I am an industry expert. MIAG was formed from open meetings of concerned farmers. I was democratically elected Chairman.

3. Along with Mr Hammond I too believe in a strong farmer owned and CONTROLLED co-operative. But for me, co-operative means co-operation, consultation, commitment, transparency, trust, fairness and equality.

Allowing and even encouraging the growth of third-party trading and secret deals is the tip of the iceberg that we see in New Zealand. At our expense we are tolerating several tiers of traders in our supply chain that add little or no value.

It may be prudent to ask the question; why were deals and above schedule payments necessary last season and this season, given the huge capital stock kill that started last year and is escalating this year. Last season this gave record plant through put and efficiency and the indications are that space is likely to be tight this year also.

Is it good business to be using above schedule payments and third-party traders when your plants are already running at capacity? Particularly given PPCS public commitment to not use third party traders and special deals and to realign capacity with stock supply.

Is the scenario of two co-operatives that are both southern based with a large common shareholding, doing battle until one is dead, and the other mortally wounded, a sustainable, strategic plan?

We are world leaders on-farm. We must demand the same innovation, excellence and commitment beyond the farm gate. Make your vote for positive change.

If we as sheep farmers cannot learn to work together with trust, cooperation and vision we will always be left living off the scraps after someone else has had the meal.

If you are unable to attend the AGL AGM in Christchurch, but support David Rose or my remits, we are happy to represent you there if you assign us your proxies.

- Keith Milne
Otautau