Farmers give levy increase cool reception in Wellsford

Meat and Wool NZ chair Mike Petersen may have left behind snowy Hawkes Bay to head to sunny Northland, but he got a frosty reception from some farmers at a meeting in Wellsford on June 2.

In town to consult with sheep and beef farmers on Meat and Wool’s future direction, Mr Petersen told the 85 people present that while there were rumours of a doubling of farmer levies, this was not true.

However, keeping them at the current rate – unchanged for five years – would mean a down-scaling of Meat and Wool’s activities.

“If this is what you want, then that will be what we come back with in August,” he said. “We didn’t raise the levies in 2003, when M&WNZ was formed, because we wanted to wait until we had a referendum which is what we are consulting on now.
“This is your chance to have your say. In 2003, we collected an average $2300 per farm, that’s now around $1900. In order to fund the same level of spend as last year on levies alone, we’d need to increase them to $5.50-$6 per head of cattle, 60-80c per sheep, and 5.25c per kg of wool.”

M&WNZ has identified six key areas of focus for levy spending and is asking farmers how best they want their money allocated. It will come up with a single proposition for farmers to vote on in late August.

“I want to make it clear that voting ‘no’ basically means that the organisation will shut down. I’m not worried about that, because if we’ve done our job, if we’ve listened to you and you’ve spoken loudly enough, we’ll come up with a proposal that you will support.”

While many at the meeting recognised the need for a body to collectively market beef and lamb overseas, several questioned whether it wasn’t pertinent for the organisation to work smarter with funds they had in the current climate, rather than asking already cash-strapped farmers to fork out more.

One suggestion was that M&WNZ campaign for a lowering of other levies, such as those collected by meat inspectors and for TB control. Several operators were “clicking the ticket along the way” and effectively lowering farmers’ returns.
Wharehine farmer Colin Smith said he would like to see the organisation lobby the government for better support for farmers and some “greater recognition that we are the backbone of this country”.

“Not only are sheep and beef numbers down, but you’re seeing land sold for subdivision, which represents a better income for farmers, and as a result, the industry disappearing before your eyes. It’s time you did something about this on our behalf; but not through higher levies.”

Several questioned whether levies represented value for money, but Mr Petersen pointed to independent research which showed that for every dollar invested by farmers, returns have ranged from $1.73 to $23.90.

“We believe that we can give you a return on your investment, but we are also giving you the opportunity to say no; however, if there’s no-one out there working on your behalf, then wait and see what your returns are.”

Marty Roest, who manages his parents beef farm at Kaiwaka, said that farming still remained an attractive career choice for young people.

“If you are prepared to work hard, work smart there’s a dollar to be earned. I’m confident of the future and wouldn’t want to do anything else.”

Northland M&WNZ director James Parsons said he was happy with the high turnout as poorly attended meetings had been the norm elsewhere.

“It’s good to see the level of interest, but perhaps the negativity was a little disappointing.”

He urged farmers to ensure they were enrolled to vote in the August referendum.

“If you’ve not received your voting pack, you’re not enrolled, so get hold of one.”

Mike Petersen, left, chats to Maungatoroto farmer Grant McCallum, centre and Ken Hames, from Paparoa.