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Single Sellers v's Single Buyer

Greetings Readers

News from Australia of a new red meat strategic marketing plan confirms that international competition never stops striving.

The Aussie Red Meat Advisory Council has identified three major areas of strategic focus where resources will be directed:

  • Improving market access and marketing positioning;
  • Developing new consumer products and improving product safety and eating quality,
  • Improving supply chain management.

All very laudable areas of focus that probably matches some of the aspirations of NZ meat farmers. But are industry generalizations of intent as effective as corporate ownership of an executable business plan?

The above areas of focus would sit well in any successful corporate policy but are most unlikely to be effective in a voluntary industry structure.

The re-engaged corporate battle for dominance of the NZ meat processing industry by PPCS and North Meats on Richmond highlights how difficult it is in commodity marketing to reconcile the desire for market power over the suppliers expressed desire for competition at the farm gate.

It is this seemingly this irreconcilable conflict of purpose that is the niggle, in the Richmond and PPCS saga and certainly resides in the late developing brouhaha of the GlobalCo ‘there must be a better way’ proposers.

Farmer producer’s as a group have a quant way of knowing what should be done when there is little risk of having their proposals implemented and taking to the bush when the real decision opportunity arises.

All three of the traditional pastoral industries have arrived at a point where farmers must face up to the risks and responsibilities that come with the shortening of the marketing channel and a reduction of the number of national and international players in a market.

The old markets within markets scenario has been collapsing as market information has become more accessible and with it the option of offering your stock to a Helliby, CWS or a Gear Meat buyer is just but a memory.

The future marketing task for producers will be the better management of pricing relationships with the single buyer at the farm gate. That is certainly the unsaid component of GlobalCo’s establishment.

Interesting times ahead!

Good farming

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