RMPP chair Malcolm Bailey says the seven-year, $64 million Primary Growth Partnership programme that saw Beef + Lamb NZ, meat processors (Alliance, Silver Fern Farms, Anzco, Progressive, Greenlea and Blue Sky), ANZ, Rabobank and the Ministry for Primary Industries collaborate to find ways to lift the sector’s productivity and profitability always had a finite lifespan.
Under the terms of its PGP funding that was seven years, which was then extended last year for six months because of covid-19.
Bailey says given that taxpayers put up half the funding for the programme it could not continue indefinitely, so part of the focus had been on getting its projects established and then coming up with continuity plans to ensure ongoing funding and support for those activities and initiatives.
By-in-large that’s been achieved and it’s now up to farmers and other investors to step up and maintain that continuity.
“The ball’s in their court now.”
An example of continuity already in place is the RMPP action groups that were moved to under the Beef + Lamb NZ responsibility in 2019.
The action groups were established to support farmers to develop confidence to turn ideas into action on-farm.
There are now more than 180 action groups, with an average of eight farms per group, meaning there are about 1500 farm businesses involved.
Other projects RMPP has supported that continuity has been assured include the NZ Farm Assurance Programme, which is an incorporated society, and the Electronic Animal Status Declaration, used by more than 1500 farmers, that was developed in conjunction with Ospri.
Independent analysis of the RMPP programme by research analytics specialists Scarlatti has shown the programme is returning $17 for every $1 invested, with total annual farm profit (after tax) forecast to benefit by $96.4 million by 2025.
Bailey, who has been independent chair of RMPP throughout its lifespan, says the red meat industry has always had its challenges but he’s confident it’s in a good place to face the future.
The pressure on sheep and beef properties to convert to dairy has passed but now it’s forestry conversions and the demand for carbon credits that’s been putting pressure on traditional sheep and beef farms.
“But I’ve been heartened when I get alongside farmers, particularly young people, and see what they’ve been doing.
“Maybe the sector won’t be bigger in the future but what it will be doing it will be doing well.”
He says a lot of sheep and beef farms don’t really lend themselves to other land uses but there is potential for those farmers to integrate opportunities like forestry or manuka honey into their existing operations.
