The Stock and Station Agents Association for the first time adopted a code of practice for its members and set up a disciplinary body for those failing to uphold the new code.
But Federated Farmers say because only 65% of livestock transactions nationally are handled by association members the changes fall short of what is needed.
“Less reputable agents … are unlikely to become voluntary members and even if they do, when trouble arises they can simply resign and continue to trade,” the federation’s meat and fibre chairman Miles Anderson said.
Last week Anderson said the federation will spend the rest of this year researching possible regulatory options before presenting its case to the Government.
The federation will study industries locally as well as taking a look at regulation of livestock agents overseas.
Anderson has previously pointed to the compulsory registration of real estate agents with powers to strike off agents and impose fines as one possible model for the livestock industry.
Association chairman Steve Morrison said he is surprised at the renewed calls for regulation after both parties worked together most of last year to come up with the association’s code of conduct and disciplinary body.
In the less than six months since its establishment the body had been approached by one party but that had not led to a formal complaint.
“The process that we have in place hasn’t been of any use to date so I am not seeing a huge case (for regulation) by way of concerns that we are aware of being raised.”
Nevertheless, Morrison said the association is prepared to work with Federated Farmers again on further improvements if that is what farmers want.
“We want a good outcome and I would have thought what we have in place is a good outcome and certainly the use that has been made of it to date would suggest it is an adequate outcome.
“But also I appreciate they have gone through some process which created some different view or raised something that they want to look further at and that is their right.”
Anderson said the call was in response to meat and fibre council members’ concerns about agents outside the association not being covered by the new regime.
“By the time we have done our legwork, which could take the rest of this year, there could be a move from a lot of the independent agents to join but in the meantime if we have done the work and can report back to the council they will feel they have a good basis to report back and make a recommendation.”
Since the new code was finalised in September two agents had joined the association, Morrison said.
He was unable to verify the percentage of agents or livestock transactions covered by association members but said the 65% cited by Federated Farmers probably referred to the number of agents and transactions handled by members would be higher.
Members include PGG Wrightson, NZ Farmers Livestock, Carrfields and Rural Livestock.
A spokeswoman for Agriculture Minister Damien O’Connor said he found the call for more regulation of stock agents interesting.
“We would think very carefully before implementing additional regulation in the sector,” O’Connor said.
In the meantime the legal challenges that sparked the industry shake-up continue this week with Rural Livestock due back in the High Court at Christchurch defending a claim brought by a second Otago farmer.
South Otago farmer Ross Clark last year claimed close to a million dollars as a result of transactions involving former Rural Livestock agent John Williams.
The court is yet to issue a judgment on Clark’s case.
