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Opinion: Many farmers and the wider public know very little about the NZMB or the critical role it still plays in our sector and the wider economy, Andrew Morrison, chairman of the New Zealand Meat Board writes.
What I really like about New Zealand farmers is that they are at the forefront of global agribusiness innovation – but it’s important to remember that we are enabled by extremely good systems and processes, set up by our parents and grandparents and those who went before us.
The New Zealand Meat Board (NZMB) is the prime example of this.
1920 and 1921 were not good years for New Zealand farmers. A bulk buying WWI contract with the UK government ended, tonnages piled up in stores, prices tumbled and a disastrous season compounded farmer challenges.
But when the going gets tough, NZ farmers get going, and the outcome of those dark days was the formation of the NZMB, which held its first meeting with five farmers and two government representatives in Wellington in March 1922, after legislation was passed quickly by the Government of the day.
That foresight of farmers and government back then formed the foundation stone of our successful export industry today – yet many farmers and the wider public know very little about the NZMB or the critical role it still plays in our sector and the wider economy.
But there are many good reasons to care about and take an interest in the NZMB’s work, because, without it, we would not have the robust industry we have today.
Back in the day, the NZMB undertook marketing and promotion, management of research and development and the “behind the farm gate” activity.
Its role has changed and evolved over time as industry, regulatory and consumer requirements have changed, with some of its original functions shifting to Beef + Lamb New Zealand Limited (B+LNZ) from the mid-2000s.
Today, the Meat Board undertakes vital statutory roles.
B+LNZ, the government and the export industry are responsible for market access work and negotiating quotas. But once quotas are in place, the Meat Board steps in to implement and administer them.
This tight focus and delineated functions of the separate boards enable farmers to get the best possible returns.
The five quotas administered for the US, UK and EU are worth over $2 billion annually to the New Zealand economy and the NZMB’s duties will expand even further as it takes on responsibility for administering the transitional Free Trade Agreement quotas between the UK and New Zealand.
It also manages a major fund of reserves, currently standing at $81.1 million (as of March 2022).
This is the “rainy day fund” to be used specifically to restore confidence and re-enter markets following any serious biosecurity incursion or disruption in quota markets.
In the event that happens, the beneficial effect of these reserves would be huge for farmers and for our economy.
The importance of that is very clear, given the current Foot and Mouth Disease outbreak in Indonesia.
The interest from the fund is substantial and this is where NZMB’s work impacts directly on farm businesses, through channelling this into the funding of industry good projects.
It doesn’t identify or administer programmes – that’s B+LNZ’s job. The NZMB’s role is to consider the merits of programmes and seek farmer approval about whether to fund them – there are strong checks and balances in place.
Since 2004 alone, NZMB has provided $79 million towards transformational projects that benefit farmers.
Without that, many of the most important programmes of recent decades may not have happened.
To name but a few, the sheep genetics programme, the pastoral genomics programme, funding of the National Animal Identification and Tracing (NAIT) scheme and meat processing efficiency and meat product quality.
It was among the funders of the Red Meat Profit Partnership and has committed to investing up to $1 million this year in the Informing New Zealand Beef (INZB) genetics programme.
In this way, it has contributed to increasing returns by supporting the transition to premium, high-quality products and is an absolutely fundamental part of the strong, internationally-regarded industry we have today.
The NZMB continues to evolve those systems and processes set up by those who came before us but is always careful not to compromise them.
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