SFF criticises new livestock trader

A new player in the livestock trading business was a backwards step in efforts to shorten the livestock supply chain, Silver Fern Farms (SFF) chief executive Keith Cooper said yesterday.

The South Island rural servicing co-operative, CRT, has four livestock agents in Tasman, West Coast, North and Mid Canterbury and has stated that within a year it hoped to have coverage throughout the South Island and lower North Island.

Mr Cooper said he was astonished that at a time when farmers wanted aggregation, consolidation of marketing strategies and investment in the supply chain, a co-operative was adding another layer to it.

"One can only question the governance of a business which sees merit in a strategy which clearly adds no value, just cost, and will serve to further fragment the supply chain to market and the relationship with farmers and market, a key issue identified in the recently released Ministry of Agriculture and Forestry report, Meat - the future."

CRT chief executive Brent Esler CRT has described SFF's reaction as "a storm in a teacup," saying livestock servicing was a logical step for the rural servicing company to take on behalf of its co-operative shareholders.

Mr Esler said CRT had bought Kinzett Livestock in Richmond and Alpine Livestock in North Canterbury and its four agents were now offering livestock services to CRT shareholders.

Mr Esler said he would expand the business if the opportunity arose, but as a co-operative, profits would be returned to shareholders.

"We don't think employing four agents who have participated in the industry in the past, and that by putting CRT shirts on them we're undermining reform of the meat industry. We're surprised by the reaction."

Mr Esler said SFF was trying to remove competition for livestock from the farm gate, yet farmers thrived on competition.

Mr Cooper urged farmers to think about what was best for them and their industry when marketing their livestock.

"Unfortunately, CRT epitomises the issues faced in farmer politics, where one group of farmers believes there is a need to compete with another group of farmers."