Federated Farmers against scheme

Federated Farmers is calling for a referendum on the proposed national animal identification and traceability scheme (Nait).

The farming lobby group appears to be hardening its opposition to Nait despite exporters and consumers saying it is necessary.

Federation president, Don Nicolson, said the merits of the scheme had not been proven and the organisation would seek a referendum of farmers on whether it should be introduced.

"It's not going to put another dollar in farmers' pockets this year, next year or in 10 years' time," he said.

McDonald's Restaurants purchasing manager Aaron Hoyle, at a beef farming field day at Millers Flat late last month, appeared to support that point of view notwithstanding that McDonald's is in favour of traceability.

Asked if one of the country's largest beef buyers would reward farmers for supplying beef which could be traced, Mr Hoyle said farmers did not receive lower payments if the company lost sales.

He said he recently bought traceable Australian beef for the same price as New Zealand beef which could not be traced.

Mr Nicolson's opposition stems from mixed messages he said he was getting from meat companies, with smaller processors saying Nait was not necessary, but also because of the cost of growing bureaucracy and regulation.

Farmers had "jumped over every hurdle" put in front of them, yet sheep and beef producers had just endured their lowest level of profitability in 50 years.

"The industry won't exist if we don't get better returns and if I thought putting a tag in the ear of cow would put extra dollars in my pocket, I would do it today."

There was also concern Nait information could be used for new controls over land use and emissions trading.

Mr Nicolson said he had not seen any pressure from markets requiring traceability to secure access, and had in fact heard of Australian beef processors removing a premium for beef which could be traced.