Silver Fern Farms has defended the payment of premiums for certain breeds of lamb, saying the market paid more for certain animals which met certain criteria.
Farmers have criticised the meat co-operative for paying farmers a 10c a kg premium for Primera-bred lambs supplied under contract to Marks and Spencer, but Silver Fern Farms (SFF) said to qualify, the lambs had to meet standards demanded by the supermarket chain.
SFF livestock manager Grant Howie said lamb breed was just one criterion demanded by Marks and Spencer.
Suppliers also had to monitor their carbon footprint, greenhouse gas emissions, land management impact and have plans for the environment, quality assurance, animal welfare and food safety, he said.
Canterbury Meat Packers paid a premium for lambs which qualified for its Waitrose market, he said, and such schemes were the way the industry was headed.
"This is the old market averaging model versus the new integrated-market led model. When it comes to the Marks and Spencer programme, there is more value in the total programme than an average market programme."
Another example was SFF's Angus beef programme with McDonald's, in which the fast food chain only took Angus-bred cattle which met breed criteria.
Mr Howie said Marks and Spencer had determined Primera lambs tasted better than other breeds, just as McDonald's had with its McAngus range of burgers, and SFF was passing back to farmers premiums customers were prepared to pay.