Addressing the meat and fibre meeting at Federated Farmers' national conference in Ashburton yesterday, Mr Young, a Tapanui farmer, said the social, environmental and economic consequences of not acting now would impact ''hugely'', not only on farmers but all stakeholders.
The group, formed earlier this year, was ''totally committed'' to reform that would see the sector grow and return it to sustainable profitability for all stakeholders and it ''would not rest'' until that reform was achieved, he said.
''Do not let the $100 lamb of next season weaken the resolve for change. If we do, we only have ourselves to blame. We have been here before, we cannot let this opportunity slip,'' he said.
Although the debate was about profitability, it was also about the social, environmental and economic benefits that a profitable red meat sector delivered to New Zealand ''as a whole''.
If the problems exhibited within the sector were not addressed, the downward spiral in sheep numbers would continue to a level where relevance was lost.
All agreed the present model was ''broken at both ends''. Competition both in procurement and in the market left an industry that was capital-constrained and therefore lacked the ability to reinvest in innovation and marketing.
The process of change needed to be carried out in a collaborative manner. An inclusive approach to finding solutions was needed and that was the message that MIE been giving to the four major meat companies who were in talks, Mr Young said.
''I understand that, in principle, they agree that the status quo is no longer an option. However, it appears the devil is in the detail. Hopefully, detail and results will be revealed within their self-imposed deadline towards the end of July,'' he said.
The industry was engaging in talks ''among themselves, behind the bike sheds as such'' with no regard to the stakeholders who would be affected by the outcome of such talks.
An industry-wide view needed to be adopted in answering the ''hard questions'' and developing the solutions, and those solutions needed to be inclusive of all stakeholders.
There had been some commentary about the need to extract more value from the marketplace. In some instances, that might well be relevant, especially in emerging markets of Asia, he said.
China was now New Zealand's largest market of sheep meat by volume and the ability to extract greater value was real.
China's middle class was predicted to increase from 5% to 40% of its population over the next 10 years, which equated to 470 million more middle-class consumers.
The ability to capitalise on that growth and wealth might well be lost if the industry continued to ''do more of the same''.
For the sector to maximise the opportunities of the growing wealth in Asia and potential lack of protein, it must address the issues that hindered the sector.
Procurement models must reflect market signals and not be supply and demand driven and, more importantly, supply must be aligned to rationalised capacity.
Farmers must give commitment assurances to companies, both in relation to specification and timing, and, in turn, they must be rewarded by the companies for that commitment.
''The cycle of trust must be rebuilt and a shared vision and partnership adhered to in creating a value chain that returns more of the value back to farmers and processors alike,'' Mr Young said.
Sixteen processors competing for declining stock numbers would only ''continue to fuel the fire of destructive procurement'', he said.
- Monday's farming page in the Otago Daily Times will feature more of the discussion at the conference on the red meat industry.
