Consulting despite referendum delay

The levy payer referendum, which asks farmers to vote on Beef and Lamb New Zealand's (BLNZ) proposed establishment of a new entity, Beef and Lamb Genetics, has been delayed until possibly early next year, following a government request for more information about the proposal.

However, Beef and Lamb Genetics manager Dr Mark Young said consultation would still go ahead while BLNZ provided the information required.

''We aim to address all the questions by early November,'' Dr Young said.

''We prefer to be able to say [when we send out the voting papers] what the Government is prepared to do, rather than say we `might' get Government money.

''The November voting has been pushed back a bit.''

BLNZ proposes an amalgamation of the BLNZ Central Progeny Test, (CPT) Ovita and Sheep Improvement Ltd (SIL), to form BLNZ Genetics.

''We would consolidate and focus on genetics, making the best use of resources. We want to match genetics to user needs.

''If we want something in 20 years we have got to start now.''

If the amalgamation goes ahead, BLNZ predicted in 10 years farmers could expect to see $5.90 extra profit per lamb sold at that time.

If the proposal is adopted, funding for the next five years will include BLNZ's investment of $2.9 million annually, with third-party funding from supporters such as meat companies and breeding groups, of $1.5 million annually and potential Government funding to boost the total to up to $8.8 million, also annually - a total investment over five years of $44 million.

Dr Young said the proposal was predicted to ''generate $742 million over 20 years of additional profit behind the farm gate alone'', and would include beef as well as sheep.

He said the extra profit would come from adding new traits, applying more accurate evaluations and increasing rates of adoption of tools and information by the farmers and breeders.

The figures were provided by AbacusBio scientists, who developed an economic model taking into account the extra feed required, weighting of different traits, losses and performance.

He did not have a predicted dollar outcome for beef, because beef breeders did not have the same sort of detail as sheep breeders and they evaluated different breeds separately, rather than relative to each other, so the potential profit was harder to quantify.

''We know some of the issues facing the sheep industry are the same as those faced by the beef industry, so we will support beef genetics, as well.''

He said shared issues included maternal performance, optimal fatness and adult size of cows and sheep for hill living, the need for lean carcasses and ewe and cow survivability. New traits, such as longevity, were to be looked at.

Dr Young said they had held several consultation meetings with farmers throughout the country.

''We got a wide variety of feedback. The general tone in Gore's meeting [last week] meant that we came out on a high.''

If the proposal goes ahead, more staff will be required in research and development and farmer adoption, extension and education.

Savings and economies can be made by amalgamation, as there will only be one management group needed, instead of three, and one group interacting with farmers, rather than three.

Waikoikoi sheep breeder and farmer Don Morrison, of Rosedale Romney Stud, said the proposal was a positive, exciting one.

''Consolidation makes a lot of sense,'' Mr Morrison said.

''The consolidation of SIL-ACE, CPT and Ovita, in line with other research, will sharpen the accuracy available to farmers when they make their breeding decisions.''

He said he had been heavily involved in research projects with AgResearch, Ovita and Alliance Group and recognised its importance to sheep and beef breeders.

Dr Young can be contacted on 0800beeflamb for feedback and to answer questions.


BEEF AND LAMB GENETICS
Beef and Lamb Genetics will be an industry partnership between Beef and Lamb and the Ministry of Business, Innovation and Employment (MBIE) with contributions from AgResearch (which will play a major role), AbacusBio and some universities. It will combine:

1. Central Progeny Test (CPT) - which collects genetic data from using rams from different flocks over the same ewes on the same farm. The different progeny then are compared under the same management and environment.
2. Sheep Improvement Ltd (SIL) - which ranks a breeder's rams, ewes and progeny as to the highest genetic merit across a range of traits.
3. Ovita - which is a partnership between Beef and Lamb, AgResearch and the Government, researches and develops sheep genetic selection tools, using DNA-based technology.

The Beef and Lamb levy-payer vote is required because combining these programmes into one entity creates a ''significant transaction'' under the Companies Act.


THE NUMBERS
• Beef and Lamb Genetics will be funded by Beef and Lamb farmer levies, industry investors and Government matched funding through MBIE.

• Beef and Lamb plans to maintain its level of investment in genetics, which is $2.9 million annually, through SIL, CPT and Ovita.

• It expects to receive third party investment of about $1.5 million and Government funding to boost that investment to $8.8 million annually. The potential five-year investment of $44 million is predicted to generate $742 million of additional genetic value to farmers.

• Funding is subject to approval by MBIE and support from farmers voting in the levy-payer referendum.


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