New Zealand's sheep and beef industry is at a ''critical juncture'', a leader says.
Sheep and beef farmers must join in the debate about their industry's future, Mark Patterson says.
The deputy chairman of the Meat Industry Excellence (MIE) group told Courier Country on Monday that farmers could not afford to sit back and await their destiny.
MIE wants reform to take place, replacing the current structure of two main meat processing co-operatives competing for stock.
The chief executives of both the Alliance Group and Silver Fern Farms are stepping down, creating possibilities for change that would benefit farmers, Mr Patterson said.
Alliance's Grant Cuff and Silver Fern Farms' Keith Cooper had both been in the industry for a long time.
Alliance board chairman Murray Taggart said during the company's recent roadshow meetings that the industry would restructure ''when it makes good commercial sense''. No-one had come up with a viable alternative, he said.
Mr Patterson was curious to see if Alliance would be content to watch Silver Fern Farms ''going off in their own direction, with foreign capital and a significantly strengthened balance sheet''.
MIE was imploring Alliance to ''leave no stone unturned'' in investigating future options, he said.
He believed it was high time the possibility of creating one large co-op was investigated.''
No-one has done the numbers of a merger since about 2007. It's got to be the first step.''
The meat workers' union had recently come out in support of consolidation in the industry, Mr Patterson said. It wanted the jobs that were available to be permanent, not for just six months of the year.
MIE would like Alliance and Silver Fern Farms to open their books, so everyone could see if a merger was viable.
''With a million capital stock ewes and lambs lost out of the system last year, a merger is not a panacea. But it's a good place to start.''
Farmers had to make a difference while they could, before outside investors took over, he said.
''This is the last time farmers will get the opportunity to do this in a managed situation to their advantage.''
There was ''a long way to go'' at the marketing end, as well, despite good initiatives being set up at the margins. Wasted resources between farmers and the market needed to be cut out, Mr Patterson said.
''In tandem, it is important to put a lot of thought into who you vote for in director elections. Some are standing on a platform of reform.''
MIE was endorsing the candidacy of Silver Fern Farms chairman Rob Hewitt, who was seeking re-election.
Federated Farmers meat and fibre industry group chairman Rick Powdrell said farmers needed to listen to meat company board candidates and understand what they would bring to the table.
Farmers already have power over the industry, Mr Powdrell said - either as shareholders in or suppliers to the meat-processing co-ops.
Both Alliance and Silver Fern Farms have ''relatively new chairmen and are going to have new CEOs'', he said.
''Like anything, when there's a change of leadership, there's the possibility of a new direction.''
By Sally Brooker