Seminar no value’

Press, 5 October 1977, Page 2

Seminar no value’

An economist with wide knowledge of the meat industry in New Zealand predicted yesterday that the freezing industry seminar would achieve nothing of real value.

He is Mr R. G. Pilling, former senior lecturer in economics at Lincoln College, Canterbury. “The basic problem is that the meat industry does not work as an industry in the real sense,” he said. “It is fragmented and lacking in co-ordination and standards of communication. This is a serious indictment that has been expressed for many years, but to no avail. “For years the internal structure of the industry of farmers, processing works, and transporters has been that of frustration and lack of co-operation,” said Mr Pilling. "There is low morale in the industry. This is manifested by uncertainty with

respect to the costs of implementing future hygiene regulations for farms, transport and processing works; poor industrial relationships; and a real lack of communication on matters vital to the future of the industry. “The standard of marketing intelligence is very low, particularly with respect to providing factual information to farmers and trade unions. The seriousness of the outlook for our future exports has been played down by those in responsible positions,” he said. “Very little information has been given on such matters as the activities of our competitors (particularly Australia); the end use of our products (mutton for processed ham); and substitutes such as plastics for hides, synthetic fibres for wool, and textured vegetable protein for meat.

“Sectors of this industry do not realise that they must exercise responsible at-

titudes in their mutual interests. If costs unrelated to productivity are allowed to escalate there is a very limited future for this export industry.”

Mr Pilling said that the basic handicap of the industry was that animals were relatively inefficient converters of protein products and the problem was compounded by “appalling inefficiencies” particularly beyond the farm gate.

Mr Pilling repeated a recommendation he made in a report published earlier this year that a meat industry association should be set up.

The association should include representatives of processing works, abattoirs, exporters, farmers, transporters, harbour boards, trade unions, and the Government.

This did not mean that any existing organisation would have to be disbanded, Mr Pilling said.