The New Zealand sheepmeat industry and the role of the New Zealand Meat Producers’ Board

The past five years have seen substantial change in the New Zealand meat industry. Control of marketing of New Zealand meat by the Meat Producers' Board led to changing roles for many companies and for the Board itself. During this period incentive systems and constraints under which firms operated were considerably different from those which existed previously. Following the resumption of control of exporting by the companies in December 1985, there has been a further period of rapid change which is expected to continue to influence future developments in the industry. At the same time there have been changes in New Zealand's regulatory environment, and while this has probably had relatively little direct influence on the meat industry to date, there is an increasing possibility of deregulation in the meat sector. One of the main objectives of this Discussion Paper is to describe the changes in both business activities and attitudes which have occurred in recent years. Information has been collected from personal interviews with top executives from private firms and other institutions associated with the industry. A list of the organisations interviewed is contained in Appendix 1. These interviews provided first hand information on how companies and organisations have responded to the changing marketing environment. They also provided an opportunity to identify key concerns which are perceived to exist within the industry. When considering the sheepmeat industry, the role of the New Zealand Meat Producers' Board must be an underlying concern. This organisation has seen considerable change in its structure and functions over the period and its future role is unclear at present. Other institutions, such as the Meat Industry Association (MIA), the Market Development Board (MDB), and Government Departments, have also had a changing influence on industry behaviour. While this Discussion Paper does not include recommendations for policy changes, it does attempt to define logical areas of involvement by different participants in the industry, and makes some suggestions as to how producer involvement can be more clearly defined