From time to time a fox asks for the key to the hen run, and will at the same time sincerely profess he really does have the welfare of the chickens at heart.
Keith Cooper’s recent out burst of condemnation of Beef and Lamb is all about Silver Fern Farms (SFF) getting the “key” to farmers levy money and that they (SFF) can be trusted to act in the best interests of the farmers. Really Mr Cooper?
Even a cursory glance at his bizarre comments condemns the self interest of SFF.
It is of course not just Cooper’s thoughts but that of the entire board of SFF. It is inconceivable that he decided to throw all his toys out of the Beef and Lamb sand pit with out the expressed permission of the board of that company. If he didn’t have sign- off, I would anticipate his resignation as CEO of SFF, also effective immediately.
Cooper speaks of the need for commercial realities in dealing with customers and in the market place decisions. Really Keith? Silver Fern Farms is - to the best of my knowledge, the only meat company in NZ that has been criticized by a judge of the High Court for – quote “gross commercial misconduct” Hardly a ringing endorsement of the culture of that particular company and something well short of a reason to hand over farmers levy money.
The law requires a company to act in the best interests of the company. Not the shareholder – not the supplier – not the industry – not the country, but themselves.
Cooper will be well aware of that fact as indeed should the board of SFF, so where does he get off stating that the industry can better administer meat producers levy money on behalf of all the stakeholders?
The industry has shown no signs what so ever of a mature attitude to growing the level of cooperation within the industry. There are no signs that meat companies are cooperating to any marked degree both in procurement and off shore marketing.
Cooper speaks of the need for sector aggregation. Aggregation is another word for merger. Is he referring to a SFF /Wrightson type aggregation and where SFF is (I believe) still extracting an annual payment from Wrightsons who have a $9.6 million liability to SFF over the term of the contract?
Or is he suggesting that meat producers should rely on a single (merged) Government dept to - quote “effectively support and maintain farmer channels to markets.” Cooper could now perhaps point out the existing successful model for his claim. In my experience, placing ones future in the hands of a Government Dept is a short cut to oblivion.
Cooper also talks of accountability. I have attended many meat company meeting during my farming career including SFF or as they were once PPCS. I am yet to attend one meeting where suppliers (see owners) were content with the level of transparency on offer.
Perhaps his inference that the industry will do so much better when the companies get direct control over farmers levies is the most difficult to reconcile. The reality is that returns are the highest ever for lamb under Beef and Lambs marketing stewardship - so how do you propose to trump that Keith?
I have over the years offered opinion as to how I think the farmer controlled organization (Beef and Lamb) could do better rather than just criticize their performance.
Beef and lamb should take this opportunity to remove all Meat Industry Association personal (MIA) from any future board. The conflict of interest is overwhelmingly obvious.
The levy money should used in a generic way to promote NZ meat as the safest, sustainable and simply the best meat in the world – as they are doing, but I would also add into the mix the following.
Each company with quota into the EU should - in a contestable way - compete for levy monies based on the strength of their past few years’ performance for assistance / marketing support into the market place.
And if Keith Cooper and SFF don’t like that – well - I’m much too polite to put into print that what most meat producers will be thinking right now.
Should Beef and Lamb do anything other than send Keith Cooper on his way with a vigorous round of applause at his decision to resign then I guess the fox will indeed get total control of the hen house. Any guesses as to the fate of the (producer) chickens when that happens?
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