Thursday, March 12, 2009

Increasing Meat and Wool levy a must to keep us in the game

So increases in input costs on farm are not such a welcome addition at the moment which may cause Meat and Wool New Zealand some problems in seeking to double the sheep and beef levies.

The proposal is for sheep levies to rise from 40c to between 60 and 80c, beef cattle levies to rise from $3.60 to $5.50 and $6 a head while the wool levy would fall from 5.25c to 5c per kilogram.

It would be easy to stall the increase (the first to be asked for since 2004) and adopt a wait and see approach to the global economic problems but this would only end up disadvantaging the entire industry.

Meat and Wool have been doing an admirable job - and a much needed one in promoting our meat into overseas markets with an independent report confirming that we are making money on our investment.

And like any business, (think Fonterra or PGG Wrightson) to grow we need more investment.

The August vote should be a no-brainer and hopefully farmers' will avoid all the negativity coming out of the economy and not shut the only sure fire way to make more money - investment, investment, investment.

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