Experts and economists in New Zealand are concerned about the disturbing deterioration of the meat industry in their market, especially after the announcement of Beef and Lamb New Zealand that the taxes on lamb meat are increasing, along with the prices. This double attack will suffocate the trade and will ultimately lead to some businesses being shut down.
The export lamb slaughter declined in 2010 by 4.5%, taking the revenue of meat Companies down. Beef and Lamb New Zealand reported annual revenue of $39,800 in 2010, after recording $58,800 in 2009.
The major problem facing these Companies is that farmers and farm business are not withstanding the losses and, consequently, pulling out. Sometimes they just pull out, as they realize the land might be more beneficial in other forms.
In an attempt to revive the business, Beef and Lamb New Zealand sealed the deal for a new program that ensures the company would be approachable and contactable to as many sheep and beef farmers as possible.
Mike Petersen, Chairman of Beef and Lamb New Zealand explained the advantages of the "openness" saying it is important to have more than one tool and more than one source. He also added, "We'll be assuring farmers that we will fund research programs that are prioritized by them and modeled by the Beef and Lamb New Zealand Economic Service".
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