Silver Fern Farms has defended the payment of premiums for certain breeds of lamb, saying the market paid more for certain animals which met certain criteria reports The ODT. Farmers have criticised the meat co-operative for paying farmers a 10c a kg premium for Primera-bred lambs supplied under contract to Marks and Spencer, but Silver Fern Farms said to qualify, the lambs had to meet standards demanded by the supermarket chain.  SFF livestock manager Grant Howie said lamb breed was just one criterion demanded by Marks and Spencer.

Suppliers also had to monitor their carbon footprint, greenhouse gas emissions, land management impact and have plans for the environment, quality assurance, animal welfare and food safety, he said. “This is the old market averaging model versus the new integrated-market led model. When it comes to the Marks and Spencer programme, there is more value in the total programme than an average market programme.”

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Silver Fern Farms says it has listened to concerns about its inaugural Backbone supply contracts last year, and made changes to simplify them reports The ODT. This year was shaping up as big year for Silver Fern Farms, which last month was given shareholder approval for a new capital restructuring programme and in October will launch its global branded consumer lamb and venison product range.

SFF livestock marketing manager Grant Howie said the Backbone contracts were a key to supplying that product range, but also UK and European retailers with which it has formed supply partnerships. Farmers can choose between two Backbone programmes. The committed supplier programme linked the delivery of stock to a designated period for which farmers would be paid a weekly schedule plus 10c a kg supply premium for lamb, and 5c a kg for beef and venison.

The integrated supply chain programme rewarded farmers with a contracted price for supplying stock which met customers’ criteria and specifications. Those contracts were: Lamb Backbone partnership club, M&S Lamb, organic lamb, North American Lamb, Backbone prime beef, Backbone bull, Backbone cow, Backbone Angus beef, Backbone Angus bull, Backbone Angus cow and venison Backbone partnership.

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The organic market for meat is feeling the brunt of the global meltdown on price and volume, says Silver Fern Farms (SFF). However, there is still a very good market in the UK and Europe for high quality organic lamb and that is what producers should be focussing on reports Rural News. ‘This is what you’ve got to be thinking of as you produce your lamb,’ says marketing manager Grant Howie. ‘The first thing they are after is quality; apart from it being organic, they want very high quality.’

With more money than most consumers, organic buyers are not prepared to compromise on tenderness, colour or flavour and above all product must be consistent week to week. Another key factor is convenience. ‘They don’t want to be spending a lot of time preparing a roast. And despite the emphasis on quality, consistency, and convenience, price still plays a part. ‘It doesn’t matter which market you go to price at some point becomes a part of the equation.’

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