Low lamb prices have upset sheep farmers, the drought has depressed them, the high dairy payout has helped a few more out the door and now, for icing on the cake, it appears as if we are in the midst of a procurement war.
Farmnews had heard that a certain large co-operative was paying $3.80 per kg to farmers in the North Island this week. That is a bit of jump from the $3.30 the company is paying its loyal southern shareholders.
We decided to investigate, as after all that difference of 50c a kg adds up to an extra $8.50 for a 17kg lamb.
We spoke to Alliance Group Ltd Chief Executive Officer Grant Cuff about this.
Mr Cuff confirmed that his company was paying those amounts but pointed out that the $3.80 was gross. It is still subject to a further MAF deduction of $1 to $1.50 per lamb.
"I believe the extra levy is a matter of convention for every company in the North Island."
