1 00:00:00,040 --> 00:00:03,160 Speaker 1: Good afternoon. Alliance Group is planning to close its meat 2 00:00:03,200 --> 00:00:06,880 Speaker 1: processing plants into Maru. There is some consultation that's planned, 3 00:00:06,880 --> 00:00:09,319 Speaker 1: but if the decision is made as expected, six hundred 4 00:00:09,400 --> 00:00:11,920 Speaker 1: jobs at the meat processing plant will go Mark. When 5 00:00:12,080 --> 00:00:15,680 Speaker 1: is the Alliance Group chairman high Mark? Hey, why are 6 00:00:15,720 --> 00:00:16,440 Speaker 1: you having to do this? 7 00:00:18,360 --> 00:00:20,520 Speaker 2: Well, just before we go to that, I'd just like 8 00:00:20,560 --> 00:00:24,880 Speaker 2: to say, you know, express our empathy with staff that 9 00:00:24,920 --> 00:00:28,520 Speaker 2: have impacted in the impact in the local community. This 10 00:00:28,640 --> 00:00:32,440 Speaker 2: is a really tough day for them. But the fundamental 11 00:00:32,600 --> 00:00:36,440 Speaker 2: driver behind the reason is declining livestock numbers in New 12 00:00:36,520 --> 00:00:40,600 Speaker 2: Zealand and in particular sheep, and the fall on effect 13 00:00:40,600 --> 00:00:43,519 Speaker 2: that that has on the processing industry. And in this 14 00:00:43,600 --> 00:00:46,360 Speaker 2: case Alf's in the field site. We can blame the trees, 15 00:00:48,920 --> 00:00:53,000 Speaker 2: not entirely, No, there are numerous factors. You know, if 16 00:00:53,040 --> 00:00:55,360 Speaker 2: you go back to humans have been farming for a 17 00:00:55,440 --> 00:00:57,920 Speaker 2: very long time and land use change has always been 18 00:00:58,520 --> 00:01:01,279 Speaker 2: a part of that and used to be very famous 19 00:01:01,360 --> 00:01:04,720 Speaker 2: for our sixty million sheep and then in the early 20 00:01:04,760 --> 00:01:07,880 Speaker 2: two thousands a lot of sheep farms converted into dairy. 21 00:01:08,560 --> 00:01:13,160 Speaker 2: More recently, definitely trees and the carbon farming and the 22 00:01:13,200 --> 00:01:17,640 Speaker 2: policy settings around that has had had an impact. But 23 00:01:17,800 --> 00:01:19,880 Speaker 2: you know land use change in the North Island if 24 00:01:19,880 --> 00:01:22,160 Speaker 2: you go dairy farms are being impacted by the switch 25 00:01:22,160 --> 00:01:26,039 Speaker 2: into kiwi fruit. So there's the economic drivers that farmers 26 00:01:26,040 --> 00:01:29,360 Speaker 2: face every day and that drives land use change. 27 00:01:29,959 --> 00:01:31,920 Speaker 1: Okay, do you imagine that this is going to be 28 00:01:32,000 --> 00:01:33,679 Speaker 1: the end of it or is it a trend that 29 00:01:33,720 --> 00:01:35,520 Speaker 1: you will continue to see and therefore you will have 30 00:01:35,560 --> 00:01:36,760 Speaker 1: to shut more places? 31 00:01:37,920 --> 00:01:41,640 Speaker 2: Well, I think at a national livestock flow level, the 32 00:01:41,720 --> 00:01:47,800 Speaker 2: trend is likely to continue. So economic return on farm 33 00:01:48,000 --> 00:01:50,480 Speaker 2: is poor. If you look at sheep are a dual 34 00:01:50,520 --> 00:01:55,000 Speaker 2: purpose animal, both will and meat. Wool has been in 35 00:01:55,120 --> 00:01:59,360 Speaker 2: doldrums for a very long time and meat at the 36 00:01:59,400 --> 00:02:03,000 Speaker 2: moment we have been in the downside of the commodity cycle, 37 00:02:03,080 --> 00:02:06,560 Speaker 2: hopefully at the bottom and starting to climb back up again. 38 00:02:07,560 --> 00:02:11,280 Speaker 2: The economic return that a sheep and beef farmer can 39 00:02:11,560 --> 00:02:15,880 Speaker 2: enjoy is always compared against alternative land uses, and right 40 00:02:15,919 --> 00:02:19,519 Speaker 2: now the policy settings on carbon farming are a very 41 00:02:19,560 --> 00:02:23,360 Speaker 2: attractive return for farmers, and so you've seen hundreds of 42 00:02:23,360 --> 00:02:27,000 Speaker 2: thousands of hips move out of sheep and beef or 43 00:02:27,040 --> 00:02:32,280 Speaker 2: livestock farming and into permanent carbon farming. And that trend 44 00:02:32,360 --> 00:02:33,359 Speaker 2: is likely to continue. 45 00:02:33,400 --> 00:02:35,440 Speaker 1: Yeah, what do you think happens to these six hundred people? 46 00:02:35,840 --> 00:02:37,640 Speaker 1: Do they go to Australia, do they go on the 47 00:02:37,680 --> 00:02:39,560 Speaker 1: doll do they go into other available work? 48 00:02:41,360 --> 00:02:43,959 Speaker 2: Well, I think that's going to be a personal choice 49 00:02:43,960 --> 00:02:47,600 Speaker 2: and stage of life and skill sets and opportunities. It's 50 00:02:47,639 --> 00:02:50,960 Speaker 2: going to be very tough whatever choice they make in 51 00:02:51,040 --> 00:02:54,520 Speaker 2: terms of re employment. Inside the Alliance Group, we have 52 00:02:54,680 --> 00:02:59,920 Speaker 2: very few opportunities and our closest planters are just outside 53 00:03:00,040 --> 00:03:03,120 Speaker 2: and Maruse. It's a few way away, So I think 54 00:03:03,160 --> 00:03:05,320 Speaker 2: it's going to be pretty tough for most of them. 55 00:03:05,360 --> 00:03:07,440 Speaker 1: Mark, thank you very much, appreciate your time this Mark Winn, 56 00:03:07,480 --> 00:03:08,359 Speaker 1: Alliance Group Chair. 57 00:03:09,120 --> 00:03:12,280 Speaker 2: For more from Hither Duplessy Allen Drive, listen live to 58 00:03:12,360 --> 00:03:15,400 Speaker 2: news talks it'd be from four pm weekdays, or follow 59 00:03:15,440 --> 00:03:17,160 Speaker 2: the podcast on iHeartRadio.