TSR is the “circuit-breaker”

Beef + Lamb NZ Ltd chairman Mike Petersen remains firmly committed to the Red Meat Sector Strategy. In his latest Chairman’s Update, he writes about the challenges facing the industry and current debates around industry structure.

The “circuit-breaker” in his mind that could unlock all these challenges he says is the adoption of ‘Tradable Slaughter Rights’ (TSR), which was recommended to the then Meat Industry Council by consultancy firm Pappas Carter Evans and Koop nearly 28 years ago (Allan Barber covered this on 28 March).

Petersen outlines how this might be applied to the current industry. In his view, the adoption of TSR would: change behaviour overnight; reduce procurement pressure at the farm gate; encourage rationalisation of industry capacity; still allow new entrants – which provide innovation and new thinking – to have access to the industry; would not be an issue for World Trade Organisation and other international trade agreements; and, he says, “would be doable.”

What he proposes is something “that I think delivers meaningful change and, importantly, the behavioural change that is required to get this industry functioning better for all participants,” says Petersen.

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