Пища для ума. Коломейцева Е.М - 76 стр.

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76
4. Why is the cost of meat to consumers in quota controlled markets higher
than in an open market?
5. What is the meat processing industry to a great extent driven by?
6. Why do the companies have a strong incentive to maximise throughput?
7. What production methods have improved considerably?
A good case study of a smaller enterprise within the meat processing in-
dustry is Lean Meats. Lean Meats was established about 15 years ago by
around 100 entrepreneurial farmers to maximise the value of their lambs in
international markets, especially through chilled lamb and direct marketing
to the retail and restaurant sectors in the US. The company now has around
250 suppliers and earns $20 million a year in export sales.
Because imports are restricted into these markets the cost of meat to con-
sumers in quota controlled markets is correspondingly higher than it would be
if an open market prevailed. As a result New Zealand earns revenue from quota
markets that is substantially higher than would otherwise be the case, and these
"quota rents" are in large part passed on to farmers because the meat export
companies holding quota entitlements have to compete on price to procure
supply from farmers.
The meat processing industry is to a great extent driven by economies of
scale and by the economics of marginal throughput. The companies therefore
have a strong incentive to maximise throughput, driven by the declining long-
run marginal cost of additional stock processed and by quota entitlement being
determined by throughput. Quota is allocated to meat export companies on the
basis of the amount of product they process (based on a three year rolling aver-
age). The meat companies therefore have a strong incentive to bid up the price
of sheep meat to increase their processing throughput and thereby earn more
quota entitlement.
The sheep meat industry in particular has achieved major productivity im-
provements over the last twenty years. On-farm productivity gains tend to be
incremental; however they have accumulated over time to substantial advances
in productivity and profitability.
Production methods (higher lambing percentages, higher killing
weights) and efficiency of grass conversion to sheep meat have improved
considerably. Ewes are better fed, hoggets are increasingly lambed, farmers
have bred from more prolific breeds and poor performing sheep are being
identified and culled through scanning. Genetic gains have increased the per-
formance of our sheep flock to the extent that gross farm incomes are 8%
higher now compared with ten years ago through better sheep genetics alone.
Improved pasture species and better management of lambs have led to higher
lamb growth rates. The old norm of 150 grams liveweight gain a day is now
being replaced with 200 grams a day, and some progressive farmers are ex-
ceeding this level.

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