Meat and Wool New Zealand will have to wind up its wool and goat meat programmes after failing to get enough farmer support to continue raising levies for those activities.
In its levy referendum farmers voted by a small margin to continue funding Meat and Wool's sheep meat and beef activities such as research and market support for a further five years, with an increase in those levies.
But they rejected the organisation's proposed wool levy of four cents a kilogram, reducing to three cents after two years. The proposed 55 cents-a-head goat meat levy was also rejected.
Of those eligible to vote, 39% took part in the referendum.
Meat and Wool New Zealand chairman Mike Petersen says the organisation will have to be restructured and the future of research and training programmes that have been funded by the wool levy are now uncertain.
A total of $11 million of activity including on-farm research, extension programmes, shearer and wool handling training and the collection of information through the economic service will cease to exist, he says.
Mr Petersen says the current levies run out in April next year.
Meat and Wool New Zealand's board will discuss the referendum result and the implications at its meeting this week.
Serious implications, says minister
Agriculture Minister David Carter says there are serious implications for the wool industry, which will no longer have a mandated industry body looking after its interests.
He says the wool industry will also have more difficulty getting funding from the Government's Primary Growth research partnership.
Mr Carter says the industry must find a way to show some co-ordination and strength, and its leaders must get together, heal old wounds and find a way forward.
As minister, he will have to approve an application from Meat and Wool to renew the levies that farmers have supported.
Federated Farmers meat and fibre chair, Bruce Wills, was surprised at the overall low level of farmer support for the organisation and its programmes.
He says it shows the level of concern and frustration the farmer community is feeling, but hopes farmers realise the implications of cutting funding for wool research and training.
Hawkes Bay farmer Robin Hilson, who led a campaign against the levy vote, says it sends a clear message to Meat and Wool that there is "colossal" disatisfaction among farmers.
