New Zealand lamb producers are considering forming a 'super co-op' to drive up prices in the $2.2bn per year export market.

Agriculture minister Jim Anderton said the government would help the industry get round anti-monopoly legislation.

He pointed to the success of dairy co-op Fonterra as evidence the approach could benefit producers and exporters.

British producers should not be concerned, said Chris Lamb in the MLC's marketing department. "Overall trade agreements limit the amount New Zealand can import to the EU."

And National Sheep Association policy adviser John Thorley welcomed the news. "The kiwis probably want to put themselves in a position of strength when talking to buyers. That would also benefit British lamb producers."

The calls for a super co-op are being led by the Meat Industry Restructuring Group, which wants major processors PPCS and the Alliance Group to merge.

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