Small rural businesses are on their knees, despite a perception they are flourishing as an essential workforce.

Former special agricultural trade envoy Mike Petersen told The Country the food sector's flat-lined because export markets have collapsed.

"There seems to be a perception out there that just because you are in the rural community, you are deemed to be an essential business and everything is chugging along fine, which is not the case at all."

Petersen says meat companies are as entitled to the wage subsidy as other businesses as long as they can show a loss of revenue.

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