Dollar for Dollar Investment with Meat Companies

NEW ZEALAND - Meat & Wool New Zealand says its decision to seek dollar for dollar market development investment from meat companies is a big step towards cementing better partnerships in the marketing effort for New Zealand beef and lamb in world markets.

5 August 2009

3 minute read

Oceania

Chairman Mike Petersen says the Board is excited about the proposal because it builds on progress already achieved in a number of areas.

“The collaborative effort that M&WNZ facilitates between farmers and meat companies is of immense value to sheep and beef farmers. It is vital that we have clear and consistent messages for promotion in a number of key markets, including in New Zealand through Beef + Lamb NZ’s campaign featuring Sarah Ulmer, the Evers-Swindell sisters and New Zealand’s new world champion, Sarah Walker.”

Alliance CEO, Grant Cuff, said that Alliance continues to support M&WNZ and its market development activity for red meat.

“We work with M&WNZ through both generic and joint venture programmes, in the latter where we match farmer levy investments dollar for dollar. In the UK, a market that remains strategically important for New Zealand lamb and which sets the tone for the world trade in sheepmeat, we support M&WNZ's role in the development and implementation of promotional strategies and activities.”

“In Germany, where lamb is a niche product, M&WNZ has worked in conjunction with two of our distributors and with our support, to impact consumers’ purchase decisions, by running in-store tasting programmes for lamb." Cuff said.

M&WNZ has also been working with the meat industry to develop and grow the North Asian market for New Zealand exporters. This activity has been developed in partnership with industry and is now leading to growth that will benefit farmers in the medium and long term says Mark Clarkson, Managing Director of ANZCO.

“ANZCO believes this generic umbrella builds a strong foundation on which the joint venture projects can be built and allows companies to tailor their commercial promotions." he said.

Alongside the work in established markets M&WNZ has also been looking towards the emerging markets for new opportunities for New Zealand beef and lamb. CEO of Silver Fern Farms, Keith Cooper, said that this work was important in the world’s fastest growing region.

“M&WNZ has proved to be a valuable partner with ANZCO, Alliance and Silver Fern Farms by supporting the Emerging Markets project which is focusing on developing new opportunities for New Zealand red meat in China. With support from New Zealand Trade & Enterprise, this strategic project has seen M&WNZ act as the glue to support an exciting new collaborative opportunity.”

“Overall, the in-market activity of M&WNZ staff and programmes, coupled to the work of the Economic Service and the marketing support staff in New Zealand, has delivered high quality programmes." Cooper said.

The final Levy Proposal addresses the concerns of farmers raised during the consultation round about the level of meat company funding into Meat & Wool New Zealand’s market development work.

Mike Petersen commented that “The debate was not about the need for marketing and promotion, but about who pays. The final proposal addresses this issue with a partnership approach over the next five year period. We are seeking increasing amounts from meat companies for our market development programmes in line with what farmers told us during the consultation round.”

“Importantly, we will also be developing a sector strategy alongside the commercial participants in the sector. This will help determine what Meat & Wool NZ should be doing, what the commercial sector should focus on and where we should work together. This collaborative approach is what will deliver the best results for sheep and beef farmers.” Petersen says.