Red meat markets trip valuable

Dawn Sangster (centre) with Gunter and Sabine Bagowski from Prime Meats, in Hamburg. The company...
Dawn Sangster (centre) with Gunter and Sabine Bagowski from Prime Meats, in Hamburg. The company has had a 33-year relationship with Alliance Group. Photo supplied.
A five-week trip overseas, visiting key New Zealand markets and customers for red meat, proved valuable for Maniototo farmer Dawn Sangster.

Mrs Sangster, a supplier representative director of Alliance Group, spent time in the United States, United Kingdom, China, Europe, Singapore and Indonesia.

In a presentation to fellow members of the Beef and Lamb New Zealand Central South Island Farmer Council at its annual meeting in Cromwell last week, Mrs Sangster said every market was different.

To secure customers, the individual needs of each of those markets needed to be understood and catered for.

Getting alongside customers ''on the ground'' enabled valuable connections and learning, she said.

The future was positive, the world was ''hungry'' for New Zealand's grass-fed red meat and an increasing number of people would be prepared to pay a premium for high quality, safe lamb, beef and venison.

In the United States, New Zealand's largest French rack market and Alliance Group's second-largest chilled market behind the UK, domestic lamb production had continually declined over the past 30 years and imports had risen to now comprise 50% of all lamb production.

That figure was expected to rise to 80% by 2018, according to a study conducted by the American Lamb Board.

There was ''plenty of new opportunity'', as 70% of Americans had never tasted lamb, she said.

In the UK, the ''horsegate'' scandal, in which horse DNA was discovered in frozen beef burgers, had resulted in supermarkets placing greater emphasis on supply-chain integrity.

Alliance Group was well placed in that new environment, where quality and traceability were more important than price, Mrs Sangster said.

Europe was still recovering from the global financial crisis and lamb was slow to come back on the food service menus.

''There was sentiment that they didn't want price volatility. Many had been burnt when the prices went too high and lost a lot of money and are still recovering.'This means that they have lost confidence to buy long and is also behind their sentiment for price stability,'' she said.

In Europe, the ready-meal trend was not as strong as in the UK and they were talking responsibility, rather than sustainability.

There was talk of changing legislation on shelf life because of too much waste, she said.

Mrs Sangster described visiting China as an ''experience'', with its huge population.

It was a market with much opportunity but care was needed and in-market partners needed to be chosen with care.

Grand Farm, the largest importer of meat into China, which has had a 14-year business relationship with Alliance Group, had experienced a ''phenomenal'' growth in turnover from $US1 million in 2000 to more than $100 million this year.

Indonesia was very much a beef market and there was a perception that lamb made you ''hot'' and increased blood pressure.

That market would need investment and education to change that, she said.

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