The likely ending of generic lamb promotion in Europe was a
loss to the meat industry, according to Alliance Group chief
executive Grant Cuff.
It was a hole unlikely to be filled by meat companies, which
would instead focus on promoting their own products and
brands.
Mr Cuff was responding to news last week that Meat and Wool
New Zealand (MWNZ) was pruning $1 million off its market
development budget for the United Kingdom and Europe in
response to the decision by farmers not to continue paying a
levy on wool.
It was part of a $6.3 million reduction in spending for
2009-10, with $5 million pruned from ending or not renewing
research projects, wool technical and enterprise activities,
scholarships, promoting agricultural careers and cutting back
on research extension programmes.
MWNZ had told farmers companies would pick up any reduction
in promotion by the producer board, but Mr Cuff said Alliance
would not.
"We won't promote in ways the MWNZ promoted in the past, nor
generically, and that is a loss for New Zealand."
Any promotion by Alliance would be commercially-based, but Mr
Cuff said it would not be generic.
"Why would Alliance Group promote generic New Zealand lamb in
the UK and have 10 other companies benefit?"
That was the beauty of MWNZ promotion, he said.
Farmers and companies contributed financially and all
benefited.
"Generic New Zealand promotion is valuable. It associates
lamb with New Zealand rather than lamb with a small sub-set
of New Zealand which doesn't carry any weight."
In addition to the $1 million reduction in lamb promotion in
the UK and Europe, MWNZ will also cut $350,000 off beef
market development.
