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Category Archives: Meat Export NZ
Lining up for grass-fed beef in Japan and Korea
Chefs in Japan and Korea have been learning more about New Zealand grass-fed beef from award-winning Christchurch chef Darren Wright.
Beef + Lamb New Zealand (B+LNZ)’s market manager for Japan/Korea, John Hundleby says Wright, who has been in the two countries promoting New Zealand beef to a lineup of influential chefs and media, cooked a range of beef dishes at a number of events. His offerings included beef ravioli made from short-ribs, beef tortellini and tenderloin steaks.
“Since Korean and Japanese people are far more familiar with the cooking qualities of grain-fed beef which is more common in the two markets, a highlight at these events is always the demonstration of how to cook a good grass-fed beef steak.”
Japan and Korea are important markets for New Zealand beef farmers. Japan is New Zealand’s number two beef export market by value, worth NZ$230.7million (season ending 30 September 2011) and Korea is New Zealand’s number three export beef market by value, worth $203.1 million (season ending 30 September 2011).
“Beef + Lamb New Zealand works on behalf of farmers in these markets to introduce consumers to New Zealand grass-fed beef and then to develop a preference for it,” Hundleby says.
“Working with chefs and encouraging them to use our product is an important part of getting more Japanese and Korean people to eat New Zealand beef. Influential media also have a valuable role to play in highlighting the health benefits of grass-fed beef that make it lower in fat and higher in Omega-3s than grain-fed beef.”
New blueprint for sustainable beef production
A new blueprint that potentially could be used for sustainable beef production in New Zealand has recently been brought into reality in Brazil and is being trialled in tropical northern Australia. However, its usefulness in temperate zones as a sole certification stamp is being questioned by one sustainability expert.
A group of four cattle ranches in Brazil, Fazenda São Marcelo Ltda, has just been announced as the first to earn Rainforest Alliance certification under a new standard – Standard for Sustainable Cattle Production Systems – developed and first published in July 2010 by the Sustainable Agriculture Network (SAN).
The ranches all met a rigorous set of standards that promote the humane treatment of livestock, the conservation of natural resources and the rights and well-being of workers. The standards were developed by SAN in response to the vast destruction of rainforest that results from cattle farming. IMAFLORA – the SAN representative in Brazil – carried out the certification.
According to Amaldo Eljinsk, chief executive of Grupo JD which manages the enterprise, the standards support the company’s values and management approach, helping it add value to its products, stay ahead of trends and attract buyers.
IMAFLORA is promoting the cattle certification programme in Brazil through its work with other local non-governmental organisations (NGOs, including Amigos da Terra), government agencies and international NGOs (including the National Wildlife Federation).
The current standard covers a summary of the principle of an integrated cattle management system, sustainable range and pasture management, animal welfare, reducing the carbon footprint and additional environmental requirements.
Input from sustainable standards expert Kevin O’Grady of Pinnacle Consulting, in the early stages of the standard, enabled the change of rules to allow the use of natural hormone replacement and de-horning. Since that time, O’Grady, who previously worked in the New Zealand meat industry, has been involved with the development of the standard and its trials in Northern Australia. He has been looking at the feasibility of extending it into temperate regions such as other parts of Australia and New Zealand.
“The way Rainforest Alliance works is that specific clients, such as McDonald’s in the specific case of South America, adopt the standard and suppliers then have to follow it,” he explains.
However, it would take a lot to adapt the standard for temperate zones and some of the issues for tropical farming , like tree cover and protecting livestock from predators, are not relevant, he says.
O’Grady also questions the advantage of this sort of standard for the New Zealand meat industry. “Many customers’ suppliers and investors are looking to independent certification to mitigate reputational risk so it’s not just about meeting a certification requirement for a customer like MacDonald’s.”
Want to find out more? Contact Kevin O’Grady.
Canada joins TPP
Canada is also joining the Trans Pacific Partnership (TPP) negotiations.
The move, announced by New Zealand Minister of Trade Tim Groser today and following the news that Mexico was to join the negotiations earlier this week, “demonstrates how dynamic this consultation process is,” the Minister says.
“Our vision for the TPP has always been to create a high-quality and comprehensive trade agreement which over time will act as a platform for wider Asia-Pacific trade liberalisation and economic integration.”
It shows that progress is being made in building an open and inclusive agreement, says the NZUS Council.
“Canada’s decision to join the TPP negotiations following Mexico’s announcement is further proof that TPP is open to new members who believe they can meet the high standards set by the agreement,” says NZUS Council executive director Stephen Jacobi.
“Canada is a major global economy and a long-standing friend of New Zealand. A successful outcome to the TPP negotiations will allow the economic relationship between New Zealand and Canada to reach a new level”.
New Zealand exports to Canada in 2011 were worth $597.4 million and it was our 19th largest export market. The top exports were sheep meat, beef and wine.
Jacobi foresees tough negotiations ahead on market access for agricultural products given that Canada maintains tight restrictions on supply managed industries including dairy and poultry.
“The NZUS Council’s submission to the New Zealand Government last year made clear that we considered Canada’s supply management policies incompatible with the vision of TPP as a comprehensive, high quality and ambitious agreement. These differences will now need to be resolved at the negotiating table”.
Jacobi noted that Japan was continuing to follow the TPP process closely.
“We look forward to Japan joining the negotiations once the Japanese Government is confident it can meet the high ambition of TPP and consultations are complete,” said Mr Jacobi.
Like the process for Mexico, the next step with regard to Canada joining the negotiations would be for the nine current TPP participants to complete any applicable domestic legal procedures. Following this, Canada would formally join the negotiations as a new participant.
Mexico joins TPP
Meat exporters to the Americas will welcome the news announced by Minister of Trade, Tim Groser, that Mexico is joining the Trans Pacific Partnership (TPP) negotiations, alongside current participants Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, the US and Viet Nam.
“We believe Mexico’s participation in the negotiations will contribute to the objective of creating a 21st century agreement that will spur economic growth and development, promote innovation, benefit our consumers, and support the creation and retention of jobs, high living standards and the reduction of poverty in our countries and the broader Asia-Pacific region,” the Minister says, adding the NZ is looking forward to working with Mexico to conclude a comprehensive and balanced package, taking into account the diversity of the levels of development.
Step towards free trade area
According to the NZ-US Council, this is another step towards achieving precisely what was first envisioned – a free trade area of Asia and the Pacific.
“This is good news for businesses which need to operate more effectively and seamlessly in the region,” says NZUS Council executive director Stephen Jacobi.
“Mexico is a steadily growing market for our products, with enormous potential for New Zealand exporters. A successful outcome to the TPP negotiations will also allow New Zealand to leverage the potential in the education and research relationships we have with Mexico.”
Mexico’s entry will make New Zealand’s competitive position in Mexico the same as the NAFTA partners, USA and Canada.
New Zealand exports to the market in 2011 were worth $414.8 million and it was our 25th largest export market. Meat and dairy are the top New Zealand exports to Mexico, with dairy accounting for 62 percent.
Jacobi says that the NZUS Council is pleased to note Mexico is joining the TPP n the same terms as those already taking part in the negotiations. This means these economies share the aspiration for an ambitious and comprehenisve 21st century agreement.
“If the momentum started by Mexico leads to a Free Trade Area of Asia and the Pacific, we would see New Zealand lift its exports by 8.5 percent above 2025 baseline levels and welfare gains to New Zealand lift by 1.35 percent of GDP.
“We look forward to Japan and Canada joining the negotiations, once both economies are confident they can meet the high ambition of TPP and consultations are complete,” says Jacobi.
ACCORDING TO NZUSC: TPP is an existing trade agreement between Brunei, Chile, New Zealand and Singapore, which Australia, Malaysia, Peru, the US and Vietnam wish to join. Eleven rounds of negotiations have been held involving the nine partners. The economies of the Asia-Pacific Economic Cooperation (APEC) account for over 70 percent of New Zealand’s total merchandise trade. Trade with APEC economies has been growing at an average of 4.5 percent per annum over the last 20 years. The TPP could add around $2,.1 billion to the New Zealand economy by 2025, according to research undertaken by the East-West Center in Honolulu.
Asian consumers emerge as driving force
Consumers, rather than politicians or regulation will determine the future of New Zealand farming, according to ANZ New Zealand.
“Demand for safe, high quality agricultural products from the growing economies of China, India and Asia will increasingly determine what agricultural products are produced by New Zealand and how we produce them, says ANZ’s managing director commercial and agri, Graham Turley.
“Supplying these markets will be the lifeblood of the New Zealand economy for the foreseeable future. It is crucial that the focus of the farming sector now is producing the right products at the right price and getting them to those markets.”
Turley’s comments were made to coincide with National Fieldays 2012, for which ANZ New Zealand was a strategic partner. The event was held at Mystery Creek, near Hamilton (12-15 June 2012). Over half of New Zealand’s farmers bank with either ANZ or the National Bank, the bank says.
Nearly 128,300 visitors attended the 44th New Zealand National Agricultural Fieldays this year. Organisers say 40 percent more people went through the gate on the final Saturday, compared to the previous year. “Overall attendance was a nine percent improvement on the 2011 event, leaving exhibitors and organisers exultant with the four days effort.”
NZ export revenue expected to decline in 2012/2013
New Zealand’s primary sector export revenue is expected to decline in 2012/13, as prices for commodities, such as New Zealand lamb, beef and venison, continue to come under pressure, according to a new report from the Ministry for Primary Industries (MPI).
Releasing its latest annual review of the sector, Situation and Outllook for Primary Industries 2012, MPI deputy director-general Paul Stocks noted that the prices for New Zealand’s primary industries are falling from relatively high levels but in general remain quite favourable. “Production this season has been generally good – even great for some – due to favourable climatic conditions.”
Summarising the sector, the review notes that meat and wool export revenues are expected to increase by 5.8%, to reach $7.2 billion, in the year ending 30 June 2012, owing to increased meat volumes and wool prices. Prices have been at high levels but now lamb schedule prices are falling back faster and further than the normal seasonal decline, says MPI. “This is because price-conscious consumers in Europe have shifted to less expensive meats. Some further falls are expected, but these should be modest because of lower stock numbers here and overseas.”
For beef, demand and schedule prices have held up better because of robust demand from Asian markets and falls in supply in the US and Australia.
Prices for venison have been falling since September 2011 and are forecast to bottom out in the first six months of 2012 and then rise slowly over the outlook period, reflecting decreasing supply from New Zealand and continuing demand.
The report shows that the meat sector has seen increased meat production this year as a result of favourable climate and pasture conditions.
Exchange rates continue to be of concern – and the greatest area of forecast uncertainty – says MPI.
A pdf copy of the report can be downloaded at the MPI’s website (Publications, News and Resources), where you can also order a hardcopy.
Carter to Russia and US
Primary Industries Minister David Carter is representing New Zealand at the APEC Food Security Ministerial meeting in Russia next week and will also travel to the US for a round of high level agriculture meetings.
The APEC meeting in Kazan will focus on a range of issues concerning agricultural productivity, including longer-term investment in sustainable agriculture and the role of international trade in improving food security.
“As a leading food exporter with world-class expertise in agricultural production, New Zealand knows only too well the importance of global food security,” Carter says.
“To this end, New Zealand has taken an active role in promoting multi-country cooperation such as through the Global Research Alliance on Agricultural Greenhouse Gases. We also continue to promote a rules-based trading system to ensure consumers have access to a reliable food supply.”
The Minister will travel to Washington DC to meet with a number of political agriculture leaders and industry representatives.
“These meetings will further strengthen the New Zealand-US bilateral relationship and give our two countries the opportunity to discuss issues such as the positive collaboration on research into livestock-generated greenhouse gas emissions,” he says.
“I also look forward to discussing with my US counterpart and others the mutual benefits that will be realised through the high quality Trans-Pacific Partnership Free Trade Agreement currently under negotiation.”
The Minister will also make a stop in Hong Kong to address an event showcasing New Zealand food and wines.
World Meat Congress 2012
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In June, the International Meat Secretariat’s 19th World Meat Congress will take place in Paris, attracting 1,000 meat industry participants from all over the world, including New Zealand.
Taking a turn at organising the biennial Congress this time are the two French meat and livestock associations, Interbev and Inaporc, under the official patronage of the French Ministry of Agriculture. The Congress theme is ‘Proudly producing and trading meat.’
B+LNZ Ltd chief executive Scott Champion and AgResearch’s Stewart Ledgard are two of the 40 or so speakers presenting at the two day congress. Champion will talk about ‘Sheepmeat in Asia – what are the opportunities and challenges’, while Ledgard will look at ‘Life Cycle Assessment and the need for an internationally agreed methodology’.
Other interesting speakers include Christophe Lafougere of GIRAG, ‘Are we moving towards a world price for meat?’ and ‘Meat marketing supertrends’ from IMS marketing committee chairman Chris Lamb, plus US, China and EU views.
Silver Fern Farms’ UK brand launch expanding
Silver Fern Farms’ launch of its branded New Zealand lamb range into British retail giant Tesco (Food NZ, December/January 2012) has been successful, according to the company, which is now looking at expanding the product range available in Britain.
This is the first time that branded lamb has been available in the fresh chilled lamb section of a major grocery chain in the UK. Chief executive Keith Cooper said the company was delighted that “the early good results at Tesco have given us the opportunity to extend the range with the introduction of Lamb Medallions to the current range – Roast, Rumps, Rack and Loin Fillets. We are currently stocking about 250 stores in the UK with pleasing upward trending occurring over the introductory period.”
Silver Fern Farms has utilised Primary Growth Partnership funding to assist with UK consumer research and using branded retail as a test market/prototype will allow the company to begin to meet its commitments to achieving the goals within the framework, Cooper says. The project was also supported by Beef + Lamb NZ with $1 for $1 matched levy funding.
The original launch was supported by an innovative marketing campaign focused on creating awareness at the point of purchase and tightly targeted towards Tesco shoppers using Tesco communications mediums.
The company is also fortunate to have a team of people in the UK who can work alongside its brand team here in New Zealand, group marketing manager Sharon Angus says. “We’re able to think local and act global.”
Published in Food NZ magazine (June/July 2012) .
