NZ export focus must be on niche products

The New Zealand meat industry will have to centre around niche products if it is to survive in the global meat trade, Canterbury Meat Packers chief executive Mark Clarkson says.

Niche products will become important because the industry has changed enormously over the past three years, he says.

Brazil has emerged as the dominant player in the world processing of meat and is set to dominate the global exporting of meat in future years, Mr Clarkson told farmers at Meat & Wool New Zealand's launch of its Central South Island sheep and beef council at Benmore Station.

"Our position's got to be exploiting niche opportunities and high value positions with meat products."

New Zealand was well positioned to take advantage of meat supply to the world because of its abundance of water and renewable energy.

Consumers were not just going to be in traditional markets but also in new markets, he said.

Taste, location, production methods, variates and breeds would all be important determinants for price in those diversified markets.

Livestock systems for high-end food would have to provide safe food with ethical, environmental and animal welfare considerations.

"They will have to really deliver on a pleasurable eating experience," Mr Clarkson said.

Future consumers would fall into those wishing for convenience food where cost, safety and healthiness were important, and those demanding providence and taste.

"The connection with who we are supplying will be essential."

The world was demanding more protein as a result of more population and income. Projections for world population growth have it at eight billion by 2030. Much of that growth was in Asia.

Piggy-backing on this was the increase in income. As wealth grows, so does meat consumption, he said.

Beef consumption in Indonesia, China and the Philippines had grown substantially. From 1995 to 2009 Indonesia beef consumption increased 140,000 tonnes, and by 1.9 million tonnes of product in China.

There was a view down the world that everybody would be paying more for food.

"Protein is part of that food supply and the expectations are that this must increase as a result of this."

Livestock returns must increase because of that. What was happening at the moment was that livestock costs of production were increasing at a faster rate than what was being returned.

This trend had to change. Demand was there and this would change the pricing situation, he said.

Food security would be important, as would supply.

New Zealand could not afford to turn its back on developing countries because as they developed, they would be asked to pay more too.

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