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Beef + Lamb not able to progress joint market development

Beef + Lamb New Zealand not able to progress joint market development model

17 June 2015

Beef + Lamb New Zealand won’t be progressing a joint market development model with meat processors in the next commodity levy cycle from 2016-2022.

Beef + Lamb New Zealand Chairman, James Parsons said meat processors have decided not to progress the proposed collaborative 50:50 funded market development entity focusing on country of origin promotion. This was a proposition worked up by Beef + Lamb New Zealand in conjunction with meat companies over the past two years.

“We’ve had a lot of dialogue and constructive discussions with processors, considering how market development could be funded and delivered in the future. Naturally, after all the hard work, it’s disappointing that we weren’t able to get agreement. However, we respect processors preference for their own commercially-focused marketing given, they are the ones who sell the product. What became apparent over the two years of one-on-one meetings and workshops with meat companies was the wide ranging views on how we should promote New Zealand’s sheepmeat and beef.”

Parsons said, while a joint marketing entity was not landed, importantly the processors have acknowledged that by choosing not to be involved in joint market promotion with Beef + Lamb New Zealand, they are accepting responsibility for red meat promotion and additional investment will be needed by them.

“We know from our own independent research that farmers place a lot of value on the promotion of beef and sheepmeat in our international markets. Pleasingly, a number of processors I’ve talked with one-on-one have told me they will accept responsibility for this work through their own commercially focused activities. That’s a positive outcome.

“The Beef + Lamb New Zealand board and senior management team is now taking a deep breath and considering next steps before we shape up our final proposition to put to farmers for the 2016-2022 commodity levy cycle. We are a grass roots farmer organisation governed by farmers, so our fundamental rule of thumb when directing farmers’ investment is that it must deliver value back behind the farm gate.”


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