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Joint Market Development

Press Release from the Meat Industry Association (MIA)

17 June 2015

Joint Market Development

Responding to the release from Beef + Lamb New Zealand on market development, the Chairman of the MIA, Bill Falconer said that while the review undertaken with Beef + Lamb New Zealand over the past two years has been valuable, in the end, commercial considerations resulted in meat processors and exporters deciding not to contribute 50% of the $8m country of origin marketing programme currently sponsored by Beef + Lamb New Zealand. Beef + Lamb New Zealand had proposed this be funded by processors, in order to reduce the funding by farmers under their Commodity Levy.

Traditionally, Beef + Lamb New Zealand and its producer board predecessors have undertaken the generic marketing of beef and lamb, which latterly has been funded by Beef + Lamb New Zealand through its commodity levy from farmers. Industry marketers (processors and exporters) have invested in their own promotional programmes and customer specific activity.

Mr Falconer said that processors already invest more than $8 million in their own brand promotions and this will increase as new markets are developed. Considerable time was spent usefully exploring the possible content and cost of a country of origin programme. However, a solution could not be identified justifying processors assuming 50% of the cost over and above the marketing investments they are committed to making and growing.

Processors investment will continue to be directed to the product and consumer branded activities they develop with their distributors and retailer partners in existing and developing markets.

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