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.”