A butcher wraps Ground Alberta beef at Bon Ton Meat Market in Calgary, Alberta, October 3, 2012. Bon Ton stated it was not effected by the recent E.Coli outbreak as they get their meat from select smaller producers. E. coli, a strain of which can cause si
IN PHOTO: A butcher wraps Ground Alberta beef at Bon Ton Meat Market in Calgary, Alberta, October 3, 2012. Bon Ton stated it was not effected by the recent E.Coli outbreak as they get their meat from select smaller producers. E. coli, a strain of which can cause sickness or even death, is widely present in meat-processing plants, and regulators require packers to control the bacteria within certain levels. E.coli can be killed by thoroughly cooking meat. Reuters/Todd Korol

The collaborative marketing plan mooted by Beef + Lamb New Zealand along with meat processors in export markets has come unstuck. The BLNZ has now stated that it is not in a position to proceed with the joint market development as meat companies and exporters are backing out on the matter of sharing the NZ$8 million cost. The meat processors, on their part, say that they will do their own marketing than putting $4 million for a joint effort with Beef + Lamb.

Meat Exports

The value of New Zealand’s meat and edible offal exports has been $6.2 billion in the 12 months that ended on April 30, and accounts for 13 percent of total merchandise exports from the country. Beef + Lamb is spending millions to fund the country of origin marketing programme.

"Naturally, after all the hard work, it is disappointing that we weren't able to get agreement," said Beef + Lamb chairman James Parsons. He said Beef + Lamb board and the senior management will think of further steps before shaping up the final proposition to put farmers for the 2016-2022 levy cycle.

But meat processors dismiss the allegation of jettisoning any joint marketing campaign. They claim they have been spending more towards marketing. “Processors already invest more than $8m in their own brand promotions and this will increase as new markets are developed,” said Bill Falconer, chairman of the Meat Industry Association.

Falconer said considerable time was spent on exploring the possible content and cost of the country of origin program. However, a solution was not found that could justify the processors assuming 50 percent of the cost in addition to the marketing investments committed for making and growing.

NZ To Catch Up

Meanwhile, New Zealand meat export industry was urged to shed its reticence and recover the lost ground by boosting marketing efforts in promoting New Zealand beef and sheep meat in overseas markets. Meat and fibre spokesperson Rick Powdrell said the figures show that primary industries in other countries have already outgunned New Zealand in the export markets.

“Beef + Lamb New Zealand has identified we aren’t putting enough effort into promoting our meat exports at the moment and it has been working with the meat industry to get a joint farmer/industry promotion of NZ$7 - $8m a year commitment together. I commend that," he said.

Powdrell said farmers had been investing heavily in the past few years in efficient production on farm but the value of their product is seen let down overseas. He said collaborative marketing was identified in the Red Meat Strategy of 2011 and it will be painful to see meat industry politics derailing that proposal.

(For feedback/comments, contact the writer at k.kumar@ibtimes.com.au)

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