Meat co-op dilemma
Meat processor Alliance Group's cash-strapped farmer shareholders face a dilemma - either pour more money into the co-operative or risk losing 100% ownership and control.
It is part of a 7-year programme, aiming to boost returns to New Zealand sheep farmers.
The research, which will see consumers asked for their views on fresh lamb, manufactured meat products and prototype health supplements, marks the first stage of a new Primary Growth Partnership (PGP) called Targeting New Wealth with High Health involving New Zealand's largest lamb exporter Alliance Group, the Ministry for Primary Industries (MPI) and Headwaters Group.
The Targeting New Wealth with High Health programme aims to reach existing and emerging markets with a new class of premium lamb products with improved health qualities.
As part of this, the programme is also exploring the development of new packaging systems offering the potential to produce final consumer-ready packs at Alliance Group plants, therefore avoiding reprocessing and adding more value to the product.
Murray Brown, general manager marketing at Alliance Group, says the programme forms a key part of the cooperative's drive to move away from commodity production and target 'new wealth' markets with new higher value products.
"Consumer insight is the beginning of any food journey leading away from commodity production. The first stage of this programme is a better understanding of consumers at the intersection of red meat, nutrition and health.
"Our consumer work focuses first on creating value for New Zealand farmers, through targeting 'new wealth' in global markets.
"The programme builds on existing research to identify and understand target consumer groups and routes to market.
"This programme heralds a healthier future for red meat and New Zealand's pastoral farmers. New health-focused premium products are the focus, including fresh and manufactured meat products and health supplements. Lamb products that are lower in saturated fat and higher in polyunsaturated fat and essential healthy omega-3 oils are an early aim of the programme."
The PGP programme is a response to the growing consumer demand for premium and healthy foods and products, says Brown.
"It will tap into markets that are willing to pay a premium for these. These are initiatives that will create value across Alliance Group's entire supply base.
A large range of lamb breeders, finishers and research organisations will play a major role as the programme progresses.
Our aim is to differentiate New Zealand lamb and ultimately improve returns for all farmers, says Brown.
"We see real benefit here for all sheep farmers but we need more information about the market appetite for these premium products first."
The programme also fits with the cooperative's commitment to improve returns for its farmer-shareholders and the wider sector.
