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.
A number of farmer shareholders asked the cooperative to explore the development of a market for hogget because of the large price differential between lamb and mutton.
The cooperative carried out the pilot in the UK food service sector, with a particular focus on the ethnic foods market, from November 2017 to February this year.
John Rabbitt, sales manager at Alliance Group, says the UK has one of Europe’s largest markets for ethnic foods, so is accustomed to using both New Zealand lamb and mutton.
“The product has been very well received, with recently-conducted testing on Alliance hogget rating the taste and succulence.
“The market is looking forward to ongoing supply and development of our hogget cuts. Some pilot product has also been sent to Asia and we are awaiting market feedback.”
Heather Stacy, general manager livestock and shareholder services at Alliance Group, says traditionally lambs are distinguished from mutton when their first adult teeth come through.
“However, the response to the UK pilot, and growing demand for hogget from New Zealand chefs, demonstrates this is not the only approach and the value should be determined by the quality of the meat.”
The pilot initially saw a large number of previous season lambs, which had incisors erupt, capturing a hogget grade in November. The schedule for the trial gave these significantly better returns than mutton prices, she said.
A number of cull breeding hoggets were also supplied for processing as farmers drafted off lighter stock due to the dry conditions.
Rabbitt said the key to the success of marketing hogget as a premium product, was selecting the right animals with good meat and fat colour, despite being no longer conventionally considered to be lamb.
The company is now undertaking a full evaluation of the pilot before making a decision on the next steps.
