$2b boost in NZ exports to EU
New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.
At last week's Red Meat Sector Conference in Christchurch, Guy told Rural News that Taste Pure Nature has "been around for a while", and while Beef + Lamb pushed it hard, it never had 100% processor support.
"So now it's processor driven, the marketing managers are all over the strategy."
At the recent China Business Summit, Prime Minister Christopher Luxon laid down a challenge of sorts to the red meat sector, saying while our red meat sector has "built a big business in North America", New Zealand "probably needs to do a better job in our marketing story relative to the Australians".
In China, Taste Pure Nature is part of the answer to that challenge, says Guy.
"It's a focus in on Shanghai, because it's one of the most sort of Western-aligned cities in China. It's an $8 million dollar program over three years, $2 million from MIA and $4 million from government... and it's all about trying to market and promote our attributes, which are: grass-fed animals outdoors are a highly nutritious food, safely produced in a sustainable way."
He acknowledges the scale of challenge in growing market share in China, saying "our lunch has been cut" by a very competitive and congested market.
"There are 42 countries with similar access to what New Zealand has got. We had first mover advantage with the FTA (free trade agreement) but there's a lot of grain-fed beef that's going into China and our grass-fed is seen as inferior."
He says we need to push the attributes of our red meat, which are a good match for consumers "focused on health and wellness".
"We produce a product that should be priced higher than grain fed. At the moment, there's a premium on grain-fed, so we need to do our utmost to promote (our product), hence we're doing this joint marketing initiative."
In June this year, MIA and the Prime Minister launched the next phase of Taste Pure Nature, with a refreshed logo and the PM presenting official Taste Pure Nature authorisation plaques to key Chinese business partners, MIA said at the time, "This recognition acknowledges the contribution of the Chinese retailers and distributors, but also serves as a key market differentiator, providing consumers with a visible symbol of authenticity and quality".
Guy says it will be up to companies to decide if they want to put stickers on their packs with the brand, New Zealand, Taste Pure Nature, and if they want to put leaflets in their boxes, they've got plaques they can display at the point of sale for consumers.
"Because when I've been up to China recently, I just realised that our message is a little bit silent, so we need to amplify that and base it on our natural attributes, to ensure that we can drive up our returns for processes and farmers."
New Export Strategy
New Zealand's red meat sector has unveiled a new strategy to boost export returns, as new analysis shows non-tariff trade barriers (NTBs) are costing the industry an estimated $1.5 billion every year.
The Meat Industry Association (MIA) and Beef + Lamb New Zealand (B+LNZ) launched their biennial Barriers to International Trade report and joint value-growth strategy, Our Pathway to Growing Value, at the Red Meat Sector Conference in Christchurch last week.
MIA Independent Chair Nathan Guy says the two documents clearly show the opportunity to unlock significant economic value through trade policy and improved market access.
"When used appropriately, non-tariff measures can deliver genuine consumer benefits such as science-based biosecurity and food safety requirements, or sanitary and phytosanitary measures.
"But when they add cost without value, they become barriers to trade, dragging down the sector and reducing returns for farmers, processors, and the wider economy.
"That's why we've released this year's Barriers to International Trade report alongside our new strategy.
"Together, they provide a roadmap for working with government and trading partners to systematically reduce these barriers and grow value across the sector.
"If we get this right, it means more money back into farmers' pockets, and more reinvestment in processing innovation and sector growth."
Grass Vs Grain
MIA chair Nathan Guy thinks education about how to cook grass-fed meat is part of the challenge of closing the gap between grain-fed and grass-fed meat in the eyes of Chinese buyers.
He says a lot of our product is too good to just go into a hot pot.
"So, we need to be aiming and aspiring for the white tablecloth restaurants in Shanghai.
"Shanghai's population is nearly 25 million. There is a lot of wealthy consumers in China. Yes, understand that their economy has slowed a little bit, but still, at 4.5% GDP, it is significant growth, and we've got the opportunity where we pitch our marketing initiative at the wealthiest consumers.
"A lot of its storytelling, a lot of it's being positive about our product and trying to differentiate our product from others. We believe Taste Pure Nature and Shanghai will raise our profile in a congested market, but there is still more value to realise."
