“Anything that can be positive is good. I see this as positive,” Powdrell said of the new $25m red meat sector Primary Growth Partnership (PGP) announced by the Ministry for Primary Industries (MPI).
The programme was tipped to deliver $400m in additional revenue to the primary sector over 25 years.
“Any initiative that starts at the consumer, finding out what they want is a good initiative,” Powdrell said.
Consumer insight was the beginning of any food journey leading away from commodity production.
“If we are going to succeed in the market we need to walk in the consumers’ shoes.
“We need to know what they want and we need to produce high-quality, sustainable product,” he said.
The research project examining consumers’ appetite for healthier, more nutritious NZ lamb and innovative new lamb-based products would be launched as part of a seven-year programme, aiming to boost farmer returns.
The research would see consumers asked for their views on fresh lamb, manufactured meat products and prototype health supplements and would be the first stage of a new PGP called Targeting New Wealth with High Health that involved lamb exporter Alliance Group, the Primary Industries Ministry and Headwaters Group.
The programme aimed to reach existing and emerging markets with a new class of premium lamb products with improved health qualities.
The programme would also explore the development of new packaging systems offering the potential to produce consumer-ready packs at Alliance Group plants, avoiding reprocessing and adding more value to the product.
The PGP programme formed a key part of Alliance’s drive to move away from commodity production and target new wealth markets with new higher value products, Alliance marketing general manager marketing Murray Brown.
“The first stage of this programme is a better understanding of consumers at the intersection of red meat, nutrition and health, Brown said.
The programme would build on existing research to identify and understand target consumer groups and routes to market.
“New, health-focused, premium products are the focus, including fresh and manufactured meat products and health supplements,” Brown said.
Lamb products that were lower in saturated fat and higher in polyunsaturated fat and essential healthy omega-3 oils were an early aim of the programme.
The PGP programme was a response to the growing consumer demand for premium and healthy foods and products.
“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,” Brown said.
He said a large range of lamb breeders, finishers and research organisations would play a major role as the programme progressed.
“Our aim is to differentiate NZ lamb and ultimately improve returns for all farmers.
“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 was market-leading work that would create a new segment for red meat products to boost the prosperity of the sector, grow existing markets and identify a new wave of consumers, Brown said.
Headwaters NZ, a group of Alliance farmer shareholders, was gearing up to provide trial animals for a sector of the programme that focused on how production systems could impact on consumer-health traits.
The aim was to develop and prove production systems which were better for farmers and consumers then roll them out to the wider industry.
“Testing new farm systems is always challenging but it is exciting to work with a processor and farmers that are willing to take on a new challenge and blaze the trail toward higher returns in the sheep sector,” Headwaters general manager Ian Hercus said.
MPI’s PGP acting director Michael Jamieson said the programme had potential to provide greater returns across the value-chain.
“This will reinforce NZ’s reputation as a premium, healthy and innovative food producer,” Jamieson said.
It would also develop valuable insights, knowledge and expertise that could be applied to other NZ meat sectors, enabling extensive collaboration and information sharing.
