This is the conclusion of research by Kellogg’s scholar Siobhan O’Malley, who in 2018 monitored social media to assess consumer interest in buying verified carbon-neutral red meat.
She found consumers were interested in products claiming carbon neutrality alongside attributes such as being grass-fed, free of genetic engineering, antibiotics and growth hormones.
“Luckily, these are relatively easy to achieve in a NZ farming production system, but would need to be carefully marketed in order to maximise the premium price achievable,” O’Malley said.
It was a similar result domestically, with some traction on social media for carbon neutral meat.
The trend was confirmed from a study of international literature, including one from Beef + Lamb NZ, which assessed the merits of creating and marketing a carbon neutral red meat.
“This research highlighted that while a segment of consumers are interested in buying carbon-neutral or low-carbon food, they may not be interested enough to spend more to buy it, and also that on its own, the carbon-neutral attribute does not meet enough consumer needs to be an attractive offering and needs to be combined with other attributes that consumers are demanding.”
Exporters would need to create a clear, easily understood label and clarify what carbon neutral status meant, she concluded.
While these findings were applicable three years ago when she did her study, O’Malley stressed consumer reaction could change and recommended further market testing to gauge when consumers are ready to buy carbon neutral products.
“NZ needs to make sure that our companies are adopting internationally recognised standards for determining carbon neutrality,” she said.
“As this awareness matures, it could quickly affect our access to overseas markets.”
Climate Change Minister James Shaw described the marketing of premium-price earning carbon-neutral NZ products to global consumers as the “holy grail”.
But O’Malley says her research shows little interest for carbon-neutral food, and some concerning views of red meat.
“Consumers were more likely to link red meat to climate change in a negative association, than to be seeking out products that could be carbon-neutral,” she said.
Consumers’ views were enhanced by information on social media accessed through smartphones to test or verify product claims.
“Social media gives greater voice to consumers, producers and special interest groups,” she said.
O’Malley says following the introduction of the Climate Change Act (2008) in the United Kingdom, the term carbon neutrality was defined.
In NZ, Enviro-Mark Solutions, wholly owned by Landcare Research, have developed the carboNZero verification and logo which can be used by clients, such as on Yealands wine.
Suppliers are audited at least once a year by an external verifier and even though an entity may have met the carboNZero standard the year before, they are required to show they are continuously reducing their footprint, such as reducing petrol and diesel use, switching to more solar power or planting forest.
In addition to the external carboNZero audit, farmer suppliers have criteria they must meet, such as grass-fed or restrictions on use of particular sprays, for which they can receive a premium payment.
“This premium is important as the brand is asking for more than the ordinary amount of mandated recording and information, and that it be supplied in a timely manner,” she said.
Synlait’s Lead With Pride programme is an example, encompassing environmental practice, social aspects and quality product.
“Lead With Pride qualifying suppliers are paid a premium on their milk price for maintaining their adherence to a particular standard, set in consultation with Synlait’s customers,” she said.
