Last week a Rabobank 2016 outlook for New Zealand agribusiness noted by mid-January, South Island lamb prices had fallen 16% or roughly $15 a head since the start of October. This represented a 6% year-on-year fall.
Of most concern to Powdrell was the discrepancy between improving fortunes for NZ sheepmeat products in the United States compared with the United Kingdom. This, according to Powdrell has been the result of a marketing deficit.
“The US is a market where we have a Trilamb programme, jointly funded by industry bodies in Australia, New Zealand and the US, which is designed to influence consumer choice by raising awareness of the nutritional benefits of eating lamb.”
However, “falling consumption of lamb in the UK reflects a failing of the industry to adapt to changing consumer tastes and the necessity to have a whole-of-industry approach that would best identify and respond to this”.
Changing meat consumption habits in the UK have been well signposted, both through UK industry data, and research showing issues of particular concern to UK consumers.
The UK Agricultural and Horticultural Development Board (AHDB) has identified research showing consumption of protein in the home fell in the year to June 2015, with the number of meal occasions featuring lamb down 7%. Research found a clear reduction in the number of roast dinner meal occasions, which usually require larger joints of meat.
The ageing population in the UK was identified as a concern, with an expectation the over-60 age group will increase from 28% in 2012 to 35% by 2032. This cohort have a higher propensity to cook using a microwave. In addition, cooking from scratch has declined in 18 of the last 20 years.
The long-term population change, alongside busier lives has created the need for more convenience and this causes a challenge for lamb, which is traditionally associated with protein-centred meals.
Further challenges for marketing lamb in the UK include the need to appeal to health and credence attributes.
Research quoted by AHDB found nearly a third of all consumers choose products because of their health implications, which has steadily risen since 2013.
Last year NZTE trade commissioner in Europe Ann Clifford stated the need for exporters to the UK to focus on sustainability characteristics, which doesn’t simply relate to animal health issues. Sustainability also meant minimising waste and making the most of the raw material through finding a variety of ways to use it.
