Friday, April 19, 2024

Chilled meat trial proves successful

Neal Wallace
The meat industry is optimistic the success of trial shipments of chilled beef and sheep meat to China will be extended to other plants.
Reading Time: 2 minutes

About 800 tonnes of beef and 400 tonnes of sheep meat were shipped to China from 10 approved plants from June to December, which Meat Industry Association chief executive Tim Ritchie said went well.

“I am not aware of any impediment to suggest it shouldn’t be broadened.”

That decision will be made by Chinese officials in conjunction with the Ministry for Primary Industries but Ritchie did not know the timeframe for a decision, which could be delayed by some ministerial changes in China.

“New Zealand has done everything we need to do. It is now a question of waiting for China and that process to run its course.”

Ritchie said the meat industry had worked collegially on the trial, aware all companies would benefit from its success.

Access will not mean the instant displacement of frozen meat by chilled but as exporters found with Europe, to preserve premium prices its growth had to be carefully managed and linked to product positioning, distribution and demand.

“Europe took 20 to 30 years to grow and companies will expand only when they are confident the market can handle distribution and customer demand so premiums can be maintained.”

China is an important market for certain cuts but Ritchie said expanding into chilled should allow the hotel and restaurant sector to be developed.

“It’s not going to replace everything going there frozen with chilled and we don’t want that.”

Greenlea managing director Tony Egan said the trial was worthwhile financially without being spectacular but importantly it tested distribution and storage systems.

“So far all reports of our own and others suggested it worked well.”

Egan said markets are slowly establishing with demand consistent without being extreme.

“They’re not huge premiums but it’s been without incident and it is good to have chilled in the mix.”

Alliance Group sales manager Murray Brown said the trial’s value was in developing chilled trade as an everyday business and extending the range of products supplied.

Brown said Alliance sent weekly shipments, which allowed it and its in-market partners to learn more about the market and handling product.

“I think NZ has done quite a good job managing chilled volume in to the market.”

Ritchie said Australian meat processors have also been trialling chilled shipments to China from about 12 plants but is still awaiting official approval to expand that to 18 plants.

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