Three weeks into the Meeting the Market tour, here are my key take-home messages:
Getting our products noticed is incredibly tough. We may have the world’s best meat and dairy protein but getting the ear of the people who decide what to stock in their supermarket or serve in their restaurant is far from easy. Cabinet shelf for lamb in particular is microscopic and securing it means taking it off someone else.
Sustainability is the current catch-all word. It applies to greenhouse gas emissions, soil and water health, improving biodiversity and animal health.
The world’s food giants want our protein but they require sustainability standards to be met. They are reflecting the concerns of their consumers, government regulations, financiers and business owners. Sustainability is as fundamental part of their business as finance and production, and they require those who supply them to take it as seriously as they do.
Our customers acknowledge we have a low greenhouse gas emissions footprint. They want us to show what they call “continuous improvement”, shrinking our footprint further, and they want evidence that we are.
Big food companies are not abandoning us. They are investing billions of dollars improving the sustainability of their suppliers and are talking of paying premiums for those that meet desired standards.
The traditional supply contract is changing. Prices are still important, but talk is increasingly of partnership – having consistent, reliable suppliers who have shared values and standards.
Our competitors are becoming more competitive. Who would have thought McDonald’s would be taking beef from farmers in the Amazon? It is, because suppliers are willing to meet strict supply criteria showing they are improving not eroding the environment, all to have a seat at the McDonald’s table.
We can’t afford to ignore their messages. We have a ticket to play in the major leagues but if we let this slip through our fingers we will be exposed to lower-paying, uncertain, price-driven customers.
The European Union is ramping up its environmental rules and regulations, which will mean less domestic food production providing opportunities for NZ food exporters.
The EU’s deforestation requirement, where suppliers of products such as beef and its derivatives have to prove they did not cause deforestation, is likely to be delayed but not shelved.
We need more of an international perspective. NZ is very insular by virtue of our place on the globe, but we need to realise the values, expectations and understanding of our customers differ and if we want to sell products to them, it is we who need to change.
•Wallace is visiting seven countries in six weeks to report on market sentiment, a trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.
