In his biography, motoring pioneer Henry Ford relayed that in a sales meeting in 1909 he said buyers of his Model T could have a car in any colour they wanted provided it was black.
Markets have evolved since then as wealth and choice have grown, and today they are much more discerning, especially when it comes to food.
For meat and dairy, markets include those willing to take anything, and the price they are prepared to pay reflects that.
At the other end are those affluent and discerning consumers who want high-quality meat and dairy but also seek an assurance those products reflect their values and expectations on climate change, the environment and animal welfare.
If those products and values align, then they will pay a premium.
This is the market reality for New Zealand farmers and processors, and partly why systems such as Farm Assurance Programmes, farm plans and supply contracts operate and why processors are having to reduce their greenhouse gas emissions.
For some farmers, this form-filling and associated administration is an obvious burden and distraction when there are plenty of chores to be done on the farm and at a time when prices obviously need to be higher.
Our farming systems ensure we meet most if not all the requirements of the world’s affluent consumers, but they need reassurance, they need verification and we need to provide it if we are to retain – let alone extend – our share of those high-worth, high-paying customers.
Against this background senior reporter Neal Wallace is on a six-week tour of the United States, Europe, the United Kingdom, Dubai and China, our most valuable dairy and meat markets.
He will be meeting and talking to, among others, customers such as McDonald’s, Tesco and Sainsbury’s and asking what their customers want now and what they will want in the future.
He will be asking whether there is a premium for meeting some of these additional customer requirements – or is that just the price of entry to that market?
He will be looking at the state of those markets, the growing challenges facing global trade since covid and regulatory challenges facing European farmers.
It could be a difficult and uncomfortable conversation at a time when the confidence of NZ farmers is low and prices need to be higher, but for the sake of our industry and the NZ economy, we need to understand what our customers want and expect.
More: The trip has been made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.
In Focus Podcast | NZ food system in disarray
Calls for a national food strategy are growing as the cost of living crisis leaves many unable to afford nutritious food here, despite living in a food producing powerhouse. Lincoln University’s Professor Alan Renwick says it will take a holistic approach as there are many aspects to consider – health, social development, commerce and agriculture. He says the changing climate will force us to rethink how we produce food and where.
