Tuesday, 04 October 2016 08:55

Emerging markets provide opportunities for red meat

Written by  Pam Tipa
Meat Industry Association chief executive Tim Ritchie. Meat Industry Association chief executive Tim Ritchie.

China, the broader Asian region and the Indian subcontinent hold untapped opportunities for the red meat sector, say Meat Industry Association chief executive Tim Ritchie.

“China has become a very new and important market but the companies are well established there,” he says.

“In India, where they are naturally sheep meat eaters and have a massive population, we haven’t done much business yet.

“That is in part because there are market access issues and getting the protocols agreed and all that stuff.

“That is the technical side of market access. We don’t have a free trade agreement but our government is working on one.

“We face high tariffs and things like that, so there are barriers but there is a bit of business being done.

“But that is the sort of market that in the future will be extremely important because of that significant population; they are natural eaters of sheep meat.

“They will be an important market because it is all part of creating that competitive tension.

“China has become a very important sheepmeat market. It will be good to have another market in that broader region that is also competing for that product.

“It is all about keeping markets honest and not becoming beholden to any one area of any one market because we would then lose the leverage we have.”

Africa is a whole new continent we have had little to do with except the northern parts like Algeria and Morocco, says Ritchie.

He says there are not necessarily opportunities there right now but there could be in future.

“Indonesia is more of a beef market and in 2000-2010 it grew into our second-largest beef market. But it is still only 10% of our market because of the significance of North America.

“But we’ve had market access issues in Indonesia which we have been working through and it has been a rollercoaster in terms of our fortunes. It has been up and down a couple of times as they have restricted imports to try to grow their domestic industry,” Ritchie adds.

“That hasn’t proved successful so now they have opened the door again and New Zealand and the USA have taken Indonesia to the WTO, from which we are awaiting results. For NZ, that is on beef access and for North America it is horticulture.”

More like this

Securing the elusive India FTA

New Zealand's support for India during its current global security crisis could be key to securing a free trade agreement with the nation, according to the head of one of the country's largest independent accounting firms.

McClay off to India - again

Almost a year to the day from when he made his first trip to India, Trade Minister Todd McClay is jetting off there again just before Christmas.

Featured

New UHT plant construction starts

Construction is underway at Fonterra’s new UHT cream plant at Edendale, Southland following a groundbreaking ceremony recently.

National

Machinery & Products

GEA launches robotic milkers

Milking technology provider GEA Farm Technologies is introducing its first automatic milking system (AMS) in New Zealand.

More front hoppers

German seeding specialists Horsch have announced a new 1600- litre double-tank option that will join its current Partner FT single…

Origin Ag clocks up 20 years

With roots dating back to 2004, Origin Ag was formed as a co-operative business model that removed the traditional distributor,…

» Latest Print Issues Online

The Hound

Dark ages

OPINION: Before we all let The Green Party have at it with their 'bold' emissions reduction plan, the Hound thought…

Rhymes with?

OPINION: The Feds' latest banking survey shows that bankers are even less popular with farmers than they used to be,…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter