Tuesday, 19 May 2020 09:32

Fallout from food service sector collapse

Written by  Peter Burke
Mike Petersen. Mike Petersen.

The virtual collapse of the international food service sector may have an adverse effect of some exports of New Zealand meat.

According to the country’s former Special Trade Envoy, Mike Petersen, it will be a long time before the food service sector bounces back. He told Rural News that that a lot of NZ companies have been rightly chasing high-value markets with a focus on the food service sector.

“I believe there will be a lot of casualties in that space in the international markets, ranging from master importers, who are supplying restaurants and cafes, through to retail customers themselves,” Petersen says. 

“The collapse of the food servicing sector will really hurt and the fact that we are heading into the holiday season in the northern hemisphere where there won’t be a tourist season this year is going to make demand quite subdued.”

Petersen says two of the casualties – in terms of product – are likely to be venison and premium cuts of lamb, which tend to go into the fine dining restaurants and cafes. He says the high-priced cuts are going to be challenging to sell. 

However, he says on the positive side lower priced meats will likely come through the COVID-19 crisis well. He points to the example of beef and says because it is seen as a comfort food, prices could potentially rise.

“People will be looking for the likes of hamburgers, takeaways and meat that can easily be cooked at home.” 

Petersen says given the chaos in the US market, there may be some short-term opportunities for gaps to be filled by NZ meat, while processing plants there are closed due to COVID. He says there are also promising signs in China as that market opens up. 

Petersen says the outlook for apples and kiwifruit also looks good as consumers seek healthy foods. He also acknowledges though that dairy prices, especially for high value consumer products, may be down.

“My big concern remains what will happen in the light of the collapse of the food service sector around the world and what impact that may have on NZ in the coming season,” he says.

More like this

Editorial: NZ's great China move

OPINION: The New Zealand red meat sector, with support from the Government, has upped the ante to retain and expand its niche in the valuable Chinese market - and the signs are looking positive.

Positive vibes from China

Silver Fern Farms chief executive Dan Boulton says his recent visit to China has left him feeling optimistic about the situation there for the meat industry.

Featured

Massey Research Field Day attracts huge interest

More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.

National

Winter grazing warning

Every time people from overseas see photographs of cows up to their hocks in mud it's bad for New Zealand.

ANZ defends farm lending rates

The country's largest lender to the agriculture sector says it's not favouring home loans over farm and business lending.

Machinery & Products

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo…

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make…

» Latest Print Issues Online

The Hound

Review SOEs!

OPINION: NIWA has long weathered complaints about alleged stifling of competition in forecasting, and more recently, claims of lack of…

Bank reset

OPINION: Adding to calls to get banks to 'back off', NZ Agri Brokers director Andrew Laming has revealed that the…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter