Neat Meat managing director Simon Eriksen, who recently attended an exporters’ trip to India organised by the ANZ Bank, isn’t concerned about the high tariffs and is eyeing the top-end food service market in India. He is organising samples to be delivered to a top hotel chain via the NZ Trade Commissioner in Mumbai and is hoping to be supplying the hotels within three to four months.
India charges 36% tariffs on lamb imports. A free trade agreement between India and New Zealand will bring tariffs down but Eriksen isn’t waiting. He says everyone exporting lamb to India has to pay the tariffs and he’s targeting those who can afford it.
Eriksen spoke to chefs and procurement officers at five-star hotels and the response was encouraging. “I showed them four different lamb brands and they went for the most expensive option,” he told Rural News.
Eriksen says Neat Meat is targeting the niche market of luxury hotels. India has 37,000 hotels. Eriksen says he’s only targeting the top end of these hotel chains.
“The truth is New Zealand does not produce enough lamb for even a suburb in India so we should respect our produce and how we market it, globally we are not a big producer. The Indians themselves will blow us out of the water with their own lamb production.”
Eriksen says a clear strategy is needed in India. “you’ve got to be clear about your strategy, know what products or brands you wish to market and to whom,” he says.
Neat Meat sells organic and conventional beef and lamb. Its organic products come from 16 beef and 10 sheep farms. Angus beef and conventional lamb products are bought from processors. It exports to Singapore Fiji, Hong Kong and Australia. Philippines is also being eyed as a potential market.
Eriksen doesn’t see his company as a traditional meat exporter. His philosophy is doing things differently – lower volumes but higher frequency and higher margins.
In Singapore, the company supplies products to a wholesaler who owns butcheries and restaurants. In Fiji, it supplies top hotels. Neat Meats is looking at online selling in the Philippines, catering to the wealthy and expat population.
Neat Meat works with chefs to create brands. “Never expect supermarkets to create brands for you, you have to create your own brand. The sharp end of this is chefs telling our / New Zealand story.”
Eriksen says the New Zealand brand is powerful and recognised throughout the world. “New Zealand beef and lamb are brands. You have to attach yourself to a unique brand story and then protect it and grow it around the world.”
