Lockwood Smith: Red Meat Needs More Product Research
With the red meat sector going through a boom time with high prices, the time is right for the industry to step up its investment into developing new food products.
The US International Trade Commission (ITC) issued a split decision on whether lamb imports have caused serious injury to the US lamb industry.
Despite the divided vote, the process will move to a remedy stage, in which commissioners will make recommendations to the US administration.
B+LNZ: "half of the commissioners agreed"
Beef + Lamb New Zealand (B+LNZ) chair Kate Acland says the outcome is disappointing, but it is positive that half of the commissioners agreed with New Zealand's case that its lamb is not harming the US industry.
"This strengthens our case for the next phase and supports our view that the evidence collected during the investigation does not justify imposing import restrictions," she says.
"The evenly divided decision by the commissioners reflects the efforts of our industry throughout the process so far and we will continue to advocate strongly on behalf of farmers and exporters.
"There are still more steps in the process for us to make our case."
Acland says New Zealand farmers want a fair and evidence-based outcome. They face the same challenges as the US domestic industry, such as declining sheep numbers, and have responded through sustained investment in genetics, research and farm management, she says.
"These are pressures on the whole sector, not the result of New Zealand lamb imports."
She adds that the sector needs ongoing access to valuable export markets to help ensure strong returns.
MIA: US businesses are part of the case
Nathan Guy, independent chair of the Meat Industry Association (MIA), says the focus now turns to the next stage, in which the commissioners will determine what remedy, if any, to recommend.
"The views of American businesses will remain an important part of the New Zealand case," he says.
At the hearings in October, the commission heard directly from American businesses about the importance of imported lamb and how it serves different customer needs. They also highlighted the strong prices currently being received for American lamb, and the potential consequences for US customers and restaurants if imports were restricted.
Guy says lamb imports enable year-round supply, and that restricting them would mean US customers and consumers could not access lamb. Over time, he says, that would reduce demand and stifle the US industry's growth rather than support it.
He describes New Zealand as a long-term, stable trading partner of the US, with consistent export volumes over the investigation period. He says there is room for both industries to grow, with New Zealand's complementary supply providing stability and an opportunity to work together to grow demand for lamb in the US.
"MIA and B+LNZ have been working hard on this case and we will continue to partner with the New Zealand Government and our US customers to make sure decision-makers have the full picture," Guy says.
What happens next
Commissioners who found injury will present their recommendation on any remedies to the US President early in the new year. The commissioners who did not find injury will also provide their findings to the President at the same time.
The President will make the final decision on whether to provide relief to the US industry, and what kind of relief. A final decision is not expected until March 2027.
