Thursday, 18 July 2013 15:20

Youthful countries offer big potential

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THE AMERICANS are excited about a Trans Pacific Partnership (TPP) trade agreement because those markets will be the areas of world population growth, says Craig Lynch from Beef+Lamb NZ.

 

That’s why it is so important to get trade and technical barriers removed, the B+LNZ conference call heard. Markets like Vietnam, Philippines, Indonesia and Thailand have huge potential because they have young populations, whereas other markets including China are ageing.

Lynch, who is B+LNZ general manager market development, says forecast world population growth from 7 billion to 9 bn by 2030 includes 58% of that growth will be in Asia. New Zealand is nicely positioned to take advantage.

However, Lynch said growth in China had not finished and would sit high on the radar.

Earlier Lynch said B+LNZ had a strong focus on north Asia including Taiwan, Korea, Japan and China. “Those markets are beef-centric and much of our focus is on grass-fed beef and the point of difference that sets us apart from our competitors,” he said. “Those competitors are largely the Americans who are grain-fed and Australia who send in a mixture of grass- and grain-fed but they choose not to differentiate.”

A raft of marketing activities targeted media, the trade and consumers. Digital media was important because of the strong awareness and use in Asia. New brand, marketing and a new colour was just being released in some markets and there was an emphasis on health with a grass-fed emphasis. 

Meanwhile retention of brand awareness is the focus in the UK. New Zealand achieved 86% recognition in a recent Omnibus survey in which participants are asked where lamb comes from. Our closest competitor there, the Welsh, achieved 53%. 

Germany is targeted because they are wealthy and renowned meat eaters. Store cooking demonstrations are used frequently and could typically see a 150-400% increase in sales.

There is a genuine ‘wow’ factor from first-time triers but they do not know how to prepare lamb. A public relations campaign is pushing articles and recipes in high quality online and print media. This year 118 articles have appeared printed – worth 760,000 Euros in paid advertising. 

High profile events are needed to attract magazine interest and recently they held a barbecue in the middle of winter on the highest mountain with a celebrity chef. New Zealand lamb and venison meals were recently on sale at a show in the northern city of Kiel, attended by 3million.

Lynch says in the market place the price is well back on what it was two years ago but confidence is returning. 

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