A research project examining consumers' appetite for healthier, more nutritious New Zealand lamb and innovative new lamb-based products is to be launched as part of a 7-year programme, aiming to boost returns to New Zealand sheep farmers.
The research, which will see consumers asked for their views on fresh lamb, manufactured meat products and prototype health supplements, marks the first stage of a new Primary Growth Partnership (PGP) called Targeting New Wealth with High Health involving New Zealand's largest lamb exporter Alliance Group, the Ministry for Primary Industries (MPI) and Headwaters Group.
The Targeting New Wealth with High Health programme aims to reach existing and emerging markets with a new class of premium lamb products with improved health qualities.
As part of this, the programme is also exploring the development of new packaging systems offering the potential to produce final consumer-ready packs at Alliance Group plants, therefore avoiding reprocessing and adding more value to the product.
Murray Brown, General Manager Marketing at Alliance Group, said the programme forms a key part of the co-operative's drive to move away from commodity production and target 'new wealth' markets with new higher value products.
"Consumer insight is the beginning of any food journey leading away from commodity production. The first stage of this programme is a better understanding of consumers at the intersection of red meat, nutrition and health.
"Our consumer work focuses first on creating value for New Zealand farmers, through targeting 'new wealth' in global markets.
"The programme builds on existing research to identify and understand target consumer groups and routes to market.
"This programme heralds a heathier future for red meat and New Zealand’s pastoral farmers. New health-focused premium products are the focus, including fresh and manufactured meat products and health supplements. Lamb products that are lower in saturated fat and higher in polyunsaturated fat and essential healthy omega-3 oils are an early aim of the programme."
The PGP programme is a response to the growing consumer demand for premium and healthy foods and products, said Mr Brown.
"It will tap into markets that are willing to pay a premium for these. These are initiatives that will create value across Alliance Group's entire supply base.
Mr Brown said a large range of lamb breeders, finishers and research organisations will play a major role as the programme progresses.
"Our aim is to differentiate New Zealand lamb and ultimately improve returns for all farmers.
"We see real benefit here for all sheep farmers but we need more information about the market appetite for these premium products first."
The programme also fits with the co-operative's commitment to improve returns for its farmer-shareholders and the wider sector, said Mr Brown.
"This is market leading work to create a new segment for red meat products that will boost the prosperity of the sector, grow existing markets and identify a new wave of consumers."
MPI's PGP Acting Director Michael Jamieson said the programme has the potential to provide greater returns across the value-chain.
"This will reinforce New Zealand's reputation as a premium, healthy and innovative food producer. It will also develop valuable insights, knowledge and expertise that can be applied to other New Zealand meat sectors, enabling extensive collaboration and information sharing. These are wider benefits enabled by the PGP."
Headwaters New Zealand – a group of Alliance farmer shareholders is gearing up to provide trial animals for part of the programme, which focuses on how production systems can impact on consumer-health traits. The aim is to develop and prove production systems which are better for the farmer and the consumer and then roll them out to the wider industry.
Headwaters' General Manager Ian Hercus said: "Testing new farm systems is always challenging but it is exciting to work with a processor and farmers that are willing to take on a new challenge and blaze the trail toward higher returns in the sheep sector."
The $25 million, seven-year programme has the potential to deliver $400 million in additional revenue to the primary sector over 25 years.
Find out more about the programme
About the Primary Growth Partnership
- The PGP aims to boost the value, productivity and profitability of our primary sector through investment between government and industry. It provides an essential springboard to enable New Zealand to stay at the forefront of primary sector innovation.
- Government and industry are co-investing $724 million over time into 20 PGP programmes (2 completed and 18 underway).
- Decisions on which programmes are approved are made by the independent Investment Advisory Panel (IAP).
- PGP programmes are generally long-run programmes of five to seven years’ duration and are subject to oversight and monitoring by an independent panel IAP and MPI.
- Monitoring requirements include programme steering groups, quarterly progress reporting, annual plans, financial audits and progress reviews, along with evaluation of the overall programme. Government funding is only released to programmes on receipt of invoices for work completed in accordance with programme plans.
Who to contact
- call the MPI media team – 029 894 0328
- email media@mpi.govt.nz
- Nicole Taylor (Alliance Group Communications Manager) Phone: 027 839 6225
