Meat problems for N.Z. in Japan

Press, 13 August 1980, Page 24

Meat problems for N.Z. in Japan

NZPA correspondent New Zealand’s meat marketing in Japan apnears to be at a critical stage, all three main products — beef, mutton, and lamb — selling at well below quantity levels honed for a decade ago. Lower price levels quoted by buyers than can be obtained in other countries, notably the United States, the Soviet Union, Britain, and Iran, are held out as a reason for the slump in sales but it is clear the fight for improved access to the market has suffered from an unwillingness to hold a firm market segment. This year New Zealand’s sales of mutton to Japan will be virtually nil, lamb sales are expected to be down to about 12,000 tonnes from 20,000 tonnes last year, and the tonnage of New Zealand beef entering the country is unlikely to exceed 1000 tonnes. New Zealand trade analysts appear to be extremely worried about the trend and fear that present methods of dealing with the market may result in it becoming a “lost cause” in the over-all pattern of New Zealand’s global meat sales. Assessments of a variety of analysts suggest that the mutton market is unlikely to be regained. They agree it has been a victim of surplus pork supplies from Japanese domestic pig producers. The cheapness of pork has made it a more attractive ingredient than mutton in processed meats. Consumer tastes indicated a public preference for processed . products using pork rather than mutton. Sales of lamb have dropped largely because of a fall in consumer spending as a result of the Japanese economic recession in the wake of oil price increases, according to traders. On the surface of Japanese day-to-day life the recession seems more

imaginary than real. New French-style restaurants open regularly in Tokyo and demand for top quality fashion goods and high priced exotic fruits remains high. During the last 15 years New Zealand has spent about $lO million trying to secure for its lamb a place on the list of “must” dinner table foods for sophisticated Japanese diners. The social “in” thing among high-spending members of Japanese society is Western, and particularly French, dining. Quality lamb from New Zealand was intended to bridge the significant gap between restaurant table and home con-' sumption, but analyses made with the trade suggest it' has not done so. Reasons cited for this include unreliable retailing, an appearance of unattractive low-quality New Zealand cuts on the market, and a general lowering of standards. Trade analysts say that in recent months several New Zealand companies have been outbidding each other to achieve sales orders of lamb that was surplus to their requirement for other markets. This, they say, has meant a loss of quality consistency, resulted in a downgrading of New Zealand lamb’s status as a top of the market product, and turned off housewives willing to try it as an alternative meat to high priced beef. The beef marketing ironically reflects a low New Zealand participation in spite of headlines in New Zealand and Japanese newspapers two years ago emphasising New Zealand’s desire to sell large quantities in Japan. This Japanese financial year about 150,000 tonnes of beef will be imported, 50,000 tonnes coming from American cattle ranches specialising in grain-fed beef. New Zealand is expected to supply about

1000 tonnes of the remainder. About 80,000 tonnes will be supplied from Australia, analysts say. . Sellers tender to win supply contracts. New Zealand salesmen have in general bid at higher levels than Australian suppliers. With the world market buoyant Japan was apparently an unattractive market. Nevertheless New Zealand’s position on the Japanese beef market appears unstable and at odds with the political effort put in by the Government to increase its access of meat companies to it. Suggestions that New Zealand’s meat marketing in Japan was at a critical stage and prospects for the future looked gloomy, were strongly refuted .by the chairman of the Meat Exporters’ Council, Mr R. Cushen, of Ashburton. Mr Cushen said he was confident the Japanese market would remain a practical proposition and that it had a tremendous potential for increased consumption of New Zealand Jamb. Mr Cushen was adamant that there had not been any lowering of the standard of lamb sent to Japan this year and pointed out that most of the packaging is done in that country. He agreed that lamb sales were down but attributed this to the Japanese “over-buying” last year. "There was a considerable carry-over from 1979 and consequently the Japanese did not buy any lamb in the first few months this year. “However, they have started buying again and if averaged out, the figures would reflect a rising market for New Zealand lamb.” Mr Cushen said. The fact that beef exports were unlikely to . exceed 1000 tonnes was due entirely to the Japanese import quota system and was not a reflection on New Zealand exporters, Mr Cushen said.