N.Z. lamb promotion advised for Greece

Press, 24 October 1984, Page 28

N.Z. lamb promotion advised for Greece

NZPA staff correspondent London New Zealand should follow its “remarkable turnaround” in the British lamb market by straightening out its sales to Greece, says the Meat Board’s marketing manager in . London, Mr Paul Spackman. Mr Spackman, who will end soon a six-year term in Britain, said the potential in the growing European market was being hurt by New Zealand’s marketing approaches in Greece and that New Zealand was “open to exploitation” there by importers. Mr Spackman who will return to a senior marketing position with the board in Wellington, has played a leading role in putting New Zealand’s meat import access case to Britain. He was technical adviser- to the New Zealand Government team during the 1980 negotiation of Europe’s sheepmeat regime. He emphasises the success in Britain of the board’s new marketing structure but says New Zealand “cannot rest on its laurels.” “We have to be aware that we no longer have a God-given right to this market. We have got to fight for our access.” The board’s acquisition of all the New Zealand produce two years ago had “put its house in order” in the British market, by overcoming problems in pricing and supplies which were the cause of complaints about

disruption for local meat. Mr Spackman said the board had gone on the offensive in selling the achievement to British public servants and Europe. “What we have proved in the United Kingdom is that you can, through stable coordinated marketing, lift the returns, simply by stability, confidence and continuity. “In Greece, we have had the right sort of product but have not got the marketing structure right, because of politics in New Zealand. “We are open to exploitation by the importers because New Zealand is not cohesive in-its approach. “New Zealand exporters go in there en masse and one discounts from another just to make a sale.” In Britain, the board supplies to agents with a written contract determining the price at which meat can be sold to. distributors. In Greece, the board sells via New Zealand exporters through Greek agents. “We tell them what price, but the ability to control it is reduced.” Mr Spackman suggested that New Zealand could set up a co-ordinated system for Greece with a limited number of importer-agents instead of about 60 as at present. The biggest sale the board has made in one year to Greece is 15,000 tonnes "and we are lucky to have done about 9000 there this year.” Mr Spackman said that a potential market was bigger

than 15,000 tonnes if marketing was right.

Research had shown Greek housewives were interested in New Zealand lamb but could not always buy it. Mr Spackman believed there would “always be a requirement for New Zealand lamb in the United Kingdom and Europe, and particularly a growing requirement in Europe.” “We believe there are no grounds for a reduction in restraint levels (New Zealand agrees to restrain' exports to Britain) given that we are not responsible for price depression and given that we are expanding in Europe- and with developments into catering,” he said.

New Zealand was the only producer doing anything ' significant for lamb catering in Britain, he said, pointing to the marketing of processed roasts with the Bernard Matthews company as an example. “With our new marketing arrangements there is no need for them to push things like price controls on imports.” Mr Spackman said New Zealand had to continue to educate Britain about its marketing policy and he expected pressure to continue about meat imports. “Whether the pressure will mount politically is the uncertain thing, but New Zealand has to remain vigilant and do nothing that is going to upset the applecart.”

The board had built a. “platform of acceptance” with its , new system in Britain that maintained the same price for its nine agents. ; • The trade had accepted the discipline imposed by New Zealand, in spite of initial grumbles about the removal of competition, he said. Prices — which included a 16 per cent rise for New Zealand this year — were stable and had given confidence to the retailers. Mr Spackman acknowledged the risks, among them the possibility of bigbuying distributors looking elsewhere, but said , that the system was working so far. He arrived in Britain, from a background which included. lecturing at Massey University, to work initially in research for the board. “We were not analysing what we were doing in marketing, particularly in promotional and advertising expenditure, in sufficient depth,” he said. “There was a grave need to identify just where we were in the mar- . ket and where we could go.” As a result, the board developed a whole new theme of “new helpings” — launching new cuts to keep up with what housewives needed. Three new cuts were a double loin chop, a grilling cut from the shoulder, and leg steaks. The move was successful and adopted by British lamb interests two years later.