Strong play by N.Z. firm for chilled lamb market

Press, 15 May 1987, Page 18

Strong play by N.Z. firm for chilled lamb market

NZPA-AAP Tokyo

A New Zealand firm is making a strong play for Japan’s market for chilled lamb with the. unprecedented step of opening its own storage and processing plant near Tokyo. The plant, built by Southern Foods Company, Ltd, for an investment of SNZS mifiion, (sAust4.o6 million) will be operational from June 1 as the first foreign-owned meat processing facility in Japan and the first built specially for New Zealand chilled lamb exports to any overseas market.

Located within an hour by road from Tokyo, it is intended to give the New Zealand product an edge in terms of supply stability, quality control, distribution and special tailoring of chilled lamb products for Japanese tastes. “The aim is to develop a solid, reliable medium-

sized market for lamb in Japan,” said Mr Graeme Harrison, president of Southern Foods rand its parent, Janmark Inc., a unit of Japan New Zealand Lamb Marketing, Ltd.

Demand for chilled lamb at present is small. Janmark sold 1200 tonnes to Japan in the year to last September, comparable to annual sales by rival supplier Australia.

Mr Harrison declined to give a target for chilled lamb sales following the start-up of the new plant, emphasising that demand was still undeveloped and lamb still had image problems in Japan. * ■

“Lamb would have to be one of the hardest products to sell in Japan. There are no hordes of people waiting to buy lamb. We have to persuade retailers to stock it and persuade Japanese to buy it.”

To create new demand for chilled ilamb in a market where: sheepmeat is not widely accepted, it is being promoted as a high-class, special occasion food Item. Accordingly, the product commands high retail prices. Lamb and mutton are not eaten customarily outside the northern Japan regions of Hokkaido and Tohoku, Mr Harrison said. The results of detailed market research in 1984 on Japanese consumers were pretty devastating, he said. On the whole, lamb was confused with mutton and had a bad image from being marketed in inappropriate forms for use by housewives. “The research showed we had a product with high recognition and high rejection. Any other company would have walked away. But because we are

very dependent on sales of lamb, a long-term market approach was needed.” With chilled lamb trade having grown to the current size, Janmark plans to switch from expensive air freight to chilled sea freight shipments. The new plant in Ibaraki Prefecture near Tokyo will be the receiving point The plant will provide temperature-controlled storage to preserve the quality of the delicate product and undertake further processing and product development for . sales to hotels, restaurants and supermarkets. “Once we have the plant up and running and a more secure distribution system, we can go into more intensive trade education,” Mr Harrison said. The new plant will also be used for processing of New Zealand lamb casings for supply to the local market.