Selling Lamb Too Low?Sunday, Feb 9, 2003
Reports that a visiting French sheep farming representative thinks New Zealand is selling its lamb in France too cheaply reminds producers of the pivotal role that the meat market takes in the final farm gate price for meat.
The current meat company poor performance, restructuring and takeover games currently being fought out also identifies the meat marketers’ susceptibility to selling low when operating in a confused market
NZ producers have prided themselves in the past with being the lowest cost producers of food. However, it’s the marketer who creates the pattern and positions the product for its price.
The warning from the French visitor, although likely to be couched in terms of preserving French producers market share, is still a warning that more may be recovered from some markets than the current marketing operations are achieving.