Originally published:1981-11 as Discussion paper (Lincoln College (University of Canterbury). Agricultural and Economics Research Unit) ; no. 56 by Lincoln College. Agricultural and Economics Research Unit.
The New Zealand meat export industry is characterised by the
predominance of exports of carcass meat (sheep and lambs) and bulk
packs of manufacturing grade beef. Over the decade from 1970,
there has been some movement toward a higher proportion of further
processed meat exports but the change has been slow and not universally
supported.
There is sufficient evidence available to suggest that in many
major markets, a move away from traditional export forms toward
more consumer packs would be well received. Such a move would
result in higher export returns, lower freight costs per unit of meat,
more stability in the market return, a better utilisation of capital
in the processing industry and allow for a reduction in industry
seasonality.
Disadvantages associated with further processing have been
identified. The most significant factor behind the identification of
the claimed disadvantages is the inertia of tradition of the present
industry. The major companies in the industry have not faced
sufficient competition from the more innovative participants in the
industry and have therefore not had sufficient incentive (in terms
of decreased stock supply and diminished profit) to fully investigate
the advantages of further processing. Increased competition in the
industry, following delicensing, and the influence of non slaughtering
processing and exporting companies, is likely to cause more significant
movement toward further processing over the 1980's. This
is especially so in view of the increased international cost competitiveness becoming evident in the present processing sector of the
industry.[Show full abstract]
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