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    The further processing of meat

    Silcock, K. M.; Sheppard, R. L.
    Abstract
    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]
    Keywords
    meat processing; meat industry; meat trade; cost analysis
    Date
    1981-11
    Type
    Discussion Paper
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    • AERU Discussion Paper series [158]
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