Exporter lacks home-grown beef

CHRISTCHURCH - A New Zealand-based international beef-trading company says it has to supplement its export orders with Argentinian meat because it cannot get enough New Zealand beef.

Highford Marketing is jointly owned by Highlands Venison Estate's Don Sollitt and by Jonathan Tallott. It trades in beef, lamb, mutton, and seafood.

The Canterbury company also partly owns New Zealand Gourmet Supplies, a production company specialising in portion-control (ready-to-cook) meat cuts, mainly for the Asian market.

Mr Sollitt said he wanted to give the business to New Zealand producers, but the closing of meat processors for two to three months a year, coupled with falling production because of shortage of supply and drought, was bad for business.

"The New Zealand kill is puny," said Mr Sollitt. "We want to sell New Zealand product, but it is very difficult if you tell your customers that you cannot supply them for three months because our processors are shut or we can't get enough product.

"When we run out we go to Argentina, and it now supplies half of our orders. "

New Zealand's total beef kill brings its impact into sharp perspective. This country slaughters 1.8 million head, Australia slaughters four million, Argentina 12 million, and Europe 100 million.

"New Zealand is going nowhere in terms of growing our foreign exchange earnings. We're exporting $21 billion and importing $24 billion. While we're sitting here thinking all is well, it isn't well at all."

Mr Tallott, marketing director of Highford Marketing, said the the beef future was in Asia, and competition was fierce.

The quality of Argentinian product was more consistent than that from Australia, which Highford also sometimes used. It was also as good as New Zealand beef.

"Australian beef in one carton could come from the desert or the bush," he said. "It affects their consistency. Asian clients have a better perception of New Zealand beef than Australian beef, but the grain-fed beef which comes out of Australia is more popular than New Zealand's because of its scale and because it is a well-known brand. Asian clients are big on brands."

He said New Zealand had to focus on further processing and value-added product.

- NZPA