New Zealand focuses on product differentiation in Taiwan's beef market

New Zealand's beef promotion activities in Taiwan this year are focused on building and defending market position against strong competition from Australia and the US.

''In 2008 we launched a New Zealand grass-fed brand in Taiwan to increase the presence of New Zealand beef at retail. This year we will invest farmer levies in initiatives that build the brand,'' said Meat & Wool New Zealand General Manager Market Development, Craig Finch.

Finch said Taiwanese beef consumption is small - just 4.6 kg per person per year compared to New Zealanders' annual consumption of around 31 kg per year.

''Consumers are also faced with choices over the source of their beef. With Australia and the US having the largest presence in the market, consumers have become accustomed to grain-fed beef, and they have entrenched perceptions that the marbled appearance of grain-fed beef signals that the meat is juicy and tender,'' he said.

The grass-fed brand with the slogan ''your lean and tender choice bred in nature's pastures'' aims to differentiate New Zealand product from grain-fed beef, and connect with consumers.

With Taiwan further easing its restrictions on US beef in November 2009 to allow bone-in product, Meat & Wool New Zealand developed and distributed posters to Taiwanese importers and retailers of New Zealand beef, to let Taiwanese consumers know that New Zealand beef is available where the posters are shown, and to reinforce that New Zealand beef is grass-fed, natural, safe and healthy.

''Our messages are based around the clean, green natural environment that New Zealand beef is raised in. We emphasise that cattle are free ranging and eat their natural diet of grass, and that the product is safe. The health and nutritional benefits of grass-fed production are another important message, as there is increasing recognition in the market that marbling in grain-fed beef also signals high fat content,'' he said.