July 12, 2011

New Zealand's beef exports to Japan bring attractive returns

New Zealand beef is creating a positive market position in Japan, bringing about returns that should please both farmers and economists.

Though New Zealand has just a small slice of the Japanese beef market at 6%, it is the country's second largest export beef market by value. In 2009-10, under 35,000 tonnes of beef and co-products valued at NZD231 million (US$189.7 million) were exported to Japan.

Meanwhile, Japanese consumers are buying and eating three times as much New Zealand beef as they did in 2003. Back then the market share was even smaller at 2%.

Beef + Lamb New Zealand's man on the ground, John Hundleby, said there is no mystery behind the rise in consumption. He credits the industry-good organisation's dedicated, long-term investment of time and resources, bolstered by a comprehensive marketing plan developed in conjunction with leading NZ meat companies operating in the Japanese market, and a canny eye for promotional opportunities.

"New Zealand grass-fed beef is not as well known in Japan as either grain-fed US or Australian beef, so we have to seize every chance we can to sing its praises, and to let people taste the difference for themselves."

That is why cooking demonstrations, barbecues, seminars and restaurant promotions are crucial, he said. "Introducing that sensory element helps to clearly differentiate us from the competition, and never fails to win new fans. Once people try our beef, they are impressed."