Thursday, May 2, 2024

Disrupters are here

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Red meat farmers are facing the biggest disruption in more than 30 years, Beef  + Lamb New Zealand chief executive Sam McIvor told farmers at the annual FarmSmart conference in Christchurch.
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“We are facing a bigger disruption for our sector than seen in the 1980s when a lamb was $4 and a ewe 50c, if you could get killing space.

McIvor outlined seven forces B+LNZ has identified as driving disruption.

They include global and government institutions putting the impact of meat consumption on the agenda and while it will move slowly the conversation has started.

“They are beginning to take action to reduce the consumption of meat and address environmental concerns and the actions of individual countries will eventually impact global imports and meat consumption.”

And the medical sector wants to take meat out of diets with growing support for plant-protein.

There’s a steady flow of investment capital growing both the size and speed of investment in alternative protein.

“There are some very, very scary investors with deep pockets and they are powerful and influential on a global scale.”

The technology to mass produce a consumer-ready alternative protein burger is here.

New influencers are creating a cultural narrative around meat with athletes starting to push the performance benefits of plant proteins.

Millennials’ eating patterns are reshaping the food industry.

And  the market is responding to consumer demand for new products that meet evolving needs and desires.

McIvor said managing the risk around disruption is about having a good strategy and acting on it.

“Markets we have tested don’t have a good knowledge of what we produce or our farming systems.”

That’s where the Red Meat Story – Taste Pure Nature brand kicks in.

“It underpins for farmers to grow the long-term returns on what we produce and how we produce it.

“So disruption is real and there’s urgency to address it to turn the risk into opportunities, tell the farmer story better to urban and government and win back support and pride in our industry.”

But then Air NZ threw up a curve ball this week when it served up Silicon Valley’s food tech start-up Impossible Burger, a plant-based meat substitute.

The unexpected disruption attracted immediate attention.

NZ First agriculturae spokesman Mark Patterson slammed the move.

“I’s a slap in the face for NZ’s red meat sector.

“The national carrier should be showcasing our premium-quality, grass-fed NZ red meat not promoting a product that has the potential to pose an existential threat to NZ’s second biggest export earner,” Patterson said.

Federated Farmers meat and wool chairman Miles Anderson is puzzled why Air NZ is making a song and dance about an overseas-produced plant protein burger but not the Kiwi company that supplies it with world-leading transport fabrics.

Air NZ prides itself on being innovative and liking to partner with like-minded enterprises.

“Farmers understand that. We do it ourselves.

“But why would our national carrier build an advertising campaign around a foreign product and not a cutting-edge Kiwi firm supplying a key component made from a natural, sustainable NZ product?”

Inter-weave is a NZ-owned and operated bespoke wool upholstery and home wares maker combining leading design and technology with luxurious, naturally-grown wool fibres to produce high-quality, clean, anti-static, ethical textiles.

The transport fabrics Inter-weave supplies to Air NZ meet the highest flame retardant criteria, are accredited with the Civil Aviation Authority and have Enviromark NZ diamond accreditation.

“It’s a great advertisement for NZ natural products, our farmers and an industry that is the lifeblood of rural communities.”

National’s agriculture spokesman Nathan Guy tweeted “Disappointing to see Air NZ promoting a GE substitute meat burger on its flights to the USA. We produce the most delicious steaks & lamb on the planet – GMO & hormone free. The national carrier should be pushing our premium products and helping sell NZ to the world.”

Air NZ made no apology for offering innovative product choices for its customers, saying it is a significant customer and supporter of the NZ meat industry.

In the past year it had served about 1.3 million NZ-sourced beef and lamb meals to customers.

The plant-based burger will be available as part of its business premier menu on flights between Los Angeles and Auckland until late October.

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