Hands across the sea is way to go

08-02-2010 | Annette Scott

While relations between New Zealand and English farmers are better now than in the past, John Cross, chairman of EBLEX, the UK equaivelent of Meat and Wool NZ, sees potential for the two countries to form an even closer alliance.

And that alliance will play a role in England's ongoing export opportunities.

England is roughly the same size as this country, but with 69 million mouths to feed as opposed to four million, there is need for market sharing.

England exports 35% of its sheepmeat product and with profit now available in the sheep sector there is a strong market.

Given NZ's recognised brand, Cross acknowledges English and Kiwi farmers have more in common than not.

"Farmers will get tetchy when times are not good, but we have improved relations and we can improve that more now as the industry itself improves."

English sheep farming is at the best it has been for 15 years. Things started to improve 18 months ago.

The English market has very much responded to demand, with significant growth in halal consumption.

"At NZ$9.80/kg deadweight price this week we are sitting in the strongest sheep market we have seen in 15 years."

On his first visit to this country, Cross looks forward to taking in the "Kiwi way" of sheep farming and the wider industry while here. His agenda also includes meeting with industry organisations and government officials.

A fifth-generation farmer, Cross farms a mixed livestock and arable enterprise in Norfolk.

He also sits on the Agriculture and Horticulture Development Board and chairs the EBLEX Beef Better Returns Programme steering committee, having previously served on the National Farmers' Union Livestock Committee, the Lamb Promotion Council and the merged Beef and Lamb promotion Council.

Cross likened to home the Hawarden ewe fair, where more than 500 people turned out to view the 16,000 breeding ewes up for sale at the annual North Canterbury community event.

"The image here today you could pluck anywhere out of England." The difference being the numbers sold in each line. In England the breeding ewes are auctioned in lines of up to 50.

Breeding sheep sales are entirely based on auction, with the auction system thriving right throughout the UK. Around 70% of the finished sheep market is also sold through the system.

The auction works for the diverse customers and breeds and also serves well for the high-specification deadweight sales required for the retail sector.

Cross believes building industry relationships and understanding of the need to work together to strengthen the industry is in its best interest worldwide.

Producers globally share the challenges of low profitability leading to falling supply, changes in consumer demand, compliance issues, farm succession and research needs to improve productivity, and to address climate change.

"We do a lot of work now in conjunction with the Kiwis. We are regularly sharing views and information on the technical front. We (Kiwis and English) are both big players in the UK market. It makes good sense for us to have a good, understanding, relationship."

It is in the interest of both for lamb to be available to consumers all year round and at sustainable prices for farmers.

Therefore building understanding of NZ's role and importance in the market is vital.

With a growing Muslim customer base in the UK and Europe, the consumption of halal meat and consumer trends towards halal products in England is a challenge.

EBLEX has commissioned a research steering group to guide work in the halal sector. It will act as a forum for the challenges related to halal meat and unlock the £1 billion market opportunity for domestic producers in both the local and export markets.

The project is expected to take six months and will help quantify the halal market which the domestic sheep and cattle meat-producing sectors need to address.

It is the first time such a holistic study has been done and will help drive future activity. The group has identified the need for a recognised assurance scheme for halal products to specifically help English producers hoping to supply to foreign markets.

Topics for discussion when Cross meets with industry representatives in this country include consumer trends and halal standards.

It is important the industry makes sure production is geared to efficiently meet demand, Cross said.

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