Listen to demands of export market
Listen to demands of export market
About 8000 producers attended last weeks North Sheep
2000 at Alnwick, Northumberland, to hear the latest
on marketing and management. Jessica Buss reports
RECOGNISING the customer is king is crucial to profiting from the export market which is vital for UK lamb producers.
"In the UK we often fail to understand our customers requirements," Mike Gooding, marketing director of Farmers First, told the audience at an event seminar.
According to MLC livestock export manager Henry Lewis, the UK exported 1.1m sheep last year. Mr Lewis believes exports also account for last autumns better prices. It is, therefore, a market that is worth looking after and ensuring buyers are provided with what they require.
But there is still a poor understanding of the European market, adds Mr Gooding. It is too simplistic to say that northern Europe requires large carcasses and southern Europe wants light lamb: Greece has more specific requirements and local markets can be different.
"In the past we have viewed Europe as a dumping ground – which is arrogant." Why should it require fat and skinny lambs or broken-toothed ewes more than the home market, he asked.
"Farmers Ferry has doubled trade in the last two years by understanding its customers."
But UK producers must realise Europe wants quality. Sending lambs which fail to meet the grade will not be successful, he said.
But it is difficult for producers to know what the market requires. One audience member asked why a 20kg, R-grade lamb made more than a 18kg lamb, despite 18kg being publicised as the best weight to aim for.
Although one day a 20kg carcass could make more at market, the next day it could make less, said Mr Gooding. "It depends on whos looking for it.
"France has endless regions with different requirements and we have to meet that demand. Farmers Fresh aims to take stock to meet specific orders, and this should help avoid price variation." But in the meantime it was difficult for producers to know what was required, he admitted.
Mr Lewis explained that while 18kg carcasses are required for the UK market, the export market is more varied. Northern Europe, Belgium and France prefer a 20kg plus carcass and Italys preference is for 15-17kg carcasses.
But buyers do not want these carcasses too fat, he added. Improved breeding is making it possible for the UK to supply this market.
However, according to Dutch Livestock Association president Jan Diepeveen, producers wishing to export should aim for a 17-18kg carcass.
Dutch traders are responsible for selling half the sheep that left the UK last year, and Mr Diepeveen believes that British lamb is shedding its inferior quality status in Europe.
"Five years ago Dutch lambs commanded a higher price. But in the past few years UK lamb quality has improved. The opportunity to export to the EU will remain good."
To continue selling in Europe, Britain has to be producing higher quality lambs in an acceptable weight range.
Currency is currently a major disadvantage to UK producers, he added. "Imports from outside the EU is making it difficult for it to compete."
Within Europe sheep numbers are expected to decrease in 2000, with meat consumption remaining the same, so higher prices are predicted, added Mr Diepeveen.
However, he believes New Zealand poses a threat. It currently exports 160,000t of lamb into the UK, despite British production equalling consumption at 380,000t.
Opening the event, National Sheep Association chief executive John Thorley said New Zealand producers have been paid an extra 19% this season. "How many of you have noticed how much NZ lamb has been on supermarket shelves in these past few weeks?
"It has had an influence on our seasonal supply. The Kiwis have never been strong sellers – they have always been able to deliver halfway round the world and sell at prices that have pulled our prices down.
"The dominant issue today is the high value of sterling and that is the fault of the UK Government.
"But the Kiwis have a low value $ and the two combine to give their producers a bonanza." He believed this was the sort of competition which will result in low prices at market and a product at the butchers with inadequate return.
MARKETING LAMB
• Europe is a major market.
• Local requirements vary widely.
• High quality lambs essential.