Otago University's overseas consumer research 'a wake-up'

Federated Farmers is hailing research being published in the journal Food Policy, by University of Otago’s Associate Professor John Knight and colleagues, about consumer preferences in New Zealand’s largest European export market.

“This University of Otago study has taken a big pin and stuck it straight into a balloon full of assumptions that may have New Zealand dangerously straying down the wrong track,” says Don Nicolson, Federated Farmers President.

“This is not ‘buying intentions’, but what consumers actually bought and there’s a huge difference. I’d go so far to say that if expanded upon, research like this may provide the empirical evidence we need to strategically plan for future profitability.

“Associate Professor Knight’s research indicates that as a country, we’ve confused ‘nice to haves’ with ‘must haves’. That was rammed home to me in April when I compared our farm gate returns with those of Paraguayan farmers. We’ve jumped every hoop to ever lower profitability.

“The Federation feels Associate Professor Knight ought to be given the resources to run extensive research in this and other key markets. It’s a wake-up call that needs verification.

“If we take this research at face value, 69 percent of UK shoppers motivation for buying can broadly be described as a combination of ‘value for money' as well as seeking out a ‘reliable brand’.

“If this research was verified by further research then the opportunity to add value is through branding and the variety we offer. This accounted for 23.5 percent of the buying motivation for those surveyed.

“This has potential implications for brand development around the provenance of our animal breeds and the way our regions influence taste profiles. Federated Farmers Meat & Fibre is working positively with the Beef+Lamb New Zealand and the industry in respect of a new direction, because we have to.

“Made in New Zealand is not enough to get our goods into a supermarket trolley, because less than 5 percent of shoppers surveyed raised this as a factor. That’s a true revelation.

“This research raises big questions about the assumption of high value niches being pushed by armchair exporters. It’s a potential cul-de-sac that sounds great in print but doesn’t register where it really counts - the supermarket tills.

“It is also eye-opening to see stated food preferences for New Zealand food, relative to food of UK origin, is on a plain with Spain and more favourable than the United States.

“We also know after speaking to our exporters, that policies like the Emissions Trading Scheme are relatively unknown, not valued and won’t seemingly generate one cent more for the economy.

“What we now need is for Associate Professor Knight’s research to be expanded in scope and applied to our fast growing markets in Asia, the Middle East and Africa.

“We have to know what these consumers actually want, instead of dangerously transposing the personal preferences of policy analysts, politicians and commentators onto the real-world behaviour of consumers,” Mr Nicolson concluded.