Merino plan puts slick marketing to the fore

John Brakenridge does not accept the often-heard pronouncement of an impending recovery that "things will be different this time", especially when applied to the sheep industry.

The chief executive of New Zealand Merino (NZM) said the world might want more protein and the Chinese economy was booming, but he doubted our combative, commodity-based, price-driven selling system would deliver the riches many expected - let alone what could be possible.

"It's not what we're selling, its how we're selling it", he said.

"The sheep industry has to change to survive, its products branded to incorporate the social and environmental values demanded by affluent consumers and for which they will pay more," reports The ODT.

To achieve that, he intends replicating NZM's fine-wool marketing model for sheep meat, lanolin, leather and sheep milk, either in partnership with existing players or by themselves, not only to realise the potential of those products, but also to ensure an industry, written off by many, has a future.

Planning is still at an early stage, and funding from the Government's Primary Growth Partnership announced last week will flesh out the plans over the next five years with input from marketing and business experts from Stanford University.

NZM proposes marrying science and marketing to grow production of fine wool and create a multipurpose fine-wool sheep from economically and environmentally sustainable farms, with the company then using its marketing skills to target products at affluent, discerning customers.

Brakenridge said having a product that added value to a retailer would give producers greater negotiating power.

"The more value we provide these market niches, the more the demand, and therefore we can capture more of that value."