Category Archives: lamb industry

Beef Industry, Food Industry, lamb industry, Supply Chain

Meat Industry – Improving Supplier Performance

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Phd Thesis abstract – link to complete document  https://hdl.handle.net/10182/8851

Supplier relationships and performance have become increasingly important in agri-food supply chains. This research aimed to investigate buyer-supplier relationships in the New Zealand red meat industry. Specifically, this meant examining how relationship quality, as well as supplier characteristics and relationship attributes affect supplier performance.

The analysis improved the conceptualisation of relationship quality by bringing together constructs from the relationship marketing and social capital literature. This established that relationship quality and social capital were closely related constructs.

Lincoln University PhD Thesis - Nic Lees
Lincoln University PhD Thesis – Nic Lees

By combining social capital and relationship quality this created a broader measure of the overall strength of the relationship. The findings show that improving supplier performance requires taking into account both supplier characteristics and relationship attributes. Furthermore, relationship quality played a significant mediating role between all the relationship factors and supplier performance.

The implications of this research are that there are specific ways buyers can improve supplier performance. This involves identifying and selecting suppliers who have superior ability, motivation and customer focus. They also need to avoid selecting suppliers with high levels of self-direction. Improving supplier performance also involves influencing relationship attributes and improving the quality of relationships with suppliers. In particular, processors need to ensure that suppliers experience positive value from the supply relationship. Furthermore, they need to manage the interaction between specific assets, dependence and use of coercive power.

Beef Industry, lamb industry, Marketing New Zealand Food and Wine, Supply Chain, Uncategorized

New Zealand beef and lamb exports

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How can we get more value from New Zealand beef and lamb exports?

Meeting consumer requirements means producing the right quality of product when the market requires
Meeting consumer requirements means producing the right quality of product when the market requires

The New Zealand Government’s has an ambitious goal of lifting total exports to 40 percent of GDP and doubling the value of primary exports by 2025. They have stated that this will involve developing stronger relationships with New Zealand exporters and supporting them to add and capture value from existing markets through supply chain integration, brand promotion and brand protection. New Zealand red meat exports play an important role in this as they represent 11% of total merchandise exports.

There is limited scope for increasing the volume of red meat production in New Zealand due to

Meeting consumer demand is difficult in New Zealand’s pasture based system
Meeting consumer demand is difficult in New Zealand’s pasture based system

land and environmental constraints. This means adding value to these exports is the only alternative. A significant proportion New Zealand’s red meat is still exported in commodity form and fails to achieve a premium for the attributes of its New Zealand origin. Changing this however will require a co-ordinated effort from government, exporters and producers.

Market access and promotion of the NZ Inc brand story can create opportunities for New Zealand exporters, however, capitalising on these initiatives requires companies to develop capabilities and strategies to market and deliver these products to demanding international consumers. These consumers are demanding greater variety and quality in the food they eat. They require a consistent year-round supply of high quality, safe food. They also want food that aligns with their own personal values, which includes credence attributes such as environmental sustainability, animal welfare and fair trade, as well as local and organic production.

Consumers want food that aligns with their own personal values, which includes animal welfare and environmental sustainability
Consumers want food that aligns with their own personal values, which includes animal welfare and environmental sustainability

To deliver this, it is necessary to have farmer suppliers who can produce the right quality of product when the market requires and who are committed to long-term supply relationships. Without this type of integrated value chain New Zealand will fail to break out of its reliance on agricultural commodities. This research has focused on several New Zealand exporters and their suppliers who have developed relationships with high-end retail customers and have a strategy in place to add value to their products.

Consistently meeting consumer demands is difficult within the constraints of New Zealand’s pasture-based agricultural production systems, as production volume and product specifications are highly dependent on climate.

Read Full research publication

Lees, N. J. (2015). The potential for red meat value chains. Primary Industry Management 19(1), 25-28.