New Zealand faces up to new UK retail trends

The two new retailing trends could affect New Zealand’s food exports more than any other issue since Britain joined the European Union in 1973.

Coming from New Zealand, where both ideas are in their infancy, it’s a shock to shop in the UK.

Once supermarkets battled on price or brand variety.

Now, they’re going all-out to prove they are greener – and more British – than thou.

New Zealand agricultural genetics company Rissington Breedline is already tapping into the changes.

It is working with approximately 100 farms in the UK to produce high-quality lamb for premier retailer Marks & Spencer (M&S).

Rissington sells its specially-bred Primera and Highlander trademarked rams to the farms.

It also gets a royalty payment for working with the farmers and meat processors to get meat onto M&S shelves.

Each year the English farmers get rams with millions of dollars of research behind them.

M&S gets a guaranteed supply of high-quality meat 12 months of the year.

In return, Rissington gets a major contract with one of the biggest retailing chains in the UK.

Rissington chief executive Jeremy Absolom says over the next three to four years the company aims to develop partnerships with 250 British farmers.

It wants to supply all of M&S’s lamb.

Between January and June, when New Zealand lamb is in season, the meat will come from New Zealand.

Then, when British lamb is in season, supply will swap to the UK.

British consumers prefer in-season lamb.

But that’s only one reason why Rissington has started UK production.

By growing its specially-bred lambs in the UK, Rissington is meeting one of two major new British consumer and retailing trends: local sourcing.

Suddenly British consumers want to buy British produce.

The other trend – and it’s equally important to Rissington – is sustainability.

The term encompasses anything from food miles to social responsibility.

It also includes environmental protection, animal welfare and sustainable returns for producers.

And it’s big in the UK.

Battling local

At the Auckland ‘Conflict in Paradise’ conference in June 2008, M&S head of sustainability Mike Barry talked about ferocious green competition among UK retailers and food outlets.

“The business that cracks [sustainability] will prosper,” he says.

Last year M&S had sales worth $22 billion and a $2.4 billion profit.

Obviously, getting them breeding our lambs over there gets Rissington a local sourcing tick.

However, Absolom says the company is also firmly aware of the need to focus on sustainability.

Rissington is working towards being able to label each piece of its meat with the name of the individual farm that produced it.

Customers will eventually be able to go online and check the farm’s environmental, animal welfare and quality credentials.

A major push by UK consumers to buy locally means many are choosing to avoid New Zealand food.