Tuesday, May 19, 2009

Good Herdsman secure contracts for Irish organic beef in Germany


Good Herdsmen, Ireland�s largest dedicated organic meat processor, recently secured sales of � milion Euro at the BioFach organic trade fair in Germany.

Three of the four new companies new customers are mainly in the Eurozone, thereby accessing vital new, non-sterling markets.

Dennree, a German wholesaler who supply 1500 natural food shops are the major coup for the Cahir based company.

The retail market in Germany differs from that of Ireland or the UK: natural food stores, which are more like wholefood delis than Irish health food shops, are quite prominent. Global supermarket chains are less dominant than in Ireland. Dennree also supply Austria and northern Italy.

In Denmark, Calu, who supply the niche sections of mainstream supermarkets will be taking Irish meat products from Good Herdsman.

Both Denmark and Germany have very strong organic sectors (Denmark was named organic country of the year at Biofach this year) and neither are suffering from the recession to the same extent as Ireland.

In Holland, an organic supermarket chain called Ecoplaza, while in France, an internet company called Vitafris are the new customers.

A combination of an innovative new style of packaging and premium cuts from a country with a clean green image seems to have been the winner for Good Herdsman at BioFach.

�We had more competitors taking pictures than customers� according to Josef Finke of the Good Herdsman. �The packaging and presentation went down very well.�

Good Herdsman have developed a new style of packaging which allows for their own retail packs to be made in Ireland and exported. This too is better for the Irish economy: previously Good Herdsman's meat was exported to be cut and packaged on the Continent.

With production, slaughter, processing and packaging done in Ireland, more mark up revenue is retained in Ireland.

Initially matured for 21 days, the new skin or film packaging Good Herdsman have developed allows for further maturing of the meat in the pack. �The meat is on a tray and has a film put around it in a way which prevents any air from getting in between� Finke tells me. �This allows for an extra 21 days of shelf life�.

The tray for the packaging is compostable, while the film is biodegradable: �a retail product on the continental market needs this level now�. They are also looking into making the tray biodegradable in the near future.

Stylistically, as well as visible meat, the packaging has a very striking black and white image of Ireland, which allows it to stand out from the multi coloured crowd. This packaging also allows for fixed weights to be sold, which internet sellers in particular are attracted to.

The new range is called Organic Steakhouse. �This we feel has the right associations. Steakhouses are known for good quality steaks at an affordable price. Also the word 'steakhouse' can be read and easily understood in many languages.�

According to Finke, along with Ireland's clean green image, and of course the economic situation, Irish cattle breeds proved to be of interest to these new customers:

�Breed actually came second after price� he tells me. �They loved the fact that the traditional breeds, Herefords and Angus, are used as mothers, with the Continental bull on top�.

Four beef and two lamb cuts have been introduced into these new markets. In lamb noisettes and leg steaks, while in beef striplion, sirlion, ribeye, and minute steak are being supplied.

I spoke to a farmer recently who visited a farm shop near Munich during BioFach. He found that, despite food in general being cheaper in Germany than Ireland, conventional Charolais beef from the farm was achieving 50E per kilo at the farm shop.

I put it to Josef Finke that the price the German consumer is willing to pay for quality organic beef should benefit Irish farmers:

�We managed to get the prices in Germany, France and Denmark that we need. This means that we do not have to put as much pressure on the other end: we want to try maintain the farmer's price. This strategy may or may not work, but so far looking good.�

No comments:

Post a Comment