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Rural Industries Research & Development Corporation
Summary of full report
by RC Leach
Field Fresh Marketing
March 2001
RIRDC Publication No 01/15
RIRDC Project No BUF-1A
EXECUTIVE SUMMARY
Buffalo Producers NSW Incorporated (BPNSW) commissioned Field Fresh Marketing (FFM) to develop new marketing opportunities for farmed buffalo. The current market opportunities in NSW do not permit an efficient, growth orientated and profitable industry.
FFM as the consultant, explored past efforts by various entities to develop a significant presence in this market segment. With very few exceptions the activities centered upon the gourmet food service sector. This market is small, fragmented, and prone to fads and only seeks the top end prime cuts from producers. The consultant believes a number of food service distributors do not enjoy a good reputation for promoting products such as buffalo. In the main these food service providers have many and varied products to offer their clients. As such they do not wish to participate in brand development or to control quality. In our opinion this represents an unsatisfactory market situation.
The consultant commenced a fresh approach, using his experience in the retail trade, particularly, supermarkets.
A prime objective was to reveal new ways to maximize the saleable yield from the animal. This was achieved by liaison with quality specialist red meat, value-adding manufacturers. Peppercorn Gourmet and Mulfric Foods in particular played an important part in a "first phase" development of sausages, burgers and mince.
A second objective was to differentiate the product. Specific high quality specification was sought from the producer body. A trial kill and bone out was conducted using two processing channels.
Both channels performed satisfactorily. To differentiate the product further, emphasis was placed upon taste test sensory evaluation and superior health benefits. A panel of sensory evaluators was commissioned to undertake this particular research and the results were enlightening. Professor Andrew Sinclair and Jane Barnes collaborated to produce some revealing positive health attributes associated with buffalo. The results in both areas are most encouraging and should, with targeted promotion, assist in the development of "Tender Buff" as a brand that will win market acceptance.
The National Heart Foundation accreditation is considered an important part of the healthy food story. Results to date indicate all products should gain such accreditation.
BPNSW has been made aware that significant promotional activity will be required to achieve sales targets. The minimum activity deemed necessary to succeed is contained in the report. The timing of the promotional activity is considered important and must coincide with market entrance. Brand, logo and label issues must be addressed in the next phase of the project. Recommendations have been made in this regard.
Two specialist service providers were employed to tray pack prime cuts ready for retail sale. The emphasis was on MAP packaged retail packs as we accept the supermarkets have a preference for this type of packaging verses vacuum packing. One provider Beak and Johnston did not achieve their goal, and our expectation in terms of shelf life, in spite of high recommendation from the retail industry. The second operator, Australian Game Meats although willing to be involved has been unable to obtain dispensation from AQIS to permit buffalo meat to be processed and packed at their Dural plant, due to their export license requirements. Alternatively Dubbo Meat Centre have agreed to provide vacuum packed retail packs in sizes to suit the supermarket chains.
BPNSW requested the development of an ancillary market for "second grade" non-specified buffalo. Precooked, skinless frozen sausages produced by Mulfric Foods may provide an answer.
The consultant recommends that further development of this particular product is warranted. At the appropriate time, after consideration of packaging and NHF accreditation, submissions can be made to grocery buyers at major supermarkets to permit access to the freezer section of their chains.
Field Fresh Marketing have put forward some distribution options to permit the product to reach the market in an efficient manner. Costings were developed for all phases of the operation from farm gate to retail shelves to determine liveweight return to producers. The costings indicated a return that may be well in excess of current returns to producers. The low sales volumes in the introductory phase necessitated a simple product range with a low cost distribution network.
The anticipated returns to
producers will require careful examination to determine if the industry
can be placed on a viable footing and whether further investment capital
required can be justified.
 
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