There are benefits for farmers selling climate-friendly meat - if consumers are willing to pay for it, says Rabobank's Senior Animal Proteins Analyst, Angus Gidley-Baird.
A recent survey across the US and UK showed that 88 per cent of customers would like more environmentally-friendly products. However, this didn't necessarily meanthey wanted higher prices.
"The classic problem though is that you can ask these questions and everyone will say yes that's what we want - but are they going to be willing to pay for it?" Gidley-Baird told The Country's Jamie Mackay.
It was a dilemma Gidley-Baird has examined in his upcoming report, Selling climate friendly meat.
"The challenge with reduced-emissions meat is that it's effectively the same thing as conventional stuff - so the consumer can't necessarily tell any quality difference in the product."
"It's really about those social benefits and whether or not that means they're willing to pay a premium for an individual product - for something that's going to create a community-wide benefit."
While Rabobank was "less convinced" this was going to occur, the bank still believed there were a lot of opportunities for brands, food service providers and supermarkets to "tag on" these environmental credentials, and form "a product suite" that the consumer would be attracted to, Gidley-Baird said.
That meant there were also opportunities for New Zealand farmers, as part of the red meat supply chain.
"Whether it be their own on-farm stuff, where they're reducing some of the inefficiencies of production - because that's what methane is - it's a by-product - to actually getting access to new markets, because you've got supply chain partners targeting particular consumer segments," Gidley-Baird said.
Also in today's interview: Sydney-based Gidley-Baird gave a brief update on the Australian sheep and beef market.
