Lockwood Smith: Red Meat Sector Needs More Product Research

Summary

Sir Lockwood Smith, a former New Zealand cabinet minister and diplomat who is now a farmer and chair of the globally renowned Riddet Institute, said on 3 November 2026 that the red meat sector is enjoying a boom with high prices, particularly for beef — a period he described as the best since the wool boom of the 1950s. But he criticised the sector for underinvesting in research and development of new red meat products, noting that Fonterra and the dairy industry invest heavily in new food development, while the meat industry risks being seen as focused on immediate problems and lacking forward thinking. Smith said developing high-value new cuts for premium markets is worthwhile but remains 'cutting meat', whereas the dairy industry is creating a range of high-value new products from milk, and the meat industry needs to find products with value far beyond traditional steak.

He particularly emphasised the need for research into the 'fifth quarter' of the carcass (blood and other organs) to develop new products, saying awareness exists but research remains insufficient. He noted that the Riddet Institute has achieved outstanding results on 'digestible indispensable amino acids', showing red meat protein is more easily digested and absorbed than plant protein; red meat is rich in iron, and many women worldwide are iron-deficient, including in New Zealand. Smith called for serious consideration of increased investment in food science R&D while the industry is strong, to open new opportunities and stay ahead of competitors.

Commentary

The New Zealand red meat sector is experiencing its best price cycle since the wool boom of the 1950s, with high beef prices delivering strong cash flow. Sir Lockwood Smith's criticism hits the mark: the meat industry lags far behind dairy in R&D investment. Fonterra spends hundreds of millions of dollars annually developing high-value dairy products, while meat processors such as Silver Fern Farms and ANZCO still rely mainly on traditional cuts and frozen beef exports.

The gap is particularly evident in premium markets — dairy has expanded from basic milk powder into medical nutrition, sports nutrition and other segments, while red meat remains largely a commodity. Smith's mention of 'fifth quarter' (blood and organs) research has commercial potential, as the global functional food and nutritional supplement market grows rapidly, and components such as haem iron and bioactive peptides from animal blood can be developed into high-value nutrition products. New Zealand SMEs should watch this trend: if the meat industry successfully replicates dairy's value-added path, it will drive upgrading across farming, processing and branded products.

Meanwhile, research showing red meat protein is more digestible than plant protein gives New Zealand grass-fed beef and lamb a point of difference in premium health food markets, especially in women's iron supplementation and sports nutrition. The challenge is that meat R&D requires long-term investment and interdisciplinary collaboration, while current profits are mostly used to repay debt or pay dividends. If the current price window is missed, the industry may repeat the wool industry's decline — New Zealand wool faded due to synthetic fibre competition, and red meat, without R&D-based technological barriers, will face continued pressure from plant-based proteins and cultured meat.

Keywords: red meat sector, product research, Lockwood Smith, Riddet Institute, food science, fifth quarter, red meat protein, iron, Fonterra, beef prices

Photo by xiSerge on Pixabay

Source: Rural News Group