Our last blog discussed the need to develop product differentiation to maintain/increase value as volumes increase. The following are examples of ways to create product differentiation.
Quality Marks and Standards:
At its simplest the grade of your skin and meat represents different values in the market place. The WOA have guide grading standards for Leather and Meat as the relate to Ostrich
Country or Region of Origin:
– Red Tractor Scheme assures certain welfare standards as well as guarantee raised in UK
– Canadian Salmon, Cold Water Prawns, whilst not certification schemes, they indicate source of supply.
– Melton Mowbray Pork Pie and Champagne are examples of produce that the region of production has created very specific differentiation with the regional name protected by law when marketing.
Best Practice vs Good Practice
– Best Practice is leading edge thinking, practically applied which brings competitive advantage
– Good Practice is valuable and important but is becoming too big to bring competitive advantage with the mainstream agriculture. It provides a first step for ostrich producers in product differentiation.
A practical example in meat production of Good Practice and Best Practice is the introduction of Vitamin E Beef. When this technology was first introduced those that implemented Vitamin E technology to control meat colour had the competitive advantage producing better meat colour with a longer shelf life. Today that has become common good practice in beef production. It is available in Ostrich production, but not yet implemented as common practice.
These include membership of certification schemes that provide further differentiation in the market place such as:
- welfare schemes e.g. Freedom Food
- certification schemes run by the industry bodies e.g. Beef & Lamb New Zealand
- special standards e.g. Kobe Beef
- Halaal Certification
There is a cost to implementing these various quality marks and standards, costs that are more easily met when working with sufficient volume to support those costs. Producers working in collaboration can work together to clearly defined standards.