Are there inhibitions within the industry regarding the use of branding to create consumer loyalty?
LMC are not aware of any fundamental objections to branding in the industry. There are, however, a number of practical issues which require consideration. (a) Branding has a cost. Who will pay this cost, and who will benefit? (b) Given the present structure of the industry, there is absolutely no need, and indeed it could be argued that it would be disadvantageous for the processing sector, to lumber itself with branding of Northern Ireland product irrespective of producers’ enthusiasm. Processors are in the business of taking raw material and producing a product to retailers’ specifications and in the process making a margin for their shareholders. They have no incentive to promote a Northern Ireland brand from a commercial perspective. The real issue is, can the producer have the confidence that he will receive a return if he makes the investment? This is the ultimate conflict of interest between producer and processor: the producer wants to increase the value of the cattle
