Atkins Ranch, Lean Meats New Zealand Ltd

October 2005
Lean Meats is an exporter of New Zealand chilled lamb to the United States. It was established in the late 1980s when an opportunity was identified that could increase the returns for New Zealand lamb producers by servicing the US retail market. At that time New Zealand lamb producers were receiving around $25 - $30 per lamb. In these early days the company was called the Heavy Lamb Trust and was set up by a group of about 80 Wairarapa sheep farmers lead by John Atkins and Philip Guscott. The company is still owned by 80 farmer shareholders (majority), John Atkins (CEO), Philip Guscott and also Craig Hickson who is the owner of Progressive Meats Ltd where the lambs are processed.

In the early days John and Philip spent time barging their way into supermarkets in San Francisco with their chilly bins of chilled New Zealand lamb and demanding to see the meat managers. They would have spent nights packing lamb to send over, then make the journey to San Francisco pick up a hire car and the lamb and go and promote the product. This was the start of a truly successful marketing leader in the agricultural industry and beyond. This was highlighted by a Trade New Zealand Export Award in 2003 for carving out a high-end and high-return market in the USA.

John and his wife set up base in San Francisco in 1989 to spearhead the operation. Atkins Ranch California Ltd was formed as the marketing wing of Lean Meats. John moved back to New Zealand in 2000 to run the Lean Meats side of the business in Hastings. There is now 35 staff up in San Francisco including Johns son Andrew who manages Atkins Ranch and his daughter Karen who is in charge of the marketing and sales.

Today, Lean Meats exports 260,000 lambs annually from 250 farmer suppliers which represents around one percent of New Zealands lamb exports. Their status in the industry is a lot bigger than the volume and their market lead approach is highly regarded even by the likes of Jeff Grant the current chairman at Meat and Wool New Zealand.

John is the driver of the big picture market lead approach and is kept in toe by the equally as large Philip. Philip the bean counter keeps John aware of the core business detail to stop him from getting lost in the clouds somewhere.

It is these relationships that are paramount in American business. Americans place relationships ahead of price and supply alone. What is also unique about Lean Meats is that there are no formal contracts between parties along the supply chain and Lean Meats. They are all done on a handshake. Such is the strong relationships and trust.

The main US customer of Lean Meats Ltd is Whole Foods Market a provider of the highest quality natural and organic produce in the USA. They are the fastest growing natural supermarket chain in the USA and were founded in 1980. They are a supermarket size version of a New Zealand health store. Product display and appearance is immaculate. Growth of this retail change has been and is currently huge at around 180 stores in the USA and 7 in the UK (purchased 2004) with a target of 400 stores by 2010.

Other US retail markets include Trader Joes and Save Max. Markets other than the USA include the UK and EU, Asia and some products are sold in NZ.

Lamb produced for Lean Meats have a carcass weight averaging around 20kg which is higher than the NZ average of about 17 kg. Americans like things BIG and some of their Thanks Giving turkeys are bigger than these lambs. All suppliers must sign an affidavit to ensure their lambs have never been on a feedlot nor have they ever been given hormones or antibiotics. This is to guarantee they are naturally produced for the Whole Foods Market and other high value stores.

Atkins Ranch also now operates a distribution service with six trucks taking NZ lamb and other local American produce to retail outlets around the Northern California area.