Consumer interest back-on-track despite butcher closures

Despite a run of recent butcher shop closures across regional SA, the ones left behind, are seeing increased foot traffic and employment, according to butcher of 40 years, Chris McKinnon, who has rebooted a traditional butcher in the Barossa Valley.

Recent national statistics show the non-supermarket share of fresh meat trade is 15 per cent but the Statista Research Department conducted a survey from 2018-2019 and showed it comprised of 20.9pc of the market share.

Mr McKinnon believed consumer interest was back-on-track and envisioned a positive long-term future for butcher shops.

"We decided to reestablish a traditional butcher in the Barossa after a casual chat over a beer about butcher shops disappearing," he said.

"The traditional recipes have disappeared and we want to resurrect them."

Mr McKinnon was a butcher at Linke's Central Meat Store, which closed its doors at the end of last year, but decided to pair up with local business owners Peter and Kathi Werner, to open Tanunda Traditional Smallgoods and Butchery.

"We opened two weeks ago and so far, it is going really well," Mr McKinnon said.

"We have revamped the factory and smallgoods are the big picture."

Mr McKinnon believed consumers were steering away from supermarket boxed meat, in search of better quality cuts and personalised service.

"A lot of butchers closed because of aging butchers and strong competition from the supermarkets but consumers are coming back to their local butcher and if those guys held on, they would be in a good position now," he said.

Jobs and Skills Australia's employment projections to 2026 showed butcher employment was expected to grow strongly, with butcher employees set to rise from 8200 to 9200, an increase of 900 jobs.

JBS also revealed more than 53pc of butchers and smallgoods makers are employed outside of capital cities and the median age was 39 years.

But with every butcher shop which closes its doors, Australian Meat Industry Council SA retail chair Trevor Hill believed it was a wakeup call to the consumer.

"People are becoming more aware that if small, local businesses were going to survive, they have to put their money into it," he said.

"The big supermarkets have lost their butchers and consumer interest is certainly coming from the customer service at a butcher."

Mr Hill's gut feel was butchers who had changed their approach to increase foot traffic during the tough times, had seized a new opportunity.

"Value-added products are getting consumers to check out what's available but the opportunity is, butchers giving back good old service. Tailoring the product to a customers needs," he said.

"The innovation of selling the sauce, seasoning and meat in a take-home pack to make into a meal, is meeting consumer needs."

Mr Hill believed the rising cost of living and flow-on affects from the pandemic, had also improved the outlook for butcher shops.

"The language is changing from a gut-filler meal to meals being prepared at home with interest and care, talking to a butcher for advice and it has become about food again and not convenience," he said.

"It is a second bite of the cherry for butcher shops - they are selling a fresh proposition for the customer."

Consumer Tom Connell, Cootamundra, NSW, was visiting the Barossa Valley region and chose to source local meat in Tanunda instead of buying it at the supermarket.

"I would always rather go local, a lot of effort goes into running a butcher," he said.

"A local butcher personalises their service and have all of the cuts. If you cannot get what you need, they will order it in."

Mr Connell believed supermarkets offered a "what you see, is what you get" product and this was not appealing to him.

"At home, we have two very well supported butchers because of the service they provide. It is more than just buying meat off the shelf," he said.

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